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: 4/30/14
Item 1. Reports to Stockholders.
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,
The first half of the fiscal year has been interesting to say the least. After hitting record highs in December, the three major U.S. stock indices (S&P 500, Dow Jones Industrial Average, and the NASDAQ Composite) took a downward turn in January sending shockwaves of fear through investors with volatility levels not seen in over a year.
At the same time, domestic bonds performed better than expected as interest rates fell at the start of 2014. After interest rates hit a two-year high at the end of 2013, many investors had anticipated that rates would rise further in the wake of the Federal Reserve’s pull-back in monthly purchases of Treasury bonds coupled with generally positive economic data.
Outside the U.S., economic slowdown in China, continued struggles in Europe, political tensions in the Ukraine, and deteriorating prospects in emerging markets elevated concerns for international stock investors. International bonds, on the other hand, performed better than expected, outperforming U.S. bonds by over 1 percent over the six month fiscal period ended April 30, 2014.
Looking forward, our belief continues to be that interest rates will rise, although the time period in which that may occur has lengthened from what we had initially expected. As mentioned above, continued positive economic data and the Fed showing no signs of pause in its taper of government bond buying leads some economists to believe we are on an economic upswing.
Holding true to our core investment philosophy as a conservative strategic investment adviser, we added two mutual funds to the Dunham Funds family at the beginning of the fiscal year. The Dunham Floating Rate Bond Fund and the Dunham International Opportunity Bond Fund have added diversification to the Dunham Fund Family, different risk exposure, and income-producing features to our already robust lineup of fixed income mutual funds.
On the equity side, we recently consolidated the Dunham Funds family by liquidating the Dunham Large Cap Growth Fund and retaining the Dunham Focused Large Cap Growth Fund. We did this in order to eliminate a level of overlap that we believe will benefit our investors. The Dunham family of mutual funds is currently composed of 16 funds across a broad array of asset classes that we believe give investors vast options to construct portfolios of well-diversified investments in various market environments.
We thank you for entrusting us with your assets and pledge to continue to provide you with the highest level of service and investment expertise for years to come.
Sincerely,
Jeffrey A. Dunham
President
Dunham & Associates Investment Counsel, Inc.
April 30, 2014
Dunham Corporate/Government Bond Fund
Message from the Sub-Adviser (Newfleet Asset Management, LLC)
Investment-grade bonds, as measured by the Barclays Aggregate Bond Index, rose 1.7 percent in the six-month period ended April 30, 2014 while Treasuries in the middle of the yield curve, as measured by the BofA ML Treasuries 5-7 Years Index, lost 0.1 percent. Long-term Treasuries, as measured by the BofA ML Treasuries 10+ Years Index, saw an increase of 4.3 percent over the same time period. Corporate bonds, as measured by the BofA ML U.S. Corporate Bond Master Index, did not did not perform as well as the long-term Treasuries, but still managed a 3.7 percent gain. High-yield bonds, as measured by the BofA ML High-Yield Bond Cash Pay Index, rose 5.0 percent and outperformed the intermediate-term Treasury bonds by 5.1 percent during the six-month time period.
The Sub-Adviser attempted to balance risk versus reward by choosing to emphasize lower duration bonds while also overweighting lower credit quality securities that have been outperforming in recent quarters. The average effective duration of a position held by the Sub-Adviser was 4.3 years while the benchmark index had an average duration of 5.6 years. This allocation mostly benefited the Fund despite some volatility in Treasury yields. The 10-year Treasury yield began the six-month period at 2.62 percent before it rose to 3.03 percent in December, then ended the period nearly where it started at 2.64 percent. The average credit rating in the Fund was Baa1 versus Aa2 for the benchmark. The lower credit quality enhanced overall performance during the six-month period, as intermediate-term Treasury securities lagged the benchmark significantly. However, the Fund's lower effective duration detracted somewhat as Treasury yields ended the period lower than at the beginning of the fiscal year.
Corporate high-yield securities were the single largest contributor to performance over the six-month period ended April 30, 2014. The Sub-Adviser maintained a significant overweight to these bonds rated below investment-grade, investing 33 percent of the Fund in such securities while the index held less than 1 percent. The Fund also outperformed in this sector on a relative basis, beating corporate high-yield securities within the benchmark by a wide margin. Forrest Laboratories, Inc. 4.875% due 2/15/21 (345829AE6), a pharmaceutical company that develops drugs, was a major contributor to overall performance of the Fund. It was announced the firm would be acquired by Actavis Plc (ACT), a generic drug maker, for $25 billion in a cash and stock deal. It is anticipated that this merger would result in Actavis maintaining its investment grade rating, benefitting holders of the Forrest Laboratories debt. Spreads on the bonds tightened from 260 basis points over Treasuries with similar maturities at issuance to the 150 basis point range. Forrest Laboratories bonds are expected to be upgraded to Baa upon closing of the transaction.
Exposure to emerging markets debt had a relatively neutral effect on the Fund as it is a small percentage of both the benchmark index and of the Sub-Adviser’s holdings. Positions in the Fund outperformed during the period from November until the end of January and then underperformed from the beginning of February until April 30. One of the factors in the underperformance toward the end of the six-month period was the Fund's exposure to Russian bonds. Novatek Finance Ltd. 4.422% due 12/13/22 (66989PAC4), a natural gas producer, had a severe decline in April due to the ongoing situation in Ukraine and the threat of sanctions by the U.S. and Europe against Russia. The Sub-Adviser emphasized that the firm is the largest independent natural gas producer in Russia and the number two overall gas producer behind state-owned Gazprom (GAZG.EX). The Sub-Adviser believes that the situation in Russia should cool down over time and that the bond will recover, noting the firm’s relatively substantial size and enterprise value of $32 billion.
The Sub-Adviser believes U.S. economic growth will pick up slightly in the coming fiscal quarter. The Sub-Adviser also anticipates that spreads on corporate bonds over maturities with similar maturities are expected to remain tight while demand for bonds will help to support stable interest rates. The Sub-Adviser believes that slower economic growth, low inflation, and a labor market that is weaker than many think will also help to keep rates low, cautioning that rates may increase if the economic growth is higher than expected. However, it is considering scenarios that include the 10-Year Treasury rate remaining in the low single digits through the end of the calendar year.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2014
Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) | |
Class N | 2.30% | 0.25% | 3.92% | 6.07% | 4.76% |
Class C Class A with load of 4.50% Class A without load | 1.93% (2.34)% 2.25% | (0.52)% (4.51)% 0.00% | 3.15% 2.10% 3.68% | 5.28% 4.83% 5.81% | 3.98% 4.22%* 4.88%* |
Morningstar Intermediate-Term Bond Category | 3.39% | (0.08)% | 3.81% | 6.53% | 4.23% |
Barclays Aggregate Bond Index | 1.74% | (0.26)% | 3.60% | 4.88% | 5.03% |
*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. Class A shares are subject to a sales load of 4.50% and a deferred sales charge of up to 0.75%. 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, 2014 | |||||||||
|
| Principal |
| Interest |
|
| Maturity |
|
|
Security |
| Amount |
| Rate |
|
| Date |
| Value |
BONDS & NOTES - 57.6 % |
|
|
|
|
|
|
|
|
|
AEROSPACE/DEFENSE - 0.3 % |
|
|
|
|
|
|
|
|
|
AAR Corp. |
| $ 120,000 |
| 7.250 | % |
| 1/15/2022 |
| $ 130,500 |
Spirit AeroSystems, Inc. - 144A |
| 30,000 |
| 5.250 |
|
| 3/15/2022 |
| 30,488 |
|
|
|
|
|
|
|
|
| 160,988 |
AIRLINES ABS - 1.2 % |
|
|
|
|
|
|
|
|
|
Air Canada 2013-1 Class B Pass Through Trust - 144A | 114,500 |
| 5.375 |
|
| 5/15/2021 |
| 117,649 | |
Continental Airlines 2009-2 Class A Pass Through Trust | 247,823 |
| 7.250 |
|
| 11/10/2019 |
| 289,953 | |
United Airlines 2009-2A Pass Through Trust |
| 195,317 |
| 9.750 |
|
| 1/15/2017 |
| 224,614 |
|
|
|
|
|
|
|
|
| 632,216 |
AUTO PARTS & EQUIPMENT - 0.4 % |
|
|
|
|
|
|
|
|
|
Meritor, Inc. |
| 215,000 |
| 6.750 |
|
| 6/15/2021 |
| 228,437 |
|
|
|
|
|
|
|
|
|
|
AUTOMOBILE ABS - 1.1 % |
|
|
|
|
|
|
|
|
|
Capital Auto Receivables Asset Trust / Ally 2013-1 C |
| 590,000 |
| 1.740 |
|
| 10/22/2018 |
| 591,092 |
|
|
|
|
|
|
|
|
|
|
BANKS - 9.8 % |
|
|
|
|
|
|
|
|
|
Banco de Credito del Peru - 144A |
| 170,000 |
| 6.125 | + |
| 4/24/2027 |
| 178,840 |
Banco de Credito e Inversiones - 144A |
| 325,000 |
| 4.000 |
|
| 2/11/2023 |
| 320,300 |
Banco Internacional del Peru SAA -144A |
| 200,000 |
| 6.625 | + |
| 3/19/2029 |
| 206,000 |
Banco Santander Chile - 144A |
| 300,000 |
| 3.875 |
|
| 9/20/2022 |
| 296,375 |
Banco Votorantim SA - 144A |
| 275,000 |
| 7.375 |
|
| 1/21/2020 |
| 301,469 |
Bank of America Corp |
| 175,000 |
| 5.625 |
|
| 7/1/2020 |
| 200,260 |
Barclays Bank PLC - 144A |
| 270,000 |
| 6.050 |
|
| 12/4/2017 |
| 306,761 |
Goldman Sachs Group Inc. |
| 185,000 |
| 5.750 |
|
| 1/24/2022 |
| 211,418 |
Goldman Sachs Group Inc. |
| 105,000 |
| 5.700 | + |
| Perpetual |
| 107,244 |
JPMorgan Chase & Co |
| 40,000 |
| 6.125 |
|
| 6/27/2017 |
| 45,372 |
JPMorgan Chase & Co |
| 200,000 |
| 3.250 | + |
| 9/23/2022 |
| 197,973 |
JPMorgan Chase & Co |
| 300,000 |
| 5.150 |
|
| Perpetual |
| 285,375 |
Macquarie Bank Ltd. - 144A |
| 17,000 |
| 6.625 |
|
| 4/7/2021 |
| 19,374 |
Morgan Stanley |
| 185,000 |
| 4.100 |
|
| 5/22/2023 |
| 184,129 |
Morgan Stanley |
| 225,000 |
| 6.375 |
|
| 7/24/2042 |
| 277,602 |
Morgan Stanley |
| 105,000 |
| 5.45 | + |
| Perpetual |
| 105,945 |
PNC Financial Services Group, Inc. |
| 255,000 |
| 4.850 | + |
| Perpetual |
| 240,656 |
Russian Agricultural Bank OJSC Via RSHB Capital SA - 144A | 300,000 |
| 5.100 |
|
| 7/25/2018 |
| 282,375 | |
Turkiye Garanti Bankasi AS - 144A |
| 330,000 |
| 5.250 | + |
| 9/13/2022 |
| 327,525 |
UBS AG/Stamford CT |
| 650,000 |
| 7.625 |
|
| 8/17/2022 |
| 773,598 |
VTB Bank OJSC Via VTB Capital SA - 144A |
| 265,000 |
| 6.000 |
|
| 4/12/2017 |
| 260,362 |
Zions Bancorporation |
| 115,000 |
| 4.500 |
|
| 6/13/2023 |
| 115,656 |
|
|
|
|
|
|
|
|
| 5,244,609 |
BUILDING MATERIALS - 0.2 % |
|
|
|
|
|
|
|
|
|
CPG Merger Sub LLC-144A |
| 85,000 |
| 8.000 |
|
| 10/1/2021 |
| 91,163 |
|
|
|
|
|
|
|
|
|
|
CHEMICALS - 1.5 % |
|
|
|
|
|
|
|
|
|
Hexion US Finance Corp. |
| 170,000 |
| 6.625 |
|
| 4/15/2020 |
| 177,438 |
New Market Corp. |
| 305,000 |
| 4.100 |
|
| 12/15/2022 |
| 302,310 |
Nufarm Australia Ltd.-144A |
| 115,000 |
| 6.375 |
|
| 10/15/2019 |
| 119,169 |
Tronox Finance LLC |
| 175,000 |
| 6.375 |
|
| 8/15/2020 |
| 179,375 |
|
|
|
|
|
|
|
|
| 778,292 |
COAL - 0.1 % |
|
|
|
|
|
|
|
|
|
Consol Energy, Inc. - 144A |
| 70,000 |
| 5.8750 |
|
| 4/15/2022 |
| 72,275 |
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | |||||||||
Dunham Corporate/Government Bond Fund (Continued) | |||||||||
April 30, 2014 | |||||||||
|
| Principal |
| Interest |
|
| Maturity |
|
|
Security |
| Amount |
| Rate |
|
| Date |
| Value |
COMMERCIAL MBS - 6.6 % |
|
|
|
|
|
|
|
|
|
A10 Securitization 2013-1 B LLCA10 2013-1 B - 144A |
| $ 300,000 |
| 4.120 | % |
| 11/15/2025 |
| $ 299,158 |
Aventura Mall Trust 2013-AVM - 144A |
| 100,000 |
| 3.867 | + |
| 12/5/2032 |
| 101,876 |
Bear Stearns Commercial Mortgage Securities Trust 2005-PWR9 A4B | 580,000 |
| 4.943 |
|
| 9/11/2042 |
| 608,593 | |
Bear Stearns Commercial Mortgage Securities Trust 2007-TOP28 A3 | 101,267 |
| 5.793 |
|
| 9/11/2042 |
| 101,450 | |
CD 2006-CD2 Mortgage Trust 2006-CD2 A2 |
| 620,000 |
| 5.550 | + |
| 1/15/2046 |
| 630,963 |
Citigroup Commercial Mortgage Trust 2008-C7 |
| 95,000 |
| 6.341 | + |
| 12/10/2049 |
| 106,969 |
Extended Stay America 2013-ESH - 144A |
| 300,000 |
| 2.958 |
|
| 12/5/2031 |
| 300,570 |
Government National Mortgage Association 2012-147 AK | 497,983 |
| 2.587 | + |
| 4/16/2054 |
| 513,177 | |
LB-UBS Commercial Mortgage Trust 2007-C7 A3 |
| 64,131 |
| 5.866 | + |
| 9/15/2045 |
| 72,564 |
Morgan Stanley Capital I Trust 2005-IQ10 A4B |
| 510,000 |
| 5.284 | + |
| 9/15/2042 |
| 537,307 |
Morgan Stanley Capital I Trust 2007-IQ14 AM |
| 224,000 |
| 5.896 | + |
| 4/15/2049 |
| 236,932 |
|
|
|
|
|
|
|
|
| 3,509,559 |
COMMERCIAL SERVICES - 1.8 % |
|
|
|
|
|
|
|
|
|
ADT Corp.- 144A |
| 180,000 |
| 6.250 |
|
| 10/15/2021 |
| 188,100 |
Ahern Rentals, Inc.- 144A |
| 195,000 |
| 9.500 |
|
| 6/15/2018 |
| 217,913 |
Avis Budget Car Rental LLC / Avis Budget Finance, Inc. | 150,000 |
| 5.500 |
|
| 4/1/2023 |
| 152,250 | |
Interactive Data Corp -144A |
| 80,000 |
| 5.875 |
|
| 4/15/2019 |
| 80,950 |
Iron Mountain, Inc. |
| 195,000 |
| 5.750 |
|
| 8/15/2024 |
| 193,538 |
United Rentals North America, Inc. |
| 110,000 |
| 5.750 |
|
| 11/15/2024 |
| 114,262 |
|
|
|
|
|
|
|
|
| 947,013 |
COSMETICS / PERSONAL CARE - 0.2 % |
|
|
|
|
|
|
|
|
|
Elizabeth Arden, Inc. - 144A |
| 75,000 |
| 7.375 |
|
| 3/15/2021 |
| 82,688 |
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 3.3 % |
|
|
|
|
|
|
|
|
|
Aircastle Ltd. |
| 200,000 |
| 5.125 |
|
| 3/15/2021 |
| 201,500 |
Denali Borrower LLC / Denali Finance Corp. - 144A |
| 85,000 |
| 5.625 |
|
| 10/15/2020 |
| 87,550 |
Ford Motor Credit Co. LLC. |
| 270,000 |
| 5.750 |
|
| 2/1/2021 |
| 310,846 |
General Electric Capital Corp. |
| 100,000 |
| 7.125 | + |
| Perpetual |
| 115,181 |
General Electric Capital Corp. |
| 200,000 |
| 5.250 | + |
| Perpetual |
| 197,750 |
Icahn Enterprises LP / Icahn Enterprises Finance Corp. - 144A | 10,000 |
| 4.875 |
|
| 3/15/2019 |
| 10,163 | |
Icahn Enterprises LP / Icahn Enterprises Finance Corp. - 144A | 55,000 |
| 6.000 |
|
| 8/1/2020 |
| 58,300 | |
Icahn Enterprises LP / Icahn Enterprises Finance Corp. - 144A | 100,000 |
| 5.875 |
|
| 2/1/2022 |
| 101,750 | |
Jefferies Group LLC |
| 65,000 |
| 6.875 |
|
| 4/15/2021 |
| 75,843 |
Macquarie Group Ltd.- 144A |
| 125,000 |
| 6.250 |
|
| 1/14/2021 |
| 140,992 |
Nationstar Mortgage LLC / Nationstar Capital Corp. |
| 200,000 |
| 6.500 |
|
| 6/1/2022 |
| 190,000 |
SLM Corp. |
| 200,000 |
| 5.500 |
|
| 1/25/2023 |
| 137,750 |
Walter Investment Management Corp. - 144A |
| 135,000 |
| 7.875 |
|
| 12/15/2021 |
| 134,663 |
|
|
|
|
|
|
|
|
| 1,762,288 |
ELECTRIC - 0.3 % |
|
|
|
|
|
|
|
|
|
Electricite de France SA - 144A |
| 165,000 |
| 5.250 | + |
| Perpetual |
| 168,795 |
|
|
|
|
|
|
|
|
|
|
ELECTRONICS - 0.5 % |
|
|
|
|
|
|
|
|
|
Rexel SA - 144A |
| 245,000 |
| 5.250 |
|
| 6/15/2020 |
| 253,575 |
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | |||||||||
Dunham Corporate/Government Bond Fund (Continued) | |||||||||
April 30, 2014 | |||||||||
|
| Principal |
| Interest |
|
| Maturity |
|
|
Security |
| Amount |
| Rate |
|
| Date |
| Value |
ENTERTAINMENT - 1.5 % |
|
|
|
|
|
|
|
|
|
GLP Capital LP / GLP Financing II Inc. - 144A |
| $ 10,000 |
| 4.375 | % |
| 11/1/2018 |
| $ 10,375 |
GLP Capital LP / GLP Financing II Inc. - 144A |
| 85,000 |
| 4.875 |
|
| 11/1/2020 |
| 87,975 |
GLP Capital LP / GLP Financing II Inc. - 144A |
| 5,000 |
| 5.375 |
|
| 11/1/2023 |
| 5,175 |
Isle of Capri Casinos, Inc. |
| 125,000 |
| 5.875 |
|
| 3/15/2021 |
| 125,312 |
Mohegan Tribal Gaming Authority - 144A |
| 190,000 |
| 9.750 |
|
| 9/1/2021 |
| 209,950 |
Penn National Gaming Inc .- 144A |
| 120,000 |
| 5.875 |
|
| 11/1/2021 |
| 116,100 |
Six Flags Entertainment Corp. - 144A |
| 245,000 |
| 5.250 |
|
| 1/15/2021 |
| 248,063 |
United Artists Theatre Circuit Inc. 1995-A Pass Through Trust * | 1,840 |
| 9.300 |
|
| 7/1/2015 |
| 1,866 | |
|
|
|
|
|
|
|
|
| 804,816 |
FOOD - 1.0 % |
|
|
|
|
|
|
|
|
|
Flowers Foods, Inc. |
| 300,000 |
| 4.375 |
|
| 4/1/2022 |
| 309,903 |
Ingles Markets, Inc. |
| 100,000 |
| 5.750 |
|
| 6/15/2023 |
| 100,250 |
Smithfield Food, Inc. - 144A |
| 110,000 |
| 5.875 |
|
| 8/1/2021 |
| 115,912 |
|
|
|
|
|
|
|
|
| 526,065 |
FOREST PRODUCTS & PAPER - 0.5 % |
|
|
|
|
|
|
|
|
|
Sappi Papier Holding GmbH - 144A |
| 265,000 |
| 7.750 |
|
| 7/15/2017 |
| 276,925 |
|
|
|
|
|
|
|
|
|
|
HEALTHCARE-SERVICES - 0.9 % |
|
|
|
|
|
|
|
|
|
Centene Corp. |
| 105,000 |
| 4.750 |
|
| 4/1/2022 |
| 105,656 |
CHS/Community Health Systems, Inc. - 144A |
| 30,000 |
| 5.125 |
|
| 8/1/2021 |
| 30,750 |
CHS/Community Health Systems, Inc. - 144A |
| 30,000 |
| 6.875 |
|
| 2/1/2022 |
| 31,237 |
IASIS Healthcare LLC / IASIS Capital Corp. |
| 70,000 |
| 8.375 |
|
| 5/15/2019 |
| 74,550 |
Select Medical Corp. - 144A |
| 90,000 |
| 6.375 |
|
| 6/1/2021 |
| 93,150 |
Select Medical Corp. - 144A |
| 50,000 |
| 6.375 |
|
| 6/1/2021 |
| 51,750 |
Tenet Healthcare Corp.-144A |
| 100,000 |
| 8.125 |
|
| 4/1/2022 |
| 111,250 |
|
|
|
|
|
|
|
|
| 498,343 |
HOLDING COMPANIES-DIVERSIFIED - 0.7 % |
|
|
|
|
|
|
|
|
|
Hutchison Whampoa International 12 Ltd. - 144A |
| 185,000 |
| 6.000 | + |
| Perpetual |
| 199,800 |
KOC Holding AS - 144A |
| 200,000 |
| 3.500 |
|
| 4/24/2020 |
| 188,500 |
|
|
|
|
|
|
|
|
| 388,300 |
HOME BUILDERS - 0.6 % |
|
|
|
|
|
|
|
|
|
Brookfield Residential Properties, Inc. - 144A |
| 120,000 |
| 6.500 |
|
| 12/15/2020 |
| 126,900 |
Taylor Morrison Communities, Inc. / Monarch Communities, Inc. - 144A | 190,000 |
| 5.250 |
|
| 4/15/2021 |
| 192,850 | |
|
|
|
|
|
|
|
|
| 319,750 |
HOME EQUITY ABS - 2.1 % |
|
|
|
|
|
|
|
|
|
Bayview Financial Mortgage Pass-Through Trust 2006-A 1A4 (a) | 560,000 |
| 6.087 |
|
| 2/28/2041 |
| 589,140 | |
GSAA Trust 2005-1 AF4(a) |
| 510,070 |
| 5.421 |
|
| 11/25/2034 |
| 546,525 |
|
|
|
|
|
|
|
|
| 1,135,665 |
INSURANCE - 1.9 % |
|
|
|
|
|
|
|
|
|
Allstate Corp. |
| 200,000 |
| 5.750 | + |
| 8/15/2053 |
| 214,375 |
Chubb Corp. |
| 85,000 |
| 6.375 | + |
| 3/29/2067 |
| 94,775 |
Genworth Holdings, Inc. |
| 205,000 |
| 4.900 |
|
| 8/15/2023 |
| 220,113 |
Prudential Financial, Inc. |
| 370,000 |
| 5.625 | + |
| 6/15/2043 |
| 383,875 |
Voya Financial, Inc. |
| 125,000 |
| 2.650 | + |
| 5/15/2053 |
| 125,613 |
|
|
|
|
|
|
|
|
| 1,038,751 |
INTERNET - 0.2 % |
|
|
|
|
|
|
|
|
|
Equinix, Inc. |
| 130,000 |
| 4.875 |
|
| 4/1/2020 |
| 133,250 |
|
|
|
|
|
|
|
|
|
|
IRON/STEEL - 1.6 % |
|
|
|
|
|
|
|
|
|
Carpenter Technology Corp. |
| 300,000 |
| 4.450 |
|
| 3/1/2023 |
| 303,136 |
Gerdau Trade, Inc. - 144A |
| 370,000 |
| 4.750 |
|
| 4/15/2023 |
| 359,825 |
United States Steel Corp. |
| 180,000 |
| 6.875 |
|
| 4/1/2021 |
| 194,400 |
|
|
|
|
|
|
|
|
| 857,361 |
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | |||||||||
Dunham Corporate/Government Bond Fund (Continued) | |||||||||
April 30, 2014 | |||||||||
|
| Principal |
| Interest |
|
| Maturity |
|
|
Security |
| Amount |
| Rate |
|
| Date |
| Value |
LODGING - 0.8 % |
|
|
|
|
|
|
|
|
|
Boyd Gaming Corp. |
| $ 110,000 |
| 9.000 | % |
| 7/1/2020 |
| $ 121,962 |
MGM Resorts International |
| 115,000 |
| 6.750 |
|
| 10/1/2020 |
| 127,374 |
Station Casinos LLC |
| 170,000 |
| 7.500 |
|
| 3/1/2021 |
| 182,750 |
|
|
|
|
|
|
|
|
| 432,086 |
MEDIA - 1.0 % |
|
|
|
|
|
|
|
|
|
CCU Escrow Corp. - 144A |
| 20,000 |
| 10.000 |
|
| 1/15/2018 |
| 19,650 |
Clear Channel Worldwide Holdings, Inc. |
| 250,000 |
| 7.625 |
|
| 3/15/2020 |
| 270,625 |
Sirius XM Radio Inc. - 144A |
| 245,000 |
| 4.250 |
|
| 5/15/2020 |
| 235,812 |
|
|
|
|
|
|
|
|
| 526,087 |
METAL FABRICATE/HARDWARE - 0.4 % |
|
|
|
|
|
|
|
|
|
TMK OAO Via TMK Capital SA-144A |
| 245,000 |
| 6.750 |
|
| 4/3/2020 |
| 210,088 |
|
|
|
|
|
|
|
|
|
|
OIL & GAS - 4.6 % |
|
|
|
|
|
|
|
|
|
BreitBurn Energy Partners LP / BreitBurn Finance Corp. | 190,000 |
| 7.875 |
|
| 4/15/2022 |
| 206,625 | |
Calumet Specialty Products Partners LP/Calumet Finance Corp. | 105,000 |
| 6.500 |
|
| 4/15/2021 |
| 105,000 | |
Denbury Resources, Inc. |
| 105,000 |
| 5.500 |
|
| 5/1/2022 |
| 106,313 |
Endeavor Energy Resources LP / EER Finance, Inc. - 144A | 30,000 |
| 7.000 |
|
| 8/15/2021 |
| 31,800 | |
Forest Oil Corp. |
| 115,000 |
| 7.250 |
|
| 6/15/2019 |
| 101,487 |
Novatek OAO via Novatek Finance Ltd. - 144A |
| 305,000 |
| 4.422 |
|
| 12/13/2022 |
| 253,150 |
Pacific Rubiales Energy Corp. - 144A |
| 180,000 |
| 5.375 |
|
| 1/26/2019 |
| 185,400 |
Parker Drilling Co. - 144A |
| 240,000 |
| 7.500 |
|
| 8/1/2020 |
| 258,000 |
Petrobras International Finance Co. |
| 300,000 |
| 5.375 |
|
| 1/27/2021 |
| 308,736 |
Petroleos Mexicanos |
| 655,000 |
| 3.500 |
|
| 1/30/2023 |
| 622,250 |
Petroleos Mexicanos - 144A |
| 45,000 |
| 4.875 |
|
| 1/18/2024 |
| 46,676 |
Plains Exploration & Production Co. |
| 235,000 |
| 6.875 |
|
| 2/15/2023 |
| 264,375 |
|
|
|
|
|
|
|
|
| 2,489,812 |
OIL & GAS SERVICES - 0.8 % |
|
|
|
|
|
|
|
|
|
Compagine Generale de Geophysique Veritas, SA |
| 235,000 |
| 6.500 |
|
| 6/1/2021 |
| 237,938 |
Weatherford International Ltd/Bermuda |
| 175,000 |
| 4.500 |
|
| 4/15/2022 |
| 184,871 |
|
|
|
|
|
|
|
|
| 422,809 |
OTHER ABS - 0.5 % |
|
|
|
|
|
|
|
|
|
Countrywide Asset-Backed Certificates 2005-1 AF5A (a) | 300,000 |
| 5.497 | + |
| 7/25/2035 |
| 290,213 | |
|
|
|
|
|
|
|
|
|
|
PACKAGING & CONTAINERS - 0.4 % |
|
|
|
|
|
|
|
|
|
Beverage Packaging Holdings Luxembourg II SA - 144A | 200,000 |
| 6.000 |
|
| 6/15/2017 |
| 206,500 | |
|
|
|
|
|
|
|
|
|
|
PHARMACEUTICALS - 0.4 % |
|
|
|
|
|
|
|
|
|
Catamaran Corp. |
| 85,000 |
| 4.750 |
|
| 3/15/2021 |
| 85,850 |
Forest Laboratories, Inc. - 144A |
| 115,000 |
| 4.875 |
|
| 2/15/2021 |
| 122,763 |
|
|
|
|
|
|
|
|
| 208,613 |
PIPELINES - 0.7 % |
|
|
|
|
|
|
|
|
|
Regency Energy Partners LP / Regency Energy Finance Corp. | 165,000 |
| 5.875 |
|
| 3/1/2022 |
| 173,250 | |
Williams Cos., Inc. |
| 230,000 |
| 3.700 |
|
| 1/15/2023 |
| 212,752 |
|
|
|
|
|
|
|
|
| 386,002 |
REAL ESTATE - 0.2 % |
|
|
|
|
|
|
|
|
|
WP Carey, Inc. |
| 110,000 |
| 4.600 |
|
| 4/1/2024 |
| 112,470 |
|
|
|
|
|
|
|
|
|
|
REITS - 1.8 % |
|
|
|
|
|
|
|
|
|
Corporate Office Properties LP |
| 315,000 |
| 3.600 |
|
| 5/15/2023 |
| 299,261 |
DDR Corp. |
| 145,000 |
| 7.875 |
|
| 9/1/2020 |
| 181,572 |
Digital Realty Trust LP |
| 160,000 |
| 5.250 |
|
| 3/15/2021 |
| 169,498 |
Highwoods Realty LP |
| 305,000 |
| 3.625 |
|
| 1/15/2023 |
| 294,855 |
MPT Operating Partnership LP / MPT Finance Corp. |
| 35,000 |
| 5.500 |
|
| 2/1/2021 |
| 35,875 |
|
|
|
|
|
|
|
|
| 981,061 |
RETAIL - 1.5 % |
|
|
|
|
|
|
|
|
|
Bon-Ton Department Stores, Inc. |
| 200,000 |
| 8.000 |
|
| 6/15/2021 |
| 191,500 |
Guitar Center, Inc. - 144A |
| 25,000 |
| 9.625 |
|
| 4/15/2020 |
| 23,438 |
Hot Topic, Inc. - 144A |
| 125,000 |
| 9.250 |
|
| 6/15/2021 |
| 137,187 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | |||||||||
Dunham Corporate/Government Bond Fund (Continued) | |||||||||
April 30, 2014 | |||||||||
|
| Principal |
| Interest |
|
| Maturity |
|
|
Security |
| Amount |
| Rate |
|
| Date |
| Value |
RETAIL - 1.5 % (continued) |
|
|
|
|
|
|
|
|
|
Landry's, Inc. - 144A |
| $ 125,000 |
| 9.375 | % |
| 5/1/2020 |
| $ 138,437 |
QVC, Inc. |
| 310,000 |
| 4.375 |
|
| 3/15/2023 |
| 308,237 |
|
|
|
|
|
|
|
|
| 798,799 |
SOFTWARE - 1.0 % |
|
|
|
|
|
|
|
|
|
First Data Corp. - 144A |
| 145,000 |
| 8.250 |
|
| 1/15/2021 |
| 156,962 |
First Data Corp. - 144A |
| 100,000 |
| 8.750 |
|
| 1/15/2022 |
| 109,500 |
First Data Corp. |
| 125,000 |
| 11.750 |
|
| 8/15/2021 |
| 133,750 |
First Data Holdings, Inc. - 144A |
| 117,282 |
| 14.500 |
|
| 9/24/2019 |
| 113,617 |
Infor Software Parent LLC / Infor Software Parent, Inc. - 144A | 30,000 |
| 7.125 |
|
| 5/1/2021 |
| 30,300 | |
|
|
|
|
|
|
|
|
| 544,129 |
TELECOMMUNICATIONS - 3.0 % |
|
|
|
|
|
|
|
|
|
AT&T, Inc. |
| 315,000 |
| 3.875 |
|
| 8/15/2021 |
| 330,309 |
CenturyLink, Inc. |
| 110,000 |
| 6.450 |
|
| 6/15/2021 |
| 119,075 |
Cincinnati Bell, Inc. |
| 125,000 |
| 8.375 |
|
| 10/15/2020 |
| 138,125 |
Digicel Group Ltd.-144A |
| 200,000 |
| 8.250 |
|
| 9/30/2020 |
| 214,000 |
Intelsat Jackson Holdings SA - 144A |
| 210,000 |
| 5.500 |
|
| 8/1/2023 |
| 206,325 |
Sprint Corp. - 144A |
| 170,000 |
| 7.250 |
|
| 9/15/2021 |
| 185,938 |
Telefonica Emisiones SAU |
| 265,000 |
| 4.570 |
|
| 4/27/2023 |
| 278,179 |
Windstream Corp. |
| 115,000 |
| 7.750 |
|
| 10/15/2020 |
| 124,775 |
|
|
|
|
|
|
|
|
| 1,596,726 |
TRANSPORTATION - 0.3 % |
|
|
|
|
|
|
|
|
|
Gulfmark Offshore, Inc. |
| 115,000 |
| 6.375 |
|
| 3/15/2022 |
| 119,888 |
PHI, Inc. - 144A |
| 45,000 |
| 5.250 |
|
| 3/15/2019 |
| 45,787 |
|
|
|
|
|
|
|
|
| 165,675 |
WL COLLATERAL CMO - 1.9 % |
|
|
|
|
|
|
|
|
|
Citigroup Mortgage Loan Trust, Inc. 2004-NCM2 2CB2 | 93,907 |
| 6.750 |
|
| 8/25/2034 |
| 103,247 | |
Citigroup Mortgage Loan Trust, Inc. 2004-UST1 A3 |
| 147,888 |
| 2.303 | + |
| 8/25/2034 |
| 147,679 |
GSMPS Mortgage Loan Trust 2006-RP1-1A4 - 144A |
| 239,866 |
| 8.500 |
|
| 1/25/2036 |
| 260,394 |
MASTR Alternative Loan Trust 2004-4 |
| 146,069 |
| 5.500 |
|
| 4/25/2034 |
| 158,937 |
MASTR Alternative Loan Trust 2007-1 |
| 132,171 |
| 0.752 | + |
| 10/25/2036 |
| 127,459 |
WaMu Mortgage Pass-Through Certificates Series 2003-S8 A2 Trust | 192,625 |
| 5.000 |
|
| 9/25/2018 |
| 199,663 | |
|
|
|
|
|
|
|
|
| 997,379 |
|
|
|
|
|
|
|
|
|
|
TOTAL BONDS & NOTES (Cost - $30,349,663) |
|
|
|
|
|
|
|
| 30,870,665 |
|
|
|
|
|
|
|
|
|
|
FOREIGN GOVERNMENT BOND - 0.8 % |
|
|
|
|
|
|
|
|
|
Hungary Government International Bond |
| 68,000 |
| 5.750 |
|
| 11/22/2023 |
| 72,760 |
Morocco Government International Bond - 144A |
| 300,000 |
| 4.250 |
|
| 12/11/2022 |
| 289,875 |
Poland Government International Bond |
| 86,000 |
| 4.000 |
|
| 1/22/2014 |
| 87,161 |
TOTAL FOREIGN GOVERNMENT BOND - (Cost - $456,130) |
|
|
|
|
|
|
| 449,796 | |
|
|
|
|
|
|
|
|
|
|
MUNICIPAL - 1.5 % |
|
|
|
|
|
|
|
|
|
County of Jefferson AL Sewer Revenue |
| 100,000 |
| 6.000 |
|
| 10/1/2042 |
| 106,154 |
Iowa Finance Authority |
| 70,000 |
| 5.500 |
|
| 12/1/2022 |
| 71,412 |
Rockdale County Water & Sewerage Authority |
| 305,000 |
| 3.060 |
|
| 7/1/2024 |
| 289,213 |
San Diego County Regional Airport Authority |
| 325,000 |
| 5.594 |
|
| 7/1/2043 |
| 342,622 |
TOTAL MUNICIPAL - (Cost - $803,999) |
|
|
|
|
|
|
|
| 809,401 |
|
|
|
|
|
|
|
|
|
|
U.S. GOVERNMENT & AGENCY - 27.2 % |
|
|
|
|
|
|
|
| |
U.S. GOVERNMENT AGENCY - 12.3 % |
|
|
|
|
|
|
|
|
|
Fannie Mae Pool 735061 |
| 66,076 |
| 6.000 |
|
| 11/1/2034 |
| 74,624 |
Fannie Mae Pool 866009 |
| 97,892 |
| 6.000 |
|
| 3/1/2036 |
| 109,882 |
Fannie Mae Pool 938574 |
| 474,398 |
| 5.500 |
|
| 9/1/2036 |
| 529,865 |
Fannie Mae Pool 310041 |
| 221,370 |
| 6.500 |
|
| 5/1/2037 |
| 249,821 |
Fannie Mae Pool 909141 |
| 30,996 |
| 6.000 |
|
| 1/1/2038 |
| 35,095 |
Fannie Mae Pool 909153 |
| 26,955 |
| 6.000 |
|
| 2/1/2038 |
| 30,521 |
Fannie Mae Pool 909175 |
| 73,291 |
| 5.500 |
|
| 4/1/2038 |
| 81,137 |
Fannie Mae Pool 909220 |
| 168,501 |
| 6.000 |
|
| 8/1/2038 |
| 188,606 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | |||||||||
Dunham Corporate/Government Bond Fund (Continued) | |||||||||
April 30, 2014 | |||||||||
|
| Principal |
| Interest |
|
| Maturity |
|
|
Security |
| Amount |
| Rate |
|
| Date |
| Value |
U.S. GOVERNMENT AGENCY - 12.3 % (Continued) |
|
|
|
|
|
|
|
| |
Fannie Mae Pool 929191 |
| $ 196,808 |
| 6.000 | % |
| 3/1/2038 |
| $ 222,970 |
Fannie Mae Pool 962752 |
| 63,112 |
| 5.000 |
|
| 4/1/2038 |
| 70,191 |
Fannie Mae Pool 975649 |
| 312,222 |
| 6.000 |
|
| 7/1/2038 |
| 349,491 |
Fannie Mae Pool AA7001 |
| 372,137 |
| 5.000 |
|
| 6/1/2039 |
| 411,740 |
Fannie Mae Pool AD0727 |
| 598,868 |
| 6.000 |
|
| 8/1/2039 |
| 671,545 |
Fannie Mae Pool AO8769 |
| 1,713,190 |
| 3.500 |
|
| 8/1/2042 |
| 1,741,002 |
Freddie Mac Gold Pool G01499 |
| 37,661 |
| 7.000 |
|
| 1/1/2033 |
| 43,325 |
Freddie Mac Gold Pool G01980 |
| 436,241 |
| 5.000 |
|
| 12/1/2035 |
| 485,277 |
Freddie Mac Gold Pool G06380 |
| 1,056,514 |
| 6.500 |
|
| 2/1/2035 |
| 1,194,994 |
Freddie Mac Gold Pool G05888 |
| 106,269 |
| 5.500 |
|
| 10/1/2039 |
| 117,207 |
|
|
|
|
|
|
|
|
| 6,607,293 |
U.S. TREASURY OBLIGATIONS - 14.9 % |
|
|
|
|
|
|
|
|
|
United States Treasury Note |
| 5,405,000 |
| 0.250 |
|
| 11/30/2015 |
| 5,405,211 |
United States Treasury Note |
| 1,070,000 |
| 0.375 |
|
| 4/30/2016 |
| 1,069,123 |
United States Treasury Bond |
| 1,500,000 |
| 1.750 |
|
| 5/15/2023 |
| 1,399,453 |
United States Treasury Bond |
| 120,000 |
| 3.125 |
|
| 2/15/2043 |
| 112,809 |
|
|
|
|
|
|
|
|
| 7,986,596 |
|
|
|
|
|
|
|
|
|
|
TOTAL U.S. GOVERNMENT & AGENCY (Cost - $14,531,060) |
|
|
|
|
|
|
| 14,593,889 | |
|
|
|
|
|
|
|
|
|
|
BANK LOANS - 8.3 % |
|
|
|
|
|
|
|
|
|
Altisource Solutions |
| 139,592 |
| 4.500 |
|
| 11/27/2019 |
| 139,650 |
American Airlines Inc. |
| 231,252 |
| 3.750 |
|
| 6/21/2019 |
| 231,145 |
American Renal Holdings, Inc. |
| 280,000 |
| 8.500 |
|
| 2/20/2020 |
| 280,525 |
Applied Systems, Inc. |
| 3,000 |
| 8.750 |
|
| 1/14/2022 |
| 3,045 |
Asurion LLC. |
| 55,000 |
| 8.500 |
|
| 2/19/2021 |
| 56,581 |
Atlantic Power Ltd. |
| 26,000 |
| 4.750 |
|
| 2/19/2021 |
| 26,228 |
Bauer Performance Sports |
| 84,000 |
| 4.500 |
|
| 4/1/2021 |
| 84,070 |
Blue Coat Systems Inc. |
| 165,000 |
| 9.500 |
|
| 6/28/2020 |
| 167,062 |
CBAC Borrower, LLC |
| 57,000 |
| 8.250 |
|
| 7/2/2020 |
| 59,423 |
CHG Companies |
| 12,478 |
| 9.000 |
|
| 11/19/2020 |
| 12,689 |
Clear Channel Communication, Inc. |
| 179,745 |
| 6.914 |
|
| 1/30/2019 |
| 178,613 |
CSC Holdings LLC. |
| 51,671 |
| 0.000 |
|
| 5/22/2018 |
| 52,252 |
Fieldwood Energy |
| 140,000 |
| 8.375 |
|
| 9/30/2020 |
| 144,857 |
FMG Resources |
| 295,515 |
| 4.250 | + |
| 10/18/2017 |
| 295,867 |
Harland Clarke Holdings |
| 21,862 |
| 6.000 |
|
| 8/30/2019 |
| 22,013 |
Houghton International Inc. |
| 241,937 |
| 5.750 | + |
| 12/20/2019 |
| 241,333 |
INC Research LLC |
| 89,405 |
| 5.750 | + |
| 7/12/2018 |
| 89,461 |
International Equipment Sol |
| 118,500 |
| 5.500 | + |
| 8/16/2019 |
| 119,018 |
Inventiv Health Inc. |
| 119,990 |
| 6.000 | + |
| 8/4/2016 |
| 120,441 |
Kronos, Inc. |
| 8,000 |
| 9.750 |
|
| 4/30/2020 |
| 8,270 |
Mitchell Internationa, Inc. |
| 19,000 |
| 8.500 |
|
| 10/11/2021 |
| 19,416 |
National Mentor Holdings |
| 62,000 |
| 9.750 |
|
| 4/11/2020 |
| 61,845 |
Navistar Inc. |
| 166,667 |
| 5.750 | + |
| 8/17/2017 |
| 169,652 |
Noranda Aluminum Acquisition |
| 186,620 |
| 5.750 | + |
| 2/28/2019 |
| 179,154 |
Peppermill Casinos, Inc. |
| 242,544 |
| 7.250 | + |
| 11/9/2018 |
| 249,214 |
Reginal Care Hospital, Inc. |
| 47,000 |
| 0.000 | + |
| 3/24/2019 |
| 46,853 |
Rite Aid Corp. |
| 16,000 |
| 5.000 | + |
| 8/21/2020 |
| 16,350 |
RP Crown Parent LLC |
| 181,484 |
| 6.000 | + |
| 12/21/2018 |
| 181,386 |
Saxon Energy Services, Inc. |
| 206,910 |
| 4.250 | + |
| 2/13/2019 |
| 208,332 |
SESAC Inc. |
| 272 |
| 4.750 | + |
| 2/8/2019 |
| 273 |
Sheridan Holdings, Inc. |
| 72,000 |
| 8.250 |
|
| 12/31/2021 |
| 73,800 |
Sorenson Communications, Inc. |
| 183,612 |
| 9.500 | + |
| 10/31/2014 |
| 183,842 |
Sungard Availability |
| 74,000 |
| 5.000 |
|
| 3/25/2019 |
| 73,745 |
Surgery Center |
| 133,280 |
| 6.000 | + |
| 4/11/2019 |
| 134,280 |
TWCC Holding Corp. |
| 98,000 |
| 7.000 | + |
| 6/26/2020 |
| 97,714 |
United Surgical Partners Intl Inc. |
| 96,030 |
| 4.750 | + |
| 4/3/2019 |
| 96,510 |
Zuffa, LLC |
| 304,394 |
| 4.500 | + |
| 2/25/2020 |
| 303,481 |
TOTAL BANK LOANS - (Cost - $4,399,527) |
|
|
|
|
|
|
|
| 4,428,390 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | |||||||||
Dunham Corporate/Government Bond Fund (Continued) | |||||||||
April 30, 2014 | |||||||||
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Dividend Rate |
| Maturity Date |
| Value | |
PREFERRED STOCK - 1.5 % |
|
|
|
|
|
|
|
|
|
BANKS - 1.5 % |
|
|
|
|
|
|
|
|
|
GMAC Capital Trust I |
| $ 17,600 |
| 8.125 | %+ |
| 2/15/2040 |
| $ 483,824 |
Zions Bancorporation |
| 10,800 |
| 6.950 | + |
| 9/15/2028 |
| 286,740 |
TOTAL PREFERRED STOCK - (Cost - $710,000) |
|
|
|
|
|
|
|
| 770,564 |
|
|
|
|
|
|
|
|
|
|
SHORT-TERM INVESTMENT - 3.5 % |
|
|
|
|
|
|
|
|
|
MONEY MARKET FUND - 3.5 % |
|
|
|
|
|
|
|
|
|
Fidelity Institutional Money Market Funds - Government Portfolio |
|
|
|
|
|
|
|
| |
TOTAL SHORT-TERM INVESTMENT - (Cost - $1,866,713) | 1,866,713 |
| 0.010 | + |
|
|
| 1,866,713 | |
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 100.4 % (Cost - $53,117,092) |
|
|
|
|
|
|
| $ 53,789,418 | |
LIABILITIES LESS OTHER ASSETS - (0.4) % |
|
|
|
|
|
|
|
| (222,535) |
NET ASSETS - 100.0% |
|
|
|
|
|
|
|
| $ 53,566,883 |
|
|
|
|
|
|
|
|
|
|
ABS - Asset Backed Security |
|
|
|
|
|
|
|
|
|
MBS - Mortgage Back Security |
|
|
|
|
|
|
|
|
|
CMO - Collateralized Mortgage Obligation |
|
|
|
|
|
|
|
|
|
REIT - Real Estate Investment Trust |
|
|
|
|
|
|
|
|
|
+ Variable rate security. Interest rate is as of April 30, 2014. |
|
|
|
|
|
|
|
| |
* 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, 2014. |
|
| |||||||
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | |||||||||
Corporate Notes & Bonds |
| 57.40% | Municipal |
|
|
|
| 1.50% | |
U.S. Government & Agencies Notes & Bonds |
| 27.20% | Preferred Stock |
|
|
| 1.40% | ||
Bank Loans |
| 8.20% | Foreign Government |
|
| 0.80% | |||
Short-Term Investment |
| 3.50% | Total |
|
|
|
| 100.00% | |
* Based on total value of investments as of April 30, 2014. |
|
|
|
|
|
|
|
| |
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
Dunham Monthly Distribution Fund
Message from the Sub-Adviser (Westchester Capital Management, LLC)
Market neutral investment strategies, as measured by the IQ Market Neutral Beta Index, rose 1.6 percent during the first half of the fiscal year six months ended April 30, 2014. Market neutral strategies rose 1.7 percent during the second fiscal quarter after generally flat performance in the first fiscal quarter. Conversely, merger arbitrage strategies, as measured by the Credit Suisse Merger Arbitrage Liquid Index, decreased 0.03 percent during the second fiscal quarter, after falling 0.5 percent in the first fiscal quarter. Absolute return strategies, as measured by the HFRX Absolute Return Index, rose 1.8 percent over the first half of the fiscal year. Event driven strategies, as measured by the Credit Suisse Event Driven Liquid Index, rose 4.3 percent during the same period, outperforming market neutral strategies, absolute return strategies, and merger arbitrage strategies, in general. 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.
Although recent reports have shown merger activity reaching pre-crisis levels, merger arbitrage strategies generally experienced a difficult six-month period. The dollar volume of deal activity has already eclipsed $1 trillion since the start of 2014, although cash deals made up a much lower percentage of deal activity than in previous periods in spite of generally low credit rates. Approximately 22 percent to 35 percent of the Fund was allocated to the merger arbitrage strategy during the past six-month period. Some deals closed during the period, including Endo International PLC's (ENDP) acquisition of Paladin Labs Inc. (PLB CN) and Loblaw Companies Ltd.'s (L CN) acquisition of Shoppers Drug Mart Corp. (SC CN). The acquisition of Paladin Labs Inc., a specialty pharmaceutical provider, expanded Endo International PLC's reach as a global specialty healthcare company. Loblaw Companies Ltd.'s acquisition of Shoppers Drug Mart Corp. grew its retail and wholesale distribution network in Canada. New deals added to the Fund during the six-month period that had not yet closed as of April 30, 2014 included the announced acquisition of the maker of the Botox wrinkle treatment, Allergan Inc. (AGN), by Valeant Pharmaceuticals International (VRX CN). In addition, a new pharmaceutical-related merger was announced as Actavis Inc. (ACT) agreed to acquire Forest Laboratories Inc. (FRX).
The Sub-Adviser primarily seeks to manage risk by utilizing the various strategies implemented within the Fund. For example, the Sub-Adviser generally increased the Fund's exposure to risk reversal and collar options strategies from almost 38 percent at the beginning of the fiscal year to 58 percent at the end of the most recent fiscal quarter. Each of these options strategies are applied to holdings in the Fund that are involved in a corporate event, such as a merger, divestiture, or stock buyback. These options strategies are often used by the Sub-Adviser to help enhance returns and lower risk on individual holdings. For example, at the end of January EI du Pont de Nemours & Co. (DD), a global life sciences and chemical company, announced that it would be buying back roughly 10 percent of its outstanding shares (approximately $5 billion). The Sub-Adviser sought to access this opportunity while simultaneously applying a collar strategy in order to reduce the downside risk while still capitalizing on the slight upside potential offered by the significant stock buyback.
Continuing the theme from the previous fiscal year, the Sub-Adviser generally decreased the Fund's exposure to fixed income-oriented securities. As interest rates generally remained low throughout the previous two fiscal quarters, holdings in the Fund that offered a fixed coupon generally saw positive performance. Within the strategy, holdings such as Countrywide Capital IV's preferred stock (22238E206) rose modestly during the six-month period, up 4.7 percent, with a significant portion of the return coming from the 6.75 percent coupon provided by the preferred stock. One of the strongest Fund performers in the fixed income strategy in the six-month period, GMAC Capital Trust I (Ally Financial, Inc.) formally announced in the middle of February that it would be calling its preferred stock (361860208), prompting many investors to sell ahead of the March call-date.
The Sub-Adviser maintains its optimism that the Fund benefits in these changing market environments from the flexibility to invest across these different investment strategies, allowing it to budget risk and diversify the sources of positive returns. The Sub-Adviser is sensitive to the current risks facing the fixed income markets, as well as how companies seek growth through acquisition, or by adjusting their structure in efforts to become more efficient. Although merger activity has increased, the Sub-Adviser remains cautious and selective as it seeks the most attractive risk-adjusted returns.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2014
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (8/1/08)* |
Class N | 3.56% | 4.29% | 4.72% | 6.67% | 4.78%** |
Class C Class A with load of 5.75% Class A without load | 3.07% (2.54)% 3.42% | 3.28% (1.95)% 4.03% | 3.69% 2.41% 4.45% | 5.61% 5.15% 6.40% | 3.06% 2.82% 3.84% |
IQ Hedge Market Neutral Beta Index | 1.64% | 2.97% | 1.46% | 3.21% | 2.93% |
Morningstar Multialternative Category | 1.41% | 1.23% | 0.35% | 4.67% | 0.81% |
* 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.
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.
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%.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including the cost of underlying funds, are 2.37% for Class N, 3.37% for Class C and 2.62% for Class A. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%. 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 Monthly Distribution Fund |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
| Shares |
|
|
| Value |
COMMON STOCK - 78.9 % |
|
|
|
|
|
|
|
|
ADVERTISING - 4.6 % |
|
|
|
|
|
|
|
|
Lamar Advertising Co. - Cl. A * ^ |
|
|
| 19,500 |
|
|
| $ 973,440 |
Omnicom Group, Inc. |
|
|
| 162,962 |
|
|
| 11,029,268 |
|
|
|
|
|
|
|
| 12,002,708 |
AGRICULTURE - 1.6 % |
|
|
|
|
|
|
|
|
Lorillard, Inc. ^ |
|
|
| 71,300 |
|
|
| 4,236,646 |
|
|
|
|
|
|
|
|
|
AIRLINES - 0.1 % |
|
|
|
|
|
|
|
|
AMR Corp. * |
|
|
| 101,283 |
|
|
| 156,989 |
|
|
|
|
|
|
|
|
|
BANKS - 3.0 % |
|
|
|
|
|
|
|
|
Citigroup, Inc. ^ |
|
|
| 152,300 |
|
|
| 7,296,693 |
Umpqua Holdings Corp. |
|
|
| 67 |
|
|
| 1,116 |
Wing Hang Bank Ltd. |
|
|
| 28,688 |
|
|
| 461,797 |
|
|
|
|
|
|
|
| 7,759,606 |
BEVERAGES- 0.2 % |
|
|
|
|
|
|
|
|
Beam, Inc. |
|
|
| 6,172 |
|
|
| 515,177 |
|
|
|
|
|
|
|
|
|
BIOTECHNOLOGY- 1.0 % |
|
|
|
|
|
|
|
|
Gilead Sciences, Inc. * ^ |
|
|
| 31,900 |
|
|
| 2,503,832 |
|
|
|
|
|
|
|
|
|
BUILDING MATERIALS- 2.0 % |
|
|
|
|
|
|
|
|
Texas Industries, Inc. * |
|
|
| 59,247 |
|
|
| 5,136,715 |
|
|
|
|
|
|
|
|
|
CHEMICALS - 4.4 % |
|
|
|
|
|
|
|
|
Ashland, Inc. ^ |
|
|
| 13,200 |
|
|
| 1,275,120 |
Chemtura Corp. * ^ |
|
|
| 138,800 |
|
|
| 3,095,240 |
EI du Pont de Nemours & Co. ^ |
|
|
| 105,100 |
|
|
| 7,075,332 |
|
|
|
|
|
|
|
| 11,445,692 |
COAL - 0.1 % |
|
|
|
|
|
|
|
|
CONSOL Energy, Inc. ^ |
|
|
| 1,200 |
|
|
| 53,412 |
|
|
|
|
|
|
|
|
|
COMMERCIAL SERVICES - 2.9 % |
|
|
|
|
|
|
|
|
Hertz Global Holdings, Inc. * ^ |
|
|
| 193,900 |
|
|
| 5,520,334 |
Iron Mountain, Inc. ^ |
|
|
| 73,900 |
|
|
| 2,101,716 |
SFX Entertainment, Inc. * |
|
|
| 1,000 |
|
|
| 6,560 |
|
|
|
|
|
|
|
| 7,628,610 |
DIVERSIFIED FINANCIAL SERVICES - 1.2 % |
|
|
|
|
|
|
|
|
Blackhawk Networks Holdings * |
|
|
| 369 |
|
|
| 8,495 |
SLM Corp. ^ |
|
|
| 121,790 |
|
|
| 3,136,093 |
|
|
|
|
|
|
|
| 3,144,588 |
ELECTRONICS - 1.7 % |
|
|
|
|
|
|
|
|
Agilent Technologies, Inc. ^ |
|
|
| 64,700 |
|
|
| 3,496,388 |
Allegion PLC ^ |
|
|
| 20,100 |
|
|
| 991,935 |
|
|
|
|
|
|
|
| 4,488,323 |
ENGINEERING & CONSTRUCTION- 1.0 % |
|
|
|
|
|
|
|
|
Foster Wheeler AG * |
|
|
| 66,153 |
|
|
| 2,267,725 |
|
|
|
|
|
|
|
|
|
FOOD - 1.6 % |
|
|
|
|
|
|
|
|
Safeway, Inc. |
|
|
| 85,521 |
|
|
| 2,912,845 |
WhiteWave Foods Co. |
|
|
| 48,780 |
|
|
| 1,350,718 |
|
|
|
|
|
|
|
| 4,263,563 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
| Shares |
|
|
| Value |
FOREST PRODUCTS & PAPER - 1.9 % |
|
|
|
|
|
|
|
|
International Paper Co. ^ |
|
|
| 108,500 |
|
|
| $ 5,061,525 |
|
|
|
|
|
|
|
|
|
GAS - 2.1 % |
|
|
|
|
|
|
|
|
Centerpoint Energy, Inc. ^ |
|
|
| 219,300 |
|
|
| 5,429,868 |
|
|
|
|
|
|
|
|
|
INSURANCE - 0.5 % |
|
|
|
|
|
|
|
|
American International Group, Inc. ^ |
|
|
| 10,200 |
|
|
| 541,927 |
Genworth Financial, Inc. - Class A * ^ |
|
|
| 43,800 |
|
|
| 781,830 |
|
|
|
|
|
|
|
| 1,323,757 |
INTERNET - 2.4 % |
|
|
|
|
|
|
|
|
Equinix, Inc. * ^ |
|
|
| 20,755 |
|
|
| 3,897,997 |
Yahoo, Inc. * ^ |
|
|
| 65,300 |
|
|
| 2,347,535 |
|
|
|
|
|
|
|
| 6,245,532 |
MEDIA - 5.3 % |
|
|
|
|
|
|
|
|
CBS Corp. ^ |
|
|
| 55,500 |
|
|
| 3,205,680 |
Discovery Communications, Inc. - Class C * |
|
|
| 10,193 |
|
|
| 714,835 |
DISH Network Corp. - Class A * ^ |
|
|
| 47,900 |
|
|
| 2,723,594 |
Liberty Global PLC - Class C ^ |
|
|
| 8,479 |
|
|
| 325,856 |
Liberty Media Corp * |
|
|
| 368 |
|
|
| 47,733 |
Sirius XM Radio, Inc. * ^ |
|
|
| 1,630,064 |
|
|
| 5,199,904 |
Time Warner Cable, Inc. ^ |
|
|
| 10,798 |
|
|
| 1,527,485 |
|
|
|
|
|
|
|
| 13,745,087 |
METAL FABRICATE/HARDWARE - 1.0 % |
|
|
|
|
|
|
|
|
Timken Co. ^ |
|
|
| 40,500 |
|
|
| 2,554,740 |
|
|
|
|
|
|
|
|
|
MINING - 0.7 % |
|
|
|
|
|
|
|
|
Newmont Mining Corp Holding Co. ^ |
|
|
| 75,178 |
|
|
| 1,866,670 |
|
|
|
|
|
|
|
|
|
MISCELLANEOUS MANUFACTURING - 1.8 % |
|
|
|
|
|
|
|
|
General Electric Company ^ |
|
|
| 174,300 |
|
|
| 4,686,927 |
|
|
|
|
|
|
|
|
|
OIL & GAS - 5.1 % |
|
|
|
|
|
|
|
|
Anadarko Petroleum Corp. ^ |
|
|
| 9,600 |
|
|
| 950,592 |
BP PLC - ADR ^ |
|
|
| 15,500 |
|
|
| 784,610 |
Noble Corp. ^ |
|
|
| 159,141 |
|
|
| 4,903,134 |
Occidental Petroleum Corp. ^ |
|
|
| 10,600 |
|
|
| 1,014,950 |
QEP Resources, Inc. ^ |
|
|
| 140,100 |
|
|
| 4,299,669 |
Transocean Ltd. ^ |
|
|
| 30,100 |
|
|
| 1,296,407 |
|
|
|
|
|
|
|
| 13,249,362 |
OIL & GAS SERVICES - 3.3 % |
|
|
|
|
|
|
|
|
Halliburton Co. ^ |
|
|
| 17,800 |
|
|
| 1,122,646 |
National Oilwell Varco, Inc. ^ |
|
|
| 25,102 |
|
|
| 1,971,260 |
Oil States International, Inc. * ^ |
|
|
| 57,000 |
|
|
| 5,536,980 |
|
|
|
|
|
|
|
| 8,630,886 |
PHARMACEUTICALS - 9.8 % |
|
|
|
|
|
|
|
|
Allergan, Inc. ^ |
|
|
| 23,600 |
|
|
| 3,913,824 |
Endo Pharmaceuticals Holdings * ^ |
|
|
| 57,248 |
|
|
| 3,603,538 |
Forest Labs, Inc. * |
|
|
| 89,297 |
|
|
| 8,207,287 |
Mallinckrodt PLC * ^ |
|
|
| 53,600 |
|
|
| 3,817,928 |
McKesson HBOC, Inc. ^ |
|
|
| 3,700 |
|
|
| 626,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
| Shares |
|
|
| Value |
PHARMACEUTICALS (Continued) - 9.8 % |
|
|
|
|
|
|
|
|
Pfizer, Inc. ^ |
|
|
| 147,464 |
|
|
| $ 4,612,674 |
Questcor Pharmaceuticals, Inc. |
|
|
| 9,311 |
|
|
| 765,178 |
|
|
|
|
|
|
|
| 25,546,432 |
PIPELINES - 1.5 % |
|
|
|
|
|
|
|
|
QEP Midstream Partners LP |
|
|
| 5,000 |
|
|
| 119,000 |
Williams Cos., Inc. ^ |
|
|
| 89,600 |
|
|
| 3,778,432 |
|
|
|
|
|
|
|
| 3,897,432 |
RETAIL - 2.6 % |
|
|
|
|
|
|
|
|
JOS A Bank Clothiers, Inc. * |
|
|
| 103,594 |
|
|
| 6,686,993 |
|
|
|
|
|
|
|
|
|
REAL ESTATE INVESTMENT TRUSTS- 5.5 % |
|
|
|
|
|
|
|
|
CommonWealth REIT ^ |
|
|
| 9,800 |
|
|
| 249,018 |
Corrections Corp. Of America ^ |
|
|
| 35,591 |
|
|
| 1,167,385 |
CYS Investments, Inc. |
|
|
| 9,500 |
|
|
| 81,700 |
Northstar Realty Finance Corp. ^ |
|
|
| 276,029 |
|
|
| 4,421,985 |
Starwood Property Trust, Inc. |
|
|
| 199,850 |
|
|
| 4,806,393 |
Starwood Waypoint Residential * |
|
|
| 22,008 |
|
|
| 597,957 |
Weyerhaeuser Co. ^ |
|
|
| 101,200 |
|
|
| 3,020,820 |
|
|
|
|
|
|
|
| 14,345,258 |
SAVING & LOANS - 2.2 % |
|
|
|
|
|
|
|
|
Hudson City Bancorp, Inc. |
|
|
| 514,303 |
|
|
| 5,122,457 |
Investors Bancorp, Inc. |
|
|
| 22,968 |
|
|
| 613,935 |
|
|
|
|
|
|
|
| 5,736,392 |
SEMICONDUCTORS - 2.7 % |
|
|
|
|
|
|
|
|
LSI Logic Corp. |
|
|
| 254,098 |
|
|
| 2,830,651 |
RDA Microelection-Spon ADR |
|
|
| 13,776 |
|
|
| 232,401 |
Tokyo Electron |
|
|
| 285,575 |
|
|
| 4,072,300 |
|
|
|
|
|
|
|
| 7,135,352 |
SOFTWARE - 1.6 % |
|
|
|
|
|
|
|
|
AutoNavi Holdings Ltd * |
|
|
| 19165 |
|
|
| 396,332 |
King Digital Entertainment PLC * |
|
|
| 1,250 |
|
|
| 21,438 |
Microsoft Corp. ^ |
|
|
| 93,900 |
|
|
| 3,793,560 |
|
|
|
|
|
|
|
| 4,211,330 |
TELECOMMUNICATIONS - 3.5 % |
|
|
|
|
|
|
|
|
Leap Wireless Int'l, Inc. * |
|
|
| 4,071 |
|
|
| 10,178 |
Nokia Corp. * ^ |
|
|
| 209,600 |
|
|
| 1,572,000 |
Sprint Corp. * ^ |
|
|
| 485,565 |
|
|
| 4,127,303 |
T-Mobile US, Inc. * ^ |
|
|
| 34,744 |
|
|
| 1,017,652 |
Verizon Communications, Inc. ^ |
|
|
| 41,611 |
|
|
| 1,944,480 |
Vodafone Group PLC ^ |
|
|
| 14,850 |
|
|
| 563,706 |
|
|
|
|
|
|
|
| 9,235,319 |
|
|
|
|
|
|
|
|
|
TOTAL COMMON STOCK (Cost - $202,067,204) |
|
|
|
|
|
| 205,192,448 | |
|
|
|
|
|
|
|
|
|
EXCHANGE TRADED FUNDS - 0.7 % |
|
|
|
|
|
|
|
|
CLOSED-END FUNDS - 0.7 % |
|
|
|
|
|
|
|
|
Invesco Senior Income Trust |
|
|
| 240,801 |
|
|
| 1,206,413 |
Western Asset High Income Opp |
|
|
| 106,644 |
|
|
| 641,997 |
TOTAL EXCHANGE TRADED FUNDS (Cost - $1,899,511) |
|
|
|
|
|
| 1,848,410 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
| Dividend |
|
|
|
|
Security |
| Shares |
| Rate |
|
|
| Value |
PREFERRED STOCK - 10.7 % |
|
|
|
|
|
|
|
|
BANKS - 1.8 % |
|
|
|
|
|
|
|
|
Countrywide Capital IV |
| 70,000 |
| 6.7500 | % |
|
| $ 1,788,500 |
HSBC USA, Inc. |
| 4,850 |
| 2.8575 |
|
|
| 235,274 |
HSBC USA, Inc. |
| 36,684 |
| 6.5000 |
|
|
| 935,075 |
Royal Bank of Scotland Group PLC |
| 80,700 |
| 6.3500 |
|
|
| 1,852,872 |
|
|
|
|
|
|
|
| 4,811,721 |
DIVERSIFIED FINANCIAL SERVICES - 2.2 % |
|
|
|
|
|
|
|
|
Morgan Stanley Cap Trust |
| 3,450 |
| 5.7500 |
|
|
| 86,802 |
Morgan Stanley Cap Trust |
| 50,000 |
| 6.4500 |
|
|
| 1,259,000 |
RBS Capital Funding Trust VII *** |
| 44,746 |
| 6.0800 |
|
|
| 1,028,710 |
SLM Corp. |
| 44,708 |
| 6.9700 |
|
|
| 2,209,469 |
SLM Corp. |
| 16,439 |
| 1.9334 | + |
|
| 1,191,828 |
|
|
|
|
|
|
|
| 5,775,809 |
ELECTRIC - 0.1 % |
|
|
|
|
|
|
|
|
SCE Trust |
| 6,239 |
| 5.6250 |
|
|
| 147,677 |
|
|
|
|
|
|
|
|
|
INSURANCE - 0.5 % |
|
|
|
|
|
|
|
|
Allstate Corp. |
| 51,025 |
| 6.6250 |
|
|
| 1,316,955 |
|
|
|
|
|
|
|
|
|
PIPELINES - 1.7 % |
|
|
|
|
|
|
|
|
NuStar Logistics LP |
| 170,900 |
| 7.6250 | + |
|
| 4,547,649 |
|
|
|
|
|
|
|
|
|
REAL ESTATE INVESTMENT TRUSTS - 3.4 % |
|
|
|
|
|
|
|
|
American Homes 4 Rent |
| 80,000 |
| 5.0000 | + |
|
| 1,960,800 |
American Homes 4 Rent |
| 68,000 |
| 5.0000 | + |
|
| 1,645,600 |
CommonWealth REIT |
| 150,000 |
| 7.2500 |
|
|
| 3,864,000 |
LaSalle Hotel Properties |
| 50,000 |
| 7.5000 |
|
|
| 1,300,000 |
|
|
|
|
|
|
|
| 8,770,400 |
TELECOMMUNICATIONS - 1.0 % |
|
|
|
|
|
|
|
|
Verizon Communications, Inc. |
| 100,100 |
| 5.9000 |
|
|
| 2,509,507 |
|
|
|
|
|
|
|
|
|
TOTAL PREFERRED STOCK (Cost - $27,520,725) |
|
|
|
|
|
| 27,879,718 | |
|
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
BONDS & NOTES - 6.6 % |
| Amount |
| Rate |
| Date |
|
|
AIRLINES - 1.0 % |
|
|
|
|
|
|
|
|
American Airlines, Inc. - 144A |
| $ 2,449,000 |
| 7.5000 | % | 3/15/2016 |
| 2,551,552 |
|
|
|
|
|
|
|
|
|
BANKS - 0.7 % |
|
|
|
|
|
|
|
|
JPMorgan Chase & Co. |
| 1,500,000 |
| 7.9000 | + | Perpetual |
| 1,702,500 |
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 2.2 % |
|
|
|
|
|
|
|
|
Goldman Sachs Capital I |
| 4,000,000 |
| 6.345 |
| 2/15/2034 |
| 4,241,596 |
National Money Market Co. |
| 1,302,000 |
| 10.375 |
| 12/15/2016 |
| 1,373,610 |
|
|
|
|
|
|
|
| 5,615,206 |
ELECTRIC - 0.9 % |
|
|
|
|
|
|
|
|
Energy Future - 144A *** |
| 2,285,000 |
| 10.0000 |
| 12/1/2020 |
| 2,430,669 |
|
|
|
|
|
|
|
|
|
MUNICIPAL - 0.9 % |
|
|
|
|
|
|
|
|
Dalla-Fort Worth Tx Intl. Arpt *** |
| 2,656,000 |
| 6.3750 |
| 5/1/2035 |
| 0 |
Louisiana St. |
| 2,391,000 |
| 9.750 |
| 8/1/2014 |
| 2,415,484 |
|
|
|
|
|
|
|
| 2,415,484 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
OIL & GAS SERVICES - 0.7 % |
|
|
|
|
|
|
|
|
Oil States International, Inc. - 144A |
| 1,725,000 |
| 5.1250 |
| 1/15/2023 |
| $ 1,932,000 |
|
|
|
|
|
|
|
|
|
TELECOMMUNICATIONS - 0.2 % |
|
|
|
|
|
|
|
|
MertoPCS Wireless, Inc. |
| 405,000 |
| 6.6250 |
| 11/15/2020 |
| 433,856 |
|
|
|
|
|
|
|
|
|
TOTAL BONDS & NOTES ( Cost - $16,809,380) |
|
|
|
|
|
| 17,081,267 | |
|
|
|
|
|
|
|
|
|
PURCHASED PUT OPTIONS - 0.6 % |
|
|
|
|
| Contracts** |
|
|
Agilent Technologies, Inc., Expiration August 2014, Exercise Price $45.00 |
|
|
|
| 136 |
| 18,836 | |
Agilent Technologies, Inc., Expiration May 2014, Exercise Price $50.00 |
|
|
|
| 456 |
| 14,592 | |
Allegion PLC - W/I, Expiration June 2014, Exercise Price $45..00 |
|
|
|
| 166 |
| 12,450 | |
Allergan, Inc., Expiration September 2014, Exercise Price $140.00 |
|
|
|
| 26 |
| 7,280 | |
Allergan, Inc., Expiration June 2014, Exercise Price $140.00 |
|
|
|
| 158 |
| 9,480 | |
Alstom S.A., Expiration June 2014, Exercise Price $26.00 |
|
|
|
| 509 |
| 28,231 | |
American International Group, Expiration June 2014, Exercise Price $45.00 |
|
|
|
| 82 |
| 1,230 | |
American International Group, Expiration August 2014, Exercise Price $44.00 |
|
|
|
| 182 |
| 6,279 | |
American International Group, Expiration May 2014, Exercise Price $44.00 |
|
|
|
| 231 |
| 693 | |
American International Group, Expiration May 2014, Exercise Price $41.00 |
|
|
|
| 248 |
| 868 | |
American International Group, Expiration August 2014, Exercise Price $45.00 |
|
|
|
| 248 |
| 10,912 | |
American International Group, Expiration May 2014, Exercise Price $46.00 |
|
|
|
| 635 |
| 2,540 | |
Anadarko Petroleum Corporation, Expiration May 2014, Exercise Price $65.00 |
|
|
|
| 40 |
| 80 | |
Anadarko Petroleum Corporation, Expiration August 2014, Exercise Price $85.00 |
|
|
|
| 52 |
| 6,188 | |
Anadarko Petroleum Corporation, Expiration August 2014, Exercise Price $87.50 |
|
|
|
| 299 |
| 48,139 | |
Anadarko Petroleum Corporation, Expiration May 2014, Exercise Price $70.00 |
|
|
|
| 452 |
| 1,808 | |
Ashland, Inc., Expiration July 2014, Exercise Price $85.00 |
|
|
|
| 112 |
| 12,040 | |
AT&T, Inc., Expiration June 2014, Exercise Price $28.00 |
|
|
|
| 78 |
| 195 | |
AT&T, Inc., Expiration June 2014, Exercise Price $30.00 |
|
|
|
| 1,150 |
| 4,600 | |
Barrick Gold Corporation, Expiration October 2014, Exercise Price $20.00 |
|
|
|
| 185 |
| 58,275 | |
BP Plc-Spons ADR, Expiration July 2014, Exercise Price $44.00 |
|
|
|
| 124 |
| 2,356 | |
CBS Corp., Expiration June 2014, Exercise Price $50.00 |
|
|
|
| 32 |
| 1,824 | |
CBS Corp., Expiration September 2014, Exercise Price $50.00 |
|
|
|
| 176 |
| 26,224 | |
CBS Corp., Expiration June 2014, Exercise Price $55.00 |
|
|
|
| 233 |
| 36,115 | |
Centerpoint Energy Inc., Expiration August 2014, Exercise Price $17.50 |
|
|
|
| 746 |
| 14,920 | |
Chemtura Corp., Expiration September 2014, Exercise Price $17.50 |
|
|
|
| 113 |
| 3,955 | |
Chemtura Corp., Expiration June 2014, Exercise Price $22.50 |
|
|
|
| 928 |
| 111,360 | |
Citigroup, Inc., Expiration July 2014, Exercise Price $41.00 |
|
|
|
| 45 |
| 945 | |
Citigroup, Inc., Expiration July 2014, Exercise Price $43.00 |
|
|
|
| 191 |
| 8,309 | |
Citigroup, Inc., Expiration June 2014, Exercise Price $42.00 |
|
|
|
| 202 |
| 2,828 | |
Citigroup, Inc., Expiration June 2014, Exercise Price $44.00 |
|
|
|
| 684 |
| 19,836 | |
CommonWealth REIT, Expiration July 2014, Exercise Price $22.5 |
|
|
|
| 1,066 |
| 37,310 | |
CONSOL Energy Inc., Expiration July 2014, Exercise Price $36.00 |
|
|
|
| 10 |
| 245 | |
Corrections Corp. Of America, Expiration June 2014, Exercise Price $28.00 |
|
|
|
| 162 |
| 2,430 | |
DISH Network Corp., Expiration June 2014, Exercise Price $52.50 |
|
|
|
| 202 |
| 29,290 | |
DISH Network Corp., Expiration June 2014, Exercise Price $50.00 |
|
|
|
| 203 |
| 17,255 | |
DOW Chemical Company, Expiration June 2014, Exercise Price $42.00 |
|
|
|
| 498 |
| 6,474 | |
Du Pont (EI) De Nemours & Co., Expiration July 2014, Exercise Price $57.50 |
|
|
|
| 801 |
| 14,418 | |
Endo Pharmaceuticals Holdings, Expiration July 2014, Exercise Price $50.00 |
|
|
|
| 84 |
| 7,980 | |
Equinix Inc., Expiration June 2014, Exercise Price $160.00 |
|
|
|
| 79 |
| 9,678 | |
Equinix Inc., Expiration June 2014, Exercise Price $175.00 |
|
|
|
| 99 |
| 31,433 | |
General Electric Co., Expiration June 2014, Exercise Price $21.00 |
|
|
|
| 327 |
| 981 | |
General Electric Co., Expiration May 2014, Exercise Price $22.00 |
|
|
|
| 1,067 |
| 2,134 | |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Contracts** |
| Value |
PURCHASED PUT OPTIONS (Continued) - 0.6 % |
|
|
|
|
|
|
| |
General Motors Co., Expiration June 2014, Exercise Price $32.00 |
|
|
|
| 160 |
| $ 8,480 | |
General Motors Co., Expiration June 2014, Exercise Price $34.00 |
|
|
|
| 807 |
| 96,033 | |
Genworth Financial, Inc. -Cl A, Expiration June 2014, Exercise Price $12.00 |
|
|
|
| 350 |
| 2,800 | |
Gilead Sciences, Inc., Expiration June 2014, Exercise Price $65.00 |
|
|
|
| 298 |
| 13,410 | |
Halliburton Co., Expiration July 2014, Exercise Price $49.00 |
|
|
|
| 133 |
| 1,397 | |
Hertz Global Holdings Inc., Expiration June 2014, Exercise Price $21.00 |
|
|
|
| 749 |
| 5,618 | |
Hertz Global Holdings Inc., Expiration June 2014, Exercise Price $22.00 |
|
|
|
| 1,052 |
| 11,572 | |
Hess Corp, Expiration May 2014, Exercise Price $70.00 |
|
|
|
| 261 |
| 522 | |
Hess Corp, Expiration May 2014, Exercise Price $67.50 |
|
|
|
| 308 |
| 1,232 | |
Huntsman Corp., Expiration May 2014, Exercise Price $19.00 |
|
|
|
| 170 |
| 850 | |
Huntsman Corp., Expiration May 2014, Exercise Price $21.00 |
|
|
|
| 1,038 |
| 5,190 | |
Huntsman Corp., Expiration May 2014, Exercise Price $17.00 |
|
|
|
| 1,246 |
| 6,230 | |
International Paper Co., Expiration July 2014, Exercise Price $40.00 |
|
|
|
| 64 |
| 576 | |
International Paper Co., Expiration October 2014, Exercise Price $41.00 |
|
|
|
| 128 |
| 8,704 | |
International Paper Co., Expiration October 2014, Exercise Price $40.00 |
|
|
|
| 633 |
| 37,980 | |
Iron Mountain Inc., Expiration October 2014, Exercise Price $20.00 |
|
|
|
| 25 |
| 1,125 | |
Iron Mountain Inc., Expiration July 2014, Exercise Price $22.50 |
|
|
|
| 531 |
| 23,895 | |
Lamar Advertising Co., Expiration July 2014, Exercise Price $45.00 |
|
|
|
| 25 |
| 2,063 | |
Mallinckrodt PLC., Expiration July 2014, Exercise Price $50.00 |
|
|
|
| 53 |
| 3,710 | |
Mallinckrodt PLC., Expiration May 2014, Exercise Price $55.00 |
|
|
|
| 322 |
| 3,220 | |
McKesson HBOC Inc., Expiration May 2014, Exercise Price $140.00 |
|
|
|
| 30 |
| 300 | |
Microsoft Corp., Expiration June 2014, Exercise Price $34.00 |
|
|
|
| 704 |
| 3,872 | |
National-Oillwell, Varco, Inc., Expiration May 2014, Exercise Price $70.00 |
|
|
|
| 46 |
| 322 | |
National-Oillwell, Varco, Inc., Expiration May 2014, Exercise Price $72.50 |
|
|
|
| 73 |
| 730 | |
National-Oillwell, Varco, Inc., Expiration May 2014, Exercise Price $65.00 |
|
|
|
| 235 |
| 705 | |
National-Oillwell, Varco, Inc., Expiration May 2014, Exercise Price $67.50 |
|
|
|
| 317 |
| 1,427 | |
National-Oillwell, Varco, Inc., Expiration August 2014, Exercise Price $70.00 |
|
|
|
| 387 |
| 33,282 | |
Newmont Mining Corp Holding Co., Expiration July 2014, Exercise Price $23.00 |
|
|
|
| 166 |
| 11,122 | |
Noble Corp., Expiration June 2014, Exercise Price $29.00 |
|
|
|
| 1,432 |
| 83,056 | |
Nokia Corp., Expiration June 2014, Exercise Price $5.00 |
|
|
|
| 441 |
| 1,323 | |
Nokia Corp., Expiration May 2014, Exercise Price $5.00 |
|
|
|
| 608 |
| 608 | |
Occidental Petroleum Corp., Expiration May 2014, Exercise Price $80.00 |
|
|
|
| 56 |
| 224 | |
Occidental Petroleum Corp., Expiration August 2014, Exercise Price $82.50 |
|
|
|
| 72 |
| 4,752 | |
Occidental Petroleum Corp., Expiration August 2014, Exercise Price $85.00 |
|
|
|
| 85 |
| 8,245 | |
Occidental Petroleum Corp., Expiration May 2014, Exercise Price $75.00 |
|
|
|
| 192 |
| 768 | |
Oil States International Inc., Expiration June 2014, Exercise Price $85.00 |
|
|
|
| 439 |
| 27,438 | |
Pfizer Inc., Expiration July 2014, Exercise Price $28.00 |
|
|
|
| 162 |
| 5,184 | |
Pfizer Inc., Expiration June 2014, Exercise Price $28.00 |
|
|
|
| 1,161 |
| 19,737 | |
QEP Resources Inc., Expiration June 2014, Exercise Price $20.00 |
|
|
|
| 167 |
| 1,670 | |
QEP Resources Inc., Expiration January 2014, Exercise Price $25.00 |
|
|
|
| 914 |
| 11,425 | |
SLM Corp., Expiration July 2014, Exercise Price $22.00 |
|
|
|
| 13 |
| 163 | |
SLM Corp., Expiration July 2014, Exercise Price $21.00 |
|
|
|
| 474 |
| 3,792 | |
SLM Corp., Expiration October 2014, Exercise Price $21.00 |
|
|
|
| 765 |
| 21,803 | |
SPDR S&P 500 ETF Trust, Expiration December 2014, Exercise Price $160.00 |
|
|
|
| 230 |
| 58,650 | |
SPDR S&P 500 ETF Trust, Expiration December 2014, Exercise Price $181.00 |
|
|
|
| 230 |
| 158,355 | |
SPDR S&P 500 ETF Trust, Expiration June 2014, Exercise Price $185.00 |
|
|
|
| 413 |
| 103,663 | |
SPDR S&P 500 ETF Trust, Expiration May 2014, Exercise Price $183.00 |
|
|
|
| 637 |
| 31,850 | |
Sprint Corp., Expiration May 2014, Exercise Price $5.00 |
|
|
|
| 2,113 |
| 2,113 | |
Sprint Corp., Expiration May 2014, Exercise Price $6.00 |
|
|
|
| 2,339 |
| 2,339 | |
Time Warner Cable Inc., Expiration July 2014, Exercise Price $120.00 |
|
|
|
| 193 |
| 8,685 | |
Timken Co., Expiration June 2014, Exercise Price $47.50 |
|
|
|
| 324 |
| 4,860 | |
T-Mobile US Inc., Expiration May 2014, Exercise Price $25.00 |
|
|
|
| 355 |
| 7,100 | |
T-Mobile US Inc., Expiration May 2014, Exercise Price $28.00 |
|
|
|
| 372 |
| 34,224 | |
T-Mobile US Inc., Expiration May 2014, Exercise Price $26.00 |
|
|
|
| 616 |
| 20,944 | |
Transocean Ltd., Expiration May 2014, Exercise Price $38.00 |
|
|
|
| 82 |
| 820 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Contracts ** |
| Value |
PURCHASED PUT OPTIONS (Continued) - 0.6 % |
|
|
|
|
|
|
| |
Verizon Communications, Inc., Expiration May 2014, Exercise Price $45.00 |
|
|
|
| 48 |
| $ 432 | |
Verizon Communications, Inc., Expiration June 2014, Exercise Price $43.00 |
|
|
|
| 202 |
| 2,626 | |
Vivendi , Expiration June 2014, Exercise Price $17.00 |
|
|
|
| 194 |
| 1,345 | |
Vivendi, Expiration May 2014, Exercise Price $18.00 |
|
|
|
| 476 |
| 1,980 | |
Vivendi, Expiration May 2014, Exercise Price $17.00 |
|
|
|
| 563 |
| 781 | |
Vodafone Group PLC, Expiration July 2014, Exercise Price $30.00 |
|
|
|
| 42 |
| 630 | |
Vodafone Group PLC, Expiration October 2014, Exercise Price $32.00 |
|
|
|
| 63 |
| 4,914 | |
Weyerhaeuser Co., Expiration July 2014, Exercise Price $26.00 |
|
|
|
| 158 |
| 2,765 | |
Weyerhaeuser Co., Expiration July 2014, Exercise Price $24.00 |
|
|
|
| 669 |
| 10,035 | |
Williams Cos., Inc., Expiration May 2014, Exercise Price $36.00 |
|
|
|
| 717 |
| 4,302 | |
Yahoo Inc., Expiration July 2014, Exercise Price $29.00 |
|
|
|
| 226 |
| 7,458 | |
Yahoo Inc., Expiration July 2014, Exercise Price $33.00 |
|
|
|
| 329 |
| 41,120 | |
TOTAL PURCHASED PUT OPTIONS (Cost - $3,214,465) |
|
|
|
|
|
| 1,621,562 | |
|
|
|
|
|
|
|
|
|
SHORT-TERM INVESTMENT - 5.8 % |
|
|
|
|
| Interest |
|
|
MONEY MARKET FUND - 5.8 % |
| Shares |
|
|
| Rate |
|
|
First American Government Obligations Fund |
| 15,207,592 |
|
|
| 0.00%+ |
| 15,207,592 |
TOTAL SHORT-TERM INVESTMENT (Cost - $15,207,592) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 103.3 % (Cost - $266,718,877) |
|
|
|
|
|
| $ 268,830,997 | |
LIABILITIES IN EXCESS OF OTHER ASSETS - (3.3) % |
|
|
|
|
|
| (8,675,941) | |
NET ASSETS - 100.0 % |
|
|
|
|
|
|
| $ 260,155,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Contracts ++ |
| Value |
SCHEDULE OF WRITTEN CALL OPTIONS - (6.4) % |
|
|
|
|
|
|
| |
Agilent Technologies, Inc., Expiration May 2014, Exercise Price $55.00 |
|
|
|
| 465 |
| $ 41,850 | |
Agilent Technologies, Inc., Expiration August 2014, Exercise Price $55.00 |
|
|
|
| 182 |
| 43,771 | |
Actavis PLC, Expiration May 2014, Exercise Price $185.00 |
|
|
|
| 63 |
| 124,740 | |
Actavis PLC, Expiration May 2014, Exercise Price $190.00 |
|
|
|
| 120 |
| 183,600 | |
Actavis PLC, Expiration May 2014, Exercise Price $195.00 |
|
|
|
| 110 |
| 114,400 | |
Allergan, Inc., Expiration June 2014, Exercise Price $155.00 |
|
|
|
| 197 |
| 254,524 | |
Allergan, Inc., Expiration September 2014, Exercise Price $160.00 |
|
|
|
| 39 |
| 54,600 | |
Alstom S.A., Expiration June 2014, Exercise Price $29.00 |
|
|
|
| 636 |
| 165,793 | |
American International Group, Expiration May 2014, Exercise Price $49.00 |
|
|
|
| 706 |
| 296,520 | |
American International Group, Expiration May 2014, Exercise Price $50.00 |
|
|
|
| 347 |
| 116,245 | |
American International Group, Expiration June 2014, Exercise Price $49.00 |
|
|
|
| 102 |
| 45,900 | |
American International Group, Expiration August 2014, Exercise Price $49.00 |
|
|
|
| 243 |
| 124,538 | |
American International Group, Expiration August 2014, Exercise Price $52.50 |
|
|
|
| 310 |
| 86,800 | |
Allegion PLC - W/I, Expiration June 2014, Exercise Price $50.00 |
|
|
|
| 201 |
| 36,180 | |
Anadarko Petroleum Corp., Expiration May 2014, Exercise Price $80.00 |
|
|
|
| 181 |
| 353,855 | |
Anadarko Petroleum Corp., Expiration August 2014, Exercise Price $95.00 |
|
|
|
| 61 |
| 44,530 | |
Anadarko Petroleum Corp., Expiration August 2014, Exercise Price $97.50 |
|
|
|
| 374 |
| 235,620 | |
Ashland Inc., Expiration July 2014, Exercise Price $95.00 |
|
|
|
| 132 |
| 66,000 | |
BP Plc-Spons ADR, Expiration July 2014, Exercise Price $48.00 |
|
|
|
| 155 |
| 41,850 | |
Citigroup, Inc., Expiration June 2014, Exercise Price $46.00 |
|
|
|
| 404 |
| 106,454 | |
Citigroup, Inc., Expiration June 2014, Exercise Price $48.00 |
|
|
|
| 805 |
| 108,675 | |
Citigroup, Inc., Expiration July 2014, Exercise Price $46.00 |
|
|
|
| 59 |
| 17,730 | |
Citigroup, Inc., Expiration July 2014, Exercise Price $47.00 |
|
|
|
| 255 |
| 60,180 | |
CBS Corp., Expiration June 2014, Exercise Price $55.00 |
|
|
|
| 65 |
| 26,650 | |
CBS Corp., Expiration June 2014, Exercise Price $60.00 |
|
|
|
| 270 |
| 45,360 | |
CBS Corp., Expiration September 2014, Exercise Price $57.50 |
|
|
|
| 220 |
| 90,200 | |
Chemtura Corp., Expiration June 2014, Exercise Price $25.00 |
|
|
|
| 1,237 |
| 37,110 | |
Chemtura Corp., Expiration September 2014, Exercise Price $22.50 |
|
|
|
| 151 |
| 26,048 | |
Comcast Corp., Expiration July 2014, Exercise Price $45.00 |
|
|
|
| 86 |
| 52,460 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Contracts ++ |
| Value |
SCHEDULE OF WRITTEN CALL OPTIONS (Continued) - (6.4) % |
|
|
|
|
|
|
| |
Comcast Corp., Expiration October 2014, Exercise Price $45.00 |
|
|
|
| 194 |
| $ 129,010 | |
Centerpoint Energy Inc., Expiration May 2014, Exercise Price $22.50 |
|
|
|
| 532 |
| 114,380 | |
Centerpoint Energy Inc., Expiration May 2014, Exercise Price $25.00 |
|
|
|
| 531 |
| 18,585 | |
Centerpoint Energy Inc., Expiration August 2014, Exercise Price $22.50 |
|
|
|
| 1,130 |
| 268,375 | |
CONSOL Energy Inc., Expiration July 2014, Exercise Price $39.00 |
|
|
|
| 12 |
| 7,260 | |
CommonWealth REIT, Expiration July 2014, Exercise Price $25.00 |
|
|
|
| 98 |
| 13,230 | |
CommonWealth REIT, Expiration July 2014, Exercise Price $27.50 |
|
|
|
| 1,412 |
| 49,420 | |
Corrections Corp. Of America, Expiration June 2014, Exercise Price $33.00 |
|
|
|
| 203 |
| 17,255 | |
Du Pont (EI) De Nemours & Co., Expiration July 2014, Exercise Price $65.00 |
|
|
|
| 1,051 |
| 314,249 | |
DISH Network Corp., Expiration June 2014, Exercise Price $57.50 |
|
|
|
| 477 |
| 143,100 | |
DOW Chemical Co., Expiration June 2014, Exercise Price $47.00 |
|
|
|
| 623 |
| 214,935 | |
Endo Pharmaceuticals Holdings, Expiration July 2014, Exercise Price $185.00 |
|
|
|
| 94 |
| 94,940 | |
Equinix Inc., Expiration June 2014, Exercise Price $185.00 |
|
|
|
| 39 |
| 35,880 | |
Equinix Inc., Expiration June 2014, Exercise Price $190.00 |
|
|
|
| 135 |
| 90,450 | |
Vivendi, Expiration May 2014, Exercise Price $19.00 |
|
|
|
| 563 |
| 39,038 | |
Vivendi, Expiration May 2014, Exercise Price $20.00 |
|
|
|
| 476 |
| 6,601 | |
Vivendi, Expiration June 2014, Exercise Price $19.00 |
|
|
|
| 184 |
| 19,393 | |
Vivendi, Expiration June 2014, Exercise Price $19.50 |
|
|
|
| 47 |
| 3,194 | |
Market Vectors, Expiration September 2014, Exercise Price $20.50 |
|
|
|
| 135 |
| 57,038 | |
General Electric Co., Expiration May 2014, Exercise Price $26.00 |
|
|
|
| 1,334 |
| 124,062 | |
General Electric Co., Expiration June 2014, Exercise Price $25.00 |
|
|
|
| 409 |
| 77,710 | |
Gilead Sciences, Inc., Expiration June 2014, Exercise Price $70.00 |
|
|
|
| 319 |
| 301,455 | |
General Motors Co., Expiration June 2014, Exercise Price $36.00 |
|
|
|
| 200 |
| 12,200 | |
General Motors Co., Expiration June 2014, Exercise Price $37.00 |
|
|
|
| 222 |
| 8,436 | |
Genworth Financial, Inc.-Cl A, Expiration June 2014, Exercise Price $14.00 |
|
|
|
| 438 |
| 168,630 | |
Halliburton Co., Expiration July 2014, Exercise Price $55.00 |
|
|
|
| 178 |
| 145,782 | |
Hess Corp., Expiration May 2014, Exercise Price $77.50 |
|
|
|
| 829 |
| 980,293 | |
Hertz Global Holdings Inc., Expiration June 2014, Exercise Price $24.00 |
|
|
|
| 194 |
| 90,210 | |
Hertz Global Holdings Inc., Expiration June 2014, Exercise Price $25.00 |
|
|
|
| 872 |
| 335,720 | |
Hertz Global Holdings Inc., Expiration June 2014, Exercise Price $26.00 |
|
|
|
| 873 |
| 264,519 | |
Huntsman Corp., Expiration May 2014, Exercise Price $21.00 |
|
|
|
| 1,611 |
| 652,455 | |
Huntsman Corp., Expiration May 2014, Exercise Price $23.00 |
|
|
|
| 1,129 |
| 228,058 | |
International Paper Co., Expiration July 2014, Exercise Price $45.00 |
|
|
|
| 80 |
| 20,320 | |
International Paper Co., Expiration October 2014, Exercise Price $45.00 |
|
|
|
| 160 |
| 46,880 | |
International Paper Co., Expiration October 2014, Exercise Price $46.00 |
|
|
|
| 845 |
| 201,110 | |
Iron Mountain Inc., Expiration July 2014, Exercise Price $25.00 |
|
|
|
| 708 |
| 307,980 | |
Iron Mountain Inc., Expiration October 2014, Exercise Price $25.00 |
|
|
|
| 31 |
| 14,570 | |
Koninklijke KPN NV, Expiration May 2014, Exercise Price $2.4 |
|
|
|
| 3,572 |
| 89,166 | |
Koninklijke KPN NV, Expiration June 2014, Exercise Price $2.5 |
|
|
|
| 541 |
| 14,261 | |
Lamar Advertising Co., Expiration July 2014, Exercise Price $49.00 |
|
|
|
| 273 |
| 65,520 | |
Lamar Advertising Co., Expiration July 2014, Exercise Price $50.00 |
|
|
|
| 1,234 |
| 215,950 | |
Liberty Global PLC, Expiration July 2014, Exercise Price $72.50 |
|
|
|
| 32 |
| 22,560 | |
Lorillard Inc., Expiration June 2014, Exercise Price $47.50 |
|
|
|
| 713 |
| 862,730 | |
McKesson HBOC Inc., Expiration May 2014, Exercise Price $160.00 |
|
|
|
| 37 |
| 37,000 | |
Martin Metals Inc., Expiration July 2014, Exercise Price $95.00 |
|
|
|
| 414 |
| 1,229,580 | |
Mallinckrodt PLC, Expiration May 2014, Exercise Price $60.00 |
|
|
|
| 402 |
| 482,400 | |
Mallinckrodt PLC, Expiration July 2014, Exercise Price $55.00 |
|
|
|
| 134 |
| 229,140 | |
Microsoft Corp., Expiration June 2014, Exercise Price $38.00 |
|
|
|
| 939 |
| 238,506 | |
Noble Corp., Expiration June 2014, Exercise Price $32.00 |
|
|
|
| 1,591 |
| 87,505 | |
Newmont Mining Corp Holding Co., Expiration July 2014, Exercise Price $25.00 |
|
|
|
| 502 |
| 67,268 | |
Nokia Corp., Expiration May 2014, Exercise Price $6.00 |
|
|
|
| 1,215 |
| 185,895 | |
Nokia Corp., Expiration June 2014, Exercise Price $6.00 |
|
|
|
| 881 |
| 135,674 | |
National-Oillwell, Varco, Inc., Expiration May 2014, Exercise Price $77.50 |
|
|
|
| 312 |
| 59,592 | |
National-Oillwell, Varco, Inc., Expiration August 2014, Exercise Price $77.50 |
|
|
|
| 484 |
| 183,920 | |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Contracts ++ |
| Value |
SCHEDULE OF WRITTEN CALL OPTIONS (Continued) - (6.4) % |
|
|
|
|
|
|
| |
Northstar Realty Finance Corp., Expiration June 2014, Exercise Price $14.00 |
|
|
|
| 309 |
| $ 59,483 | |
Northstar Realty Finance Corp., Expiration June 2014, Exercise Price $15.00 |
|
|
|
| 853 |
| 98,095 | |
Northstar Realty Finance Corp., Expiration September 2014, Exercise Price $15.00 |
|
|
|
| 1,212 |
| 193,920 | |
Northstar Realty Finance Corp., Expiration September 2014, Exercise Price $16.00 |
|
|
|
| 169 |
| 18,590 | |
Oil States International Inc., Expiration June 2014, Exercise Price $100.00 |
|
|
|
| 33 |
| 7,095 | |
Oil States International Inc., Expiration June 2014, Exercise Price $95.00 |
|
|
|
| 537 |
| 255,075 | |
Occidental Petroleum Corp., Expiration May 2014, Exercise Price $87.50 |
|
|
|
| 110 |
| 96,800 | |
Occidental Petroleum Corp., Expiration May 2014, Exercise Price $90.00 |
|
|
|
| 56 |
| 33,740 | |
Occidental Petroleum Corp., Expiration May 2014, Exercise Price $92.50 |
|
|
|
| 51 |
| 20,349 | |
Occidental Petroleum Corp., Expiration August 2014, Exercise Price $95.00 |
|
|
|
| 217 |
| 90,055 | |
Pfizer Inc., Expiration June 2014, Exercise Price $32.00 |
|
|
|
| 1,110 |
| 71,040 | |
Pfizer Inc., Expiration July 2014, Exercise Price $31.00 |
|
|
|
| 364 |
| 46,228 | |
QEP Resources Inc., Expiration June 2014, Exercise Price $25.00 |
|
|
|
| 167 |
| 101,035 | |
QEP Resources Inc., Expiration June 2014, Exercise Price $30.00 |
|
|
|
| 1,234 |
| 197,440 | |
Sprint Corp., Expiration May 2014, Exercise Price $7.00 |
|
|
|
| 2,256 |
| 329,376 | |
Sprint Corp., Expiration May 2014, Exercise Price $8.00 |
|
|
|
| 2,599 |
| 194,925 | |
Sirius XM Radio, Inc., Expiration June 2014, Exercise Price $3.50 |
|
|
|
| 2,169 |
| 13,014 | |
SLM Corp., Expiration July 2014, Exercise Price $24.00 |
|
|
|
| 418 |
| 89,034 | |
SLM Corp., Expiration July 2014, Exercise Price $25.00 |
|
|
|
| 490 |
| 62,230 | |
SLM Corp., Expiration July 2014, Exercise Price $26.00 |
|
|
|
| 276 |
| 23,736 | |
SLM Corp., Expiration October 2014, Exercise Price $25.00 |
|
|
|
| 307 |
| 58,637 | |
SLM Corp., Expiration October 2014, Exercise Price $26.00 |
|
|
|
| 615 |
| 79,950 | |
Timken Co., Expiration June 2014, Exercise Price $57.50 |
|
|
|
| 405 |
| 251,100 | |
T-Mobile US, Inc., Expiration May 2014, Exercise Price $28.00 |
|
|
|
| 395 |
| 80,975 | |
T-Mobile US, Inc., Expiration May 2014, Exercise Price $29.00 |
|
|
|
| 725 |
| 114,550 | |
T-Mobile US, Inc., Expiration May 2014, Exercise Price $30.00 |
|
|
|
| 372 |
| 45,012 | |
Time Warner Cable, Inc., Expiration July 2014, Exercise Price $135.00 |
|
|
|
| 332 |
| 271,908 | |
Time Warner Cable - A, Expiration July 2014, Exercise Price $140.00 |
|
|
|
| 126 |
| 63,000 | |
Time Warner Cable Inc., Expiration October 2014, Exercise Price $140.00 |
|
|
|
| 44 |
| 32,780 | |
Transocean Ltd., Expiration May 2014, Exercise Price $42.00 |
|
|
|
| 102 |
| 16,830 | |
Vodafone Group PLC, Expiration July 2014, Exercise Price $34.00 |
|
|
|
| 105 |
| 43,050 | |
Vodafone Group PLC, Expiration July 2014, Exercise Price $37.00 |
|
|
|
| 97 |
| 18,818 | |
Vodafone Group PLC, Expiration October 2014, Exercise Price $35.00 |
|
|
|
| 84 |
| 30,660 | |
Vodafone Group PLC, Expiration October 2014, Exercise Price $37.00 |
|
|
|
| 20 |
| 4,560 | |
Verizon Communications, Inc. Expiration May 2014, Exercise Price $48.00 |
|
|
|
| 95 |
| 950 | |
Verizon Communications, Inc. Expiration June 2014, Exercise Price $48.00 |
|
|
|
| 310 |
| 14,570 | |
Verizon Communications, Inc. Expiration August 2014, Exercise Price $47.00 |
|
|
|
| 265 |
| 33,655 | |
Williams Cos., Inc. Expiration May 2014, Exercise Price $39.00 |
|
|
|
| 896 |
| 297,920 | |
Weyerhaeuser Co. Expiration July 2014, Exercise Price $28.00 |
|
|
|
| 836 |
| 158,840 | |
Weyerhaeuser Co. Expiration July 2014, Exercise Price $29.00 |
|
|
|
| 176 |
| 22,000 | |
Yahoo Inc. Expiration July 2014, Exercise Price $32.00 |
|
|
|
| 266 |
| 130,340 | |
Yahoo Inc. Expiration July 2014, Exercise Price $36.00 |
|
|
|
| 387 |
| 95,586 | |
TOTAL WRITTEN CALL OPTIONS - (Premiums Received - $15,897,802) |
|
|
|
|
|
| 16,692,524 | |
|
|
|
|
|
|
|
|
|
SCHEDULE OF WRITTEN PUT OPTIONS - (0.1) % |
|
|
|
|
|
|
| |
Jos. A. Bank, Expiration July 2014, Exercise Price $50.00 |
|
|
|
| 45 |
| 765 | |
SPDR S&P 500 ETF Trust, Expiration May 2014, Exercise Price $177.00 |
|
|
|
| 696 |
| 9,744 | |
SPDR S&P 500 ETF Trust, Expiration June 2014, Exercise Price $180.00 |
|
|
|
| 473 |
| 65,747 | |
SPDR S&P 500 ETF Trust, Expiration December 2014, Exercise Price $170.00 |
|
|
|
| 460 |
| 188,140 | |
TOTAL WRITTEN PUT OPTIONS - (Premiums Received - $421,410) |
|
|
|
|
|
| 264,396 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Shares |
| Value |
SECURITIES SOLD SHORT * - (10.1) % |
|
|
|
|
|
|
|
|
Applied Materials, Inc. |
|
|
|
|
| 232,068 |
| $ 4,423,216 |
Discovery Communications, Inc. - Cl. A |
|
|
|
|
| 10,193 |
| 773,649 |
DOW Chemical Co. |
|
|
|
|
| 31,500 |
| 1,571,850 |
Endo Pharmaceuticals Holdings |
|
|
|
|
| 47,850 |
| 3,011,918 |
General Motors Co. |
|
|
|
|
| 19,400 |
| 668,912 |
J.P. Morgan Chase & Co. |
|
|
|
|
| 97,800 |
| 4,741,344 |
Liberty Global PLC - Class C |
|
|
|
|
| 35,848 |
| 1,377,639 |
Liberty Global PLC - Class A |
|
|
|
|
| 21,116 |
| 840,839 |
Mallinckrodt PLC |
|
|
|
|
| 8,347 |
| 594,557 |
M&T Bank Corp. |
|
|
|
|
| 43,138 |
| 5,263,267 |
Occidental Petroleum Corp. |
|
|
|
|
| 16,600 |
| 1,589,450 |
WhiteWave Foods Co. |
|
|
|
|
| 48,781 |
| 1,350,746 |
TOTAL SECURITIES SOLD SHORT - (Proceeds - $23,507,664) |
|
|
|
|
|
| 26,207,387 | |
|
|
|
|
|
|
|
|
|
* 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, 2014. |
|
|
|
|
|
|
| |
^ Subject to call option written. |
|
|
|
|
|
|
|
|
++ 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. | ||||||||
# All or a portion of the security is segregated as collateral for securities sold short and/or options purchased/written at April 30, 2014. Total collateral had a value of $164,797,354 at April 30, 2014. | ||||||||
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. | ||||||||
|
|
|
|
|
|
|
| Unrealized |
LONG EQUITY SWAP CONTRACTS - 1.3 % |
|
|
|
|
|
|
| Appreciation/ (Depreciation) |
Alstom SA Equity Swap, JP Morgan - May 06, 2015 |
|
|
|
|
|
| (7,236) | |
to receive total return of Alstom SA less USD- 3 Month LIBOR plus 0.30% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $2,610,538) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American International Group Equity Swap, JP Morgan - April 09, 2015 |
|
|
|
|
|
| 357,798 | |
to receive total return of American International Group less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
| ||
(NOTIONAL AMOUNT $8,172,262) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Andarko Petroleum Corp. Equity Swap, JP Morgan - December 16, 2014 |
|
|
|
|
|
| 762,923 | |
to receive total return of Andarko Petroleum Corp. less USD- 3 Month LIBOR plus 1.03% |
|
|
|
|
|
| ||
(NOTIONAL AMOUNT $4,380,459) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apollo Residential Mortgage Equity Swap, JP Morgan - April 21, 2015 |
|
|
|
|
|
| (55,628) | |
to receive total return of Apollo Residential Mortgage less USD- 3 Month LIBOR plus 0.66% |
|
|
|
|
|
| ||
(NOTIONAL AMOUNT $2,106,911) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AZ Electronic Materials Equity Swap, JP Morgan - January 28, 2015 |
|
|
|
|
|
| 40,348 | |
to receive total return of AZ Electronic Material less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $987,960) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Blackstone Senior Floating Rate Term Fund Equity Swap, JP Morgan - December 20, 2014 |
|
|
|
|
| (3,180) | ||
to receive total return of Blackstone Senior Floating Rate Term Fund less USD- 3 Month LIBOR plus 1.03% |
|
|
|
|
| |||
(NOTIONAL AMOUNT $340,584) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized |
LONG EQUITY SWAP CONTRACTS (Continued) - 1.3 % |
|
|
|
|
|
| Appreciation/ (Depreciation) | |
CommonWealth REIT Equity Swap, JP Morgan - March 14, 2015 |
|
|
|
|
|
| $ (231,439) | |
to receive total return of CommonWealth REIT less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $3,816,050) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CYS Investments, Inc. Equity Swap, JP Morgan - May 6, 2014 |
|
|
|
|
|
| (991,051) | |
to receive total return of CY Investments, Inc. less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $3,331,384) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dow Chemical Co. Equity Swap, JP Morgan - February 6, 2015 |
|
|
|
|
|
| 451,596 | |
to receive total return of Dow Chemical Co less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $4,226,206) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance Floating Rate, Inc. Equity Swap, JP Morgan - December 19, 2014 |
|
|
|
|
|
| (19,706) | |
to receive total return of Eaton Vance Floating Rate, Inc. less USD- 3 Month LIBOR plus 1.03% |
|
|
|
|
|
| ||
(NOTIONAL AMOUNT $3,702,243) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Trust Four Courners Senior Floating Rate Equity Swap, JP Morgan - December 22, 2014 |
|
|
|
|
| (17,877) | ||
to receive total return of First Trust Four Courners Senior Floating Rate less USD- 3 Month LIBOR plus 1.03% |
|
|
|
|
| |||
(NOTIONAL AMOUNT $1,215,765) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Trust MLP & Energy Income Fund Equity Swap, JP Morgan - December 26, 2014 |
|
|
|
|
|
| 106,142 | |
to receive total return of First Trust MLP & Energy Income Fund less USD- 3 Month LIBOR plus 1.03% |
|
|
|
|
|
| ||
(NOTIONAL AMOUNT $1,200,596) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Motors Co. Equity Swap, JP Morgan - December 12, 2014 |
|
|
|
|
|
| (1,292,519) | |
to receive total return of General Motors Co. less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $8,203,738) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain Corp. Equity Swap, JP Morgan - December 4, 2014 |
|
|
|
|
|
| (205,896) | |
to receive total return of Grain Corp. less USD- 3 Month LIBOR plus 0.63% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $1,406,109) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hess Corp. Equity Swap, JP Morgan - April 3, 2015 |
|
|
|
|
|
| 539,651 | |
to receive total return of Hess Corp. less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $6,848,900) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Huntsman Corp. Equity Swap, JP Morgan - April 9, 2015 |
|
|
|
|
|
| (51,953) | |
to receive total return of Huntsman Corp. less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $7,070,556) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ING Prime Rate Equity Swap, JP Morgan - December 22, 2014 |
|
|
|
|
|
| (12,524) | |
to receive total return of Voya Prime Rate less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $1,240,947) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
J.P. Morgan Chase & Co. Equity Swap, JP Morgan - November 21, 2014 |
|
|
|
|
|
| 435,503 | |
to receive total return of J.P. Morgan Chase & Co. less USD- 3 Month LIBOR plus 1.23% |
|
|
|
|
|
| ||
(NOTIONAL AMOUNT $5,887,408) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Koninkijke KPN NV Equity Swap, JP Morgan - September 3, 2014 |
|
|
|
|
|
| 157,777 | |
to receive total return of Koninkijke KPN NV less USD- 3 Month LIBOR plus 0.63% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $2,464,968) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Unrealized |
LONG EQUITY SWAP CONTRACTS (Continued) - 1.3 % |
|
|
|
| Appreciation/ (Depreciation) |
Lamar Advertising Co. - Class A Equity Swap, JP Morgan - December 24, 2014 |
|
|
|
| $ (73,381) |
to receive total return of Lamar Advertising Co. - Class A less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
(NOTIONAL AMOUNT $6,613,484) |
|
|
|
|
|
|
|
|
|
|
|
National Oilwell Varco, Inc. Equity Swap, JP Morgan - December 22, 2014 |
|
|
|
| 16,933 |
to receive total return of National Oilwell Varco, Inc. less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
(NOTIONAL AMOUNT $4,260,112) |
|
|
|
|
|
|
|
|
|
|
|
Nuveen Energy MLP Total Return Fund Equity Swap, JP Morgan - December 26, 2014 |
|
|
|
| 85,843 |
to receive total return of Nuveen Energy MLP Total Return Fund less USD- 3 Month LIBOR plus 1.03% |
|
|
|
|
|
(NOTIONAL AMOUNT $1,220,326) |
|
|
|
|
|
|
|
|
|
|
|
Occidental Petroleum Corp. Equity Swap, JP Morgan - February 11, 2015 |
|
|
|
| 356,041 |
to receive total return of Occidental Petroleum Corp. less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
(NOTIONAL AMOUNT $4,371,095) |
|
|
|
|
|
|
|
|
|
|
|
RDA Microelection ADR Equity Swap, JP Morgan - December 13, 2014 |
|
|
|
| (27,173) |
to receive total return of RDA Microelection ADR less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
(NOTIONAL AMOUNT $616,756) |
|
|
|
|
|
|
|
|
|
|
|
Sirius XM Radio, Inc. Equity Swap, JP Morgan - January 9, 2015 |
|
|
|
| (8,848) |
to receive total return of Sirius XM Radio, Inc. less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
(NOTIONAL AMOUNT $55,134) |
|
|
|
|
|
|
|
|
|
|
|
SMP Corp. Equity Swap, JP Morgan - December 18, 2014 |
|
|
|
| (9,936) |
to receive total return of SMP Corp. less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
(NOTIONAL AMOUNT $2,773,637) |
|
|
|
|
|
|
|
|
|
|
|
T-Mobile US, Inc. Equity Swap, JP Morgan - May 2, 2014 |
|
|
|
| 3,353,997 |
to receive total return of T-Mobile US, Inc. less USD- 3 Month LIBOR plus 0.00% |
|
|
|
|
|
(NOTIONAL AMOUNT $0) |
|
|
|
|
|
|
|
|
|
|
|
Time Warner Cable, Inc. Equity Swap, JP Morgan - March 17, 2015 |
|
|
|
| 147,803 |
to receive total return of Time Warner Cable, Inc. less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
(NOTIONAL AMOUNT $7,203,316) |
|
|
|
|
|
|
|
|
|
|
|
Toko, Inc. Equity Swap, JP Morgan - March 7, 2015 |
|
|
|
| (575) |
to receive total return of Toko, Inc. less USD- 3 Month LIBOR plus 0.63% |
|
|
|
|
|
(NOTIONAL AMOUNT $2,461) |
|
|
|
|
|
|
|
|
|
|
|
Verizon Communications, Inc. Equity Swap, JP Morgan - December 15, 2014 |
|
|
|
| (9,231) |
to receive total return of Verizon Communications, Inc. less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
(NOTIONAL AMOUNT $1,194,863) |
|
|
|
|
|
|
|
|
|
|
|
Vivendi Equity Swap, JP Morgan - May 21, 2014 |
|
|
|
| 88,042 |
to receive total return of Vivendi less USD- 3 Month LIBOR plus 0.63% |
|
|
|
|
|
(NOTIONAL AMOUNT $3,316,029) |
|
|
|
|
|
|
|
|
|
|
|
Vodafone Group PLC Equity Swap, JP Morgan - December 15, 2014 |
|
|
|
| (480,940) |
to receive total return of Vodafone Group PLC less USD- 3 Month LIBOR plus 0.53% |
|
|
|
|
|
(NOTIONAL AMOUNT $2,478,109) |
|
|
|
|
|
See accompanying notes to financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized |
LONG EQUITY SWAP CONTRACTS (Continued) - 1.3 % |
|
|
|
|
|
| Appreciation/ (Depreciation) | |
Ziggo NV Equity Swap, JP Morgan - January 31, 2015 |
|
|
|
|
|
| $ (38,904) | |
to receive total return of Ziggo NV less USD- 3 Month LIBOR plus 0.63% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $3,042,549) |
|
|
|
|
|
|
|
|
TOTAL LONG EQUITY SWAP CONTRACTS |
|
|
|
|
|
|
| 3,362,400 |
|
|
|
|
|
|
|
|
|
SHORT EQUITY SWAP CONTRACTS- (0.1) % |
|
|
|
|
|
|
| |
Amec PLC Equity Swap, JP Morgan - April 2, 2015 |
|
|
|
|
|
| (153,021) | |
to pay total return of Amec PLC less USD- 3 Month LIBOR plus 0.12% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $1,087,095) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Media Corp. Equity Swap, JP Morgan - January 9, 2015 |
|
|
|
|
|
| 4,499 | |
to pay total return of Liberty Media Corp. less USD- 3 Month LIBOR plus 0.37% |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $52,256) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publicis Groupe Equity Swap, JP Morgan - October 15, 2014 |
|
|
|
|
|
| 8,052 | |
to pay total return of Publicis Groupe less USD- 3 Month LIBOR plus 0.17% |
|
|
|
|
|
| ||
(NOTIONAL AMOUNT $11,291,560) |
|
|
|
|
|
|
|
|
TOTAL SHORT EQUITY SWAP CONTRACTS |
|
|
|
|
|
| (140,470) | |
|
|
|
|
|
|
|
|
|
TOTAL EQUITY SWAP CONTRACTS |
|
|
|
|
|
|
| $ 3,221,930 |
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||
Financial |
| 23.11% |
| Short-Term Investment |
| 5.83% | ||
Communications |
| 16.80% |
| Technology |
|
|
| 4.35% |
Consumer, Non-cyclical |
| 15.23% |
| Consumer, Cyclical |
| 3.60% | ||
Energy |
| 11.99% |
| Utilities |
|
|
| 3.07% |
Industrial |
| 7.33% |
| Government |
|
|
| 0.93% |
Basic Materials |
| 7.04% |
| Funds |
|
|
| 0.72% |
* Based on total value of investments as of April 30, 2014 |
|
| Total |
|
|
| 100.00% | |
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
|
| ||||||
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
Dunham Floating Rate Bond Fund
Message from the Sub-Adviser (Newfleet Asset Management, LLC)
Interest rates rose slightly over the first half of the fiscal year (six months ended April 30, 2014), with a moderate increase in the first few months followed by a decrease in rates for the first four months of 2014. The yield on 10-year Treasuries began the 2014 calendar year at 3.03 percent and ended April at 2.65 percent. 10-year Treasuries saw moderate fluctuations during the six-month period with the largest drawdown during the period reaching 3.3 percent before rising 4.0 percent from the beginning of February through the end of the most recent fiscal quarter. This flat-to-negative rate activity during 2014 pressured retail fund flows for bank loan mutual funds. As the fear of rising rates abated due to the absence of a significant rate hike, many investors pulled away from bank loans. However, institutional investors generally added to their bank loan positions, helping to offset the impact of the negative retail flows, primarily during the second fiscal quarter. The London Interbank Offered Rate ("LIBOR") fluctuated similarly to Treasury yields throughout the six-month period, but ended the period slightly higher. Three-month LIBOR began the fiscal year at 0.242 percent and ended the six-month period at 0.223 percent. Bank loans, as measured by the S&P/LSTA Leveraged Loan Index, rose 2.3 percent during the fiscal quarter as bank loan investors saw little in terms of price movement and most of the return was the result of collecting coupons.
The yields on bank loans, as measured by the S&P/LSTA Leveraged Loan 100 Index, fluctuated much greater on the surface-level during the six-month period, declining almost 0.98 percent. However, this was primarily due to a large issuer defaulting on its debt at the end of the six-month period. Bank loans in general boasted a yield-to-maturity of 4.3 percent, approximately 1.6 percent less than their traditional high-yield bond counterparts, as measured by the BofA Merrill Lynch High-Yield Bond Cash Pay Index, which had an average yield-to-maturity of 5.9 percent at the end of the six-month period. Bank loans were outpaced by traditional high-yield bonds during the period, as traditional high-yield bonds rose 4.7 percent – outperformance that was primarily supported by their higher coupons. The Fund held approximately 7.5 percent of its assets in traditional high-yield bonds, which generally aided positive performance during the six-month period. The Fund's largest traditional high-yield bond holdings were generally focused on intermediate-term maturities, primarily in the five to seven year range.
Since the inception of the Fund on November 1, 2013, the Sub-Adviser has continued to hold some positions in both the traditional bond and the bank loan for the same issuer. For example, the Fund held the traditional bond (184502BL5) of Clear Channel Communications, Inc., a mobile and on-demand entertainment provider, as well as the company's first lien term bank loan (BL1008384). The traditional bond and the bank loan returned 8.2 percent and 7.1 percent, respectively since they were purchased shortly after Fund inception. While both of these generally benefitted the Fund on an absolute and relative basis, some combinations slightly detracted from performance. For example, the Fund also held the traditional bond (729416AW7) as well as the bank loan (BL1219056) of Ply Gem Industries, Inc., an exterior siding, fencing, and door manufacturer. The Ply Gem bank loan returned only 0.4 percent since it was purchased in mid-January 2014while the traditional bond rose 0.7 percent during the same time period.
The Sub-Adviser has continued to focus on higher rated loans and first lien loans within the bank loan space, limiting its exposure to bank loans rated CCC and lower. The exposure to lower-rated loans and second lien loans has been limited to instances where the Sub-Adviser has determined that the additional reward is expected to significantly outweigh the additional risk. For example, it held a bank loan issued by Blue Coat Systems Inc. (BL1028440), a web security software provider. The CCC-rated second lien term loan issued by Blue Coat Systems Inc. rose 5.4 percent since it was purchased at the beginning of November 2013, generally benefitting the Fund. Another CCC-rated second lien term loan held by the Fund was issued by Nuveen Investments Inc. (BL0992596), an investment services firm. The Nuveen Investments Inc. loan returned 3.8 percent during the same time period.
The Sub-Adviser remains optimistic that interest rates in general may rise, and that bank loan investors may benefit from a highly-correlated increase in LIBOR. As default rates on bank loans have remained low on a historical basis, and as the Sub-Adviser believes that default rates will remain low in the near future, the Sub-Adviser is excited about the bank loan space and its attractiveness to investors. However, the Sub-Adviser is cautious within the bank loan market as some covenants have been increasingly more lax. Therefore, the Sub-Adviser has stressed the need to be selective and critical of new issuance in the bank loan markets, as some issuers have loosened their covenants in light of the investor excitement surrounding bank loans.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2014
|
| Since Inception (11/1/13) |
Class N |
| 1.07% |
Class C Class A with load of 4.50% Class A without load |
| 0.57% (3.67)% 0.86% |
S&P/LSTA Leverage Loan Index |
| 2.22% |
Morningstar Bank Loan Category |
| 0.49% |
The S&P/LSTA U.S. Leveraged Loan 100 Index is designed to reflect the performance of the largest facilities in the leveraged loan market. Investors cannot invest directly in an index or benchmark.
The Morningstar Bank Loan Category is generally representative of mutual funds that primarily invest in floating-rate bank loans instead of bonds. These bank loans generally offer interest payments that typically float above a common short-term benchmark such as the London interbank offered rate, or LIBOR.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including cost of underlying funds, are 1.51% for Class N, 2.26% for Class C and 1.76% for Class A. Class A shares are subject to a sales load of 4.50% and a deferred sales charge of up to 0.75%. 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 Floating Rate Bond Fund |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
BANK LOANS - 87.8 % |
|
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY - 25.4 % |
|
|
|
|
|
|
|
|
Acosta, Inc. |
| $ 214,462 |
| 4.250 | % | 3/1/2018 |
| $ 215,131 |
Advantage Sales & Marketing |
| 249,039 |
| 4.250 |
| 12/18/2017 |
| 249,623 |
Allison Transmission |
| 320,008 |
| 3.750 |
| 8/23/2019 |
| 320,568 |
Armstrong World Industries |
| 194,020 |
| 3.500 |
| 3/15/2020 |
| 194,481 |
Bally Technologies, Inc. |
| 303,475 |
| 4.250 |
| 11/25/2020 |
| 304,196 |
Bauer Performance Sports |
| 205,000 |
| 4.500 |
| 4/15/2021 |
| 205,170 |
BJ's Wholesale Club |
| 160,558 |
| 4.500 |
| 9/26/2019 |
| 160,616 |
BJ's Wholesale Club |
| 38,000 |
| 8.500 |
| 3/26/2020 |
| 38,945 |
Borgata |
| 175,560 |
| 6.750 |
| 8/15/2018 |
| 178,925 |
Boyd Gaming Corp. |
| 362,119 |
| 4.000 |
| 8/14/2020 |
| 362,742 |
Brickman Group Holdings, Inc. |
| 29,088 |
| 7.500 |
| 12/17/2021 |
| 29,760 |
Caesars Entertainment |
| 215,000 |
| 4.402 |
| 1/29/2018 |
| 198,547 |
Caesars Entertainment, Inc. |
| 364,088 |
| 7.000 |
| 10/11/2020 |
| 365,908 |
Caesars Growth Partners |
| 256,000 |
| 6.250 |
| 4/9/2021 |
| 255,264 |
Catalina Marketing Corp. |
| 171,000 |
| 4.500 |
| 4/9/2021 |
| 170,839 |
CBAC Borrower, LLC |
| 145,000 |
| 8.250 |
| 4/26/2020 |
| 151,163 |
CBS Outdoor Americas Cap, LLC |
| 593,000 |
| 3.000 |
| 1/15/2021 |
| 590,960 |
Cequel Com Holdings |
| 144,264 |
| 3.500 |
| 2/14/2019 |
| 143,911 |
Charter Communications Operation |
| 836,064 |
| 3.000 |
| 7/1/2020 |
| 825,095 |
Chrysler Group, LLC |
| 224,423 |
| 3.500 |
| 5/24/2017 |
| 224,484 |
Chrysler Group, LLC |
| 201,000 |
| 3.250 |
| 12/31/2018 |
| 199,794 |
Clear Channel Communication |
| 935,000 |
| 6.900 |
| 1/30/2019 |
| 929,114 |
Cooper-Standard Automotive |
| 217,000 |
| 4.000 |
| 4/5/2021 |
| 216,729 |
CSC Holdings, LLC |
| 862,214 |
| 2.650 |
| 4/17/2020 |
| 851,329 |
Cumulus Media Holdings |
| 193,581 |
| 4.250 |
| 12/23/2020 |
| 193,983 |
Federal-Mogul Corp. |
| 250,000 |
| 4.750 |
| 4/15/2021 |
| 248,483 |
General Nutrition Centers, Inc. |
| 573,512 |
| 3.250 |
| 3/4/2019 |
| 570,143 |
Great Wolf Resolrts, Inc. |
| 144,273 |
| 4.500 |
| 8/6/2020 |
| 144,454 |
Hilton Hotels Corp. |
| 731,360 |
| 3.750 |
| 10/26/2020 |
| 729,480 |
KAR Auction Services, Inc. |
| 317,539 |
| 3.500 |
| 3/11/2021 |
| 316,745 |
Lands End, Inc. |
| 267,000 |
| 4.250 |
| 4/4/2021 |
| 267,251 |
Las Vegas Sands Corp |
| 624,444 |
| 3.250 |
| 12/18/2020 |
| 621,853 |
Laureate Education, Inc. |
| 243,754 |
| 5.000 |
| 6/15/2018 |
| 241,394 |
Leslie's Poolmart, Inc. |
| 248,738 |
| 4.250 |
| 10/16/2019 |
| 248,738 |
Mediacom Broadband, LLC |
| 144,273 |
| 3.250 |
| 1/29/2021 |
| 142,921 |
Mediacom Illinois, LLC |
| 47,000 |
| 4.000 |
| 12/17/2019 |
| 46,922 |
MGM Results Intl. |
| 637,467 |
| 3.500 |
| 12/20/2019 |
| 634,480 |
Michaels Stores, Inc. |
| 289,271 |
| 3.750 |
| 1/28/2020 |
| 289,592 |
Mohegan Tribal Gaming |
| 164,056 |
| 5.500 |
| 11/19/2019 |
| 166,886 |
Neiman Marcus Group, Inc. - Class A |
| 199,500 |
| 4.250 |
| 10/25/2020 |
| 199,227 |
Nine Entertainment Group Ltd. |
| 144,271 |
| 3.500 |
| 2/5/2020 |
| 142,498 |
Numericable |
| 116,555 |
| 0.000 |
| 4/23/2020 |
| 116,535 |
Numericable |
| 98,644 |
| 0.000 |
| 4/23/2020 |
| 98,627 |
Oceania Cruises, Inc. |
| 183,942 |
| 5.250 |
| 7/20/2020 |
| 184,862 |
Penn National Gaming |
| 413,963 |
| 3.250 |
| 10/30/2020 |
| 413,704 |
Pinnacle Entertainment, Inc. |
| 255,120 |
| 3.750 |
| 8/13/2020 |
| 254,927 |
PVH Corp |
| 150,688 |
| 3.250 |
| 2/13/2020 |
| 151,355 |
Seminole Tribe of Florida |
| 236,114 |
| 3.000 |
| 4/29/2020 |
| 235,229 |
Servicemaster Co. |
| 308,486 |
| 4.250 |
| 1/31/2017 |
| 308,486 |
Seven Sea Cruises |
| 179,550 |
| 3.750 |
| 12/21/2018 |
| 179,326 |
SRAM, LLC |
| 143,001 |
| 5.250 |
| 4/10/2020 |
| 142,167 |
Tower Automotive Holdings |
| 224,438 |
| 4.000 |
| 4/23/2020 |
| 223,970 |
Transtar Holding Co. |
| 34,522 |
| 5.750 |
| 10/9/2018 |
| 34,414 |
Tribune Co. |
| 290,273 |
| 4.000 |
| 12/28/2020 |
| 290,273 |
TWCC Holding Corp. |
| 231,662 |
| 3.500 |
| 2/13/2017 |
| 229,594 |
TWCC Holding Corp. |
| 195,000 |
| 7.000 |
| 6/26/2020 |
| 194,432 |
Univision Communications |
| 673,886 |
| 4.000 |
| 3/1/2020 |
| 672,272 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Floating Rate Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
CONSUMER DISCRETIONARY (Continued) - 25.4 % |
|
|
|
|
|
|
| |
Virgin Media |
| $ 195,000 |
| 3.500 | % | 6/8/2020 |
| $ 193,894 |
Ziggo NV |
| 219,000 |
| 2.750 |
| 1/15/2022 |
| 215,487 |
Zuffa, LLC |
| 194,018 |
| 3.750 |
| 2/25/2020 |
| 193,436 |
|
|
|
|
|
|
|
| 16,921,334 |
CONSUMER STAPLES - 6.0 % |
|
|
|
|
|
|
|
|
AdvancePierre Foods |
| 75,000 |
| 9.500 |
| 10/10/2017 |
| 72,936 |
Aramark Corp. |
| 414,000 |
| 3.250 |
| 2/24/2021 |
| 410,636 |
Darling International, Inc. |
| 44,000 |
| 3.250 |
| 1/6/2021 |
| 43,918 |
Del Monte Foods Co. |
| 265,000 |
| 4.250 |
| 2/18/2021 |
| 264,255 |
Dole Foods, Inc. |
| 149,625 |
| 4.500 |
| 11/1/2018 |
| 149,906 |
H.J. Heinz Co. |
| 1,120,148 |
| 3.500 |
| 6/5/2020 |
| 1,123,582 |
New HB Acquisiton, LLC |
| 290,000 |
| 6.750 |
| 3/12/2020 |
| 301,600 |
Pinnacle Foods Finance |
| 716,674 |
| 3.250 |
| 4/29/2020 |
| 711,690 |
Rite Aid Corp. |
| 500,000 |
| 3.500 |
| 2/21/2020 |
| 500,088 |
Smart & Final, Inc. |
| 144,271 |
| 4.750 |
| 11/15/2019 |
| 144,361 |
Spectrum Brands, Inc. |
| 243,775 |
| 3.500 |
| 9/4/2019 |
| 243,470 |
|
|
|
|
|
|
|
| 3,966,442 |
ENERGY - 1.4 % |
|
|
|
|
|
|
|
|
Fieldwood Energy |
| 98,565 |
| 3.875 |
| 9/28/2018 |
| 98,534 |
Fieldwood Energy |
| 80,850 |
| 8.125 |
| 9/30/2020 |
| 83,655 |
Frac Tech International LLC |
| 99,000 |
| 4.902 |
| 4/16/2021 |
| 99,619 |
Inc Research Accellent |
| 252,368 |
| 4.000 |
| 2/21/2021 |
| 251,460 |
Quicksilver Resources, Inc. |
| 190,000 |
| 7.000 |
| 6/21/2019 |
| 190,120 |
Templar Energy, LLC |
| 135,000 |
| 8.000 |
| 11/25/2020 |
| 134,409 |
TGGT Holdings, LLC |
| 96,000 |
| 6.500 |
| 11/12/2018 |
| 96,780 |
|
|
|
|
|
|
|
| 954,577 |
FINANCIALS - 5.0 % |
|
|
|
|
|
|
|
|
AlixPartners, LLP |
| 225,000 |
| 4.000 |
| 7/10/2020 |
| 224,494 |
Asurion, LLC |
| 115,927 |
| 4.250 |
| 3/2/2020 |
| 116,142 |
Asurion, LLC |
| 120,000 |
| 8.500 |
| 3/3/2021 |
| 123,450 |
Asurion, LLC |
| 176,090 |
| 5.000 |
| 5/24/2019 |
| 176,506 |
Asurion, LLC |
| 111,718 |
| 4.250 |
| 7/8/2020 |
| 110,446 |
Capital Automotive LP |
| 119,156 |
| 4.000 |
| 4/10/2019 |
| 119,398 |
Clipper Acquisitions Corp. |
| 299,250 |
| 3.000 |
| 2/6/2020 |
| 296,632 |
Delos Aircraft, Inc. |
| 186,000 |
| 3.500 |
| 3/6/2021 |
| 185,710 |
Drillships Financing Holding |
| 144,273 |
| 6.000 |
| 3/31/2021 |
| 146,167 |
Guggenheim Partners Investment |
| 144,275 |
| 4.250 |
| 7/22/2020 |
| 144,906 |
HHI Holdings LLC |
| 59,000 |
| 5.000 |
| 10/5/2018 |
| 58,816 |
National Financial Partners |
| 169,213 |
| 5.250 |
| 7/1/2020 |
| 170,111 |
Nuveen Investments, Inc. |
| 205,000 |
| 4.152 |
| 5/13/2017 |
| 205,273 |
Nuveen Investments, Inc. |
| 385,000 |
| 6.500 |
| 2/28/2019 |
| 388,731 |
Santander AKA Sam Finance |
| 118,703 |
| 4.250 |
| 12/17/2020 |
| 118,629 |
Starwood Property Trust, Inc. |
| 381,075 |
| 3.500 |
| 4/17/2020 |
| 378,813 |
Trans Union, LLC |
| 267,564 |
| 4.000 |
| 4/9/2021 |
| 260,883 |
Walter Investment MGMT |
| 99,750 |
| 4.750 |
| 12/18/2020 |
| 99,117 |
|
|
|
|
|
|
|
| 3,324,224 |
HEALTH CARE - 10.3 % |
|
|
|
|
|
|
|
|
Akorn, Inc. |
| 175,000 |
| 4.500 |
| 4/17/2021 |
| 175,875 |
American Renal Holdings, Inc. |
| 70,000 |
| 8.500 |
| 2/14/2020 |
| 70,131 |
Capsugel Holdings US, Inc. |
| 241,530 |
| 3.500 |
| 8/1/2018 |
| 241,153 |
CHG Buyer Corp. |
| 244,325 |
| 4.250 |
| 11/19/2019 |
| 244,365 |
Community Health Systems, Inc. |
| 496,755 |
| 4.250 |
| 1/27/2021 |
| 499,393 |
CRC Health Corp. |
| 77,000 |
| 5.250 |
| 3/26/2021 |
| 77,160 |
Endo Pharmaceuticals Holdings |
| 350,000 |
| 3.250 |
| 3/1/2021 |
| 347,856 |
Gentiva Health |
| 164,588 |
| 6.500 |
| 10/18/2019 |
| 162,873 |
Grifols, Inc. |
| 521,000 |
| 3.150 |
| 2/26/2021 |
| 519,520 |
IMS Health, Inc. |
| 259,000 |
| 3.750 |
| 3/17/2021 |
| 258,371 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Floating Rate Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
HEALTH CARE (Continued) - 10.3 % |
|
|
|
|
|
|
|
|
Inc Research Accellent |
| $ 117,999 |
| 4.250 | % | 7/12/2018 |
| $ 118,073 |
Inc Research Accellent |
| 187,000 |
| 4.500 |
| 3/12/2021 |
| 185,948 |
Kinetic Concepts |
| 224,437 |
| 4.000 |
| 5/4/2018 |
| 224,634 |
MALLINCKRODT |
| 158,000 |
| 3.500 |
| 3/19/2021 |
| 157,013 |
Medpace Holdings, Inc. |
| 208,000 |
| 5.000 |
| 4/1/2021 |
| 208,260 |
MPH Acquicition Holdings |
| 212,000 |
| 4.000 |
| 3/31/2021 |
| 211,338 |
National Mentor Holdings |
| 95,000 |
| 9.750 |
| 4/11/2020 |
| 94,763 |
National Mentor Holdings |
| 240,000 |
| 4.750 |
| 1/31/2021 |
| 240,360 |
Par Pharmaceutical |
| 127,476 |
| 4.000 |
| 9/30/2019 |
| 127,062 |
Pharmedium Healthcare Corp. |
| 200,000 |
| 4.250 |
| 1/28/2021 |
| �� 199,125 |
Pharmedium Healthcare Corp. |
| 29,000 |
| 7.750 |
| 1/28/2022 |
| 29,290 |
PRA Holdings, Inc. |
| 144,275 |
| 4.500 |
| 9/23/2020 |
| 143,631 |
Quintiles Transnational Corp. |
| 510,000 |
| 3.750 |
| 6/8/2018 |
| 509,895 |
Regional Care Hospital, Inc. |
| 179,000 |
| 5.000 |
| 4/23/2019 |
| 178,442 |
RPI Finance Trust |
| 159,200 |
| 3.250 |
| 11/9/2018 |
| 159,524 |
Salix Pharmaceuticals Ltd. |
| 102,700 |
| 4.250 |
| 1/2/2020 |
| 103,238 |
Sheridan Holdings, Inc. |
| 220,268 |
| 4.500 |
| 6/29/2018 |
| 220,406 |
Sheridan Holdings, Inc. |
| 87,000 |
| 8.250 |
| 12/20/2021 |
| 89,175 |
Surgery Center |
| 143,535 |
| 6.000 |
| 3/18/2019 |
| 144,610 |
Surgical Care Affiliates, Inc. |
| 194,023 |
| 4.000 |
| 6/29/2018 |
| 194,023 |
US Renal Care, Inc. |
| 170,210 |
| 4.250 |
| 7/3/2019 |
| 170,351 |
Valeant Pharmaceuticals |
| 533,646 |
| 3.750 |
| 2/13/2019 |
| 534,246 |
|
|
|
|
|
|
|
| 6,840,104 |
INDUSTRIALS - 12.1 % |
|
|
|
|
|
|
|
|
Air Canada |
| 205,000 |
| 5.500 |
| 9/26/2019 |
| 208,331 |
Alliance Laundry Systems LLC |
| 69,930 |
| 4.250 |
| 12/10/2018 |
| 70,017 |
Alliant Techsystems, Inc. |
| 214,463 |
| 3.500 |
| 11/2/2020 |
| 214,631 |
AlliedBarton Security Services |
| 78,976 |
| 4.250 |
| 2/12/2021 |
| 78,581 |
AlliedBarton Security Services |
| 28,024 |
| 3.250 |
| 2/12/2021 |
| 27,884 |
AlliedBarton Security Services |
| 38,479 |
| 8.000 |
| 8/13/2021 |
| 38,640 |
AlliedBarton Security Services |
| 14,521 |
| 7.000 |
| 8/13/2021 |
| 14,581 |
American Airlines, Inc. |
| 742,309 |
| 3.750 |
| 6/27/2019 |
| 741,964 |
Apex Tool Group, LLC |
| 144,271 |
| 4.500 |
| 1/31/2020 |
| 143,039 |
Avis Budget Car Rental, LLC |
| 144,271 |
| 3.000 |
| 3/15/2019 |
| 144,226 |
Brand Energy & Infrastructure |
| 130,599 |
| 4.750 |
| 11/26/2020 |
| 130,885 |
Brickman Group Holdings, Inc. |
| 328,178 |
| 4.000 |
| 12/18/2020 |
| 328,030 |
Ceridian Corp. |
| 518,224 |
| 4.402 |
| 5/9/2017 |
| 519,196 |
CPI International, Inc. |
| 203,170 |
| 4.250 |
| 4/7/2021 |
| 202,980 |
CSC Holdings LLC |
| 182,835 |
| 7.000 |
| 5/22/2018 |
| 184,892 |
Doncasters Group Ltd. |
| 137,000 |
| 4.250 |
| 6/30/2018 |
| 137,651 |
Envision Healthcare Corp. |
| 194,002 |
| 4.000 |
| 5/25/2018 |
| 194,487 |
Filtration Group Corp. |
| 45,885 |
| 4.500 |
| 11/20/2020 |
| 46,229 |
Filtration Group Corp. |
| 80,000 |
| 8.250 |
| 11/19/2021 |
| 81,567 |
Harland Clarke Holdings |
| 69,000 |
| 6.000 |
| 8/2/2019 |
| 69,474 |
HD Supply, Inc. |
| 279,289 |
| 4.000 |
| 6/28/2018 |
| 279,348 |
Husky Injection Molding |
| 173,000 |
| 4.250 |
| 7/2/2018 |
| 173,682 |
McJunkin Red Man Corp. |
| 73,630 |
| 4.750 |
| 11/8/2019 |
| 74,198 |
NORTEK |
| 55,000 |
| 3.750 |
| 10/16/2020 |
| 54,966 |
Ply Gem Industires, Inc. |
| 420,000 |
| 4.000 |
| 2/1/2021 |
| 417,690 |
Quikrete |
| 194,025 |
| 4.000 |
| 9/28/2020 |
| 194,227 |
Rexam Healthcare |
| 114,000 |
| 4.250 |
| 4/9/2021 |
| 114,428 |
Rexnord Corp. |
| 243,775 |
| 4.000 |
| 8/21/2020 |
| 243,166 |
Sedgwick CMS Holdings, Inc. |
| 600,000 |
| 3.750 |
| 3/1/2021 |
| 593,142 |
SESAC, Inc. |
| 48,000 |
| 5.000 |
| 2/8/2019 |
| 48,180 |
Southwire Co. |
| 449,000 |
| 3.250 |
| 2/10/2021 |
| 448,894 |
Spin Holdco, Inc. |
| 239,400 |
| 4.250 |
| 11/14/2019 |
| 239,071 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Floating Rate Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
INDUSTRIALS (Continued) - 12.1 % |
|
|
|
|
|
|
|
|
Spirit Aerosystems, Inc. |
| $ 222,296 |
| 3.250 | % | 9/15/2020 |
| $ 221,671 |
TransDigm, Inc. |
| 662,102 |
| 3.750 |
| 2/28/2020 |
| 659,772 |
US Airways |
| 515,000 |
| 3.500 |
| 5/23/2019 |
| 511,781 |
USIC Holdings, Inc. |
| 201,130 |
| 4.000 |
| 7/10/2020 |
| 199,119 |
|
|
|
|
|
|
|
| 8,050,620 |
INFORMATION TECHNOLOGY - 15.0 % |
|
|
|
|
|
|
|
|
Active Network, Inc. |
| 147,525 |
| 5.500 |
| 11/13/2020 |
| 148,171 |
Alcatel Lucent USA, Inc. |
| 751,988 |
| 4.500 |
| 1/30/2019 |
| 753,665 |
Allfrelx Holdings III, Inc. |
| 289,275 |
| 4.250 |
| 7/17/2020 |
| 289,564 |
Applied Systems, Inc. |
| 241,395 |
| 4.250 |
| 1/25/2021 |
| 241,568 |
Applied Systems, Inc. |
| 11,000 |
| 7.500 |
| 1/24/2022 |
| 11,165 |
Avago Technologies |
| 368,000 |
| 8.000 |
| 4/16/2021 |
| 369,558 |
Blue Coat Systems |
| 210,000 |
| 9.500 |
| 6/28/2020 |
| 212,625 |
Blue Coat Systems, Inc. |
| 145,000 |
| 4.000 |
| 5/31/2019 |
| 145,068 |
CDW LLC |
| 871,582 |
| 3.250 |
| 4/15/2020 |
| 863,410 |
Commscope, Inc. |
| 205,965 |
| 2.733 |
| 1/23/2017 |
| 206,652 |
Commscope, Inc. |
| 164,586 |
| 3.250 |
| 1/16/2018 |
| 164,655 |
Deltek, Inc. |
| 279,293 |
| 4.500 |
| 10/10/2018 |
| 279,294 |
Epicor Software Corp. |
| 279,300 |
| 4.000 |
| 5/16/2018 |
| 279,692 |
Excelitas Technologies |
| 159,200 |
| 6.000 |
| 11/2/2020 |
| 160,096 |
First Data Corp. |
| 755,000 |
| 4.152 |
| 3/23/2018 |
| 755,159 |
First Data Corp. |
| 115,000 |
| 4.152 |
| 3/24/2021 |
| 114,885 |
Freescale Semiconductor |
| 288,550 |
| 5.000 |
| 1/15/2021 |
| 290,535 |
Go Daddy |
| 243,753 |
| 4.000 |
| 12/17/2018 |
| 243,448 |
Infor, Inc. |
| 483,776 |
| 3.750 |
| 6/3/2020 |
| 480,603 |
Infor, Inc. |
| 319,200 |
| 3.750 |
| 6/3/2020 |
| 317,256 |
Information Resources, Inc. |
| 144,275 |
| 4.750 |
| 9/30/2020 |
| 144,755 |
Interactive Data Corp. |
| 239,596 |
| 3.750 |
| 2/12/2018 |
| 239,745 |
Interactive Data Corp. |
| 352,086 |
| 4.750 |
| 4/23/2021 |
| 351,866 |
ION Trading Technologies |
| 230,263 |
| 4.500 |
| 5/22/2020 |
| 230,062 |
Kronos, Inc. |
| 11,939 |
| 4.500 |
| 10/30/2019 |
| 11,980 |
Kronos, Inc. |
| 50,940 |
| 9.750 |
| 4/30/2020 |
| 52,659 |
Mitchell International, Inc. |
| 169,575 |
| 4.500 |
| 10/13/2020 |
| 169,808 |
Mitchell International, Inc. |
| 104,000 |
| 8.500 |
| 10/11/2021 |
| 106,275 |
Oberthur Technologies Finance |
| 329,175 |
| 4.500 |
| 10/18/2019 |
| 331,232 |
Presidio, Inc. |
| 63,000 |
| 5.000 |
| 3/31/2017 |
| 63,591 |
RP Crown Parent LLC |
| 200,000 |
| 11.250 |
| 12/14/2019 |
| 203,050 |
RP Crown Parent LLC |
| 220,493 |
| 6.000 |
| 12/21/2018 |
| 220,375 |
Sensata Technologies |
| 454,120 |
| 3.250 |
| 5/13/2019 |
| 455,292 |
Skillsoft Corp. |
| 200,000 |
| 6.750 |
| 4/23/2021 |
| 199,750 |
Skillsoft Corp. |
| 137,000 |
| 7.750 |
| 4/22/2022 |
| 136,486 |
Sophia Holding |
| 124,674 |
| 4.000 |
| 7/19/2018 |
| 124,888 |
Spansion LLC |
| 108,455 |
| 3.750 |
| 12/19/2019 |
| 108,455 |
Sungard Availability |
| 223,000 |
| 6.000 |
| 3/29/2019 |
| 222,231 |
Vision Solutions, Inc. |
| 73,157 |
| 6.000 |
| 7/25/2016 |
| 73,065 |
Zayo Group LLC |
| 208,937 |
| 4.000 |
| 7/2/2019 |
| 208,745 |
|
|
|
|
|
|
|
| 9,981,379 |
MATERIALS - 5.6 % |
|
|
|
|
|
|
|
|
American Builders & Contractor |
| 606,950 |
| 3.500 |
| 4/16/2020 |
| 605,433 |
Ardagh Holdings |
| 234,412 |
| 4.250 |
| 12/17/2019 |
| 234,315 |
Arysta Lifeacience SPC |
| 99,748 |
| 4.500 |
| 5/29/2020 |
| 100,061 |
Atkore International |
| 118,000 |
| 4.500 |
| 4/9/2021 |
| 117,926 |
Berlin Packaging LLC |
| 144,275 |
| 4.750 |
| 4/2/2019 |
| 144,996 |
Berry Plastics Group, Inc. |
| 243,769 |
| 3.500 |
| 2/10/2020 |
| 241,766 |
Berry Plastics Group, Inc. |
| 100,000 |
| 3.750 |
| 1/6/2021 |
| 99,583 |
Essar Steel Algoma, Inc. |
| 144,268 |
| 9.250 |
| 9/22/2014 |
| 144,935 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Floating Rate Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
MATERIALS (Continued) - 5.6 % |
|
|
|
|
|
|
|
|
FMG Resources |
| $ 248,750 |
| 4.250 | % | 6/28/2019 |
| $ 249,046 |
Huntsman International LLC |
| 290,000 |
| 3.000 |
| 10/15/2020 |
| 289,910 |
Ineos US Finance LLC |
| 482,561 |
| 3.750 |
| 5/4/2018 |
| 479,055 |
Libbey Glass |
| 202,000 |
| 3.750 |
| 4/9/2021 |
| 201,337 |
Minerals Technologies, Inc. |
| 228,000 |
| 4.000 |
| 4/14/2021 |
| 228,710 |
Pro Mach, Inc. |
| 26,255 |
| 4.500 |
| 7/6/2017 |
| 26,303 |
Reynolds Group |
| 149,625 |
| 4.000 |
| 12/1/2018 |
| 149,859 |
Univar, Inc. |
| 144,256 |
| 5.000 |
| 6/30/2017 |
| 144,233 |
W.R. Grace & Co. |
| 191,578 |
| 3.000 |
| 2/3/2021 |
| 190,717 |
W.R. Grace & Co. |
| 68,422 |
| 2.500 |
| 2/3/2021 |
| 68,116 |
|
|
|
|
|
|
|
| 3,716,301 |
TELECOMMUNICATION SERVICES - 4.3 % |
|
|
|
|
|
|
|
|
Cincinnati Bell, Inc. |
| 174,125 |
| 4.000 |
| 9/10/2020 |
| 172,964 |
Crown Castle Operating Co. |
| 828,008 |
| 3.250 |
| 1/31/2021 |
| 826,071 |
Global Tel Link Corp. |
| 137,091 |
| 5.000 |
| 5/26/2020 |
| 136,519 |
Intelsat Jackson Hldg. |
| 200,000 |
| 3.750 |
| 6/28/2019 |
| 200,325 |
Lightower Fiber Networks |
| 169,573 |
| 4.000 |
| 4/1/2020 |
| 169,387 |
SBA Senior Finance II LLC |
| 214,000 |
| 3.250 |
| 3/24/2021 |
| 213,020 |
Securus Technologies, Inc. |
| 144,275 |
| 4.750 |
| 4/30/2020 |
| 143,960 |
UPC Financing Partnership |
| 290,000 |
| 2.500 |
| 6/30/2021 |
| 288,157 |
West Corp. |
| 280,000 |
| 3.250 |
| 6/29/2018 |
| 277,521 |
Windstream Corp. |
| 144,270 |
| 3.500 |
| 1/23/2020 |
| 143,819 |
XO Communications, Inc. - A |
| 265,000 |
| 4.250 |
| 3/20/2021 |
| 265,332 |
|
|
|
|
|
|
|
| 2,837,075 |
UTILITIES - 2.7 % |
|
|
|
|
|
|
|
|
Atlantic Power Ltd. |
| 71,000 |
| 4.750 |
| 2/24/2021 |
| 71,621 |
Calpine Construction Finance |
| 235,455 |
| 4.000 |
| 10/9/2019 |
| 235,977 |
Calpine Corp. |
| 103,739 |
| 3.250 |
| 1/31/2022 |
| 102,002 |
Calpine Corp. |
| 313,709 |
| 3.000 |
| 5/4/2020 |
| 306,749 |
Exgen Renewables I, LLC |
| 89,249 |
| 5.250 |
| 2/8/2021 |
| 90,700 |
NRG Energy, Inc. |
| 587,599 |
| 2.750 |
| 7/2/2018 |
| 582,458 |
Raven Power Finance LLC |
| 87,429 |
| 5.250 |
| 12/21/2020 |
| 88,467 |
Texas Comp Elec Holdings |
| 400,000 |
| 4.737 |
| 10/10/2017 |
| 302,387 |
|
|
|
|
|
|
|
| 1,780,361 |
TOTAL BANK LOANS (Cost - $58,563,042) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 58,372,417 |
BONDS & NOTES - 7.7 % |
|
|
|
|
|
|
|
|
AIRLINES - 0.1 % |
|
|
|
|
|
|
| |
Air Canada - 144A |
| 75,000 |
| 6.750 |
| 10/1/2019 |
| 80,906 |
|
|
|
|
|
|
|
|
|
AUTO MANUFACTURERS - 0.1 % |
|
|
|
|
|
|
| |
Jaguar Land Rover Automotive PLC - 144A |
| 70,000 |
| 4.125 |
| 12/15/2018 |
| 72,625 |
|
|
|
|
|
|
|
|
|
BUILDING MATERIALS - 0.2 % |
|
|
|
|
|
|
| |
Ply Gem Industries, Inc. - 144A |
| 110,000 |
| 6.500 |
| 2/1/2022 |
| 110,413 |
|
|
|
|
|
|
|
|
|
CHEMICALS - 0.6 % |
|
|
|
|
|
|
| |
Hexion US Finance Corp. |
| 75,000 |
| 6.625 |
| 4/15/2020 |
| 78,281 |
Hexion US Finance Corp. |
| 75,000 |
| 8.875 |
| 2/1/2018 |
| 78,469 |
Huntsman International LLC |
| 50,000 |
| 4.875 |
| 11/15/2020 |
| 50,875 |
Ineos Group Holdings SA - 144A |
| 200,000 |
| 5.875 |
| 2/15/2019 |
| 204,500 |
|
|
|
|
|
|
|
| 412,125 |
COMMERCIAL MBS - 0.3 % |
|
|
|
|
|
|
| |
Hilton USA Trust - 144A |
| 150,000 |
| 5.222 | + | 11/5/2018 |
| 154,086 |
Monty Parent Issuer LLC |
| 75,995 |
| 3.470 |
| 10/20/2015 |
| 76,145 |
|
|
|
|
|
|
|
| 230,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Floating Rate Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
COMMERCIAL SERVICES - 0.4 % |
|
|
|
|
|
|
| |
Avis Budget Car Rental LLC |
| $ 50,000 |
| 4.875 | % | 11/15/2018 |
| $ 52,563 |
Interactive Data Corp. - 144A |
| 125,000 |
| 5.875 |
| 4/15/2019 |
| 126,485 |
United Rentals North America, Inc. |
| 75,000 |
| 7.375 |
| 5/15/2020 |
| 83,437 |
|
|
|
|
|
|
|
| 262,485 |
DIVERSIFIED FINANCIAL SERVICES - 0.5 % |
|
|
|
|
|
|
| |
Aircastle Ltd. |
| 75,000 |
| 6.250 |
| 12/1/2019 |
| 81,188 |
Aircastle Ltd. |
| 25,000 |
| 4.625 |
| 12/15/2018 |
| 25,656 |
Icahn Enterprises LP - 144A |
| 10,000 |
| 4.875 |
| 3/15/2019 |
| 10,163 |
International Lease Finance Corp. |
| 120,000 |
| 3.875 |
| 4/15/2018 |
| 122,025 |
Nationstar Mortgage LLC |
| 75,000 |
| 6.500 |
| 8/1/2018 |
| 75,937 |
SLM Corp. |
| 40,000 |
| 4.875 |
| 6/17/2019 |
| 41,298 |
|
|
|
|
|
|
|
| 356,267 |
ENTERTAINMENT - 0.2 % |
|
|
|
|
|
|
| |
GLP Capital LP - 144A |
| 50,000 |
| 4.875 |
| 11/1/2020 |
| 51,750 |
Isle of Capri Casinos, Inc. |
| 75,000 |
| 5.875 |
| 3/15/2021 |
| 75,188 |
|
|
|
|
|
|
|
| 126,938 |
FOOD - 0.1 % |
|
|
|
|
|
|
| |
Chiquita Brands International, Inc. |
| 73,000 |
| 7.875 |
| 2/1/2021 |
| 81,669 |
|
|
|
|
|
|
|
|
|
HEALTHCARE-SERVICES - 0.3 % |
|
|
|
|
|
|
| |
CHS/Community Health Systems, Inc. |
| 75,000 |
| 5.125 |
| 8/15/2018 |
| 79,031 |
Tenet Healthcare Corp. - 144A |
| 75,000 |
| 6.000 |
| 10/1/2020 |
| 78,891 |
Tenet Healthcare Corp. - 144A |
| 25,000 |
| 5.000 |
| 3/1/2019 |
| 25,125 |
|
|
|
|
|
|
| 183,047 | |
HOUSEHOLD PRODUCTS/WARES - 0.3 % |
|
|
|
|
|
|
| |
Reynolds Group |
| 100,000 |
| 9.000 |
| 4/15/2019 |
| 107,250 |
Reynolds Group |
| 50,000 |
| 5.750 |
| 10/15/2020 |
| 52,250 |
Spectrum Brands Escrow Corp. |
| 75,000 |
| 6.375 |
| 11/15/2020 |
| 81,750 |
|
|
|
|
|
|
| 241,250 | |
IRON/STEEL - 0.1 % |
|
|
|
|
|
|
| |
United States Steel Corp. |
| 50,000 |
| 6.875 |
| 4/1/2021 |
| 54,000 |
|
|
|
|
|
|
|
| |
LODGING - 0.4 % |
|
|
|
|
|
|
| |
MGM Resorts International |
| 75,000 |
| 7.625 |
| 1/5/2017 |
| 85,500 |
Wynn Macau Ltd. - 144A |
| 200,000 |
| 5.250 |
| 10/15/2021 |
| 203,500 |
|
|
|
|
|
|
| 289,000 | |
MEDIA - 1.2 % |
|
|
|
|
|
|
| |
CCU Escrow Corp. - 144A |
| 40,000 |
| 10.000 |
| 1/15/2018 |
| 39,300 |
Cequel Communications Holdings I LLC - 144A |
| 50,000 |
| 6.375 |
| 9/15/2020 |
| 52,625 |
Clear Channel Worldwide Holdings, Inc. |
| 105,000 |
| 7.625 |
| 3/15/2020 |
| 113,663 |
DISH DBS Corp. |
| 100,000 |
| 4.250 |
| 4/1/2018 |
| 104,750 |
Numericable Group SA - 144A |
| 200,000 |
| 4.875 |
| 5/15/2019 |
| 202,250 |
Sinclair Television Group, Inc. |
| 115,000 |
| 5.375 |
| 4/1/2021 |
| 115,000 |
Sirius XM Holdings, Inc. - 144A |
| 75,000 |
| 4.250 |
| 5/15/2020 |
| 72,187 |
Univision Communications, Inc. - 144A |
| 75,000 |
| 6.875 |
| 5/15/2019 |
| 80,343 |
|
|
|
|
|
|
|
| 780,118 |
MINING - 0.4 % |
|
|
|
|
|
|
| |
FMG Resources August 2006 Pty Ltd. - 144A |
| 120,000 |
| 8.250 |
| 11/1/2019 |
| 133,050 |
Vedanta Resources PLC - 144A |
| 100,000 |
| 9.500 |
| 7/18/2018 |
| 112,880 |
|
|
|
|
|
|
| 245,930 | |
OIL & GAS - 0.2 % |
|
|
|
|
|
|
| |
Calumet Specialty Products Partners LP |
| 75,000 |
| 6.500 |
| 4/15/2021 |
| 75,000 |
Chesapeake Energy Corp. |
| 35,000 |
| 3.467 | + | 4/15/2019 |
| 35,372 |
|
|
|
| �� |
|
| 110,372 | |
OIL & GAS SERVICES - 0.1 % |
|
|
|
|
|
|
| |
FTS International - 144A |
| 50,000 |
| 6.250 |
| 5/1/2022 |
| 50,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Floating Rate Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
PACKAGING & CONTAINERS - 0.5 % |
|
|
|
|
|
|
| |
Ardagh Packaging Finance PLC - 144A |
| $ 200,000 |
| 6.250 | % | 1/31/2019 |
| $ 209,000 |
Beverage Packaging Holdings Luxembourg II SA - 144A | 130,000 |
| 6.000 |
| 6/15/2017 |
| 134,225 | |
|
|
|
|
|
|
| 343,225 | |
PHARMACEUTICALS - 0.3 % |
|
|
|
|
|
|
| |
Forest Laboratories, Inc. - 144A |
| 90,000 |
| 4.375 |
| 2/1/2019 |
| 95,850 |
Salix Pharmaceuticals Ltd. - 144A |
| 5,000 |
| 6.000 |
| 1/15/2021 |
| 5,375 |
Valeant Pharmaceuticals International, Inc. - 144A |
| 75,000 |
| 6.750 |
| 8/15/2018 |
| 81,562 |
|
|
|
|
|
|
|
| 182,787 |
REITS - 0.2 % |
|
|
|
|
|
|
| |
iStar Financial, Inc. |
| 120,000 |
| 4.875 |
| 7/1/2018 |
| 124,200 |
|
|
|
|
|
|
|
| |
SOFTWARE - 0.4 % |
|
|
|
|
|
|
| |
First Data Corp. |
| 95,000 |
| 11.750 |
| 8/15/2021 |
| 101,650 |
First Data Holdings, Inc. - 144A |
| 60,000 |
| 14.500 |
| 9/24/2019 |
| 58,125 |
Infor Software Parent - 144A |
| 80,000 |
| 7.125 |
| 5/1/2021 |
| 80,800 |
|
|
|
|
|
|
|
| 240,575 |
TELECOMMUNICATIONS - 0.8 % |
|
|
|
|
|
|
| |
Avaya, Inc. - 144A |
| 350,000 |
| 7.000 |
| 4/1/2019 |
| �� 350,000 |
Intelsat Jackson Holdings SA |
| 85,000 |
| 6.625 |
| 12/15/2022 |
| 87,761 |
Level 3 Financing, Inc. |
| 75,000 |
| 7.000 |
| 6/1/2020 |
| 81,375 |
|
|
|
|
|
|
|
| 519,136 |
TRANSPORTATION - 0.0 % |
|
|
|
|
|
|
| |
PHI, Inc. - 144A |
| 25,000 |
| 5.250 |
| 3/15/2019 |
| 25,438 |
|
|
|
|
|
|
|
|
|
TOTAL BONDS & NOTES (Cost - $5,046,938) |
|
|
|
|
|
| 5,123,612 | |
|
|
|
|
|
|
|
|
|
SHORT-TERM INVESTMENT - 7.5 % |
|
|
|
|
|
|
|
|
MONEY MARKET FUND - 7.5 % |
|
|
|
|
|
|
|
|
Fidelity Institutional Money Market Funds - Government Portfolio |
|
|
|
|
|
|
|
|
TOTAL SHORT-TERM INVESTMENT - (Cost - $4,992,148) | 4,992,148 |
| 0.000 | + |
|
| 4,992,148 | |
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 103.0 % (Cost - $68,602,128) (a) |
|
|
|
|
|
| $ 68,488,177 | |
LIABILITIES IN EXCESS OF OTHER ASSETS - (3.0) % |
|
|
|
|
|
| (1,988,237) | |
NET ASSETS - 100.0 % |
|
|
|
|
|
|
| $ 66,499,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MBS - Mortgage Back Security |
|
|
|
|
|
|
|
|
REIT - Real Estate Investment Trust |
|
|
|
|
|
|
|
|
+ Variable rate security. Interest rate is as of April 30, 2014. | ||||||||
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) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $68,803,223 and differs from market value by net | ||||||||
unrealized appreciation (depreciation) on securities as follow: | ||||||||
|
|
|
|
|
|
| $ 227,369 | |
|
|
|
|
|
|
| (341,388) | |
|
|
|
|
|
|
| $ (114,019) | |
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||
Bank Loans | 85.20% |
|
| Industrial |
| 0.71% |
Communications | 1.90% |
|
| Technology |
| 0.36% |
Consumer, Non-cyclical | 1.39% |
|
| Energy |
| 0.24% |
Basic Materials | 1.15% |
|
| Mortgage Services |
| 0.23% |
Consumer, Cyclical | 0.84% |
|
| Lodging |
| 0.00% |
Financial | 0.71% |
|
| Short-Term Investment |
| 7.27% |
|
|
|
| Total |
| 100.00% |
|
|
|
|
|
|
|
* Based on total value of investments as of April 30, 2014. |
|
|
|
|
| |
Percentage may differ from Schedule of Investments which are 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 ended April 30, 2014, 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 5.0 percent, while broad investment-grade bonds gained 1.7 percent and broad Treasuries rose 0.8 percent during this period.
Interest rates on 10-year Treasury bonds experienced moderate variations in the six month period ended April 30, 2014, fluctuating by 0.41 percent but ending slightly lower than where it started. Rates went from 2.62 percent at the beginning of November to a high of 3.03 percent in December, before settling at 2.65 percent on April 30, 2014. This was in contrast to the prior six-month period, which saw the 10-year Treasury rise by more than 1 percent over a two-month period then mostly holding that higher rate before declining moderately at the end of the period.
Within the high-yield bond market, securities rated CCC and lower generally outperformed securities rated BB and securities rated B in the six month period ended April 30, 2014. CCC-rated bonds increased 5.8 percent, while B-rated bonds increased 2.9 percent and BB-rated bonds gained 4.8 percent. The outperformance of CCC-rated bonds over BB and B-rated bonds during both fiscal quarters detracted from the Fund’s relative performance due to the focus on BB and B-rated bonds.
The Fund continued to maintain a shorter duration relative to the benchmark index, (the Bank of America Meryl Lynch BB-B U.S. Non-Distressed High Yield Index) with a bias toward the intermediate segment of the credit curve that mature in three to seven years. The Sub-Adviser has focused on this area as it believes it to be less volatile. The average duration of positions held by the Fund was 3.1 years versus approximately 3.8 years for the benchmark index. The Sub-Adviser has generally avoided bonds with maturities of more than 10 years unless there was an opportunity to purchase them at a significant discount to par.
The Sub-Adviser moved from an overweight in the metals and mining sector to an underweight at the end of the previous fiscal year after the sector had underperformed the benchmark index for an extended period with no indications of a rebound. The underweight proved fortuitous in the six-month period ended April 30, 2014 as the sector continued to lag considerably. One of the better performing holdings in this sector held by the Fund was Kaiser Aluminum Corporation (483007AE0), a firm that produces semi-fabricated aluminum products. The security produced a 3.2 percent return and was the best performing metals/mining bond in the Fund during the six-month time period.
Exposure to the gaming sector also enhanced performance on both a relative and absolute basis as the Sub-Adviser's selections in this sector outperformed gaming securities within the index, as well as the benchmark index as a whole. A substantial overweight to the sector also added to performance. Boyd Gaming (103304BJ9), a Las Vegas based hotel and casino operating company with properties in eight states, increased 6.2 percent during the first half of the fiscal year.
Going forward, the Sub-Adviser expects that the economy will improve along with business and consumer confidence. It also anticipates that spreads should stay compressed as the credit market remains at cyclical lows. However, the Sub-Adviser is confident that the high-yield market can sustain a 3 percent on spreads for multiple years, which bodes well for the high-yield issuers' cost of capital. The Sub-Adviser plans to focus on shorter durations and bonds rated single-B, in hopes that these securities may provide the best risk-adjusted return opportunities and less interest rate sensitivity than BB-rated and high-grade credit.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2014
|
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception(7/1/05) |
Class N |
| 3.80% | 4.27% | 6.22% | 11.83% | 6.23% |
Class C Class A with load of 4.50% Class A without load |
| 3.44% (1.06)% 3.65% | 3.40% (0.74)% 3.98% | 5.40% 4.37% 5.97% | 11.00% 10.54% 11.55% | 5.43% 5.14%* 5.80%* |
BofA ML BB U.S. Non-Distressed HY Index |
| 4.54% | 5.70% | 8.18% | 12.29% | 7.21% |
Morningstar High-Yield Bond Category |
| 4.12% | 5.50% | 7.30% | 13.85% | 6.86% |
*Class A commenced operations on January 3, 2007.
BofA ML BB U.S. Non-Distressed HY Index is an unmanaged portfolio constructed to mirror the public high-yield corporate debt market and is a subset of the Merrill Lynch High Yield Master II Index. Investors cannot invest directly in an index or benchmark.
The Morningstar High-Yield Bond 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.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including the cost of underlying funds, are 1.11% for Class N, 1.86% for Class C and 1.36% for Class A. Class A shares are subject to a sales load of 4.50% and a deferred sales charge of up to 0.75%. 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, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
BONDS & NOTES - 96.4 % |
|
|
|
|
|
|
|
|
AEROSPACE/DEFENSE - 0.6 % |
|
|
|
|
|
|
|
|
Triumph Group, Inc. - 144A |
| $ 815,000 |
| 4.8750 | % | 4/1/2021 |
| $ 806,850 |
|
|
|
|
|
|
|
|
|
APPAREL - 1.0 % |
|
|
|
|
|
|
|
|
Air Canada - 144A |
| 325,000 |
| 8.7500 |
| 4/1/2020 |
| 356,688 |
Air Canada - 144A |
| 350,000 |
| 7.7500 |
| 4/15/2021 |
| 357,438 |
UAL |
| 674,922 |
| 6.6360 |
| 7/2/2022 |
| 739,882 |
|
|
|
|
|
|
|
| 1,454,008 |
APPAREL - 1.7 % |
|
|
|
|
|
|
|
|
Perry Ellis International, Inc. |
| 550,000 |
| 7.8750 |
| 4/1/2019 |
| 577,500 |
Quicksilver, Inc. - 144A |
| 680,000 |
| 7.8750 |
| 8/1/2018 |
| 741,200 |
Wolverine World Wide, Inc. |
| 1,065,000 |
| 6.1250 |
| 10/15/2020 |
| 1,155,525 |
|
|
|
|
|
|
|
| 2,474,225 |
AUTO MANUFACTURERS - 1.0 % |
|
|
|
|
|
|
|
|
Chrysler Group LLC |
| 700,000 |
| 8.2500 |
| 6/15/2021 |
| 790,125 |
Chrysler Group LLC - 144A |
| 550,000 |
| 8.2500 |
| 6/15/2021 |
| 620,813 |
|
|
|
|
|
|
|
| 1,410,938 |
AUTO PARTS & EQUIPMENT - 1.8% |
|
|
|
|
|
|
|
|
Allison Transmission, Inc. - 144A |
| 400,000 |
| 7.1250 |
| 5/15/2019 |
| 434,000 |
Pittsburgh Glass Works LLC - 144A |
| 1,350,000 |
| 8.0000 |
| 11/15/2018 |
| 1,468,125 |
Titan International, Inc. - 144A |
| 695,000 |
| 6.8750 |
| 10/1/2020 |
| 740,175 |
|
|
|
|
|
|
|
| 2,642,300 |
BANKS - 2.4 % |
|
|
|
|
|
|
|
|
CIT Group, Inc. - 144A |
| 750,000 |
| 5.5000 |
| 2/15/2019 |
| 810,469 |
CIT Group, Inc. |
| 295,000 |
| 5.3750 |
| 5/15/2020 |
| 316,019 |
Synovus Financial Corp. |
| 1,370,000 |
| 5.1250 |
| 6/15/2017 |
| 1,448,775 |
Synovus Financial Corp. |
| 755,000 |
| 7.8750 |
| 2/15/2019 |
| 866,363 |
|
|
|
|
|
|
|
| 3,441,626 |
BUILDING MATERIALS - 0.7 % |
|
|
|
|
|
|
|
|
Builders FirstSource - 144A |
| 640,000 |
| 7.6250 |
| 6/1/2021 |
| 689,600 |
Griffon Corp. - 144A |
| 345,000 |
| 5.2500 |
| 3/1/2022 |
| 341,550 |
|
|
|
|
|
|
|
| 1,031,150 |
CHEMICALS - 1.9 % |
|
|
|
|
|
|
|
|
PetroLogistics Finance Corp. |
| 530,000 |
| 6.2500 |
| 4/1/2020 |
| 543,912 |
TPC Group, Inc. - 144A |
| 1,665,000 |
| 8.7500 |
| 12/15/2020 |
| 1,843,988 |
Tronox Finance LLC |
| 385,000 |
| 6.3750 |
| 8/15/2020 |
| 394,625 |
|
|
|
|
|
|
|
| 2,782,525 |
COMMERCIAL SERVICES - 4.5 % |
|
|
|
|
|
|
|
|
CoreLogic, Inc. |
| 1,310,000 |
| 7.2500 |
| 6/1/2021 |
| 1,427,900 |
DynCorp International, Inc. |
| 705,000 |
| 10.3750 |
| 7/1/2017 |
| 749,063 |
The Hertz Corp. |
| 410,000 |
| 6.7500 |
| 4/15/2019 |
| 441,775 |
Live Nation Entertainment, Inc. - 144A |
| 750,000 |
| 7.0000 |
| 9/1/2020 |
| 821,250 |
Safway Group Holding LLC - 144A |
| 800,000 |
| 7.0000 |
| 5/15/2018 |
| 852,000 |
TransUnion LLC |
| 295,000 |
| 11.3750 |
| 6/15/2018 |
| 316,181 |
United Rentals North America, Inc. |
| 1,015,000 |
| 7.6250 |
| 4/15/2022 |
| 1,146,950 |
United Rentals North America, Inc. |
| 255,000 |
| 8.2500 |
| 2/1/2021 |
| 286,556 |
WEX, Inc. - 144A |
| 510,000 |
| 4.7500 |
| 2/1/2023 |
| 485,775 |
|
|
|
|
|
|
|
| 6,527,450 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
COMPUTERS - 0.9 % |
|
|
|
|
|
|
|
|
NCR Corp. - 144A |
| $ 125,000 |
| 6.3750 | % | 12/15/2023 |
| $ 134,375 |
SunGard Data Systems, Inc. |
| 1,040,000 |
| 6.6250 |
| 11/1/2019 |
| 1,094,600 |
|
|
|
|
|
|
|
| 1,228,975 |
COSMETICS/PERSONAL CARE - 0.5 % |
|
|
|
|
|
|
|
|
Revlon Consumer Products Corp. - 144A |
| 760,000 |
| 5.7500 |
| 2/15/2021 |
| 769,500 |
|
|
|
|
|
|
|
|
|
DISTRIBUTION/WHOLESALE- 0.5 % |
|
|
|
|
|
|
|
|
HD Supply, Inc. |
| 610,000 |
| 11.0000 |
| 4/15/2020 |
| 722,850 |
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 5.2 % |
|
|
|
|
|
|
| |
AerCap Aviation Solutions BV |
| 675,000 |
| 6.3750 |
| 5/30/2017 |
| 740,813 |
Aircastle Ltd. |
| 1,195,000 |
| 6.2500 |
| 12/1/2019 |
| 1,293,588 |
Ally Financial, Inc. |
| 800,000 |
| 8.0000 |
| 3/15/2020 |
| 971,000 |
Ally Financial, Inc. |
| 335,000 |
| 7.5000 |
| 9/15/2020 |
| 398,231 |
Ally Financial, Inc. |
| 345,000 |
| 4.7500 |
| 9/10/2018 |
| 366,563 |
Cogent Comm Finance, Inc. - 144A |
| 460,000 |
| 5.6250 |
| 4/15/2021 |
| 453,100 |
Denali Borrower LLC / Denali Finance Corp. - 144A | 760,000 |
| 5.6250 |
| 10/15/2020 |
| 782,800 | |
E*TRADE Financial Corp. |
| 280,000 |
| 6.7500 |
| 6/1/2016 |
| 304,150 |
E*TRADE Financial Corp. |
| 800,000 |
| 6.3750 |
| 11/15/2019 |
| 873,000 |
International Lease Finance Corp. |
| 570,000 |
| 6.2500 |
| 5/15/2019 |
| 630,563 |
International Lease Finance Corp. |
| 245,000 |
| 8.6250 |
| 1/15/2022 |
| 301,042 |
KCG Holdings, Inc. - 144A |
| 340,000 |
| 8.2500 |
| 6/18/2018 |
| 360,400 |
|
|
|
|
|
|
|
| 7,475,250 |
ELECTRIC - 3.0 % |
|
|
|
|
|
|
|
|
Calpine Corp. - 144A |
| 653,000 |
| 7.5000 |
| 2/15/2021 |
| 715,035 |
Genon Energy |
| 525,000 |
| 9.5000 |
| 10/15/2018 |
| 557,813 |
NRG Energy, Inc. |
| 380,000 |
| 7.6250 |
| 1/15/2018 |
| 432,250 |
NRG Energy, Inc. |
| 375,000 |
| 7.8750 |
| 5/15/2021 |
| 417,656 |
NRG Energy, Inc. - 144A |
| 1,700,000 |
| 6.2500 |
| 7/15/2022 |
| 1,761,625 |
NRG Energy, Inc. - 144A |
| 350,000 |
| 6.2500 |
| 5/1/2024 |
| 351,750 |
|
|
|
|
|
|
|
| 4,236,129 |
ELECTRICAL COMPONENTS & EQUIPMENT - 0.4 % |
|
|
|
|
|
|
| |
Belden, Inc. - 144A |
| 625,000 |
| 5.5000 |
| 9/1/2022 |
| 639,063 |
|
|
|
|
|
|
|
|
|
ELECTRONICS - 1.0 % |
|
|
|
|
|
|
|
|
Viasystems, Inc. - 144A |
| 1,335,000 |
| 7.8750 |
| 5/1/2019 |
| 1,428,450 |
|
|
|
|
|
|
|
|
|
ENTERTAINMENT - 3.4 % |
|
|
|
|
|
|
|
|
Ameristar Casinos, Inc. |
| 780,000 |
| 7.5000 |
| 4/15/2021 |
| 850,200 |
Isle of Capri Casinos, Inc. |
| 355,000 |
| 5.8750 |
| 3/15/2021 |
| 355,888 |
Palace Entertainment Holdings LLC - 144A |
| 1,140,000 |
| 8.8750 |
| 4/15/2017 |
| 1,187,737 |
Penn National Gaming, Inc. - 144A |
| 1,120,000 |
| 5.8750 |
| 11/1/2021 |
| 1,083,600 |
Pinnacle Entertainment, Inc. |
| 745,000 |
| 7.7500 |
| 4/1/2022 |
| 812,050 |
Pinnacle Entertainment, Inc. |
| 550,000 |
| 5.7500 |
| 6/15/203 |
| 563,750 |
Regal Entertainment Group |
|
|
|
|
|
|
| 4,853,225 |
|
|
|
|
|
|
|
|
|
FOOD - 0.6 % |
|
|
|
|
|
|
|
|
ARAMARK Corp. |
| 760,000 |
| 5.7500 | % | 3/15/2020 |
| 800,850 |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
GAS - 1.0 % |
|
|
|
|
|
|
|
|
Sabine Pass LNG LP |
| $ 970,000 |
| 7.5000 | % | 11/30/2016 |
| $ 1,081,550 |
Sabine Pass LNG LP |
| 325,000 |
| 6.5000 |
| 11/1/2020 |
| 345,313 |
|
|
|
|
|
|
|
| 1,426,863 |
HAND/MACHINE TOOLS - 0.3 % |
|
|
|
|
|
|
|
|
Mcron Finance Sub LLC - 144A |
| 320,000 |
| 7.7500 |
| 2/15/2021 |
| 352,000 |
|
|
|
|
|
|
|
|
|
HEALTHCARE-PRODUCTS - 2.3 % |
|
|
|
|
|
|
|
|
Alere, Inc. |
| 725,000 |
| 7.2500 |
| 7/1/2018 |
| 799,312 |
Biomet, Inc. |
| 560,000 |
| 6.5000 |
| 8/1/2020 |
| 615,300 |
Hologic, Inc. |
| 615,000 |
| 6.2500 |
| 8/1/2020 |
| 653,438 |
Kinetics Concept |
| 460,000 |
| 10.5000 |
| 11/1/2018 |
| 527,850 |
Universal Hospital Services, Inc. |
| 700,000 |
| 7.6250 |
| 8/15/2020 |
| 752,500 |
|
|
|
|
|
|
|
| 3,348,400 |
HEALTHCARE-SERVICES - 3.3 % |
|
|
|
|
|
|
|
|
Community Health Systems, Inc. - 144A |
| 185,000 |
| 5.1250 |
| 8/1/2021 |
| 189,625 |
Community Health Systems, Inc. - 144A |
| 355,000 |
| 6.8750 |
| 2/1/2022 |
| 369,644 |
HCA Holdings, Inc. |
| 1,100,000 |
| 7.7500 |
| 5/15/2021 |
| 1,211,375 |
ResCare, Inc. |
| 495,000 |
| 10.7500 |
| 1/15/2019 |
| 549,450 |
Select Medical Corp. |
| 700,000 |
| 6.3750 |
| 6/1/2021 |
| 724,500 |
Tenet Healthcare Corp. - 144A |
| 400,000 |
| 6.0000 |
| 10/1/2020 |
| 420,750 |
Tenet Healthcare Corp. |
| 755,000 |
| 8.0000 |
| 8/1/2020 |
| 822,950 |
Tenet Healthcare Corp. |
| 340,000 |
| 8.1250 |
| 4/1/2022 |
| 378,250 |
|
|
|
|
|
|
|
| 4,666,544 |
HOLDING COMPANIES-DIVERSIFIED - 0.5 % |
|
|
|
|
|
|
| |
WaveDivision Escrow Corp. - 144A |
| 640,000 |
| 8.1250 |
| 9/1/2020 |
| 691,200 |
|
|
|
|
|
|
|
|
|
HOME BUILDERS - 1.0 % |
|
|
|
|
|
|
|
|
Taylor Morrison Communities, Inc. - 144A |
| 258,000 |
| 7.7500 |
| 4/15/2020 |
| 284,445 |
Taylor Morrison Communities, Inc. - 144A |
| 1,065,000 |
| 5.2500 |
| 4/15/2021 |
| 1,080,975 |
|
|
|
|
|
|
|
| 1,365,420 |
HOME FURNISHINGS - 0.6 % |
|
|
|
|
|
|
|
|
Tempur Sealy International, Inc. |
| 780,000 |
| 6.8750 |
| 12/15/2020 |
| 854,100 |
|
|
|
|
|
|
|
|
|
HOUSEHOLD PRODUCTS - 1.4 % |
|
|
|
|
|
|
|
|
Reynolds Group Issuer, Inc. |
| 1,050,000 |
| 5.7500 |
| 10/15/2020 |
| 1,097,250 |
Spectrum Brands, Inc. |
| 190,000 |
| 6.7500 |
| 3/15/2020 |
| 205,438 |
Spectrum Brands, Inc. |
| 680,000 |
| 6.3750 |
| 11/15/2020 |
| 741,200 |
|
|
|
|
|
|
|
| 2,043,888 |
HOUSEWARES - 0.1 % |
|
|
|
|
|
|
|
|
Libbey Glass, Inc. |
| 67,000 |
| 6.8750 |
| 5/15/2020 |
| 69,141 |
|
|
|
|
|
|
|
|
|
INTERNET - 0.4 % |
|
|
|
|
|
|
|
|
CyrusOne Finance Corp. |
| 560,000 |
| 6.3750 |
| 11/15/2022 |
| 597,800 |
|
|
|
|
|
|
|
|
|
LEISURE TIME - 0.8 % |
|
|
|
|
|
|
|
|
NCL Corp. Ltd. |
| 1,110,000 |
| 5.0000 |
| 2/15/2018 |
| 1,151,625 |
|
|
|
|
|
|
|
|
|
LODGING - 3.2 % |
|
|
|
|
|
|
|
|
Boyd Gaming Corp. |
| 835,000 |
| 9.0000 |
| 7/1/2020 |
| 925,806 |
Felcor Lodging LP |
| 720,000 |
| 5.6250 |
| 3/1/2023 |
| 730,800 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund (Continued) |
|
|
|
|
|
|
|
|
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
LODGING (CONTINUED) - 3.2 % |
|
|
|
|
|
|
|
|
Hilton Worldwide Finance Corp. - 144A |
| $ 645,000 |
| 5.6250 | % | 10/15/2021 |
| $ 673,622 |
MGM Resorts International |
| 950,000 |
| 7.7500 |
| 3/15/2022 |
| 1,107,225 |
MGM Resorts International |
| 390,000 |
| 6.7500 |
| 10/1/2020 |
| 431,964 |
MTR Gaming Group |
| 650,000 |
| 11.5000 |
| 8/1/2019 |
| 734,500 |
|
|
|
|
|
|
|
| 4,603,917 |
MACHINERY-CONSTRUCTION & MINING - 0.4 % |
|
|
|
|
|
|
| |
Terex Corp. |
| 600,000 |
| 6.0000 |
| 5/15/2021 |
| 645,000 |
|
|
|
|
|
|
|
|
|
MACHINERY-DIVERSIFIED - 2.2 % |
|
|
|
|
|
|
|
|
The Manitowoc Co., Inc. |
| 920,000 |
| 5.8750 |
| 10/15/2022 |
| 998,200 |
Renaissance Acquisition - 144A |
| 2,150,000 |
| 6.8750 |
| 8/15/2021 |
| 2,217,188 |
|
|
|
|
|
|
|
| 3,215,388 |
MEDIA - 10.3 % |
|
|
|
|
|
|
|
|
Cequel Communications Holdings I LLC - 144A | 1,280,000 |
| 6.3750 |
| 9/15/2020 |
| 1,347,200 | |
Clear Channel Worldwide Holdings, Inc. |
| 1,140,000 |
| 7.6250 |
| 3/15/2020 |
| 1,234,050 |
DISH DBS Corp. |
| 610,000 |
| 7.8750 |
| 9/1/2019 |
| 725,138 |
Entercom Radio LLC |
| 920,000 |
| 10.5000 |
| 12/1/2019 |
| 1,067,200 |
Gannett Co., Inc. - 144A |
| 605,000 |
| 5.1250 |
| 10/15/2019 |
| 631,469 |
Gray Television, Inc. |
| 1,335,000 |
| 7.5000 |
| 10/1/2020 |
| 1,441,800 |
Harron Communications LP - 144A |
| 700,000 |
| 9.1250 |
| 4/1/2020 |
| 791,000 |
LIN Television Corp. |
| 345,000 |
| 8.3750 |
| 4/15/2018 |
| 364,838 |
LIN Television Corp. |
| 1,095,000 |
| 6.3750 |
| 1/15/2021 |
| 1,157,963 |
McClatchy Company |
| 765,000 |
| 9.0000 |
| 12/15/2022 |
| 875,925 |
Mediacom LLC/Cap Corp |
| 660,000 |
| 7.2500 |
| 2/15/2022 |
| 714,450 |
Nexstar Broadcasting, Inc. |
| 685,000 |
| 6.8750 |
| 11/15/2020 |
| 729,525 |
Sinclair Television Group, Inc. |
| 560,000 |
| 6.3750 |
| 11/1/2021 |
| 585,200 |
Sirius XM Holdings, Inc. - 144A |
| 545,000 |
| 5.2500 |
| 8/15/2022 |
| 591,325 |
Starz LLC |
| 1,775,000 |
| 5.0000 |
| 9/15/2019 |
| 1,848,219 |
Videotron Ltd. |
| 675,000 |
| 5.0000 |
| 7/15/2022 |
| 683,436 |
|
|
|
|
|
|
|
| 14,788,738 |
MINING - 1.6 % |
|
|
|
|
|
|
|
|
FMG Resources August 2006 Pty Ltd. - 144A |
| 1,270,000 |
| 8.2500 |
| 11/1/2019 |
| 1,408,113 |
FMG Resources August 2006 Pty Ltd. - 144A |
| 350,000 |
| 6.8750 |
| 4/1/2022 |
| 375,813 |
Kaiser Aluminum Corp. |
| 425,000 |
| 8.2500 |
| 6/1/2020 |
| 481,312 |
|
|
|
|
|
|
|
| 2,265,238 |
OIL & GAS - 13.8 % |
|
|
|
|
|
|
|
|
Berry Petroleum Co - Class A |
| 480,000 |
| 6.7500 |
| 11/1/2020 |
| 509,400 |
Bill Barrett Corp. |
| 800,000 |
| 7.6250 |
| 10/1/2019 |
| 868,000 |
Bill Barrett Corp. |
| 945,000 |
| 7.0000 |
| 10/15/2022 |
| 996,975 |
Bonanza Creek Energy, Inc. |
| 1,155,000 |
| 6.7500 |
| 4/15/2021 |
| 1,241,625 |
Chaparral Energy, Inc. |
| 300,000 |
| 8.2500 |
| 9/1/2021 |
| 329,250 |
Chaparral Energy, Inc. |
| 1,230,000 |
| 7.6250 |
| 11/15/2022 |
| 1,316,100 |
Comstock Resources, Inc. |
| 330,000 |
| 7.7500 |
| 4/1/2019 |
| 354,750 |
Comstock Resources, Inc. |
| 540,000 |
| 9.5000 |
| 6/15/2020 |
| 619,650 |
Drill Rigs Holdings, Inc. - 144A |
| 1,700,000 |
| 6.5000 |
| 10/1/2017 |
| 1,763,750 |
Energy XXI Gulf Coast, Inc. - 144A |
| 715,000 |
| 7.5000 |
| 12/15/2021 |
| 759,688 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
OIL & GAS (CONTINUED) - 13.8 % |
|
|
|
|
|
|
|
|
EXCO Resources, Inc. |
| $ 715,000 |
| 7.5000 | % | 9/15/2018 |
| $ 731,088 |
Gastar Expolration - 144A |
| 355,000 |
| 8.6250 |
| 5/15/2018 |
| 367,425 |
Gulfport Energy Corp. |
| 1,495,000 |
| 7.7500 |
| 11/1/2020 |
| 1,629,550 |
Hercules Offshore, Inc. - 144A |
| 1,350,000 |
| 10.2500 |
| 4/1/2019 |
| 1,515,375 |
Linn Energy LLC |
| 695,000 |
| 6.5000 |
| 5/15/2019 |
| 724,538 |
Offshore Group Investment Ltd. |
| 555,000 |
| 7.7500 |
| 11/1/2019 |
| 579,975 |
Pacific Drilling SA - 144A |
| 825,000 |
| 5.3750 |
| 6/1/2020 |
| 806,434 |
Parker Drilling Co. - 144A |
| 700,000 |
| 6.7500 |
| 7/15/2022 |
| 728,000 |
Resolute Energy Corp. |
| 745,000 |
| 8.5000 |
| 5/1/2020 |
| 782,250 |
Rice Energy - 144A |
| 700,000 |
| 6.2500 |
| 5/1/2022 |
| 701,750 |
Sanchez Energy Corp. - 144A |
| 410,000 |
| 7.7500 |
| 6/15/2021 |
| 440,750 |
Swift Energy Co. |
| 555,000 |
| 7.8750 |
| 3/1/2022 |
| 555,000 |
W&T Offshore, Inc. |
| 450,000 |
| 8.5000 |
| 6/15/2019 |
| 488,250 |
Western Refining, Inc. |
| 1,035,000 |
| 6.2500 |
| 4/1/2021 |
| 1,081,575 |
|
|
|
|
|
|
|
| 19,891,148 |
OIL & GAS SERVICES - 1.9 % |
|
|
|
|
|
|
|
|
Basic Energy Services, Inc. |
| 575,000 |
| 7.7500 |
| 10/15/2022 |
| 633,218 |
Hornbeck Offshore Services, Inc. |
| 315,000 |
| 5.8750 |
| 4/1/2020 |
| 329,175 |
Hornbeck Offshore Services, Inc. |
| 400,000 |
| 5.0000 |
| 3/1/2021 |
| 390,000 |
Key Energy Services, Inc. |
| 730,000 |
| 6.7500 |
| 3/1/2021 |
| 773,800 |
McDermott International, Inc. - 144A |
| 575,000 |
| 8.0000 |
| 5/1/2021 |
| 582,188 |
|
|
|
|
|
|
|
| 2,708,381 |
PHARMACEUTICALS - 1.3 % |
|
|
|
|
|
|
|
|
Valeant Pharmaceuticals International - 144A | 860,000 |
| 6.3750 |
| 10/15/2020 |
| 928,800 | |
Valeant Pharmaceuticals International - 144A | 910,000 |
| 6.7500 |
| 8/15/2021 |
| 980,525 | |
|
|
|
|
|
|
|
| 1,909,325 |
PIPELINES - 4.2 % |
|
|
|
|
|
|
|
|
El Paso LLC |
| 495,000 |
| 7.2500 |
| 6/1/2018 |
| 566,720 |
Rockies Express Pipeline LLC - 144A |
| 610,000 |
| 6.8500 |
| 7/15/2018 |
| 648,125 |
Rockies Express Pipeline LLC - 144A |
| 825,000 |
| 5.6250 |
| 4/15/2020 |
| 831,188 |
Rockies Express Pipeline LLC - 144A |
| 805,000 |
| 6.8750 |
| 4/15/1940 |
| 752,675 |
Rockies Express Pipeline LLC - 144A |
| 695,000 |
| 6.0000 |
| 1/15/2019 |
| 719,325 |
Sabine Pass Liquefaction LLC - 144A |
| 725,000 |
| 6.2500 |
| 3/15/2022 |
| 761,250 |
Sabine Pass Liquefaction LLC |
| 365,000 |
| 5.6250 |
| 4/15/2023 |
| 370,019 |
Sabine Pass Liquefaction LLC |
| 1,395,000 |
| 5.6250 |
| 2/1/2021 |
| 1,447,313 |
|
|
|
|
|
|
|
| 6,096,615 |
REAL ESTATE - 0.2 % |
|
|
|
|
|
|
|
|
Realogy Group LLC - 144A |
| 305,000 |
| 7.6250 |
| 1/15/2020 |
| 341,600 |
|
|
|
|
|
|
|
|
|
REITS - 1.7 % |
|
|
|
|
|
|
|
|
Crown Castle Int'l Corp. |
| 350,000 |
| 7.1250 |
| 11/1/2019 |
| 373,940 |
iStar Financial, Inc. |
| 1,130,000 |
| 7.1250 |
| 2/15/2018 |
| 1,268,425 |
RHP Hotel Properties LP |
| 745,000 |
| 5.0000 |
| 4/15/2021 |
| 746,863 |
|
|
|
|
|
|
|
| 2,389,228 |
RETAIL- 0.4 % |
|
|
|
|
|
|
|
|
Burlington Coat Factory Warehouse Corp. |
| 540,000 |
| 10.0000 |
| 2/15/2019 |
| 598,050 |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
SOFTWARE - 1.4 % |
|
|
|
|
|
|
|
|
BMC Software Finance, Inc. - 144A |
| $ 515,000 |
| 8.1250 | % | 7/15/2021 |
| $ 542,038 |
BMC Software, Inc. |
| 370,000 |
| 7.2500 |
| 6/1/2018 |
| 388,500 |
MedAssets, Inc. - 144A |
| 1,020,000 |
| 5.3750 |
| 8/15/2020 |
| 1,032,750 |
|
|
|
|
|
|
|
| 1,963,288 |
TELECOMMUNICATIONS - 11.0 % |
|
|
|
|
|
|
|
|
Cincinnati Bell, Inc. |
| 1,415,000 |
| 8.3750 |
| 10/15/2020 |
| 1,563,575 |
EarthLink, Inc. |
| 720,000 |
| 8.8750 |
| 5/15/2019 |
| 723,600 |
EarthLink, Inc. |
| 960,000 |
| 7.3750 |
| 6/1/2020 |
| 1,005,600 |
Fairpoint Communications, Inc. - 144A |
| 1,350,000 |
| 8.7500 |
| 8/15/2019 |
| 1,468,125 |
Frontier Communications Corp. |
| 490,000 |
| 8.1250 |
| 10/1/2018 |
| 572,684 |
Frontier Communications Corp. |
| 730,000 |
| 85.0000 |
| 4/15/2020 |
| 853,644 |
Frontier Communications Corp. |
| 855,000 |
| 9.2500 |
| 7/1/2021 |
| 1,014,244 |
Intelsat Jackson Holdings SA |
| 1,375,000 |
| 7.7500 |
| 6/1/2021 |
| 1,438,594 |
Intelsat Jackson Holdings SA |
| 315,000 |
| 8.1250 |
| 6/1/2023 |
| 331,931 |
Level 3 Financing, Inc. |
| 315,000 |
| 8.6250 |
| 7/15/2020 |
| 354,375 |
Level 3 Financing, Inc. |
| 830,000 |
| 7.0000 |
| 6/1/2020 |
| 900,550 |
Level 3 Financing, Inc. - 144A |
| 845,000 |
| 6.1250 |
| 1/15/2021 |
| 889,363 |
SBA Communications Corp. |
| 1,555,000 |
| 5.6250 |
| 10/1/2019 |
| 1,638,581 |
Sprint Communications, Inc. - 144A |
| 110,000 |
| 9.0000 |
| 11/15/2018 |
| 134,338 |
Sprint Communications, Inc. |
| 1,175,000 |
| 11.5000 |
| 11/15/2021 |
| 1,580,375 |
Sprint Communications, Inc. |
| 825,000 |
| 7.0000 |
| 8/15/2020 |
| 901,311 |
Windstream Corp. |
| 350,000 |
| 7.7500 |
| 10/15/2020 |
| 379,750 |
|
|
|
|
|
|
|
| 15,750,640 |
|
|
|
|
|
|
|
|
|
TOTAL BONDS & NOTES (Cost - $133,754,126) |
|
|
|
|
|
| 138,458,901 | |
|
|
|
| Interest |
|
|
|
|
Security |
| Shares |
| Rate |
|
|
|
|
SHORT-TERM INVESTMENT - 2.7 % |
|
|
|
|
|
|
|
|
MONEY MARKET FUND - 2.7 % |
|
|
|
|
|
|
|
|
First American Government Obligations Fund | 3,824,228 |
| 0.01 | %+ |
|
| 3,824,228 | |
TOTAL SHORT-TERM INVESTMENT (Cost - $ 3,824,228) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 99.1 % (Cost - $ 137,578,354) |
|
|
|
|
|
| $ 142,283,129 | |
OTHER ASSETS LESS LIABILITIES - 0.9 % |
|
|
|
|
|
| 1,345,673 | |
NET ASSETS - 100.0 % |
|
|
|
|
|
|
| $ 143,628,802 |
|
|
|
|
|
|
|
|
|
+ Variable rate security. Interest rate is as of April 30, 2014. |
|
|
|
|
|
|
| |
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 | 31.62% |
|
| Caa1 |
|
|
| 7.12% |
B1 | 20.86% |
|
| Short-Term Investment |
| 2.69% | ||
B2 | 16.97% |
|
| Caa2 |
|
|
| 2.24% |
Ba3 | 8.70% |
|
| NR |
|
|
| 0.91% |
Ba2 | 8.45% |
|
| Ba1 |
|
|
| 0.44% |
|
|
|
| Total |
|
|
| 100.00% |
|
|
|
|
|
|
|
|
|
* Based on total value of investments as of April 30, 2014. |
|
|
|
|
|
|
| |
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
|
|
|
|
See accompanying notes to financial statements.
Dunham International Opportunity Bond Fund
Message from the Sub-Adviser (Rogge Global Partners PLC)
International bonds, as measured by the Barclay’s Global Aggregate ex-U.S. Bond Index Unhedged, were strong rising 2.4 percent for the six-month period ended April 30, 2014. The index was helped by the strong performance of emerging markets bonds, as measured by the Barclay’s Emerging Markets Ex-U.S. Aggregate Bond Index. When compared with the United States bond market, as measured by the Barclay’s U.S. Aggregate Bond Index, global bonds outpaced U.S. bonds by 0.7 percent for the six-month period with U.S. bonds rising 1.7 percent. However, compared to the broad equities market both domestic and international bonds trailed their equity counterparts as the S&P 500 rose by 8.3 percent during the same time period.
The Sub-Adviser implements a four-step investment process using four key macroeconomic factors in four major asset classes to achieve returns in five unique areas. The four macroeconomic factors are: global economic outlook, inflation, interest rates and event risk. The four major asset classes are: developed sovereign (government debt), investment grade credit (corporate debt), high yield and emerging markets. The four-step investment process has the following stages: assess relative value, manage risk, micro-level analysis and implementation. Finally, the five return components are: country, currency, yield curve, duration and spread/sector. They seek to identify healthy countries by measuring the sustainability of public borrowing and the private sector as well as the effectiveness and credibility of that nation’s authorities.
The Sub-Adviser added to the performance of the Fund for the six-month period by being overweight in Israel, New Zealand and Sweden. The Fund was underweight in Japan and the United Kingdom, which detracted from performance. The use of currency was a positive contributor to performance over the six-month period; an overweighting of the Norwegian Krone, the Australian Dollar, the Mexican Peso, the Malaysian Ringgit, and the Chilean Peso benefited the Fund, while an underweighting of the Japanese Yen influenced the portfolio positively during the first few months of the period but detracted the closing three months.
Sector allocation was a strong positive contributor to performance with an overweight to credit positively impacting performance due to tightening credit spreads. Within investment grade credit, an overweight to financials proved to be a good decision as financials performed well, with a preference to bonds ranked highest in the issuers’ capital structure during the six-month period Additionally, high yield was another overweight sector, which proved to be a positive contributor to the performance of the Fund.
Looking forward, the Sub-Adviser sees developed markets in a cyclical upswing despite the structural headwinds to long-term growth prospects. In the emerging markets, the countries matter more to the Sub-Adviser as each emerging market economy is in a very different position from the others due to their unique economic identities. The Fund does not see a shift in Japanese policies at any point in the near future and they continue to underweight the Yen as a result. A lot of the volatility appears to be in the long-term bonds with rising rates being on the minds of most fixed income investors. The Sub-Adviser is skeptical with respect to Europe due to the big debt problems that have plagued the region for the past few years, and they expect significant volatility in the less developed European nations. In emerging markets, the Sub-Adviser sees continued risk, but opportunities for investment in those economies as well. Elsewhere in the world, the Fund sees Mexico as a strong economy compared to most of the developing world. As global economic growth continues to improve, there will be more opportunities for the Sub-Adviser to take advantage of that growth.
Growth of $10,000 Investment – (Unaudited)
Total Returns as of April 30, 2014
|
| Annualized Since Inception (11/1/13) |
Class N |
| 2.29% |
Class C Class A with load of 4.50% Class A without load |
| 1.82% (2.42)% 2.17% |
Barclays Global ex-US Aggregate Bond Index Unhedged |
| 2.51% |
Morningstar World Bond Category |
| 2.03% |
The Barclays Global ex US Aggregate Bond Index Unhedged is designed to be a broad based measure of the global investment-grade, fixed rate, fixed income corporate markets outside the United States. Investors cannot invest directly in an index or benchmark..
The Morningstar World Bond 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.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.52% for Class N, 2.27% for Class C and 1.77% for Class A. Class A shares are subject to a sales load of 4.50% and a deferred sales charge of up to 0.75%. 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 International Opportunity Bond Fund |
|
|
|
| ||||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Principal Amount |
| Interest Rate |
| Maturity Date |
| Value |
BONDS & NOTES - 39.2 % |
|
|
|
|
|
|
| |
AGRICULTURE - 0.4 % |
|
|
|
|
|
|
|
|
Imperial Tobacco Finance PLC | $ 100,000 |
| 5.5000 | % | 11/22/2016 |
| $ 183,838 | |
|
|
|
|
|
|
|
|
|
Auto Manufacturers - 2.5 % |
|
|
|
|
|
|
|
|
Daimler AG |
| 350,000 |
| 4.125 |
| 1/19/2017 |
| 528,591 |
Volkswagen International Finance NV |
| 350,000 |
| 1.875 |
| 5/15/2017 |
| 498,940 |
|
|
|
|
|
|
|
| 1,027,531 |
BANKS - 21.2 % |
|
|
|
|
|
|
| |
ABN AMRO Bank NV + | 50,000 |
| 4.3100 |
| Perpetual |
| 70,716 | |
Bank of Tokyo-Mitsubishi UFJ Ltd. - 144A | 200,000 |
| 3.7500 |
| 3/10/2024 |
| 202,915 | |
Barclays Bank PLC | 150,000 |
| 6.0000 |
| 1/14/2021 |
| 247,514 | |
Barclays Bank PLC | 100,000 |
| 5.7500 |
| 8/17/2021 |
| 194,893 | |
BBVA Bancomer SA | 150,000 |
| 6.7500 |
| 9/30/2022 |
| 167,625 | |
BNP Paribas SA | 250,000 |
| 2.8750 |
| 9/26/2023 |
| 365,050 | |
BPCE SA + | 50,000 |
| 4.6250 |
| Perpetual |
| 71,129 | |
BPCE SA | 350,000 |
| 3.7500 |
| 7/21/2017 |
| 526,698 | |
Commonwealth Bank of Australia | 150,000 |
| 5.5000 |
| 8/6/2019 |
| 245,110 | |
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA | 100,000 |
| 5.8750 |
| 5/20/2019 |
| 165,128 | |
Credit Agricole SA |
| 200,000 |
| 3.8750 |
| 2/13/2019 |
| 310,574 |
Credit Suisse AG |
| 300,000 |
| 5.1250 |
| 9/18/2017 |
| 473,525 |
Deutsche Bank AG + |
| 150,000 |
| 1.0470 |
| 3/9/2017 |
| 207,304 |
DNB Bank ASA + |
| 100,000 |
| 3.0000 |
| 9/26/2023 |
| 145,518 |
HSBC Holdings PLC |
| 100,000 |
| 6.5000 |
| 5/20/2024 |
| 207,749 |
HSBC Holdings PLC |
| 100,000 |
| 6.0000 |
| 6/10/2019 |
| 165,871 |
ING BANK NV + |
| 100,000 |
| 6.8750 |
| 5/29/2023 |
| 188,691 |
ING BANK NV + |
| 100,000 |
| 6.1250 |
| 5/29/2023 |
| 157,898 |
Intesa Sanpaolo SpA | 100,000 |
| 4.3750 |
| 10/15/2019 |
| 155,682 | |
KBC Internationale Financieringsmaatschappij NV |
| 350,000 |
| 2.1250 |
| 9/10/2018 |
| 503,064 |
Lloyds Bank PLC |
| 100,000 |
| 6.5000 |
| 3/24/2020 |
| 167,497 |
Lloyds Bank PLC |
| 150,000 |
| 4.8750 |
| 3/30/2027 |
| 282,733 |
National Australia Bank Ltd. |
| 150,000 |
| 5.1250 |
| 12/9/2021 |
| 286,601 |
National Australia Bank Ltd. |
| 50,000 |
| 4.6250 |
| 2/10/2020 |
| 78,707 |
Nordea Bank AB - 144A | 500,000 |
| 1.2500 |
| 4/4/2017 |
| 500,305 | |
Royal Bank of Canada |
| 350,000 |
| 0.8500 |
| 3/8/2016 |
| 351,515 |
Royal Bank of Scotland PLC | 150,000 |
| 5.3750 |
| 9/30/2019 |
| 245,852 | |
Royal Bank of Scotland PLC | 150,000 |
| 5.1250 |
| 1/13/2024 |
| 290,025 | |
Societe Generale SA | 200,000 |
| 2.2500 |
| 1/23/2020 |
| 287,336 | |
Toronto-Dominion Bank |
| 450,000 |
| 1.1250 |
| 5/2/2017 |
| 449,558 |
UBS AG/London | 200,000 |
| 6.6250 |
| 4/11/2018 |
| 394,533 | |
UniCredit SpA |
| 100,000 |
| 3.3750 |
| 1/11/2018 |
| 147,656 |
Westpac Banking Corp. | 250,000 |
| 2.1250 |
| 7/9/2019 |
| 364,695 | |
|
|
|
|
|
|
| 8,619,667 | |
BUILDING MATERIALS - 0.4 % |
|
|
|
|
|
|
| |
Heidelbergcement Finance Luxembourg SA | 100,000 |
| 7.5000 |
| 4/3/2020 |
| 172,283 | |
|
|
|
|
|
|
|
| |
CHEMICALS - 0.4 % |
|
|
|
|
|
|
|
|
SPCM SA | 100,000 |
| 5.5000 |
| 6/15/2020 |
| 150,418 | |
|
|
|
|
|
|
|
|
|
COMMERCIAL MBS - 0.3 % |
|
|
|
|
|
|
| |
German Residential Funding PLC 2013-1A + | 99,250 |
| 1.3770 |
| 8/27/2024 |
| 139,637 | |
|
|
|
|
|
|
|
| |
COMMERCIAL SERVICES - 0.9 % |
|
|
|
|
|
|
| |
AA Bond Co. Ltd. |
| 100,000 |
| 9.5000 |
| 7/31/2019 |
| 190,812 |
EDU UK BondCo PLC | 100,000 |
| 8.8750 |
| 9/15/2018 |
| 175,614 | |
|
|
|
|
|
|
|
| 366,426 |
DIVERSIFIED FINANCIAL SERVICES - 0.9 % |
|
|
|
|
|
|
| |
Arrow Global Finance PLC |
| 100,000 |
| 7.8750 |
| 3/1/2020 |
| 182,580 |
Cabot Financial Luxembourg SA | 100,000 |
| 10.3750 |
| 10/1/2019 |
| 192,078 | |
|
|
|
|
|
|
|
| 374,658 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham International Opportunity Bond Fund (Continued) |
|
|
|
|
|
| ||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Principal Amount |
| Interest Rate |
| Maturity Date |
| Value |
ELECTRIC - 2.1 % |
|
|
|
|
|
|
| |
Electricite de France |
| $ 300,000 |
| 5.5000 | % | 10/25/2016 |
| $ 465,565 |
GDF Suez | 250,000 |
| 3.5000 |
| 10/18/2022 |
| 387,608 | |
|
|
|
|
|
|
|
| 853,173 |
ELECTRONICS - 0.4 % |
|
|
|
|
|
|
| |
Trionista Holdco GmbH |
| 100,000 |
| 5.0000 |
| 4/30/2020 |
| 145,593 |
|
|
|
|
|
|
|
| |
ENGINEERING & CONSTRUCTION - 0.4 % |
|
|
|
|
|
|
| |
Deutsche Raststaetten Gruppe IV GmbH | 100,000 |
| 6.7500 |
| 12/30/2020 |
| 151,139 | |
|
|
|
|
|
|
|
|
|
GAS - 0.6 % |
|
|
|
|
|
|
|
|
National Grid PLC |
| 150,000 |
| 4.3750 |
| 3/10/2020 |
| 240,108 |
|
|
|
|
|
|
|
|
|
INSURANCE - 1.6 % |
|
|
|
|
|
|
| |
Allianz Finance II BV | 250,000 |
| 4.7500 |
| 7/22/2019 |
| 407,308 | |
Willow No 2 Ireland PLC for Zurich Insurance Co. Ltd. | 150,000 |
| 3.3750 |
| 6/27/2022 |
| 227,432 | |
|
|
|
|
|
|
| 634,740 | |
MACHINERY DIVERSIFIED - 0.4 % |
|
|
|
|
|
|
|
|
Kion Finance SA |
| 100,000 |
| 6.75 |
| 2/15/2020 |
| 152,977 |
|
|
|
|
|
|
|
|
|
MEDIA - 1.1 % |
|
|
|
|
|
|
| |
Cable Communications Systems NV |
| 100,000 |
| 7.5000 |
| 11/1/2020 |
| 151,507 |
Cyfrowy Polsat Finance AB |
| 100,000 |
| 7.1250 |
| 5/20/2018 |
| 147,049 |
Unitymedia Hessen GmbG & Co. KG / Unitymedia NRW GmbH | 100,000 |
| 5.5000 |
| 9/15/2022 |
| 148,886 | |
|
|
|
|
|
|
|
| 447,442 |
MINING - 0.9 % |
|
|
|
|
|
|
|
|
BHP Billiton Finance USA Ltd. | 350,000 |
| 1.0000 |
| 2/24/2015 |
| 352,217 | |
|
|
|
|
|
|
|
|
|
OIL & GAS - 0.5 % |
|
|
|
|
|
|
| |
Gazprom OAO Via Gaz Capital SA | 150,000 |
| 3.3890 |
| 3/20/2020 |
| 199,670 | |
|
|
|
|
|
|
|
|
|
PHARMACEUTICALS - 1.2 % |
|
|
|
|
|
|
|
|
GlaxoSmithKline Capital PLC | 350,000 |
| 3.8750 |
| 7/6/2015 |
| 504,554 | |
|
|
|
|
|
|
|
|
|
REITS - 0.7 % |
|
|
|
|
|
|
| |
Societe Fonciere Lyonnaise SA | 200,000 |
| 4.6250 |
| 5/25/2016 |
| 296,900 | |
|
|
|
|
|
|
|
|
|
SAVINGS & LOANS - 1.2 % |
|
|
|
|
|
|
| |
Nationwide Building Society | 150,000 |
| 5.6250 |
| 9/9/2019 |
| 288,895 | |
Silverstone Master Issuer PLC | 100,000 |
| 5.0630 |
| 10/21/2016 |
| 183,080 | |
|
|
|
|
|
|
| 471,975 | |
TELECOMMUNICATIONS - 1.1 % |
|
|
|
|
|
|
| |
Deutsche Telekom International Finance BV | 100,000 |
| 4.7500 |
| 5/31/2016 |
| 150,452 | |
Play Finance 2 SA | 100,000 |
| 5.2500 |
| 2/1/2019 |
| 143,402 | |
Telecom Italia SpA | 50,000 |
| 6.3750 |
| 6/24/2019 |
| 92,486 | |
UPCB Finance Ltd. |
| 50,000 |
| 7.6250 |
| 1/15/2020 |
| 74,270 |
|
|
|
|
|
|
|
| 460,610 |
|
|
|
|
|
|
|
|
|
TOTAL CORPORATE NOTES & BONDS (Cost - $15,482,438) |
|
|
|
|
|
| 15,945,556 | |
|
|
|
|
|
|
|
|
|
FOREIGN GOVERNMENT BONDS - 58.0 % |
|
|
|
|
|
|
| |
Austria Government Bond - 144A | 250,000 |
| 3.4000 |
| 11/22/2022 |
| 397,853 | |
Belgium Government Bond - 144A |
| 100,000 |
| 5.0000 |
| 3/28/2035 |
| 186,131 |
Belgium Government Bond |
| 150,000 |
| 4.2500 |
| 9/28/2022 |
| 249,727 |
Bundesobligation |
| 1,350,000 |
| 0.2500 |
| 4/13/2018 |
| 1,862,105 |
Bundesrepublik Deutschland |
| 200,000 |
| 4.7500 |
| 7/4/2034 |
| 389,583 |
Bundesrepublik Deutschland |
| 200,000 |
| 4.7500 |
| 7/4/2040 |
| 409,087 |
Bundesrepublik Deutschland |
| 300,000 |
| 3.7500 |
| 1/4/2019 |
| 478,710 |
Bundesrepublik Deutschland |
| 250,000 |
| 1.7500 |
| 2/15/2024 |
| 355,299 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham International Opportunity Bond Fund (Continued) |
|
|
|
|
|
| ||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Principal Amount |
| Interest Rate |
| Maturity Date |
| Value |
FOREIGN GOVERNMENT BONDS - 58.0 % (CONTINUED) |
|
|
|
|
|
|
| |
Canadian Government Bond |
| $ 150,000 |
| 5.7500 | % | 6/1/2033 |
| $ 195,437 |
Canadian Government Bond |
| 150,000 |
| 4.0000 |
| 6/1/2041 |
| 163,622 |
Denmark Government Bond |
| 800,000 |
| 3.0000 |
| 11/15/2021 |
| 168,264 |
Dominican Republic International Bond - 144A | 100,000 |
| 5.8750 |
| 4/18/2024 |
| 100,000 | |
France Government Bond OAT |
| 170,000 |
| 4.7500 |
| 4/25/2035 |
| 311,420 |
France Government Bond OAT |
| 100,000 |
| 4.5000 |
| 4/25/2041 |
| 180,974 |
France Government Bond OAT | 750,000 |
| 2.2500 |
| 5/25/2024 |
| 1,066,485 | |
Indonesia Government International Bond | 200,000 |
| 3.7500 |
| 4/25/2022 |
| 190,000 | |
Italy Buoni Poliennali Del Tesoro |
| 300,000 |
| 4.5000 |
| 2/1/2020 |
| 471,680 |
Italy Buoni Poliennali Del Tesoro |
| 750,000 |
| 4.7500 |
| 9/15/2016 |
| 1,132,224 |
Italy Buoni Poliennali Del Tesoro |
| 300,000 |
| 5.0000 |
| 9/1/2040 |
| 480,412 |
Italy Buoni Poliennali Del Tesoro |
| 150,000 |
| 5.5000 |
| 11/1/2022 |
| 249,605 |
Italy Buoni Poliennali Del Tesoro |
| 200,000 |
| 4.5000 |
| 3/1/2024 |
| 311,164 |
Japan Government Ten Year Bond |
| 171,800,000 | JPY | 1.9000 |
| 6/20/2017 |
| 1,774,883 |
Japan Government Ten Year Bond |
| 134,600,000 | JPY | 1.4000 |
| 9/20/2019 |
| 1,400,054 |
Japan Government Thirty Year Bond |
| 83,150,000 | JPY | 2.5000 |
| 6/20/2036 |
| 952,106 |
Japan Government Thirty Year Bond |
| 71,900,000 | JPY | 2.0000 |
| 9/20/2041 |
| 754,175 |
Japan Government Twenty Year Bond |
| 22,750,000 | JPY | 1.9000 |
| 9/20/2023 |
| 249,431 |
Japan Government Twenty Year Bond |
| 114,600,000 | JPY | 2.1000 |
| 12/20/2027 |
| 1,289,994 |
Mexican Bonos |
| 3,500,000 | MXN | 7.5000 |
| 6/3/2027 |
| 290,310 |
Mexican Bonos |
| 13,250,000 | MXN | 6.5000 |
| 6/9/2022 |
| 1,045,486 |
New Zealand Government Bond |
| 700,000 | NZD | 5.5000 |
| 4/15/2023 |
| 649,444 |
Peruvian Government International Bond |
| 1,300,000 | PEN | 7.8400 |
| 8/12/2020 |
| 518,115 |
Russian Foreign Bond |
| 200,000 |
| 5.0000 |
| 4/29/2020 |
| 202,270 |
Russian Foreign Bond - Eurobond |
| 100,000 |
| 3.6250 |
| 9/16/2020 |
| 138,729 |
Spain Government Bond |
| 100,000 |
| 4.2000 |
| 1/31/2037 |
| 144,900 |
Spain Government Bond |
| 700,000 |
| 4.2500 |
| 10/31/2016 |
| 1,050,852 |
Spain Government Bond - 144A |
| 250,000 |
| 4.4000 |
| 10/31/2023 |
| 388,383 |
Spain Government Bond - 144A |
| 100,000 |
| 5.4000 |
| 1/31/2023 |
| 166,352 |
Sweden Government Bond |
| 2,700,000 | SEK | 4.2500 |
| 3/12/2019 |
| 472,511 |
Switzerland Government Bond |
| 250,000 |
| 4.0000 |
| 2/11/2023 |
| 364,600 |
United Kingdom Gilt |
| 300,000 |
| 4.5000 |
| 12/7/2042 |
| 607,607 |
United Kingdom Gilt |
| 100,000 |
| 4.2500 |
| 12/7/2055 |
| 201,225 |
United Kingdom Gilt Inflation Linked |
| 200,000 |
| 1.2500 |
| 11/22/2027 |
| 525,642 |
United Kingdom Gilt Inflation Linked | 400,000 |
| 1.8750 |
| 11/22/2022 |
| 1,006,398 | |
TOTAL FOREIGN GOVERNMENT BOND (Cost - $22,718,132) |
|
|
|
|
|
| 23,543,249 | |
|
|
|
|
|
|
|
|
|
SHORT-TERM INVESTMENTS - 0.3 % |
|
|
|
|
|
|
| |
MONEY MARKET FUND - 0.3 % |
|
|
|
|
|
|
| |
Fidelity Institutional Money Market Funds - Government Portfolio | Shares |
|
|
|
|
|
| |
(Cost - $125,176) | 125,176 |
| 0.0100 | + |
|
| 125,176 | |
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 97.5 % (Cost - $38,325,746) |
|
|
|
|
|
| $ 39,613,981 | |
OTHER ASSETS LESS LIABILITIES - 2.5 % |
|
|
|
|
|
| 1,028,811 | |
NET ASSETS - 100.0% |
|
|
|
|
|
| $ 40,642,792 | |
|
|
|
|
|
|
|
|
|
MBS - Mortgage Back Security | NZD - New Zealand Dollar |
|
|
|
|
|
| |
REIT - Real Estate Investment Trust | PEN - Peruvian Nuevo Sol |
|
|
|
|
|
| |
JPY - Japanese Yen | SEK - Sweden Krona |
|
|
|
|
|
| |
MXN - Mecican Peso |
|
|
|
|
|
|
|
|
+ Variable rate security. Interest rate is as of April 30, 2014. |
|
|
|
|
|
| ||
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. |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham International Opportunity Bond Fund (Continued) |
|
|
|
|
|
| ||
April 30, 2014 |
|
|
|
|
|
|
|
|
Futures Contracts |
| Contracts |
|
|
|
|
| Unrealized Appreciation (Depreciation) |
OPEN SHORT FUTURES CONTRACTS |
|
|
|
|
|
|
|
|
Long Glit Future maturing June, 2014 |
|
|
|
|
|
|
|
|
(Underlying Face Amount at Value 4,098,666 GBP) | (22) |
|
|
|
|
| $ (48,919) | |
|
|
|
|
|
|
|
|
|
OPEN LONG FUTURES CONTRACTS |
|
|
|
|
|
|
|
|
Canadian 10 Year Bond maturing June, 2014 |
|
|
|
|
|
|
| |
(Underlying Face Amount at Value 954,776 CAD) | 8 |
|
|
|
|
| 3,108 | |
Euro Schatz maturing June. 2014 |
|
|
|
|
|
|
| |
(Underlying Face Amount at Value 1,991,132 EUR) | 13 |
|
|
|
|
| (1,082) | |
Euro BOBL Future maturing June, 2014 |
|
|
|
|
|
|
| |
(Underlying Face Amount at Value 348,486 EUR) | 2 |
|
|
|
|
| �� 416 | |
Euro-Bund Future maturing June, 2014 |
|
|
|
|
|
|
|
|
(Underlying Face Amount at Value 601,257 EUR) | 3 |
|
|
|
|
| 5,560 | |
10 YR AUD Government Bond maturing June, 2014 |
|
|
|
|
|
|
| |
(Underlying Face Amount at Value 44,504,500 AUD) | 5 |
|
|
|
|
| 10,111 | |
NET UNREALIZED GAIN FROM OPEN LONG FUTURES CONTRACTS |
|
|
|
|
|
| 18,113 | |
|
|
|
|
|
|
|
|
|
NET UNREALIZED LOSS FROM OPEN FUTURES CONTRACTS |
|
|
|
|
|
| $ (30,806) | |
|
|
|
|
|
|
|
|
|
Face amounts are the underlying reference amounts to equities upon which the fair value of the futures contracts traded by the Fund are based. While face amounts do not represent the current fair value and are not necessarily indicative of the future cash flows of the Fund's futures contracts, the underlying price changes in relation to the variables specified by the face amounts affect the fair value of these derivative financial instruments. |
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||
Other Countries | 17.27% | Netherlands |
| 5.79% |
Japan | 16.72% | Spain |
| 4.42% |
Britain | 14.90% | Mexico |
| 3.80% |
Germany | 11.80% | Australia |
| 3.35% |
France | 11.16% | Switzerland |
| 3.11% |
Italy | 7.68% | Total |
| 100.00% |
|
|
|
|
|
* Based on total value of investments as of April 30, 2014. | ||||
Percentage may differ from Schedule of Investments which are 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 2.8 percent during the six-month period ended April 30, 2014. This was significantly lower than most U.S. long equity indexes such as the S&P 500 Index, which rose 8.4 percent during the same time period. Large blue-chip companies were among the best performers during the fiscal six months while business development companies lagged somewhat. Short positions consisting of inverse ETFs also had a negative impact on performance as stocks rallied for almost the entirety of the fiscal quarter. Long/short strategies will rarely, if ever, completely remove hedging positions so some negative impact is to be expected.
The Sub-Adviser continues to seek and maintain companies that generate income within the Fund, focusing on companies that pay what it believes to be attractive dividends. In addition to income generation, the Sub-Adviser is also opportunistic in regards to companies with attractive valuation levels or the potential for significant capital appreciation. As well, it employs an inverse ETF strategy as a hedging mechanism to provide downward protection in falling markets.
Currently, the Fund is approximately 80 percent invested with 20 percent in cash. This large allocation to cash detracted from the performance of the Fund as a result of the strong market performance over the fiscal period. Of the invested portion of the fund, approximately 67 percent is long the stock market and roughly 15 percent is invested in inverse and double inverse ETFs that short the S&P 500. This leverage is implemented to act as a hedge of approximately 23 percent. These leverages ETFs strongly also detracted from the performance with the S&P 500 providing a strong fiscal six-months. The ProShares UltraShort S&P 500 (SDS) and the ProShares UltraPro Short S&P500 (SPXU) both negatively contributed to the performance of the fund with a decline of 16.4 percent and 24.3 percent. Another negative contributor to the fund is the UltraShort 20+ Year Treasury (TBT) which declined 11.4 percent during the six-month period. This holding makes up six percent of the current portfolio.
The long stock portion of the Fund is divided into two tranches, an income tranche and a growth and income tranche. The income tranche generally includes business development companies, mortgage REITs, master limited partnerships and electric utilities. Approximately 40 percent of the holdings are devoted to this sleeve with about 60 percent in business development companies and the other 40 percent invested in a mixture of REITs, energy and global telecom and utility firms. The growth and income tranche comprises approximately 60 percent of the long stock positions and includes a variety of other sectors, such as technology, consumer staples, industrials and healthcare stocks. In this tranche, the Fund will mainly buy large blue chip companies that pay a relatively large dividend yet have prospects for substantial growth.
Business development companies, a form of publicly traded private equity that invests in small upcoming businesses, underperformed during most of the six-month period ended April 30, 2014. The Sub-Adviser believes these firms are poised for growth as banks continue to have relatively tight lending standards and maintain relatively conservative loan portfolios. TICC Capital Corporation (TICC), a firm that invests in both private and public technology firms, was one of the better performing business development companies held by the Fund. It had a return of 1.9 percent in the first half of the fiscal year.
As mentioned above, large blue chip companies held by the Fund had the best performance during the six-month period. Microsoft Corporation (MSFT), which is a dominant office software and IBM-PC compatible operating system producer, gained nearly 16 percent in the six-month period ended April 30, 2014. Another strong performer was Deere & Company, a large producer of farm equipment and machinery, which increased more than 15 percent during the same time period. Hewlett-Packard Company (HPQ) was the best performer in the group. The diversified computer systems firm returned a significantly positive 37 percent over the first half of the fiscal year.
Going forward, the Sub-Adviser believes the stock market is likely to correct soon as we are five years into a cyclical bull market, margin debt is relatively high, and momentum stocks have been beaten down recently. As well, the NASDAQ appears to be forming a classic head-and-shoulders pattern, which generally indicates a downturn in the market. Considering all of the above factors, the Fund believes a significant correction is possible. However, the Sub-Adviser feels confident that its strategy is well tailored to the current market conditions and is ready apply a larger hedge in anticipation of bear market.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2014
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (4/30/2010) |
Class N | 0.22% | (2.80)% | 1.19% | N/A | 1.55% |
Class C Class A with load of 5.75% Class A without load | (0.23)% (5.62)% 0.12% | (3.76)% (8.62)% (3.02)% | 0.18% (1.06)% 0.92% | N/A N/A N/A | 0.56% (0.20)% 1.29% |
Morningstar Long/Short Equity Category | 6.30% | 9.33% | 3.87% | N/A | 4.62% |
IQ Hedge Long/Short Beta Index | 6.11% | 6.64% | 12.08% | N/A | 19.80% |
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.
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 1.59% for Class N, 2.59% for Class C and 1.84% for Class A. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%. 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, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
|
| Shares |
| Value |
COMMON STOCK - 63.3 % |
|
|
|
|
|
|
|
|
|
|
|
BANKS - 2.1 % |
|
|
|
|
| REITS - 15.8 % (Continued) |
|
|
|
| |
Citigroup, Inc. |
| 2,000 |
| $ 95,820 |
| Gladstone Commercial Corp. |
| 2,000 |
| $ 35,280 | |
JPMorgan Chase & Co. |
| 2,000 |
| 111,960 |
| HCP, Inc. |
|
| 2,900 |
| 121,394 |
|
|
|
| 207,780 |
| Hospitality Properties Trust |
| 4,600 |
| 138,230 | |
COMPUTERS - 1.7 % |
|
|
|
|
| Independence Realty Trust, Inc. | 14,000 |
| 125,300 | ||
Hewlett-Packard Co. |
| 5,000 |
| 165,300 |
| Orchid Island Capital, Inc. |
| 10,000 |
| 122,900 | |
|
|
|
|
|
| Silver Bay Realty Trust Corp. |
| 488 |
| 7,310 | |
DIVERSIFIED FINANCIAL SERVICES - 1.8 % |
|
|
|
|
| Two Harbors Investment Corp. |
| 20,000 |
| 207,600 | |
Medley Capital Corp. |
| 14,000 |
| 182,560 |
| Whitestone REIT |
| 15,024 |
| 210,787 | |
|
|
|
|
|
|
|
|
|
|
| 1,561,146 |
FOOD - 2.8 % |
|
|
|
|
| RETAIL - 2.4 % |
|
|
|
|
|
ConAgra Foods, Inc. |
| 5,200 |
| 158,652 |
| American Eagle Outfitters, Inc. |
| 10,000 |
| 115,600 | |
Kellogg Co. |
| 1,700 |
| 113,611 |
| Einstein Noah Restaurant Group, Inc. | 8,000 |
| 122,880 | ||
|
|
|
| 272,263 |
|
|
|
|
|
| 238,480 |
HOME BUILDERS - 0.8 % |
|
|
|
| SEMICONDUCTORS - 3.6 % |
|
|
|
| ||
KB Home |
| 5,000 |
| 82,550 |
| Cypress Semiconductor Corp. |
| 15,000 |
| 142,050 | |
|
|
|
|
|
| Intel Corp. |
|
| 3,500 |
| 93,415 |
INVESTMENT COMPANIES - 13.8 % |
|
|
|
| Marvell Technology Group Ltd. | 7,500 |
| 118,950 | |||
Apollo Investment Corp. |
| 17,600 |
| 140,624 |
|
|
|
|
|
| 354,415 |
BlackRock Kelso Capital Corp. | 18,000 |
| 163,440 |
| TELECOMMUNICATIONS - 9.9 % |
|
|
| |||
Fifth Street Finance Corp. |
| 30,700 |
| 285,817 |
| AT&T, Inc. |
|
| 7,000 |
| 249,900 |
PennantPark Investment Corp. | 10,500 |
| 112,350 |
| CenturyLink, Inc. |
|
| 3,500 |
| 122,185 | |
Prospect Capital Corp. |
| 34,000 |
| 367,540 |
| Cisco Systems, Inc. |
| 9,500 |
| 219,545 | |
TICC Capital Corp. |
| 30,000 |
| 288,900 |
| Telefonaktiebolaget LM Ericsson | 8,500 |
| 101,915 | ||
|
|
|
| 1,358,671 |
| Telefonica Brasil SA - ADR |
| 6,000 |
| 127,200 | |
MACHINERY DIVERSIFIED - 1.2 % |
|
|
|
| Verizon Communications, Inc. |
| 3,350 |
| 156,546 | ||
Deere & Co. |
| 1,300 |
| 121,342 |
|
|
|
|
|
| 977,291 |
|
|
|
|
|
|
|
|
|
|
|
|
MINING - 1.1 % |
|
|
|
|
| TOTAL COMMON STOCK (Cost - $5,987,891) |
|
| 6,249,371 | ||
Newmont Mining Corp. |
| 4,500 |
| 111,735 |
|
|
|
|
|
|
|
|
|
|
|
|
| EXCHANGE TRADED FUNDS - 19.8 % |
|
|
| ||
MISCELLANEOUS MANUFACTURING - 1.1 % |
|
|
|
| DEBT FUNDS - 5.9 % |
|
|
|
| ||
General Electric Co. |
| 4,000 |
| 107,560 |
| ProShares UltraShort 20+ Year Treasury * | 9,000 |
| 581,940 | ||
|
|
|
|
|
|
|
|
|
|
|
|
OIL & GAS - 2.9 % |
|
|
|
|
| EQUITY FUNDS - 13.9 % |
|
|
|
| |
Enduro Royalty Trust |
| 9,000 |
| 110,880 |
| Alerian MLP ETF |
| 9,500 |
| 172,045 | |
Pengrowth Energy Corp. |
| 17,000 |
| 110,500 |
| iShares Mortgage Real Estate Capped ETF | 18,000 |
| 224,460 | ||
Transocean Ltd. |
| 1,400 |
| 60,298 |
| ProShares UltraPro Short QQQ * | 7,000 |
| 194,810 | ||
|
|
|
| 281,678 |
| ProShares UltraPro Short S&P 500 * | 12,500 |
| 680,500 | ||
PHARMACEUTICALS - 2.3 % |
|
|
|
| SPDR S&P International Dividend ETF | 2,000 |
| 101,180 | |||
Merck & Co., Inc. |
| 2,000 |
| 117,120 |
|
|
|
|
|
| 1,372,995 |
Pfizer, Inc. |
| 3,500 |
| 109,480 |
|
|
|
|
|
|
|
|
|
|
| 226,600 |
| TOTAL EXCHANGE TRADED FUNDS (Cost - $2,148,309) |
| 1,954,935 | |||
REITS - 15.8 % |
|
|
|
|
|
|
|
|
|
|
|
American Capital Mortgage Investment Corp. | 8,000 |
| 158,400 |
|
|
|
|
|
|
| |
American Realty Capital Properties, Inc. | 9,000 |
| 117,810 |
|
|
|
|
|
|
| |
Campus Crest Communities, Inc. | 11,500 |
| 99,015 |
|
|
|
|
|
|
| |
CYS Investments, Inc. |
| 12,500 |
| 107,500 |
|
|
|
|
|
|
|
Franklin Street Properties Corp. | 9,000 |
| 109,620 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| ||||
Dunham Loss Averse Equity Income Fund (Continued) |
|
|
|
|
|
|
| ||||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Value |
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 83.1 % (Cost - $8,136,200) |
| $ 8,204,306 |
|
|
|
|
|
|
| ||
OTHER ASSETS LESS LIABILITIES - 16.9 % |
| 1,664,240 |
|
|
|
|
|
|
| ||
NET ASSETS - 100.0% |
|
|
| $ 9,868,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-income producing security. |
|
|
|
|
|
|
|
|
|
| |
ADR - American Depositary Receipt. | ETF - Exchange Traded Fund |
|
|
|
|
|
|
| |||
REIT - Real Estate Investment Trust. |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | |||||||||||
Financial |
| 40.35% |
|
|
| Consumer, Cyclical |
| 3.91% |
|
| |
Exchange Traded Funds |
| 23.83% |
|
|
| Energy |
|
| 3.43% |
|
|
Communications |
| 11.91% |
|
|
| Industrial |
|
| 2.80% |
|
|
Technology |
| 6.33% |
|
|
| Basic Materials |
|
| 1.36% |
|
|
Consumer, Non-Cyclical |
| 6.08% |
|
|
| Total |
|
| 100.00% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Based on total value of investments as of April 30, 2014. |
|
|
|
|
|
|
| ||||
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
|
|
|
|
|
See accompanying notes to financial statements.
Dunham Alternative Strategy Fund
Message from the Sub-Adviser (Market Concepts, LLC)
Managed futures strategies, as measured by the Dow Jones Credit Suisse Managed Futures Liquid Index, declined 0.9 percent during the six months ended April 30, 2014. Domestic equity markets, as measured by the S&P 500 Index, generally saw increases during the same period, rising 8.3 percent. Emerging markets equities generally experienced inverse results. Emerging markets equities, as measured by the MSCI Emerging Markets Index, decreased 3.0 percent over the six-month period, underperforming foreign developed markets, as measured by the MSCI EAFE Index, by 7.8 percent. With the diversified nature of managed futures, exposure to multiple asset classes may provide non-correlated returns as reflected in the performance of the Credit Suisse Managed Futures Liquid Index. The Sub-Adviser continues to believe that the trend conditions of the various asset classes will offer the Fund an advantageous investment environment on the back-drop of the multiple year divergence that has occurred between the domestic equity markets and other investment asset classes.
Commodities, as measured by the Thomson Reuters / Jefferies CRB Commodity index, rose 11.4 percent for the six months ended April 30, 2014. Commodities were one of a few asset classes that were positive in January, and the asset class as a whole continued its positive run throughout subsequent months, rising 9.3 percent in the most recent three-month period alone. Towards the end of the first fiscal quarter, the asset class was testing key resistance levels. As some of the industry groups showed signs of trends, the Sub-Adviser established positions in holdings such as PowerShares DB Agriculture Fund (DBA). Another commodity-related position was PowerShares DB Oil Fund (DBO). The PowerShares DB Agriculture Fund and the PowerShares DB Oil Fund rose 16.9 percent and 5.2 percent, respectively since the beginning of the fiscal year. However, most of these gains occurred during the second fiscal quarter when the PowerShares DB Agriculture Fund and the PowerShares DB Oil Fund rose 18.7 percent and 5.9 percent, respectively. Some of these trends were short-lived and the Sub-Adviser maintained its disciplined process of only holding asset classes with a definitive trend established. Therefore, the Fund benefitted from some of these positions as the holdings were whipsawed between following what the Sub-Adviser considered to be an established trend and being stopped out when the trend reversed or moved sideways. Precious metals caused the most problems for the Fund; Market Vectors Gold Miners ETF (GDX) and Market Vectors Junior Gold Miners ETF (GDXJ) rose significantly during the first two months of the fiscal year, up 22.5 percent and 33.1 percent, before quickly reversing in the last two months of the period and losing most of their gains, ultimately ending the six-month period ended April 30, 2014 down 3.1 percent and 2.9 percent, respectively.
As domestic equities in general, as measured by the S&P 500 Index, experienced a generally positive first half of the fiscal year, the Fund benefitted most from its holdings in U.S. sectors. The Fund held the Utilities Select Sector SPDR Fund (XLU), Materials Select Sector SPDR Trust (XLB), and Consumer Staples Select Sector SPDR Fund (XLP). During the six months ended April 30, 2014, the Utilities Select Sector SPDR Fund and Materials Select Sector SPDR Trust outpaced the rest of the U.S. equity markets in general, rising 13.5 percent and 10.0 percent, respectively. The Consumer Staples Select Sector SPDR Fund slightly lagged, up only 5.8 percent during the same six-month period. These trends in the domestic equity markets had experienced some pressure in January's turbulent markets, but rebounded strongly through much of the second fiscal quarter. In contrast, emerging markets equities, as measured by the MSCI Emerging Markets Index, did not show positive trends until later in the fiscal quarter. This was most heavily reflected in areas such as India, South Africa, and Brazil. From March 14, when emerging markets generally began their run, through the end of the fiscal quarter, emerging markets equities rose 6.5 percent. The WisdomTree India Earnings Fund (EPI), iShares MSCI South Africa ETF (EZA), and iShares MSCI Brazil Capped ETF (EWZ) rose 8.4 percent, 6.0 percent, and 20.3 percent, respectively during the same timeframe. Further on the international front, the Sub-Adviser has found little opportunity in regard to currency exposures. During the six-month period, the Sub-Adviser had identified a trend in the Australian Dollar and purchased the Currency Shares Australian Dollar Trust (FXA), but this trend ceased and it was closed out for a slight loss to the Fund.
Although January had provided a pause, the Sub-Adviser's discipline of investing in established trends generally benefitted the Fund as the U.S. equity markets generally experienced a strong first half of the fiscal year. The Sub-Adviser plans to continue to seek exposure to the various asset classes through its risk management strategies. The Sub-Advisor is confident that we are approaching an environment that will offer greater trend following opportunities in a growing number of the asset classes that it follows.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2014
| Six Months |
| One Year | Annualized Three Years | Annualized Since Inception (2/13/09) |
Class N | (0.63)% |
| (0.08)% | (4.12)% | 0.85% |
Class C Class A with load of 5.75% Class A without load Dow Jones Credit Suisse Managed Futures Liquid Index | (1.06)% (6.44)% (0.73)% (0.93)% |
| (1.06)% (6.02)% (0.30)% (3.40)% | (5.12)% (6.25)% (4.37)% (3.60)% | (0.84)% * (0.32)% ** 0.85% ** (1.13)% |
Morningstar Managed Futures Category | 0.22% |
| (3.74)% | (6.42)% | (3.31)% |
* Inception date for Class C is May 14, 2009.
** Inception date for Class A is March 25, 2009, performance for Class A includes the operations of the predecessor, Sherwood Forest Alternative Fund (formerly Class P).
Class N and Class C performance includes the operations of the predecessor, Sherwood Forest Alternative Fund (formerly Class I and Class C, respectively).
The Dow Jones Credit Suisse Managed Futures Liquid Index allocates assets among four major asset classes (equities, fixed-income, commodities and currencies) represented by 18 trading vehicles using a methodology that, in part, seeks to replicate a managed futures strategy that historically has produced gains during periods of rising and declining markets. Investors cannot invest directly in an index or benchmark.
The Morningstar Managed Futures Category is generally representative of funds that trade liquid global futures, options, swaps, and foreign exchange contracts, both listed and over-the-counter. A majority of these funds follow trend-following, price-momentum strategies.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 2.19% for Class N, 3.19% for Class C and 2.44% for Class A. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%. 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 Strategy Fund | |||||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
|
EXCHANGE TRADED FUNDS - 69.6 % |
|
|
|
| |
COMMODITY - 12.0 % |
|
|
|
|
|
Market Vectors Agribusiness ETF |
| 17,000 |
| $ 929,390 |
|
PowerShares DB Agriculture Fund * |
| 19,500 |
| 570,765 |
|
PowerShares DB Commodity Index Tracking Fund * |
| 28,400 |
| 750,044 |
|
|
|
|
| 2,250,199 |
|
CONSUMER STAPLES - 5.0 % |
|
|
|
|
|
Consumer Staples Select Sector SPDR Fund |
| 21,400 |
| 946,736 |
|
|
|
|
|
|
|
COUNTRY FUND - 17.1 % |
|
|
|
|
|
iShares MSCI Brazil Capped ETF |
| 19,900 |
| 936,096 |
|
iShares MSCI South Africa ETF |
| 16,700 |
| 1,119,902 |
|
WisdomTree India Earnings Fund |
| 60,700 |
| 1,159,370 |
|
|
|
|
| 3,215,368 |
|
ENERGY - 6.3 % |
|
|
|
|
|
Energy Select Sector SPDR Fund |
| 12,600 |
| 1,181,124 |
|
|
|
|
|
|
|
INDUSTRIALS - 5.0 % |
|
|
|
|
|
Industrial Select Sector SPDR Fund | 17,800 |
| 943,934 |
| |
|
|
|
|
|
|
MATERIALS - 8.0 % |
|
|
|
|
|
Materials Select Sector SPDR Fund |
| 31,650 |
| 1,509,705 |
|
|
|
|
|
|
|
PRECIOUS METALS - 5.0 % |
|
|
|
|
|
SPDR S&P Metals & Mining ETF |
| 22,000 |
| 922,680 |
|
|
|
|
|
|
|
REAL ESTATE - 5.1 % |
|
|
|
|
|
iShares US Real Estate ETF |
| 13,900 |
| 968,552 |
|
|
|
|
|
|
|
REGION FUND - 4.0 % |
|
|
|
|
|
iShares MSCI EMU ETF |
| 17,600 |
| 757,680 |
|
|
|
|
|
|
|
UTILITY - 2.1 % |
|
|
|
|
|
Utilities Select Sector SPDR Fund |
| 9,200 |
| 398,176 |
|
|
|
|
|
|
|
TOTAL EXCHANGE TRADED FUNDS - (Cost - $12,734,154) |
|
|
| 13,094,154 |
|
|
|
|
|
|
|
SHORT-TERM INVESTMENT - 33.8 % |
|
|
|
| |
MONEY MARKET FUND - 33.8 % |
|
|
|
| |
Invesco STIT-Treasury Portfolio - 0.03 % + | 6,366,863 |
| 6,366,863 |
| |
(Cost - $6,366,863) (a) |
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 103.4 % (Cost - $19,101,017) |
|
| $ 19,461,017 |
| |
LIABILITIES LESS OTHER ASSETS - (3.4) % |
|
| (637,027) |
| |
NET ASSETS - 100.0% |
|
|
| $ 18,823,990 |
|
|
|
|
|
|
|
ETF - Exchange Traded Fund |
|
|
|
|
|
* Non income producing security. |
|
|
|
| |
+ Variable rate security. Interest rate is as of April 30, 2014. |
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | |||||
Dunham Alternative Strategy Fund (Continued) | |||||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition - (Unaudited) | |||||
Country Funds |
|
|
| 16.52% |
|
Commodity |
|
|
| 11.56% |
|
Materials |
|
|
| 7.76% |
|
Energy |
|
|
| 6.07% |
|
Consumer Staples |
|
|
| 4.86% |
|
Industrials |
|
|
| 4.85% |
|
Real Estate |
|
|
| 4.98% |
|
Precious Metals |
|
|
| 4.74% |
|
Region Funds |
|
|
| 3.89% |
|
Utility |
|
|
| 2.05% |
|
Short-Term Investment |
|
|
| 32.72% |
|
Total |
|
|
| 100.00% |
|
* Based on total value of investments as of April 30, 2014. |
|
|
|
| |
Percentage may differ from Schedule of Investments which are 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 Bank of America/Merrill Lynch Convertibles ex Mandatory Index (the “Benchmark Index”), increased 8.3 percent in the six–month period ended April 30, 2014. Convertibles were in line with broader equity indexes, such as the S&P 500 Index, which increased 8.4 percent over the six-month period. Convertibles outperformed bonds in general, as the Barclays Aggregate Bond Index rose just 1.8 percent in the same period. The Benchmark index provided strong returns November through February with a return of 10.4 percent, but was followed by two weak months with a decline of 1.9 percent. Issuance of new convertible bonds is still low by historical standards as it is generally cheaper for firms to issue traditional bonds, however the increased issuance during the final months of 2013 caused it to be the biggest year for convertible bond issuance since 2008. Issuance in 2014 is currently just behind last year’s rate. Certain unrated convertible bonds that fulfill the strict criteria set by the Sub-Adviser may be added in the future, as underexposure to below investment grade convertibles has detracted from performance in some recent fiscal quarters.
The Sub-Adviser feels that from a macro standpoint, we are in an environment with a great deal of sector rotation driven somewhat by the speculation on the Federal Open Market Committee ("FOMC"), as well as on the European and Chinese economies. The Sub-Adviser believes that the current bull market for convertible issues is only midway through its cycle and that plenty of growth will happen in the next year or two. According to the Sub-Adviser, U.S. and global growth is projected to be in the 2.5-3 percent range and U.S. inflation is expected to be less than 2.0 percent. Biotech has seen a considerable amount of new issues in the convertible space and is presenting a lot of potential investment opportunities. If the Federal Reserve stimulus is trimmed further or removed, the Sub-Adviser believes that the markets will favor stocks with the characteristics that the Sub-Adviser targets. The Sub-Adviser believes that if interest rates are rising, the FOMC will continue to taper its stimulus, possibly indicating that the economic growth is real and not just supported by the government’s bond buying program. Additionally, the Sub-Advisor perceives this rise in interest rates as a good sign for convertibles because it believes that issuance of convertibles will increase due to the rising rates.
The Fund generally does not follow the Benchmark Index very closely in terms of sector weighting and this is reflected by the significant overweights/underweights within the Fund. The most significant underweight is the information technology sector with a 4.34 percent underweight as compared to the Benchmark Index. Other significant underweights include the materials and health care sectors. The most significant overweight is the industrials sector with a 3.98 percent overweight as compared to the Benchmark Index. Other significant overweights include the consumer staples and consumer discretionary sectors. With only 2.23 percent of the portfolio allocated to bonds rated CCC or below, the fund takes on less potential risk than the Benchmark Index, which has 13.40 percent allocated to these lower credit quality issues. The current yield and duration of the Fund is lower than the benchmark index because of this.
The Fund’s allocation verses the Benchmark Index detracted from performance. As the Fund may take on less potential risk by allocating only 2.23 percent to bond’s rated CCC or below, the Fund’s overweighting to investment-grade bonds detracted from performance as investment grade bonds, as measured by the BofA ML Convertible Bonds All U.S. Investment Grade Index, underperformed the Fund’s Benchmark. Approximately half the assets within the Fund are dedicated to common stock. This portion of the Fund detracted from performance as mid to large cap growth stocks generally underperformed the Index. The Fund’s large allocation to cash was also a large detraction from performance.
More volatility is expected given that still historically low interest rates have been on the rise in recent months. While increasing rates are viewed as a sign of positive economic developments, the Sub-Adviser believes that the increases will also bring instability to the markets in the short term. Although the Sub-Adviser believes that there are pockets of weakness in Europe, it is optimistic that they are “turning the corner.” Emerging markets are also seen as a source of global growth despite headwinds that countries such as Brazil, India, and China are facing. Mexico, Taiwan, South Korea, and the Philippines are seen by the Sub-Adviser as the emerging market economies which will lead in 2014. The Sub-Adviser believes that U.S. equities will continue to do well as corporate balance sheets are healthy and manufacturing is on an upswing. Furthermore, it believes that the bull market is only mid-cycle. With historically strong performance during periods of volatile upward-moving equity markets, convertible securities appear to be an attractive investment in the current market conditions.
Growth of $10,000 Investment – (Unaudited)
Total Returns as of April 30, 2014
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) | |
Class N |
| 4.74% | 14.63% | 5.14% | 13.20% | 6.26% |
Class C Class A with load of 5.75% Class A without load |
| 4.25% (1.30)% 4.68% | 13.41% 7.79% 14.34% | 4.10% 2.86% 4.92% | 12.09% 11.60% 12.93% | 5.22% 4.90%* 5.74%* |
BOFA ML Convertibles. ex Mandatory Index |
| 8.34% | 19.03% | 10.25% | 17.07% | 7.71% |
Morningstar Moderate Allocation Category |
| 4.64% | 10.43% | 7.39% | 12.62% | 5.52% |
*Class A commenced operations on January 3, 2007.
The Bank of America 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.
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.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including the cost of underlying funds, are 1.40% for Class N, 2.40% for Class C and 1.65% for Class A. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%. 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 Appreciation & Income Fund |
|
|
|
| ||||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Shares |
| Value |
COMMON STOCK - 49.2 % |
|
|
|
|
|
|
|
|
AEROSPACE/DEFENSE - 0.8 % |
|
|
|
|
|
|
|
|
Boeing Co. |
|
|
|
|
| 1,465 |
| $ 189,014 |
|
|
|
|
|
|
|
|
|
AGRICULTURE - 0.5 % |
|
|
|
|
|
|
|
|
Philip Morris International, Inc. |
|
|
|
| 1,355 |
| 115,758 | |
|
|
|
|
|
|
|
|
|
APPAREL- 0.8 % |
|
|
|
|
|
|
|
|
Nike, Inc. |
|
|
|
|
| 2,600 |
| 189,670 |
|
|
|
|
|
|
|
|
|
BANKS - 7.9 % |
|
|
|
|
|
|
|
|
Citigroup, Inc. |
|
|
|
|
| 7,550 |
| 361,721 |
First Republic Bank |
|
|
|
|
| 3,550 |
| 180,198 |
The Goldman Sachs Group, Inc. |
|
|
|
| 870 |
| 139,043 | |
JPMorgan Chase & Co. |
|
|
|
|
| 9,550 |
| 534,609 |
State Street Corp. |
|
|
|
|
| 3,900 |
| 251,784 |
Wells Fargo & Co. |
|
|
|
|
| 10,400 |
| 516,256 |
|
|
|
|
|
|
|
| 1,983,611 |
BEVERAGES - 2.0 % |
|
|
|
|
|
|
|
|
The Coca-Cola Co. |
|
|
|
|
| 12,537 |
| 511,384 |
|
|
|
|
|
|
|
|
|
BIOTECHNOLOGY - 0.8 % |
|
|
|
|
|
|
|
|
Celgene Corp. * |
|
|
|
|
| 1,450 |
| 213,165 |
|
|
|
|
|
|
|
|
|
COMMERCIAL SERVICES - 1.8 % |
|
|
|
|
|
|
| |
Mastercard, Inc.- Class A |
|
|
|
|
| 6,000 |
| 441,300 |
|
|
|
|
|
|
|
|
|
COMPUTERS - 5.0 % |
|
|
|
|
|
|
|
|
Accenture PLC - Class A |
|
|
|
|
| 3,120 |
| 250,286 |
Apple, Inc. |
|
|
|
|
| 1,700 |
| 1,003,153 |
|
|
|
|
|
|
|
| 1,253,439 |
DIVERSIFIED FINANCIAL SERVICES - 1.9 % |
|
|
|
|
|
|
| |
Franklin Resources, Inc. |
|
|
|
|
| 6,550 |
| 342,893 |
T Rowe Price Group, Inc. |
|
|
|
|
| 1,500 |
| 123,195 |
|
|
|
|
|
|
|
| 466,088 |
FOOD - 0.8 % |
|
|
|
|
|
|
|
|
Mondelez International, Inc. - Class A |
|
|
|
| 5,700 |
| 203,205 | |
|
|
|
|
|
|
|
|
|
HEALTHCARE PRODUCTS - 0.5 % |
|
|
|
|
|
|
| |
Zimmer Holdings, Inc. |
|
|
|
|
| 1,250 |
| 121,000 |
|
|
|
|
|
|
|
|
|
HOME BUILDERS - 0.7 % |
|
|
|
|
|
|
|
|
D R Horton, Inc. |
|
|
|
|
| 7,850 |
| 174,898 |
|
|
|
|
|
|
|
|
|
INSURANCE -1.2 % |
|
|
|
|
|
|
|
|
American International Group, Inc. |
|
|
|
| 3,500 |
| 185,955 | |
Gallagher (Arthur J.) & Co. |
|
|
|
|
| 2,700 |
| 121,554 |
|
|
|
|
|
|
|
| 307,509 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||
Dunham Appreciation & Income Fund (Continued) |
|
|
|
| ||||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Shares |
| Value |
INTERNET - 3.4 % |
|
|
|
|
|
|
|
|
Amazon.com, Inc. * |
|
|
|
|
| 960 |
| $ 291,965 |
eBay, Inc. * |
|
|
|
|
| 8,000 |
| 414,640 |
Facebook, Inc. * |
|
|
|
|
| 2,800 |
| 167,384 |
|
|
|
|
|
|
|
| 873,989 |
MACHINERY DIVERSIFIED- 0.5 % |
|
|
|
|
|
|
| |
Cummins, Inc. |
|
|
|
|
| 860 |
| 129,731 |
|
|
|
|
|
|
|
|
|
MISCELLANEOUS MANUFACTURING - 2.9 % |
|
|
|
|
|
|
| |
Dover Corp. |
|
|
|
|
| 2,890 |
| 249,696 |
Eaton Corp. PLC |
|
|
|
|
| 6,500 |
| 472,160 |
|
|
|
|
|
|
|
| 721,856 |
OIL & GAS - 3.5 % |
|
|
|
|
|
|
|
|
Anadarko Petroleum Corp. |
|
|
|
|
| 1,300 |
| 128,726 |
Antero Resources Corp. * |
|
|
|
|
| 183 |
| 12,018 |
Continental Resources, Inc. |
|
|
|
|
| 1,150 |
| 159,298 |
EOG Resources, Inc. |
|
|
|
|
| 2,080 |
| 203,840 |
Occidental Petroleum Corp. |
|
|
|
|
| 3,900 |
| 373,425 |
|
|
|
|
|
|
|
| 877,307 |
OIL & GAS SERVICES - 2.6 % |
|
|
|
|
|
|
| |
National Oilwell Varco, Inc. |
|
|
|
|
| 3,000 |
| 235,590 |
Schlumberger Ltd. |
|
|
|
|
| 4,130 |
| 419,402 |
|
|
|
|
|
|
|
| 654,992 |
PHARMACEUTICALS - 3.1 % |
|
|
|
|
|
|
| |
Johnson & Johnson |
|
|
|
|
| 6,200 |
| 627,998 |
Merck & Co., Inc. |
|
|
|
|
| 2,600 |
| 152,256 |
|
|
|
|
|
|
|
| 780,254 |
RETAIL - 3.1 % |
|
|
|
|
|
|
|
|
Costco Wholesale Corp. |
|
|
|
|
| 1,500 |
| 173,520 |
The Home Depot, Inc. |
|
|
|
|
| 3,600 |
| 286,236 |
PVH Corp. |
|
|
|
|
| 950 |
| 119,292 |
Walgreen Co. |
|
|
|
|
| 3,100 |
| 210,490 |
|
|
|
|
|
|
|
| 789,538 |
SEMICONDUCTORS - 1.2 % |
|
|
|
|
|
|
|
|
QUALCOMM, Inc. |
|
|
|
|
| 3,950 |
| 310,905 |
|
|
|
|
|
|
|
|
|
SOFTWARE - 2.6 % |
|
|
|
|
|
|
|
|
Microsoft Corp. |
|
|
|
|
| 6,200 |
| 250,480 |
Oracle Corp. |
|
|
|
|
| 7,000 |
| 286,160 |
Vmware, Inc.* |
|
|
|
|
| 1,250 |
| 115,638 |
|
|
|
|
|
|
|
| 652,278 |
TRANSPORTATION - 1.6 % |
|
|
|
|
|
|
|
|
Union Pacific Corp. |
|
|
|
|
| 1,500 |
| 285,642 |
United Parcel Service, Inc. |
|
|
|
|
| 1,260 |
| 124,110 |
|
|
|
|
|
|
|
| 409,752 |
|
|
|
|
|
|
|
|
|
TOTAL COMMON STOCK (Cost - $10,084,693) |
|
|
|
|
|
| 12,370,643 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||
Dunham Appreciation & Income Fund (Continued) |
|
|
|
| ||||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
CONVERTIBLE BONDS - 36.6 % |
|
|
|
|
|
|
| |
APPAREL - 1.6 % |
|
|
|
|
|
|
|
|
Iconix Brand Group, Inc. |
| $ 280,000 |
| 1.5000% |
| 3/15/2018 |
| $ 406,700 |
|
|
|
|
|
|
|
|
|
AUTO MANUFACTURING - 0.2 % |
|
|
|
|
|
|
| |
Tesla Motors, Inc. |
| 20,000 |
| 0.2500 |
| 3/1/2019 |
| 18,625 |
Tesla Motors, Inc. |
| 45,000 |
| 1.2500 |
| 3/1/2021 |
| 41,091 |
|
|
|
|
|
|
|
| 59,716 |
BIOTECHNOLOGY - 6.0 % |
|
|
|
|
|
|
|
|
BioMarin Pharmaceutical, Inc. | 75,000 |
| 0.7500 |
| 10/15/2018 |
| 77,203 | |
BioMarin Pharmaceutical, Inc. | 68,000 |
| 1.5000 |
| 10/15/2020 |
| 70,380 | |
Cubist Pharmaceuticals, Inc. - 144A | 150,000 |
| 1.1250 |
| 9/1/2018 |
| 171,281 | |
Cubist Pharmaceuticals, Inc. - 144A | 75,000 |
| 1.8750 |
| 9/1/2020 |
| 86,859 | |
Gilead Sciences, Inc. |
| 90,000 |
| 1.6250 |
| 5/1/2016 |
| 310,725 |
Illumina, Inc. - 144A |
| 375,000 |
| 0.2500 |
| 3/15/2016 |
| 637,736 |
The Medicines Co. |
| 137,000 |
| 1.3750 |
| 6/1/2017 |
| 162,345 |
|
|
|
|
|
|
|
| 1,516,529 |
BUILDING MATERIALS - 0.6 % |
|
|
|
|
|
|
| |
Cemex SAB de CV |
| 100,000 |
| 3.2500 |
| 42444 |
| 141,563 |
|
|
|
|
|
|
|
|
|
COMPUTERS - 2.2 % |
|
|
|
|
|
|
|
|
SanDisk Corp. - 144A |
| 485,000 |
| 0.5000 |
| 10/15/2020 |
| 552,294 |
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 1.6 % |
|
|
|
|
|
|
| |
Air Lease Corp. |
| 90,000 |
| 3.8750 |
| 12/1/2018 |
| 130,781 |
FXCM, Inc. - 144A |
| 65,000 |
| 2.2500 |
| 6/15/2018 |
| 69,022 |
Portfolio Recovery Associates, Inc. - 144A | 66,000 |
| 3.0000 |
| 8/1/2020 |
| 77,798 | |
Walter Investment Management Corp. | 125,000 |
| 4.5000 |
| 11/1/2019 |
| 116,562 | |
|
|
|
|
|
|
|
| 394,163 |
HEALTHCARE-PRODUCTS - 1.6 % |
|
|
|
|
|
|
| |
Cepheid, Inc. - 144A |
| 115,000 |
| 1.2500 |
| 2/1/2021 |
| 116,222 |
Hologic, Inc. |
| 110,000 |
| 2.0000+ |
| 12/15/2037 |
| 124,094 |
Insulet Corp. |
| 110,000 |
| 3.7500 |
| 6/15/2016 |
| 159,775 |
|
|
|
|
|
|
|
| 400,091 |
HEALTHCARE-SERVICES - 2.0 % |
|
|
|
|
|
|
| |
Molina Healthcare, Inc. |
| 180,000 |
| 1.1250 |
| 1/15/2020 |
| 204,188 |
WellPoint, Inc. |
| 200,000 |
| 2.7500 |
| 10/15/2042 |
| 293,500 |
|
|
|
|
|
|
|
| 497,688 |
HOME BUILDERS - 0.4 % |
|
|
|
|
|
|
|
|
The Ryland Group, Inc. |
| 80,000 |
| 1.6250 |
| 5/15/2018 |
| 110,600 |
|
|
|
|
|
|
|
|
|
HOUSEHOLD PRODUCTS/WARES - 0.8 % |
|
|
|
|
|
|
| |
Jarden Corp. - 144A |
| 190,000 |
| 1.1250 |
| 3/15/2034 |
| 190,119 |
|
|
|
|
|
|
|
|
|
INSURANCE - 0.5 % |
|
|
|
|
|
|
|
|
MGIC Investment Corp. |
| 55,000 |
| 5.0000 |
| 5/1/2017 |
| 63,731 |
MGIC Investment Corp. |
| 45,000 |
| 2.0000 |
| 4/1/2020 |
| 64,406 |
|
|
|
|
|
|
|
| 128,137 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||
Dunham Appreciation & Income Fund (Continued) |
|
|
|
| ||||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
INTERNET - 2.1 % |
|
|
|
|
|
|
|
|
HomeAway, Inc. - 144A |
| $ 60,000 |
| 0.1250% |
| 4/1/2019 |
| $ 57,863 |
Priceline.com, Inc. |
| 330,000 |
| 1.0000 |
| 3/15/2018 |
| 463,031 |
|
|
|
|
|
|
|
| 520,894 |
INVESTMENT COMPANIES - 1.3 % |
|
|
|
|
|
|
| |
Ares Capital Corp. |
| 310,000 |
| 5.7500 |
| 2/1/2016 |
| 337,125 |
|
|
|
|
|
|
|
|
|
IRON/STEEL - 0.4 % |
|
|
|
|
|
|
|
|
Steel Dynamics, Inc. |
| 100,000 |
| 5.1250 |
| 6/15/2014 |
| 108,563 |
|
|
|
|
|
|
|
|
|
LODGING - 1.7 % |
|
|
|
|
|
|
|
|
MGM Resorts International |
| 300,000 |
| 4.2500 |
| 4/15/2015 |
| 428,813 |
|
|
|
|
|
|
|
|
|
MEDIA - 1.6 % |
|
|
|
|
|
|
|
|
Liberty Interactive LLC |
| 250,000 |
| 0.7500 |
| 3/30/2043 |
| 323,108 |
Liberty Media Corp. - 144A |
| 88,000 |
| 1.3750 |
| 10/15/2023 |
| 85,140 |
|
|
|
|
|
|
|
| 408,248 |
METAL FABRICATE/HARDWARE - 0.5 % |
|
|
|
|
|
|
| |
RTI International Metals, Inc. |
| 125,000 |
| 1.6250 |
| 10/15/2019 |
| 126,328 |
|
|
|
|
|
|
|
|
|
MISCELLANEOUS MANUFACTURING - 1.3 % |
|
|
|
|
|
|
| |
Trinity Industries, Inc. |
| 200,000 |
| 3.8750 |
| 6/1/2036 |
| 334,500 |
|
|
|
|
|
|
|
|
|
OIL & GAS SERVICES - 0.9 % |
|
|
|
|
|
|
| |
Helix Energy Solutions Group, Inc. | 175,000 |
| 3.2500 |
| 3/15/2032 |
| 225,313 | |
|
|
|
|
|
|
|
|
|
PHARMACEUTICALS - 2.3 % |
|
|
|
|
|
|
| |
Salix Pharmaceuticals Ltd. |
| 325,000 |
| 1.5000 |
| 3/15/2019 |
| 578,094 |
|
|
|
|
|
|
|
|
|
SOFTWARE - 6.5 % |
|
|
|
|
|
|
|
|
Concur Technologies, Inc. - 144A | 140,000 |
| 0.5000 |
| 6/15/2018 |
| 150,238 | |
Cornerstone OnDemand, Inc. - 144A | 60,000 |
| 1.5000 |
| 7/1/2018 |
| 62,363 | |
Electronic Arts, Inc. |
| 371,000 |
| 0.7500 |
| 7/15/2016 |
| 423,868 |
Medidata Solutions, Inc. - 144A | 130,000 |
| 1.0000 |
| 8/1/2018 |
| 132,681 | |
NetSuite, Inc. - 144A |
| 91,000 |
| 0.2500 |
| 6/1/2018 |
| 93,787 |
Proofpoint, Inc. -144A |
| 45,000 |
| 1.2500 |
| 12/15/2018 |
| 45,281 |
Salesforce.com, Inc. |
| 125,000 |
| 0.2500 |
| 4/1/2018 |
| 137,813 |
ServiceNow, Inc. - 144A |
| 225,000 |
| 0.0000 |
| 11/1/2018 |
| 226,406 |
Take-Two Interactive Software, Inc. | 155,000 |
| 1.7500 |
| 12/1/2016 |
| 195,106 | |
Workday, Inc. - Class A - 144A |
| 90,000 |
| 0.7500 |
| 7/15/2018 |
| 104,003 |
Workday, Inc. - Class A - 144A |
| 30,000 |
| 1.5000 |
| 7/15/2020 |
| 35,307 |
|
|
|
|
|
|
|
| 1,606,853 |
TELECOMMUNICATIONS - 0.5 % |
|
|
|
|
|
|
| |
Finisar - 144A |
| 60,000 |
| 0.5000 |
| 6/1/2018 |
| 68,812 |
Infinera Corp. - 144A |
| 50,000 |
| 3.0000 |
| 12/15/2015 |
| 52,840 |
|
|
|
|
|
|
|
| 121,652 |
|
|
|
|
|
|
|
|
|
TOTAL CONVERTIBLE BONDS (Cost - $7,869,735) |
|
|
|
|
|
| 9,193,983 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||
Dunham Appreciation & Income Fund (Continued) |
|
|
|
| ||||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividend |
|
|
Security |
|
|
| Shares |
| Rate |
| Value |
PREFERRED STOCK - 9.5% |
|
|
|
|
|
|
|
|
AEROSPACE/DEFENSE - 2.8 % |
|
|
|
|
|
|
| |
United Technologies Corp. |
|
|
| 10,825 |
| 7.5000% |
| $ 715,966 |
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 1.4 % |
|
|
|
|
|
|
| |
AMG Capital Trust II |
|
|
| 5,500 |
| 5.1500 |
| 348,906 |
|
|
|
|
|
|
|
|
|
ELECTRIC - 1.0 % |
|
|
|
|
|
|
|
|
NextEra Energy, Inc. |
|
|
| 4,100 |
| 5.8890 |
| 261,949 |
|
|
|
|
|
|
|
|
|
INSURANCE - 1.5 % |
|
|
|
|
|
|
|
|
MetLife, Inc. |
|
|
| 12,500 |
| 5.0000 |
| 380,625 |
|
|
|
|
|
|
|
|
|
OIL & GAS - 1.3 % |
|
|
|
|
|
|
|
|
Chesapeake Energy Corp. - 144A |
|
| 135 |
| 5.7500 |
| 162,000 | |
Chesapeake Energy Corp. - 144A |
|
| 140 |
| 5.7500 |
| 165,725 | |
|
|
|
|
|
|
|
| 327,725 |
TELECOMMUNICATIONS - 0.5 % |
|
|
|
|
|
|
| |
Crown Castle International Corp. |
|
| 1,200 |
| 4.5000 |
| 119,808 | |
|
|
|
|
|
|
|
|
|
TRANSPORTATION - 1.0 % |
|
|
|
|
|
|
|
|
Genesee & Wyoming, Inc. |
|
|
| 1,900 |
| 5.0000 |
| 240,825 |
|
|
|
|
|
|
|
|
|
TOTAL PREFERRED STOCK (Cost - $1,928,435) |
|
|
|
|
| 2,395,804 | ||
|
|
|
|
|
|
|
|
|
SHORT-TERM INVESTMENT - 6.6 % |
|
|
|
| Interest |
|
| |
MONEY MARKET FUND - 6.6 % |
|
|
|
| Rate |
|
| |
Fidelity Institutional Money Market Fund - Prime Money Market Portfolio |
| 1,652,675 |
| 0.01%+ |
| 1,652,675 | ||
TOTAL SHORT-TERM INVESTMENT (Cost - $1,652,675) |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 101.9 % (Cost - $21,535,538) |
|
|
|
|
| $ 25,613,105 | ||
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.9) % |
|
|
|
|
| (472,896) | ||
TOTAL NET ASSETS - 100.0 % |
|
|
|
|
| $ 25,140,209 | ||
|
|
|
|
|
|
|
|
|
* Non-income producing security. |
|
|
|
|
|
|
| |
+ Variable rate security. Interest rate is as of April 30, 2014. |
|
|
|
|
|
|
| |
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) |
| |||
Convertible Bonds |
|
| 35.90% |
|
Common Stock |
|
| 48.30% |
|
Preferred Stock |
|
| 9.35% |
|
Short-Term Investment |
|
| 6.45% |
|
Total |
|
| 100.00% |
|
* Based on total value of investments as of April 30, 2014. |
|
|
|
|
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, increased during the six-month period that ended April 30, 2014, rising 9.6 percent. Despite the month of January, which declined 3.6 percent, large cap value stocks consistently increased over the six-month period with an average gain of 2.6 percent per month. Additionally, energy stocks as measured by the Russell 1000 Technology Value Index, enjoyed quite a strong six-month period with a return of 13.8 percent.
The last three months were mixed for the Fund. The Sub-Adviser believes that the market is beginning to see a shift toward fundamentals becoming more important to investors however, the volatility due to shifting interest rates has hurt the Fund at times. The Sub-Adviser sees a significant opportunity in the mega-capitalization stocks because they have generally lagged smaller large-cap companies as a whole over the past six month period.
A sector which enhanced performance was the energy sector. In the energy sector, there were three companies which had gains in excess of 10 percent for the six-month period. Halliburton Co (Ticker: HAL), a provider of services and products to the energy industry related to the exploration, development, and production of natural gas and oil, showed strength in six-month period gaining 19.6 percent. Another strong performer in the energy sector was Hess Corp (Ticker: HES), a global integrated energy company that operates in two segments: Exploration and Production, and Marketing and Refining, saw a 10.5 percent gain over the six-month period. The strongest performer of the sector the most recent fiscal period was Dover Corp (Ticker: DOV), which manufactures a range of specialized products and components and also offers related services and consumables. The company gained 14.5 percent over the six-month period.
The healthcare sector was one of the strongest performers for the first three months of the six-month fiscal period; however, it was the worst performing sector the closing three months. Even though the healthcare sector detracted from performance the closing three-months of the six-month fiscal period, certain positions enhanced the Fund performance over that time. Express Scripts Holding Co (Ticker: ESRX), a provider of healthcare management and administration services on behalf of its clients, was the single worst performer in the healthcare sector the last three months ended April 30, 2014 but provided a return of 6.5 percent. Agilent Technologies Inc, a company providing bio-analytical and electronic measurement solutions, also detracted somewhat from overall performance in the closing three months of the fiscal period but contributed a 7.0 percent return over the six-month period. One of the most significant positive contributors to the Fund was Actavis PLC (ACT), a global, integrated specialty pharmaceutical company focused on developing, manufacturing, and distributing generic, brand, and biosimiliar products. Actavis PLC gained 32.2 percent over the six-month period on the heels of its acquisition of Warner Chilcott PLC.
The Sub-Adviser generally tends to look at the entire year instead of on a quarter-by-quarter basis and the investment of the portfolio is generally managed on a long-term time frame. The Sub-Adviser believes that the market is fairly valued but sees volatility in the future as a result of rising long-term rates. In a more volatile investment environment, large cap companies are expected to generally do better than smaller companies because of their ability to utilize large amounts of cash.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2014
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) |
Class N | 8.20% | 20.82% | 11.17% | 17.18% | 6.25% |
Class C Class A with load of 5.75% Class A without load | 7.65% 1.77% 8.00% | 19.54% 13.56% 20.45% | 10.04% 8.72% 10.89% | 16.03% 15.53% 16.92% | 5.20% 3.48%* 4.32%* |
Russell 1000 Value Index | 11.83% | 19.05% | 12.01% | 17.62% | 6.21% |
Morningstar Large Cap Value Category | 15.19% | 18.01% | 10.93% | 3.74% | 4.77% |
*Class A commenced operations on January 3, 2007.
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.
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.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.00% for Class N, 2.00% for Class C and 1.25% for Class A. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%. 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, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
|
| Shares |
| Value |
COMMON STOCK - 97.1 % |
|
|
|
|
|
|
|
|
|
|
|
AEROSPACE/DEFENSE - 2.4 % |
|
|
|
|
| MISCELLANEOUS MANUFACTURING - 6.7 % |
|
|
|
| |
United Technologies Corp. |
| 10,116 |
| $ 1,197,026 |
| Dover Corp. |
|
| 15,300 |
| $ 1,321,920 |
|
|
|
|
|
| General Electric Co. |
|
| 76,427 |
| 2,055,122 |
AGRICULTURE - 1.3 % |
|
|
|
|
|
|
|
|
|
| 3,377,042 |
Philip Morris International, Inc. |
| 7,995 |
| 683,013 |
| OIL & GAS - 12.1 % |
|
|
|
|
|
|
|
|
|
|
| Apache Corp. |
|
| 10,232 |
| 888,138 |
AUTO PARTS & EQUIPMENT - 2.1 % |
|
|
|
| Chevron Corp. |
|
| 13,500 |
| 1,694,520 | |
BorgWarner, Inc. |
| 16,900 |
| 1,050,166 |
| ConocoPhillips |
|
| 12,396 |
| 921,147 |
|
|
|
|
|
| Hess Corp. |
|
| 16,700 |
| 1,488,972 |
BANKS - 12.8 % |
|
|
|
|
| Occidental Petroleum Corp. |
|
| 11,600 |
| 1,110,700 |
Bank of New York Mellon Corp. |
| 26,100 |
| 884,007 |
|
|
|
|
|
| 6,103,477 |
Goldman Sachs Group, Inc. |
| 5,300 |
| 847,046 |
| OIL & GAS SERVICES - 2.4 % |
|
|
|
|
|
JPMorgan Chase & Co. |
| 33,102 |
| 1,853,050 |
| Halliburton Co. |
|
| 19,300 |
| 1,217,251 |
US Bancorp |
| 19,507 |
| 795,495 |
|
|
|
|
|
|
|
Wells Fargo & Co. |
| 42,500 |
| 2,109,700 |
| PHARMACEUTICALS - 8.7 % |
|
|
|
|
|
|
|
|
| 6,489,298 |
| Abbott Laboratories |
|
| 22,800 |
| 805,792 |
COMPUTERS - 5.7 % |
|
|
|
|
| Actavis PLC * |
|
| 5,380 |
| 1,099,295 |
Apple, Inc. |
| 2,400 |
| 1,416,216 |
| AmerisourceBergen Corp. |
|
| 24,700 |
| 1,609,946 |
EMC Corp. |
| 28,200 |
| 727,560 |
| Express Scripts Holding Co. * |
|
| 13,100 |
| 872,198 |
SanDisk Corp. |
| 8,700 |
| 739,239 |
|
|
|
|
|
| 4,387,231 |
|
|
|
| 2,883,015 |
| RETAIL - 3.8 % |
|
|
|
|
|
COSMETICS / PERSONAL CARE - 1.6 % |
|
|
|
| Kohl's Corp. |
|
| 10,000 |
| 547,900 | |
Procter & Gamble Co. |
| 9,900 |
| 817,245 |
| Wal-Mart Stores, Inc. |
|
| 17,000 |
| 1,355,070 |
|
|
|
|
|
|
|
|
|
|
| 1,902,970 |
DIVERSIFIED FINANCIAL SERVICES - 4.2 % |
|
|
|
| SEMICONDUCTORS - 2.4 % |
|
|
|
|
| |
American Express Co. |
| 8,100 |
| 708,183 |
| Intel Corp. |
|
| 44,528 |
| 1,188,452 |
Discover Financial Services |
| 25,600 |
| 1,431,040 |
|
|
|
|
|
|
|
|
|
|
| 2,139,223 |
| SOFTWARE - 3.5 % |
|
|
|
|
|
ELECTRIC - 4.4 % |
|
|
|
|
| Microsoft Corp. |
|
| 23,100 |
| 933,240 |
NextEra Energy, Inc. |
| 12,636 |
| 1,261,705 |
| Oracle Corp. |
|
| 20,700 |
| 846,216 |
Public Service Enterprise Group, Inc. | 23,000 |
| 942,310 |
|
|
|
|
|
| 1,779,456 | |
|
|
|
| 2,204,015 |
| TELECOMMUNICATIONS - 3.3 % |
|
|
|
|
|
ELECTRONICS - 4.0 % |
|
|
|
|
| AT&T, Inc. |
|
| 25,045 |
| 894,107 |
Agilent Technologies, Inc. |
| 14,600 |
| 788,984 |
| Cisco Systems, Inc. |
|
| 32,900 |
| 760,319 |
Honeywell International, Inc. |
| 13,172 |
| 1,223,679 |
|
|
|
|
|
| 1,654,426 |
|
|
|
| 2,012,663 |
|
|
|
|
|
|
|
HEALTHCARE - PRODUCTS - 2.3 % |
|
|
|
| TOTAL COMMON STOCK (Cost - $29,731,672) |
|
|
|
| 49,100,835 | |
Baxter International, Inc. |
| 16,300 |
| 1,186,477 |
|
|
|
|
|
|
|
|
|
|
|
|
| SHORT-TERM INVESTMENT - 2.9 % |
|
|
|
|
|
HEALTHCARE - SERVICES - 1.4 % |
|
|
|
| MONEY MARKET FUND - 2.9 % |
|
|
|
|
| |
Mednax, Inc. * |
| 12,000 |
| 711,000 |
| AIM Short Term Investment Trust Prime Portfolio, Institutional Class 0.01% + | 1,483,647 |
| 1,483,647 | ||
|
|
|
|
|
| (Cost - $1,483,647) |
|
|
|
|
|
INSURANCE - 3.9 % |
|
|
|
|
|
|
|
|
|
|
|
Allstate Corp. |
| 16,332 |
| 930,107 |
| TOTAL INVESTMENTS - 100.0 % (Cost - $31,215,319) |
|
|
| $ 50,584,482 | |
American International Group, Inc. | 20,900 |
| 1,110,417 |
| OTHER ASSETS LESS LIABILITIES - 0.0 % |
|
|
|
| 6,645 | |
|
|
|
| 2,040,524 |
| NET ASSETS - 100.0% |
|
|
|
| $ 50,591,127 |
MACHINERY - DIVERSIFIED - 1.8 % |
|
|
|
|
|
|
|
|
|
| |
Deere & Co. |
| 9,700 |
| 905,398 |
| + Variable rate security - interest rate is as April 30, 2014. |
|
| |||
|
|
|
|
|
| * Non Income producing security. |
|
|
|
|
|
MEDIA - 4.4 % |
|
|
|
|
|
| |||||
CBS Corp. - Class B |
| 15,900 |
| 918,384 |
| ||||||
Time Warner Cable, Inc. |
| 9,100 |
| 1,287,286 |
|
|
|
|
|
|
|
|
|
|
| 2,205,670 |
|
|
|
|
|
|
|
MINING - 1.9 % |
|
|
|
|
|
|
|
|
|
|
|
Freeport-McMoRan Copper & Gold, Inc. | 28,100 |
| 965,797 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
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Portfolio Composition * - (Unaudited) | ||||||
Financial |
| 21.09% |
| Communications | 7.63% |
|
Consumer, Non-Cyclical |
| 15.39% |
| Consumer, Cyclical | 5.84% |
|
Industrial |
| 14.81% |
| Utilities | 4.36% |
|
Energy |
| 14.47% |
| Basic Materials | 1.91% |
|
Technology |
| 11.57% |
| Short-Term Investment | 2.93% |
|
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|
|
| Total | 100.00% |
|
* Based on total value of investments as of April 30, 2014. |
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| ||
Percentage may differ from Schedule of Investments which are based on Fund net assets. |
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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 U.S. Select Dividend Index (the “Benchmark Index”), gained 9.1 percent in the six-month period ended April 30, 2014, with the bulk of that return coming in the final three-months of that period. The utility heavy index beat out more well-known benchmarks, such as the S&P 500 Index by a small margin. Some of the top performing sectors in the Fund were utilities and technology while exposure to master limited partnerships and mining stocks detracted somewhat.
To achieve the dividend yield the Fund seeks, the Sub-Adviser invests approximately 46 percent in oil and gas pipeline partnerships, pipeline management firms, and energy management firms. Another 17 percent is invested in telecommunications stocks, 12 percent in technology, 6 percent in utilities, 6 percent in mining stocks, 6 percent in tobacco, 4 percent in REITs, and 3 percent in cash. Approximately 17 percent of the Fund is invested in high dividend paying international stocks, comprised mostly of telecommunication and utilities stocks included in the sector allocations mentioned above. The two sectors that detracted most from the performance, especially during the first few months of the fiscal year, were REITs and the oil and gas sector. The Sub-Adviser eliminated exposure to bonds late in the fiscal quarter to seek better opportunities as interest rates stabilized.
Exposure to the utilities sector enhanced performance as utilities stocks held by the Fund outperformed the overall benchmark index. Exelon Corporation (EXC), a diversified utility services company, returned more than 25 percent in the six-month period ended April 30, 2014. The firm, which has a large nuclear power unit, had been beaten down for an extended period after a Japanese nuclear disaster in 2012. The Fund held a moderate 2 percent position in the stock believing it to be undervalued relative to its earnings. The nuclear accident had no real effect on earnings other than the fact that expansion of nuclear facilities had become unlikely.
Investments in master limited partnerships detracted slightly from performance after outperforming for several quarters; however, the sector rebounded nicely in April as oil prices moved higher. One holding that did well over the period was Buckeye Partners L.P. (BPL), an owner and operator of oil and gas pipelines. The firm increased by 16.8 percent in the six-month period ended April 30, 2014. The outperformance was mainly credited to recent capital investments in growth projects and a positive impact from the acquisition of several Hess Corporation (HES) assets.
Mining stocks underperformed during most of the six month period despite relative stability in metals prices. The Fund maintained a relatively small weighting to the sector which helped to cushion some of the blow. Mesabi Trust (MSB), a company that mines and produces iron ore pellets, declined by more than 9 percent in the six-month period ended April 30, 2014. The Sub-Adviser still sees value in the firm due to its high profit margins and virtually non-existent debt. Further, the company appears to be liquid enough to avoid any short-term cash problems.
Stocks in the technology sector added to performance on a relative and absolute basis as energy stocks within the Fund outperformed those within the benchmark as well as the overall index. A relatively large weighting to the sector also aided performance. Big positions in Microchip Technology, Inc. (MCHP) and Intel Corporation (INTC) were mainly responsible for the outperformance. These semi-conductor firms achieved returns of 12.5 percent and 11.2 percent, respectively, over the six-month period ended April 30, 2014.
Going forward, the Sub-Adviser believes interest rates will continue to moderate as the Federal Reserve continues its current accommodating stance. Additionally, the Sub-Adviser believes that the U.S. economy should continue to grow moderately as confidence continues to build and inflation remains muted. The Sub-Adviser sees many opportunities in the stock market, particularly for the high dividend paying securities that it specializes in. Natural gas firms look particularly attractive as supplies are currently down by 1 trillion cubic feet from normal inventories at this time of year, due to the unusually cold winter. A hot summer could inhibit the rebuilding of inventories as people use more energy to air condition their homes.
Growth of $10,000 Investment – (Unaudited)
Total Returns as of April 30, 2014
| Six Months | One Year | Since Inception (9/14/12) |
Class N | 4.75% | 11.44% | 11.35% |
Class C Class A with load of 5.75% Class A without load | 4.17% (1.50)% 4.55% | 10.32% 4.71% 11.10% | 10.26% 7.10% 11.08% |
Dow Jones US Select Dividend Index | 13.77% | 18.47% | 22.85% |
Morningstar Aggressive Allocation Category | 10.15% | 13.18% | 13.51% |
The Dow Jones US Select Dividend Index is a dividend weighted index intended to represent the 100 stocks in the Dow Jones US Total Market Index that have the highest indicated annual dividend yield. Investors cannot invest directly in an index or benchmark.
The Morningstar Aggressive Allocation 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.
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. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%.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 Alternative Income Fund |
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April 30, 2014 |
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Security |
| Shares |
| Value |
| Security |
|
| Shares |
| Value |
COMMON STOCK - 99.8 % |
|
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|
|
|
|
|
|
| ||
AGRICULTURE - 5.5 % |
|
|
| PIPELINES - 24.6 % (Continued) |
|
|
|
| |||
Altria Group, Inc. |
| 1,900 |
| $ 76,209 |
| Williams Partners LP |
|
| 500 |
| $ 25,790 |
Lorillard, Inc. |
| 1,200 |
| 71,304 |
|
|
|
|
| 1,315,030 | |
Philip Morris International, Inc. | 600 |
| 51,258 |
| REITS - 2.3 % |
|
|
|
| ||
Reynolds American, Inc. |
| 1,700 |
| 95,931 |
| Highwoods Properties, Inc. |
| 1,000 |
| 40,350 | |
|
|
| 294,702 |
| Lexington Realty Trust |
|
| 2,000 |
| 21,520 | |
BANKS - 0.8 % |
|
|
|
|
| Mack-Cali Realty Corp. |
|
| 1,000 |
| 20,370 |
Deutsche Bank AG |
| 1,000 |
| 44,030 |
| Universal Health Realty Income Trust |
| 1,000 |
| 42,430 | |
|
|
|
|
|
|
|
|
|
|
| 124,670 |
CHEMICALS - 2.0 % |
|
|
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|
| SEMICONDUCTORS - 9.4 % |
|
|
|
| |
Dow Jones Chemical Co. |
| 2,000 |
| 99,800 |
| Intel Corp. |
|
| 10,000 |
| 266,900 |
|
|
|
|
|
| Microchip Technology, Inc. |
| 5,000 |
| 237,700 | |
COMMERCIAL SERVICES - 3.2 % |
|
|
|
|
|
|
|
|
| 504,600 | |
Macquarie Infrastructure Co. LLC | 3,000 |
| 172,560 |
| TELECOMMUNICATIONS - 18.5 % |
|
|
|
| ||
|
|
|
|
|
| AT&T, Inc. |
|
| 3,000 |
| 107,100 |
ELECTRIC - 6.5 % |
|
|
|
| CenturyLink ,Inc. |
|
| 2,200 |
| 76,802 | |
Dominion Resources, Inc. |
| 1,000 |
| 72,540 |
| Cisco Systems, Inc. |
|
| 5,000 |
| 115,550 |
Exelon Corp. |
| 3,000 |
| 105,090 |
| Deutsche Telekom AG - ADR |
| 15,000 |
| 251,250 | |
MDU Resources Group, Inc. |
| 2,000 |
| 70,840 |
| Frontier Communications Corp. |
| 15,000 |
| 89,250 | |
NextEra Energy Inc. |
| 1,000 |
| 99,850 |
| Telefonica S.A. - ADR |
|
| 10,000 |
| 167,500 |
|
|
| 348,320 |
| Verizon Communications, Inc. |
| 2,000 |
| 93,460 | ||
ENERGY - ALTERNATE SOURCES - 0.3 % |
|
|
| Windstream Holding Corp. |
| 10,000 |
| 90,700 | |||
Clean Energy Fuels Corp. * |
| 2,000 |
| 17,700 |
|
|
|
|
|
| 991,612 |
|
|
|
|
|
| TRANSPORTATION - 1.6 % |
|
|
|
| |
ENERGY MANAGEMENT - 3.6 % |
|
|
|
| Martin Midstream Partners LP |
| 2,000 |
| 84,740 | ||
ONEOK Partners LP |
| 2,000 |
| 126,440 |
|
|
|
|
|
|
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Williams Cos., Inc. |
| 1,600 |
| 67,472 |
| TOTAL COMMON STOCK (Cost - $4,947,601) |
|
|
| 5,340,266 | |
|
|
|
| 193,912 |
|
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|
ENVIRONMENTAL CONTROL - 1.4 % |
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| SHORT-TERM INVESTMENTS - 0.6 % |
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| ||
Coventa Holding Corp. |
| 4,000 |
| 73,800 |
| MONEY MARKET FUND - 0.6 % |
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| |
|
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| Fidelity Institutional Money Market Funds - Money Market Portfolio 0.04% + | 32,452 |
| 32,452 | ||
GAS - 6.6 % |
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|
| (Cost $32,452) |
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|
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| |
Atmos Energy Corp. |
| 2,000 |
| 102,080 |
|
|
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National Grid PLC - ADR |
| 2,000 |
| 142,120 |
| TOTAL INVESTMENTS - 100.4 % (Cost - $4,980,053) |
|
| $ 5,372,718 | ||
ONE Gas, Inc. |
| 3,000 |
| 109,740 |
| LIABILITIES LESS OTHER ASSETS - (0.4) % |
|
|
| (20,009) | |
|
|
| 353,940 |
| NET ASSETS - 100.0% |
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|
|
| $ 5,352,709 | |
IRON / STEEL - 5.2 % |
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Cliffs Natural Resources, Inc. |
| 10,000 |
| 177,200 |
| ADR - American Depositary Receipt |
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| |
Mesabi Trust |
| 5,000 |
| 100,950 |
| REIT - Real Estate Investment Trust |
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| |
|
|
| 278,150 |
| + Variable rate security. Interest rate is as of April 30, 2014. |
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OIL & GAS - 8.3 % |
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Chevron Corp. |
| 1,000 |
| 125,520 |
| Portoflio Composition * - (Unaudited) |
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ConocoPhillips |
| 1,000 |
| 74,310 |
| Energy | 36.65% |
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Crestwood Equity Partners LP |
| 2,000 |
| 28,220 |
| Communications | 18.46% |
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EQT Corp. |
| 1,000 |
| 108,990 |
| Utilities | 13.07% |
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Seadrill Ltd. |
| 3,000 |
| 105,660 |
| Technology | 9.39% |
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|
|
|
|
| 442,700 |
| Consumer, Non-Cyclical | 8.70% |
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| |
PIPELINES - 24.6 % |
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|
| Basic Materials | 7.04% |
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| |
Boardwalk Pipeline Partners LP | 10,000 |
| 159,700 |
| Financial | 3.14% |
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| |
Buckeye Partners LP |
| 1,000 |
| 76,210 |
| Industrial | 2.95% |
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DCP Midstream Partners LP |
| 1,000 |
| 53,500 |
| Short-Term Investment | 0.60% |
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Enbridge Energy Partners LP |
| 1,000 |
| 29,960 |
| Total | 100.0% |
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Enbridge, Inc. |
| 2,000 |
| 96,580 |
| * Based on total value of investments as of April 30,2014. |
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Energy Transfer Partners LP |
| 1,000 |
| 55,190 |
| Percentage may differ from Schedule of Investments which are based on Fund net assets. | |||||
EnLink Midstream LLC. |
| 5,000 |
| 176,650 |
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EnLink Midstream Partners LP | 2,000 |
| 58,980 |
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| |
Enterprise Products Partners LP | 1,000 |
| 73,130 |
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| |
Magellan Midstream Partners LP | 1,000 |
| 74,210 |
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NuStar Energy LP |
| 1,000 |
| 58,360 |
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Pembina Pipeline Corp. |
| 2,000 |
| 78,640 |
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Plains All American Pipeline LP | 1,200 |
| 66,960 |
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| |
Regency Energy Partners LP |
| 2,000 |
| 54,480 |
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Sunoco Logistics Partners LP | 1,000 |
| 90,960 |
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| |
Targa Resources Partners LP | 1,000 |
| 59,210 |
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TC Pipelines LP |
| 500 |
| 26,520 |
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See accompanying notes to financial statements.
Dunham Focused Large Cap Growth Fund
Message from the Sub-Adviser (The Ithaka Group, LLC)
The Sub-Adviser implements a fundamentals-driven, bottom up analysis to identify and own companies that will outperform the market in the long-term. It strives to own high quality companies with strong fundamentals that can withstand a downturn in the market. The Sub-Advisor believes that the strength of these companies provides the clients with a lower risk of underperforming the market over the course of the business cycle. This management style can result in an overweighting or underweighting in certain sectors so the Fund’s performance is heavily dependent on the success of the Sub-Adviser’s selection process.
As measured by the Russell 1000 Growth Index, large cap stocks were strong November through February, during which time they increased over 8.02 percent but declined in March and April to finish with a gain of 6.95 percent for the six-month period ended April 30, 2014. The Russell 1000 Growth Index underperformed the S&P 500 by 1.3 percent during the period.
The final two months have been challenging for growth stocks. The Sub-Adviser attributes this to certain macroeconomic factors, such as investors still getting acquainted with the new Federal Reserve (“Fed”) Chairperson, Janet Yellen; market uncertainty with the Fed taper; and the slowing real estate market, which helped us to emerge from the Great Recession. The Sub-Adviser also believes that momentum traders, who caused some of these names to reach sky-high stock prices, are taking profits thus causing a momentum shift to the downside. In the Sub-Adviser’s view, this phenomenon is not reflective of the fundamentals of the companies within the Fund.
FireEye, Inc. (FEYE), an information technology company, had a volatile period detracting from the Fund’s performance this six month period with a 49.5 percent decline since March 12, 2013. The Sub-Adviser believes that FireEye Inc. is a next-generation Internet security company with disruptive technologies that may enable it to advance relative to its competition within the fast growing cyber security space. The Sub-Adviser also believes that the continual and dramatic increase in the frequency, scale and publicity of recent attacks (e.g., Target Corp.) will likely lead to an increase in growth rate and allocated the funds allocated to network/endpoint security monitoring.
Apple Inc. (AAPL), a company that produces consumer electronics, computer software and personal computers, positively contributed to the performance of the Fund. Apple Inc. increased 14.2 percent over the six-month period amid strong earnings numbers and the announcement of a potential 7 for 1 stock split. Cummins Inc. (Ticker: CMI), a diesel engine manufacturer, also contributed to the positive performance of the Fund with a return of 15.9 percent over the six month period.
The Sub-Adviser does not attempt to predict the direction of the market in the next quarter or year and Fund’s therefore chooses to stay fully invested at all times in high quality growth companies. With that being said, the Sub-Adviser is optimistic for the coming year. It believes that all the companies in the portfolio are well positioned for the coming fiscal period based on the strength of the long-term secular trends underpinning them, coupled with their unique abilities to take advantage of these trends.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2014
|
|
|
| Six Months | One Year | Annualized Since Inception (12/8/11) | |
Class N |
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|
|
| (3.01)% | 18.55% | 13.69% |
Class C Class A with load of 5.75% Class A without load |
|
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| (3.44)% (8.73)% (3.17)% | 17.38% 11.35% 18.16% | 12.60% 10.64% 13.41% |
Russell 1000 Growth Index |
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|
|
| 6.95% | 20.66% | 18.12% |
Morningstar Large Cap Growth Category |
|
|
|
| 5.13% | 20.48% | 19.52% |
The Russell 1000 Growth Index is a subset of the Russell 1000 Index which measures the performance of the stocks of the 1000 largest companies in the Russell 3000 Index based on market capitalization. The Russell 1000 Growth Index measures the performance of those stocks of the Russell 1000 with higher price-to-book ratios and higher relative forecasted growth rates. Investors cannot invest directly in an index or benchmark.
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.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.74% for Class N, 2.74% for Class C and 1.99% for Class A. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%. 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 Focused Large Cap Growth Fund |
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April 30, 2014 |
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Security |
| Shares |
| Value |
| Security |
| Shares |
| Value | |
COMMON STOCK - 98.7 % |
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| ||
AEROSPACE/DEFENSE - 7.2 % |
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| LODGING - 3.5 % |
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| |||
BE Aerospace, Inc. * |
| 30,499 |
| $ 2,676,897 |
| Las Vegas Sands Corp. |
| 23,393 |
| $ 1,851,088 | |
TransDigm Group, Inc. |
| 6,068 |
| 1,079,315 |
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|
|
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| |
|
|
|
| 3,756,212 |
| MACHINERY-DIVERSIFIED - 4.1 % |
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APPAREL - 6.2 % |
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| Cummins, Inc. |
| 9,953 |
| 1,501,410 | |
Michael Kors Holdings Ltd. * |
| 21,158 |
| 1,929,610 |
| The Middleby Corp. * |
| 2,448 |
| 618,071 | |
Under Armour, Inc. - Class A * |
| 27,306 |
| 1,334,990 |
|
|
|
|
| 2,119,481 | |
|
|
|
| 3,264,600 |
| METAL FABRICATE/HARDWARE - 3.4 % |
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BIOTECHNOLOGY - 10.2 % |
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|
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| Precision Castparts Corp. |
| 7,132 |
| 1,805,038 | |
Alexion Pharmaceuticals, Inc. * |
| 6,068 |
| 959,958 |
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Celgene Corp. * |
| 8,330 |
| 1,224,593 |
| OIL & GAS - 1.3 % |
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Gilead Sciences, Inc. * |
| 26,906 |
| 2,111,852 |
| Cabot Oil & Gas Corp. - Class A | 16,900 |
| 663,832 | ||
Regeneron Pharmaceuticals, Inc. * |
| 3,566 |
| 1,058,710 |
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| |
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| 5,355,113 |
| PHARMACEUTICALS - 1.8 % |
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CHEMICALS - 2.2 % |
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| Pharmacyclics, Inc. * |
| 9,794 |
| 926,317 | |
Monsanto Co. |
| 10,406 |
| 1,151,944 |
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| RETAIL - 7.4 % |
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COMMERCIAL SERVICES - 4.5 % |
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| Chipotle Mexican Grill, Inc. - Class A * |
| 2,597 |
| 1,294,605 | |
MasterCard, Inc. - Class A |
| 31,936 |
| 2,348,893 |
| Dunkin' Brands Group, Inc. |
| 14,904 |
| 678,281 | |
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| Starbucks Corp. |
| 26,960 |
| 1,903,915 | |
COMPUTERS - 2.5 % |
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|
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| 3,876,801 | |
Apple, Inc. |
| 2,252 |
| 1,328,883 |
| SEMICONDUCTORS - 2.6 % |
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| ARM Holdings PLC - ADR |
| 30,286 |
| 1,378,619 | |
DIVERSIFIED FINANCIAL SERVICES - 3.9 % |
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Visa, Inc. - Class A |
| 9,953 |
| 2,016,577 |
| SOFTWARE - 5.3 % |
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| Salesforce.com, Inc. * |
| 35,369 |
| 1,826,809 | |
E-COMMERCE - 13.4 % |
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| Workday, Inc. - Class A * |
| 13,307 |
| 972,342 | |
Amazon.com, Inc. * |
| 7,766 |
| 2,361,874 |
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| 2,799,151 | |
eBay, Inc. * |
| 23,713 |
| 1,229,045 |
| TOTAL COMMON STOCK |
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Priceline.com, Inc. * |
| 2,480 |
| 2,871,220 |
| (Cost - $51,195,808) |
|
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| 51,682,971 | |
TripAdvisor, Inc. * |
| 6,946 |
| 560,820 |
|
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| |
|
|
|
| 7,022,959 |
| SHORT-TERM INVESTMENT - 1.7 % |
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FOOD - 2.3 % |
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| MONEY MARKET FUND - 1.7 % |
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Whole Foods Market, Inc. |
| 23,713 |
| 1,178,536 |
| Fidelity Institutional Money Market Funds - |
|
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| ||
|
|
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|
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| Government Portfolio, 0.01% + | 894,508 |
| 894,508 | ||
INTERNET - 16.9 % |
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|
| TOTAL SHORT-TERM INVESTMENT (Cost - $894,508) |
|
| |||
Facebook, Inc. - Class A * |
| 50,805 |
| 3,037,123 |
|
|
|
|
|
| |
Fireeye, Inc. * |
| 10,645 |
| 417,923 |
| TOTAL INVESTMENTS - 100.4 % |
| $ 52,577,479 | |||
Google, Inc. - Class A * |
| 1,474 |
| 788,413 |
| (Cost - $52,090,316) |
|
|
|
| |
Google, Inc. - Class C * |
| 1,474 |
| 776,297 |
| LIABILITIES IN EXCESS OF OTHER ASSETS - (0.4) % | (207,572) | ||||
LinkedIn Corp. - Class A * |
| 13,174 |
| 2,021,814 |
| NET ASSETS - 100.0 % |
|
|
| $ 52,369,907 | |
Splunk, Inc. * |
| 20,146 |
| 1,099,367 |
|
|
|
|
|
| |
Twitter, Inc. * |
| 17,911 |
| 697,990 |
| * Non-Income producing security. |
|
| |||
|
|
|
| 8,838,927 |
| ADR - American Depositary Receipt. |
|
| |||
|
|
|
|
|
| + Variable rate security. Interest rate is as of April 30, 2014. | |||||
|
|
|
|
|
|
|
|
|
|
| |
Portfolio Composition * - (Unaudited) | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
Communications |
| 30.20% |
|
|
| Financial |
|
|
| 3.80% | |
Consumer, Non-Cyclical |
| 18.70% |
|
|
| Basic Materials |
|
|
| 2.20% | |
Consumer, Cyclical |
| 17.10% |
|
|
| Energy |
|
|
| 1.20% | |
Industrial |
| 14.60% |
|
|
| Short-Term |
|
|
| 1.70% | |
Technology |
| 10.50% |
|
|
| Total |
|
|
| 100.00% | |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
* Based on total value of investments as of April 30, 2014. |
|
|
|
|
|
| |||||
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 REITs Index, was strong with a return of 7.7 percent over the six-month period ended April 30, 2014. The uncertainty of the timing for the Federal Reserve (“Fed”) tapering was the catalyst for the market volatility through the end of 2013. The first three months of the six-month period was disappointing with a decline of 0.4 percent, however, the closing three months of the period outpaced the S&P 500 with a return of 8.0 percent. Over the six-month period, the real estate investment trust market underperformed other broader equity indexes, such as the S&P 500 Index, which returned 8.3 percent.
One of the strongest performing sectors over the fiscal period was Regional Malls. The Sub-Adviser believes this sector was out of favor last year with investors and was unduly punished as a result. The Sub-Adviser believes that established companies with strong management should flourish as a result of the sector’s limited supply. Simon Property Group (SPG) is an independently administered and managed real estate investment trust (“REIT”) that owns, develops, and manages retail real estate properties, which consist primarily of malls, premium outlets, and community/lifestyle centers. The company had a strong return of 13.8 percent over the six month period ended April 30, 2014
The Sub-Adviser’s overweighting to the office sector was a strong contributor to the Fund. The Sub-Adviser was very selective in this space and focuses on companies that have a large west coast presence. The Sub-Adviser believes this is an attractive market due to the market’s limited supply keeping demand high. A strong performer in this sector was Kilroy Realty Corp (Ticker: KRC), which is an independently administered and managed REIT that focuses on office and industrial submarkets along the West Coast. Over the most recent six month period ended April 30, 2014, Kilroy Realty Corp. had a return of 13.5 percent.
Another strong sector that the portfolio overweighted was the Lodging Sector. The Sub-Adviser believes this sector has experienced healthy and stable growth. Chesapeake Lodging Trust (CHSP), a REIT company that focuses on investments primarily in upscale hotels in business and convention markets and, on a selective basis, extended-stay and select-service hotels in urban settings, had a strong six month period with a return of 17.1 percent. Another strong performer from this sector was Felcor Lodging Trust Inc. (FCH) which is a REIT company that primarily consists of upscale hotels and resorts located in markets and resort locations that have dynamic demand generators and high barriers to entry. Felcor Lodging Trust Inc. had a return of 37.9 percent over the most recent six month ended April 30, 2014.
The Sub-Adviser is optimistic in the coming fiscal period. Due to the REIT market’s lack of interest rate sensitivity, the Sub-Adviser believes that it may be an attractive asset class to investors and that the leading companies within this asset class will be the ones that can increase dividend growth in a meaningful way. The Sub-Adviser believes the Fund is well positioned for the future and sees a gradual increase in GDP, which should create a favorable environment for the pro-cyclical holdings.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2014
|
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) |
Class N |
| 9.02% | 1.76% | 9.24% | 22.14% | 6.52% |
Class C Class A with load of 5.75% Class A without load |
| 8.51% 2.61% 8.86% | 0.77% (4.37)% 1.45% | 8.14% 6.80% 8.94% | 20.95% 20.40% 21.84% | 5.46% 1.83%* 2.66%* |
FTSE NAREIT All REITs Index |
| 7.68% | (0.13)% | 9.88% | 21.87% | 6.67% |
Morningstar Real Estate Category |
| 7.92% | 0.95% | 8.86% | 21.41% | 6.53% |
*Class A commenced operations on January 3, 2007.
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.
The Morningstar Real Estate Category is generally representative of mutual funds that primarily invest in REITS of various types. REITs are companies that develop and manage real estate properties.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including the cost of underlying funds, are 1.31% for Class N, 2.31% for Class C and 1.56% for Class A. Class A shares aer subject to a sales load of 5.75% and a deffered sales charge of up to 0.75% 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, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
COMMON STOCK - 2.9 % |
|
|
|
|
|
|
|
|
|
|
HEALTHCARE-SERVICES - 1.2 % |
|
|
|
|
| OFFICE PROPERTY - 14.7 % |
|
|
|
|
Capital Senior Living Corp. * |
| 22,650 |
| $ 560,135 |
| Alexandrai Real Estate Equities, Inc. |
| 8,370 |
| $ 617,873 |
|
|
|
|
|
| Boston Properties, Inc. |
| 13,090 |
| 1,533,363 |
LODGING - 1.7 % |
|
|
|
|
| Brandywine Realty Trust |
| 21,360 |
| 310,788 |
Marriott International, Inc. |
| 13,470 |
| 780,317 |
| Douglas Emmett, Inc. |
| 39,250 |
| 1,083,300 |
|
|
|
|
|
| Highwoods Properties, Inc. |
| 36,980 |
| 1,492,143 |
TOTAL COMMON STOCK (Cost - $1,099,124) |
|
|
| 1,340,452 |
| Hudson Pacific Properties, Inc. |
| 31,460 |
| 740,883 |
|
|
|
|
|
| Kilroy Realty Corp. |
| 14,953 |
| 890,750 |
REITS - 96.7 % |
|
|
|
|
| Parkway Properties, Inc. |
| 7,280 |
| 137,301 |
APARTMENTS - 13.9 % |
|
|
|
|
|
|
|
|
| 6,806,401 |
American Campus Communities |
| 44,780 |
| 1,710,596 |
| REGIONAL MALLS - 15.8 % |
|
|
|
|
Apartment Investment & Management Co. |
| 28,280 |
| 871,872 |
| General Growth Properties, Inc. |
| 76,592 |
| 1,759,318 |
Education Realty Trust, Inc. |
| 105,240 |
| 1,073,448 |
| Glimcher Realty Trust |
| 59,400 |
| 605,286 |
Equity Residential |
| 19,090 |
| 1,134,710 |
| Simon Property Group, Inc. |
| 28,441 |
| 4,925,981 |
Essex Property Trust, Inc. |
| 9,450 |
| 1,637,307 |
|
|
|
|
| 7,290,585 |
|
|
|
| 6,427,933 |
| SHOPPING CENTERS - 12.0 % |
|
|
|
|
DIVERSIFIED - 5.8 % |
|
|
|
|
| Acadia Realty Trust |
| 37,928 |
| 1,028,987 |
Cousins Properties, Inc. |
| 48,780 |
| 567,311 |
| Kimco Realty Corp. |
| 45,900 |
| 1,052,028 |
Lexington Realty Trust |
| 56,220 |
| 604,927 |
| Kite Realty Group Trust |
| 82,200 |
| 509,640 |
Vornado Realty Trust |
| 14,740 |
| 1,512,324 |
| Ramco-Gershenson Properties Trust |
| 45,180 |
| 744,566 |
|
|
|
| 2,684,562 |
| Regency Centers Corp. |
| 23,540 |
| 1,234,202 |
HEALTHCARE - 6.4 % |
|
|
|
|
| Tanger Factory Outlet Centers |
| 25,790 |
| 920,187 |
HCP, Inc. |
| 15,400 |
| 644,644 |
|
|
|
|
| 5,489,610 |
Health Care REIT, Inc. |
| 19,040 |
| 1,201,234 |
| STORAGE - 6.8 % |
|
|
|
|
Omega Healthcare Investors, Inc. |
| 9,120 |
| 317,194 |
| CubeSmart |
| 78,610 |
| 1,462,146 |
Physicians Realty Trust |
| 21,870 |
| 300,056 |
| Extra Space Storage, Inc. |
| 32,440 |
| 1,697,585 |
Sabra Health Care REIT, Inc. |
| 16,460 |
| 493,306 |
|
|
|
|
| 3,159,731 |
|
|
|
| 2,956,434 |
|
|
|
|
|
|
HOTELS - 10.1 % |
|
|
|
|
| TOTAL REITS (Cost - $38,394,974) |
|
|
| 44,667,456 |
Ashford Hospitality Trust, Inc. |
| 24,366 |
| 249,995 |
|
|
|
|
|
|
Chesapeake Lodging Trust |
| 45,730 |
| 1,234,253 |
| SHORT-TERM INVESTMENT - 0.5 % |
|
|
|
|
FelCor Lodging Trust, Inc. |
| 73,270 |
| 676,282 |
| MONEY MARKET FUND - 0.5 % |
|
|
|
|
Hersha Hospitality Trust |
| 72,390 |
| 420,586 |
| Fidelity Institutional Money Market |
|
|
|
|
Host Hotels & Resorts, Inc. |
| 63,670 |
| 1,365,722 |
| Fund - Government Portfolio, 0.01%+ |
| 237,725 |
| 237,725 |
LaSalle Hotel Properties |
| 21,420 |
| 708,574 |
| TOTAL SHORT-TERM INVESTMENT |
|
|
|
|
|
|
|
| 4,655,412 |
| (Cost - $ 237,725) |
|
|
|
|
INDUSTRIAL- 7.5 % |
|
|
|
|
|
|
|
|
|
|
First Industrial Realty Trust, Inc. |
| 36,290 |
| 666,647 |
| TOTAL INVESTMENTS - 100.1 % (Cost - $39,731,823) |
|
| $ 46,245,633 | |
Prologis, Inc. |
| 52,690 |
| 2,140,795 |
| LIABILITIES IN EXCESS OF OTHER ASSETS - (0.1) % |
|
| (46,503) | |
STAG Industrial, Inc. |
| 28,255 |
| 664,840 |
| TOTAL NET ASSETS - 100.00 % |
|
|
| $ 46,199,130 |
|
|
|
| 3,472,282 |
|
|
|
|
|
|
MORTGAGE - 3.7 % |
|
|
|
|
| REIT - Real Estate Investment Trust. |
|
|
|
|
MFA Financial, Inc. |
| 34,870 |
| 276,519 |
| + Variable rate security. Interest rate is as of April 30, 2014. |
|
|
| |
Starwood Property Trust, Inc. |
| 49,410 |
| 1,188,311 |
| * Non-Income producing security. |
|
|
|
|
Two Harbors Investment Corp. |
| 25,017 |
| 259,676 |
|
|
|
|
|
|
|
|
|
| 1,724,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
|
|
|
|
Dunham Real Estate Stock Fund (Continued) |
|
|
|
|
|
|
|
|
|
|
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||||
Regional Malls |
|
|
| 15.76% |
| Healthcare |
|
|
| 6.39% |
Office Property |
|
|
| 14.72% |
| Diversified |
|
|
| 5.81% |
Apartments |
|
|
| 13.90% |
| Mortgage |
|
|
| 3.73% |
Shopping Centers |
|
|
| 11.87% |
| Lodging |
|
|
| 2.90% |
Hotels |
|
|
| 10.07% |
| Short-Term Investment |
|
|
| 0.51% |
Industrial |
|
|
| 7.51% |
| Total |
|
|
| 100.00% |
Storage |
|
|
| 6.83% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Based on total value of investments as of April 30, 2014. |
|
|
|
|
|
|
|
| ||
Percentage may differ from Schedule of Investments which are based on Fund net assets. |
|
|
| |||||||
|
|
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|
|
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|
|
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|
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| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2.91 percent during the six month period ended April 30, 2014 (the “six month period”). For the months of November and December of 2013, the Index was up 0.17 percent and 0.88 percent, respectively. Markets were buoyed by continued evidence of economic recovery in developed markets, though caution continued in emerging markets. Euro zone countries benefitted from encouraging signs of a modest economic recovery, including better than expected industrial output and consumer sentiment. In contrast, Japan lagged other major markets as the effects of Abenomics were carefully scrutinized. In January, the Index lost 4.54 percent. In February the Index rose 5.02 percent, and in March and April, the Index was up 0.26 percent and 1.32 percent, respectively. Markets began 2014 on shaky ground as investor concerns surrounding the US Federal Reserve’s tapering of the asset purchase program, slowing corporate earnings, weak Chinese economic data and emerging market currency woes all weighed on market sentiment. Markets rebounded in February, on the back of improving European and US economic results, indicating that the Federal Reserve’s monetary policy would continue to be accommodative. Global commodities rose propped up by rising oil, gold, and agricultural prices. Gold rallied significantly partly due to Russia’s annexation of Crimea and overall investor de-risking.
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 financials sector underweights and consumer discretionary and information technology sector overweights), the United Kingdom (primarily due to health care sector overweights), and France (primarily due to financials, information technology, and consumer discretionary sector overweights). Countries contributing most to the Fund’s underperformance relative to the Index included Russia (primarily due to energy and financials sector overweights), Canada (primarily due to financials and energy sector underweights), and Hong Kong (primarily due to financials sector overweights).
Sectors contributing most to the Fund’s returns relative to the Index during the six- month period included consumer discretionary (primarily due to Japan, Germany, and France overweights), health care (primarily due to United Kingdom overweights), and telecommunication services (primarily due to Italy, France, and Switzerland overweights). Sectors contributing most to the Fund’s underperformance relative to the Index included energy (primarily due to Russia overweights and the United Kingdom and Canada underweights), and industrials (primarily due to a Japan and Thailand overweights).
The stocks contributing most to the Fund’s returns relative to the Index during the six-month period included AstraZeneca PLC (United Kingdom health care company), Shire PLC (United Kingdom health care company), and Unione di Banche Italiane SCpA (Italian financials company). Stocks contributing most to the Fund’s underperformance relative to the Index included Sberbank Russia (Russian financials company), Gazprom OAO (Russian energy company), and Airports of Thailand Public Co. (Thai industrials company).
The foregoing insights from the Sub-Advisor are provided by Arrowstreet Capital, Limited Partnership (“Arrowstreet” or “Sub-Advisor”) through April 30, 2014 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, 2014**
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) |
Class N | 2.53% | 11.95% | 4.13% | 14.61% | 6.09% |
Class C Class A with load of 5.75% Class A without load | 2.04% (3.49)% 2.42% | 10.86% 5.26% 11.69% | 3.09% 1.81% 3.85% | 13.46% 12.97% 14.32% | 5.04% 1.49%* 2.31%* |
MSCI All Country World ex US Index (net) | 4.73% | 13.30% | 5.15% | 10.49% | 6.90% |
Morningstar Foreign Large Cap Blend Category | 11.91% | 11.62% | 4.02% | 12.93% | 5.69% |
*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 MSCI All Country World ex US Index (net) 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.
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.
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. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%.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, 2014 |
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
| Shares |
| Value |
| Security |
| Shares |
|
| Value |
COMMON STOCK - 97.3 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
AEROSPACE / DEFENSE - 0.2 % |
|
|
|
|
| BANKS - 8.4 % (Continued) |
|
|
|
|
| ||
IHI Corp. |
|
|
| 42,000 |
| $ 167,554 |
| National Bank of Greece SA |
| 14406 |
|
| $ 56,472 |
|
|
|
|
|
|
|
| Piraeus Bank SA * |
| 19,158 |
|
| 45,188 |
AGRICULTURE - 0.3 % |
|
|
|
|
|
| Sberbank of Russia - ADR |
| 64,780 |
|
| 542,986 | |
Swedish Match AB |
|
|
| 6,270 |
| 214,622 |
| Skandinaviska Enskilda Banken AB - A Shares | 8,090 |
|
| 111,496 | |
|
|
|
|
|
|
|
| Societe Generale SA |
| 6,945 |
|
| 432,282 |
AIRLINES - 1.0 % |
|
|
|
|
|
|
| Turkiye Is Bankasi - C Shares |
| 61,591 |
|
| 145,335 |
Deutsche Lufthansa AG * |
|
| 15,948 |
| 400,283 |
| Unione de Banche Italiane SPA | 45,315 |
|
| 432,320 | ||
International Consolidated Airlines Group SA * | 20,025 |
| 136,958 |
|
|
|
|
|
| 5,780,044 | |||
Japan Airlines Co. Ltd. |
|
|
| 3,400 |
| 176,110 |
| BIOTECHNOLOGY - 0.7 % |
|
|
|
|
|
Turk Hava Yollari |
|
|
| 2 |
| �� 5 |
| CSL Ltd. |
| 7,754 |
|
| 493,043 |
|
|
|
|
|
| 713,356 |
|
|
|
|
|
|
|
APPAREL - 0.1 % |
|
|
|
|
|
|
| BUILDING MATERIALS - 1.4 % |
|
|
|
| |
Gildan Activewear, Inc. |
|
| 1,351 |
| 68,984 |
| Asahi Glass Co. Ltd. |
| 51,000 |
|
| 289,294 | |
|
|
|
|
|
|
|
| Daikin Industries Ltd. |
| 4,400 |
|
| 254,651 |
AUTO MANUFACTURERS - 1.4 % |
|
|
|
|
| HeidelbergCement AG |
| 3,117 |
|
| 270,684 | ||
Fuji Heavy Industries Ltd. |
|
| 7,000 |
| 184,162 |
| James Hardie Industries PLC |
| 5,036 |
|
| 64,108 | |
Hino Motors Ltd. |
|
|
| 12,000 |
| 158,175 |
| Sika AG |
| 18 |
|
| 72,823 |
Mazda Motor Corp. * |
|
|
| 42,000 |
| 187,893 |
|
|
|
|
|
| 951,560 |
Renault SA |
|
|
| 2,928 |
| 286,115 |
| CHEMICALS - 1.7 % |
|
|
|
|
|
Suzuki Motor Corp. |
|
|
| 4,500 |
| 116,163 |
| Asahi Kasei Corp. |
| 25,000 |
|
| 170,062 |
|
|
|
|
|
| 932,508 |
| Daicel Corp. |
| 15,000 |
|
| 125,689 |
AUTO PARTS & EQUIPMENT - 4.0 % |
|
|
|
|
| Denki Kagaku Kogyo KK |
| 28,000 |
|
| 92,913 | ||
Aisin Seiki Co. Ltd. |
|
|
| 3,400 |
| 120,218 |
| EMS-Chemie Holding AG |
| 367 |
|
| 143,186 |
Bridgestone Corp. |
|
|
| 5,400 |
| 193,454 |
| Lonza Group AG * |
| 1,736 |
|
| 181,670 |
Continental AG |
|
|
| 2,041 |
| 479,997 |
| Mitsubishi Chemical Holdings Corp. | 22,500 |
|
| 90,094 | |
Denso Corp. |
|
|
| 2,000 |
| 91,155 |
| Sasol Ltd. |
| 2,817 |
|
| 156,090 |
Hyundai Mobis |
|
|
| 190 |
| 54,284 |
| Sumitomo Chemical Co. Ltd. |
| 52,000 |
|
| 195,191 |
JTEKT Corp. |
|
|
| 10,900 |
| 159,122 |
|
|
|
|
|
| 1,154,895 |
Magna International, Inc. |
|
| 4,352 |
| 425,880 |
| COMMERCIAL SERVICES - 0.1 % |
|
|
|
| ||
NGK Insulators Ltd. |
|
|
| 8,000 |
| 151,369 |
| Toppan Printing Co. Ltd. |
| 9,000 |
|
| 61,844 |
NGK Spark Plug Co. Ltd. |
|
| 7,000 |
| 160,349 |
|
|
|
|
|
|
| |
Sumitomo Electric Industries Ltd. |
| 15,100 |
| 209,114 |
| COMPUTERS - 2.2 % |
|
|
|
|
| ||
Toyota Industries Corp. |
|
| 6,300 |
| 290,574 |
| Advantech Co. Ltd. |
| 17,000 |
|
| 109,990 | |
Valeo SA |
|
|
| 2,956 |
| 405,726 |
| Cap Gemini S.A. |
| 847 |
|
| 59,811 |
|
|
|
|
|
| 2,741,242 |
| CGI Group, Inc. * |
| 5,221 |
|
| 188,038 |
BANKS - 8.4 % |
|
|
|
|
|
|
| Fujitsu Ltd. * |
| 34,000 |
|
| 200,036 |
Akbank TAS |
|
|
| 17,470 |
| 61,195 |
| Infosys Ltd. |
| 5,352 |
|
| 287,456 |
Asya Katilim Bankasi AS * |
|
| 58,930 |
| 45,386 |
| Otsuka Corp. |
| 600 |
|
| 71,066 | |
Banca Monte dei Paschi di Siena SpA * |
| 118,447 |
| 39,566 |
| Quanta Computer, Inc. |
| 45,000 |
|
| 123,340 | ||
Banco de Sabadell SA |
|
| 93,091 |
| 316,551 |
| TDK Corp. |
| 6,600 |
|
| 281,585 | |
Banco Popolare SC * |
|
|
| 7069 |
| 146,012 |
| Wipro Ltd. |
| 17,440 |
|
| 208,582 |
Banco Santander SA |
|
|
| 42597 |
| 424,266 |
|
|
|
|
|
| 1,529,904 |
Bank Leumi Le-Israel BM * |
| 23810 |
| 93,160 |
| DISTRIBUTION / WHOLESALE - 1.4 % |
|
|
|
| |||
Bank of China Ltd |
|
|
| 771000 |
| 339,704 |
| ITOCHU Corp. |
| 9,200 |
|
| 103,186 |
Bank Zachodni WBK SA |
|
| 876 |
| 107,468 |
| Marubeni Corp. |
| 37,000 |
|
| 247,383 | |
China Construction Corp. |
|
| 18,052 |
| 248,396 |
| Mitsubishi Corp. |
| 12,300 |
|
| 220,378 | |
China Construction Bank Corp - H Shares | 895,000 |
| 619,678 |
| Mitsui & Co. Ltd. |
| 14,200 |
|
| 201,498 | |||
China Merchants Bank Co. Ltd. |
| 60,000 |
| 107,507 |
| Sojitz Corp. |
| 105,600 |
|
| 166,602 | ||
Commerzbank AG * |
|
|
| 10,972 |
| 195,538 |
|
|
|
|
|
| 939,047 |
Credit Agricole SA * |
|
|
| 23,348 |
| 368,196 |
| DIVERSIFIED FINANANCIAL SERVICES - 0.8 % |
|
|
| ||
DNB ASA |
|
|
| 18,666 |
| 330,098 |
| Aberdeen Asset Management PLC | 31,666 |
|
| 234,190 | |
Industrial & Commercial Bank of China Ltd. - H Shares | 621,000 |
| 371,061 |
| Deutsche Boerse AG |
| 9,710 |
|
| 70,883 | |||
Itau Unibanco Holding SA |
|
| 3,462 |
| 56,639 |
| Hargreaves Lansdown PLC |
| 5,449 |
|
| 107,787 | |
Mediobanca SpA * |
|
|
| 12,940 |
| 143,544 |
| Old Mutual PLC |
| 25,243 |
|
| 85,291 |
|
|
|
|
|
|
|
| Orix Corp. * |
| 10,900 |
|
| 81,187 |
|
|
|
|
|
|
|
|
|
|
|
|
| 579,338 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
|
|
| ||||
Dunham International Stock Fund (Continued) |
|
|
|
|
|
|
|
|
| ||||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
| Shares |
| Value |
| Security |
| Shares |
|
| Value |
ELECTRIC - 4.5 % |
|
|
|
|
|
|
| GAS - 2.2 % |
|
|
|
|
|
E.ON SE |
|
|
| 41,594 |
| $ 796,297 |
| Enagas SA |
| 23,797 |
|
| $ 732,760 |
E.ON SE |
|
|
| 3,928 |
| 71,882 |
| Gas Natural SDG SA |
| 8,454 |
|
| 242,288 |
Electricite de France |
|
|
| 6,076 |
| 233,198 |
| Snam SpA |
| 85,315 |
|
| 512,888 |
Enel SpA |
|
|
| 137,940 |
| 780,861 |
|
|
|
|
|
| 1,487,936 |
GDF Suez - ADR |
|
|
| 6,278 |
| 165,425 |
| HAND / MACHINE TOOLS - 1.0 % |
|
|
|
| |
GDF Suez |
|
|
| 8,473 |
| 213,433 |
| Finning International, Inc. |
| 4,587 |
|
| 123,736 |
Iberdrola SA |
|
|
| 64,189 |
| 448,153 |
| Fuji Electric Co. Ltd. |
| 24,000 |
|
| 108,977 |
PGE SA |
|
|
| 10,136 |
| 70,420 |
| Makita Corp. |
| 4200 |
|
| 223,511 |
Red Electrica Corp SA |
|
| 2,104 |
| 173,100 |
| Sandik AB |
| 7,675 |
|
| 108,832 | |
RWE AG |
|
|
| 4,320 |
| 164,767 |
| SMC Corp. |
| 400 |
|
| 95,274 |
|
|
|
|
|
| 3,117,536 |
|
|
|
|
|
| 660,330 |
ELECTRICAL COMPONENTS & EQUIPMENT - 1.6 % |
|
|
| HEALTHCARE - PRODUCTS - 2.1 % |
|
|
|
| |||||
Brother Industries Ltd. |
|
|
| 14,500 |
| 202,928 |
| Coloplast A/S - Class B |
| 5,576 |
|
| 468,101 |
Delta Electronics, Inc. |
|
|
| 12,000 |
| 73,598 |
| Smith & Nephew PLC - ADR |
| 1,622 |
|
| 126,419 |
Furukawa Electric Co. Ltd. |
|
| 13,000 |
| 29,284 |
| Sonova Holding AG |
| 3,779 |
|
| 545870 | |
Hitachi Ltd. |
|
|
| 68,000 |
| 485,029 |
| Sysmex Corp. |
| 2,000 |
|
| 63,438 |
Nidec Corp. |
|
|
| 7,798 |
| 110,030 |
| Sysmex Corp. - ADR |
| 7,266 |
|
| 114585 |
Osram Licht AG * |
|
|
| 1,800 |
| 94,448 |
| Terumo Corp. |
| 6,000 |
|
| 119,138 |
Ushio, Inc. |
|
|
| 7,600 |
| 99,322 |
|
|
|
|
|
| 1,437,551 |
|
|
|
|
|
| 1,094,639 |
| HEALTHCARE - SERVICES - 0.7% |
|
|
|
| |
ELECTRONICS - 3.8 % |
|
|
|
|
|
| Fresenius Medial Care AG & Co. | 5,317 |
|
| 182,639 | ||
Advantest Corp. |
|
|
| 3,100 |
| 34,192 |
| Miraca Holdings, Inc. |
| 1,500 |
|
| 65,056 |
Hirose Electric Co. Ltd. |
|
| 600 |
| 84,738 |
| Ramsay Health Care Ltd. |
| 3,644 |
|
| 151,868 | |
Hon Hai Precision Industry Co. Ltd. |
| 62,000 |
| 177,873 |
| Sonic Healthcare Ltd. |
| 4,636 |
|
| 76,274 | ||
Hoya Corp. |
|
|
| 5,300 |
| 156,844 |
|
|
|
|
|
| 475,837 |
Ibiden Co. Ltd. |
|
|
| 4,900 |
| 88,493 |
| HOLDING COMPANIES - DIVERSIFIED - 0.8 % |
|
|
| ||
Keyence Corp. |
|
|
| 200 |
| 77,194 |
| Industrivarden AB |
| 4,303 |
|
| 90,211 |
Kinsus Interconnect Technology Corp. |
| 98,000 |
| 370,152 |
| KOC Holding AS |
| 10,017 |
|
| 44,787 | ||
Kyocera Corp. |
|
|
| 2,200 |
| 103,522 |
| Wendel SA |
| 390 |
|
| 58,759 |
Murata Manufacturing Co. Ltd. |
| 3,100 |
| 258,567 |
| Wharf Holdings Ltd. |
| 47,000 |
|
| 329,948 | ||
NEC Corp. |
|
|
| 77,000 |
| 216,717 |
|
|
|
|
|
| 523,705 |
Nippon Electric Glass Co. Ltd. |
| 13,000 |
| 63,629 |
| HOME FURNISHINGS - 1.2% |
|
|
|
|
| ||
Omron Corp. |
|
|
| 5,200 |
| 184,254 |
| Electrolux AB - Series B |
| 14,329 |
|
| 397,393 |
Rexel SA |
|
|
| 7,096 |
| 179,055 |
| Panasonic Corp. |
| 32,300 |
|
| 352,262 |
Simplo Technology Co. Ltd. |
| 118,000 |
| 614,079 |
| Panasonic Corp. - ADR |
| 6,720 |
|
| 73,517 | ||
|
|
|
|
|
| 2,609,309 |
|
|
|
|
|
| 823,172 |
ENERGY - ALTERNATE SOURCES - 0.5 % |
|
|
|
| HOUSEHOLD PRODUCTS / WARES - 0.4 % |
|
|
|
| ||||
Enel Green Power SpA |
|
| 113,281 |
| 324,036 |
| Unilever Indonesia Tbk PT |
| 97,500 |
|
| 247,695 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENGINEERING & CONSTRUCTION - 1.2 % |
|
|
|
| HOUSEWARES - 0.0 % |
|
|
|
|
| |||
Acciona SA |
|
|
| 1,620 |
| 131,709 |
| Turkiye Sise ve Cam Fabrikalari AS | 3 |
|
| 3 | |
Bouygues SA |
|
|
| 6,861 |
| 308,859 |
|
|
|
|
|
|
|
Enka Insaat ve Sanayi AS |
|
| 1 |
| 4 |
| INSURANCE - 4.2 % |
|
|
|
|
| |
Fraport AG Frankfurt Airport Service Worldwide | 2,751 |
| 203,346 |
| Aegon NV - NY Reg. Shares |
| 6,847 |
|
| 63,129 | |||
Hochteif AG |
|
|
| 1,031 |
| 96,074 |
| Aegon NV |
| 3,802 |
|
| 34,832 |
JGC Corp. |
|
|
| 2,000 |
| 64,798 |
| Ageas |
| 0 ^ |
|
| 13 |
|
|
|
|
|
| 804,790 |
| Allianz SE - ADR |
| 14,854 |
|
| 259,202 |
ENTERTAINMENT - 1.1 % |
|
|
|
|
| Allianz SE |
| 844 |
|
| 146,802 | ||
OPAP SA |
|
|
| 24,283 |
| 387,591 |
| China Life Insurance Co. Ltd. - H Shares | 22,000 |
|
| 57,235 | |
Tatts Group Ltd. |
|
|
| 78,467 |
| 220,125 |
| CNP Assurances |
| 121,800 |
|
| 382,956 |
William Hill PLC |
|
|
| 21,356 |
| 127,945 |
| CNP Assurances |
| 6,382 |
|
| 147,150 |
|
|
|
|
|
| 735,661 |
| Dai-ichi Life Insurance Co. Ltd. |
| 14,600 |
|
| 202,418 |
FOOD - 1.6 % |
|
|
|
|
|
|
| Gjensidige Forsikring ASA |
| 9,570 |
|
| 176,202 |
Aryzta AG |
|
|
| 2,251 |
| 208,049 |
| Hannover Rueckversicherung SE | 234 |
|
| 21,793 | |
BIM Birlesik Magazalar AS |
| 1,613 |
| 37,255 |
| Ping An Insurance Group Co. of China Ltd. - H Shares | 25,000 |
|
| 185,554 | |||
Delhaize Group SA |
|
|
| 1,707 |
| 127,040 |
| Power Corp. of Canda |
| 9,031 |
|
| 253,984 |
Kerry Group PLC |
|
|
| 1,389 |
| 109,564 |
| Powszechny Zaklad Ubezpieczen SA | 1,700 |
|
| 241,103 | |
Lindt & Spruengli AG |
|
|
| 82 |
| 398,992 |
| Resolution Ltd. |
| 45,601 |
|
| 230,000 |
Metro AG |
|
|
| 5,040 |
| 201,812 |
| Sampo |
| 8,875 |
|
| 440,846 |
|
|
|
|
|
| 1,082,712 |
|
|
|
|
|
| 2,843,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
|
|
| ||||
Dunham International Stock Fund (Continued) |
|
|
|
|
|
|
|
|
| ||||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
| Shares |
| Value |
| Security |
| Shares |
|
| Value |
FOOD SERVICE - 0.4 % |
|
|
|
|
|
| MISCELLANEOUS MANUFACTURING - 1.0 % |
|
|
| |||
Compass Group PLC |
|
|
| 15,034 |
| $ 239,377 |
| Alfa Laval AB |
| 3,909 |
|
| $ 103,916 |
|
|
|
|
|
|
|
| FUJIFILM Holdings Corp. |
| 8,700 |
|
| 224,860 |
INTERNET - 0.4 % |
|
|
|
|
|
|
| Konica Minolta Holdings, Inc. |
| 24,000 |
|
| 223,756 |
Tencent Holdings Ltd |
|
|
| 1,100 |
| 69,256 |
| Orkla ASA |
| 18,877 |
|
| 155,762 |
Trend Micro Inc/Japan |
|
| 2600 |
| 84,148 |
|
|
|
|
|
| 708,294 | |
United Internet AG |
|
|
| 3514 |
| 150,877 |
| OFFICE / BUSINESS EQUIPMENT - 0.7 % |
|
|
|
| |
|
|
|
|
|
| 304,281 |
| Canon, Inc. |
| 3,700 |
|
| 116,002 |
INVESTMENT COMPANIES - 1.5 % |
|
|
|
|
| Canon, Inc. - ADR |
| 5,612 |
|
| 175,543 | ||
Delek Group Ltd. |
|
|
| 620 |
| 251,273 |
| Ricoh Co. Ltd. |
| 17,000 |
|
| 195,998 |
Exor SpA |
|
|
| 3,756 |
| 171,579 |
|
|
|
|
|
| 487,543 |
Investment AB Kinnevik |
|
| 4075 |
| 143,473 |
| OIL & GAS - 6.8 % |
|
|
|
|
| |
Investor AB |
|
|
| 8,343 |
| 316,965 |
| BP PLC |
| 3,228 |
|
| 163,401 |
Rand Merchant Insurance Holdings Ltd. |
| 57,173 |
| 162,951 |
| Canadian Natural Resources Ltd. | 17,414 |
|
| 708,748 | |||
|
|
|
|
|
| 1,046,241 |
| Crescent Point Energy Corp. |
| 3,510 |
|
| 142,633 |
IRON / STEEL - 0.5 % |
|
|
|
|
|
|
| Encana Corp. |
| 8,164 |
|
| 188,904 |
Hitachi Metals Ltd. |
|
|
| 5,000 |
| 67,933 |
| ENERPLUS CORP. |
| 7,664 |
|
| 170,141 |
Severstal OAO |
|
|
| 37,784 |
| 263,891 |
| Gazprom OAO |
| 144,181 |
|
| 1,039,833 |
|
|
|
|
|
| 331,824 |
| Idemitsu Kosan Co. Ltd. |
| 8,000 |
|
| 177,003 |
LEISURE TIME - 0.4 % |
|
|
|
|
|
| Lukoil OAO - ADR |
| 4,405 |
|
| 233,113 | |
Yamaha Corp. |
|
|
| 13,400 |
| 179,639 |
| Lukoil OAO - ADR |
| 8,343 |
|
| 440,928 |
Yamaha Motor Co. Ltd. |
|
| 7,700 |
| 118,927 |
| Neste Oil OYJ |
| 12,039 |
|
| 247,457 | |
|
|
|
|
|
| 298,566 |
| Rosneft OAO - GDR |
| 82,278 |
|
| 517,208 |
LODGING - 1.9 % |
|
|
|
|
|
|
| Suncor Energy, Inc. |
| 8,078 |
|
| 311,253 |
Galaxy Entertainment Group Ltd. * |
| 24,000 |
| 189,461 |
| Surgutneftegas OAO - ADR |
| 50,049 |
|
| 349,342 | ||
MGM China Holdings Ltd. |
|
| 108,000 |
| 377,375 |
|
|
|
|
|
| 4,689,964 | |
Sands China Ltd. - ADR |
|
| 1,446 |
| 105,457 |
| PHARMACEUTICALS - 9.9 % |
|
|
|
|
| |
Sands China Ltd. |
|
|
| 16,000 |
| 117,469 |
| Actelion Ltd. |
| 4,570 |
|
| 449,882 |
SJM Holdings Ltd. |
|
|
| 98,000 |
| 272,631 |
| Astellas Pharma, Inc. |
| 30,000 |
|
| 334,665 |
Whitbread PLC |
|
|
| 2,360 |
| 162,763 |
| AstraZeneca PLC - ADR |
| 2,722 |
|
| 215,174 |
Wynn Macau Ltd. |
|
|
| 1,966 |
| 77,991 |
| AstraZeneca PLC |
| 9,292 |
|
| 733,469 |
|
|
|
|
|
| 1,303,147 |
| Bayer AG |
| 647 |
|
| 89,911 |
MACHINERY CONSTRUCTION & MINING - 0.5 % |
|
|
| Bayer AG |
| 1,190 |
|
| 165,672 | ||||
Atlas Copco AB - A Shares |
|
| 6,316 |
| 183,276 |
| Catamaran Corp. * |
| 439 |
|
| 16,555 | |
Mitsubishi Electric Corp. |
|
| 15,000 |
| 170,894 |
| Chugai Pharmaceutical Co. Ltd. | 10,800 |
|
| 272,727 | ||
|
|
|
|
|
| 354,170 |
| Daiichi Sankyo Co. Ltd. |
| 9,400 |
|
| 157,763 |
MACHINERY - DIVERSIFIED - 0.8 % |
|
|
|
|
| GlaxoSmithKline PLC - ADR |
| 4,531 |
|
| 125,171 | ||
Amada Co. Ltd. |
|
|
| 9,000 |
| 65,125 |
| GlaxoSmithKline PLC |
| 8,886 |
|
| 492,018 |
FANCU Corp. |
|
|
| 700 |
| 126,373 |
| Grifols SA |
| 5,571 |
|
| 297,651 |
Hexagon AB - B Shares |
|
| 7,144 |
| 228,207 |
| Grifols SA - ADR |
| 3,753 |
|
| 154,023 | |
Mitsubishi Heavy Industries Ltd. |
| 30,000 |
| 158,033 |
| Hisamitsu Pharmaceutical Co., Inc. | 2,800 |
|
| 117,249 | |||
|
|
|
|
|
| 577,738 |
| Kyowa Hakko Kirin Co. Ltd. |
| 1,000 |
|
| 11,394 |
MEDIA - 1.5 % |
|
|
|
|
|
|
| Medipal Holdings Corp. |
| 13,900 |
|
| 195,615 |
British Sky Broadcasting Group PLC |
| 12,310 |
| 183,125 |
| Merck KGaA |
| 1,032 |
|
| 174,359 | ||
ITV PLC |
|
|
| 55,903 |
| 171,889 |
| Otsuka Holdings Co. Ltd. |
| 6,200 |
|
| 178,704 |
ProSiebenSat. 1 Media AG |
| 2,266 |
| 99,124 |
| Roche Holding AG - ADR |
| 7,096 |
|
| 260,068 | ||
Reed Elsevier NV |
|
|
| 5,169 |
| 105,447 |
| Roche Holding AG |
| 833 |
|
| 244,330 |
Thomas Reuters Corp. |
|
| 13,677 |
| 494,456 |
| Sanofi - ADR |
| 6,598 |
|
| 711,671 | |
|
|
|
|
|
| 1,054,041 |
| Sanofi |
| 1,163 |
|
| 62,569 |
METAL FABRICATE/HARDWARE - 1.2 % |
|
|
|
| Santen Pharmaceutical Co. Ltd. | 2,000 |
|
| 89,187 | ||||
Assa Abloy AB |
|
|
| 1,499 |
| 79,381 |
| Shionogi & Co. Ltd. |
| 3,700 |
|
| 64,890 |
NSK Ltd. |
|
|
| 7,000 |
| 73,629 |
| Shire PLC - ADR |
| 4,850 |
|
| 832,988 |
Tenaris SA - ADR |
|
|
| 19,141 |
| 422,899 |
| Suzuken Co. Ltd. / Aichi Japan |
| 2,500 |
|
| 90,161 |
Tenaris SA |
|
|
| 5,049 |
| 222,408 |
| Takeda Pharmaceutical Co. Ltd. | 4,800 |
|
| 216,021 | |
|
|
|
|
|
| 798,317 |
|
|
|
|
|
| 6,753,887 |
MINING - 0.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
BHP Billiton Ltd. |
|
|
| 5,193 |
| 366,314 |
|
|
|
|
|
|
|
Mitsubishi Materials Corp. |
|
| 21000 |
| 60,944 |
|
|
|
|
|
|
| |
|
|
|
|
|
| 427,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
|
|
| ||||
Dunham International Stock Fund (Continued) |
|
|
|
|
|
|
|
|
| ||||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
| Shares |
| Value |
| Security |
| Shares |
|
| Value |
REAL ESTATE - 1.0 % |
|
|
|
|
|
| TRANSPORTATION - 1.7 % |
|
|
|
|
| |
Emlak Konut Gayrimenkul Yatirim Ortakligi AS | 65,061 |
| $ 85,241 |
| Central Japan Railway Co. |
| 1,000 |
|
| $ 122,892 | |||
Hysan Development Co. Ltd. |
| 27,000 |
| 115,800 |
| Deutsche Post AG - ADR |
| 7,242 |
|
| 272,299 | ||
Redefine Properties Ltd. |
|
| 495,534 |
| 467,951 |
| Deutsche Post AG |
| 2,163 |
|
| 81,572 | |
|
|
|
|
|
| 668,992 |
| DSV A/S |
| 8,466 |
|
| 282,611 |
RETAIL - 1.2 % |
|
|
|
|
|
|
| East Japan Railway Co. |
| 3,100 |
|
| 226,314 |
Citizen Holdings Co. Ltd. |
|
| 16,900 |
| 124,179 |
| TNT Express NV |
| 21,636 |
|
| 194,869 | |
Hennes & Mauritz AB - ADR |
| 6,083 |
| 248,437 |
|
|
|
|
|
| 1,180,557 | ||
Hennes & Mauritz AB - B Shares |
| 20,982 |
| 176,249 |
| WATER - 0.7 % |
|
|
|
|
| ||
Homes Retail Group PLC |
|
| 18,284 |
| 63,154 |
| Cia de Saneamento Basico do Estado de Sao Paulo | 20,900 |
|
| 197,743 | ||
Next PLC |
|
|
| 1,152 |
| 127,008 |
| United Utilities Group PLC |
| 3,277 |
|
| 87,922 |
Tim Hortons, Inc. |
|
|
| 1,441 |
| 78,951 |
| Veolia Environnement SA |
| 11,026 |
|
| 207,068 |
|
|
|
|
|
| 817,978 |
|
|
|
|
|
| 492,733 |
SEMICONDUCTORS - 4.1 % |
|
|
|
|
|
|
|
|
|
|
| ||
Advanced Semiconductor Engineering, Inc. | 86,362 |
| 510,399 |
| TOTAL COMMON STOCK (Cost - $59,903,232) |
|
| 66,699,433 | |||||
Infineon Technologies AG |
|
| 25,331 |
| 294,372 |
|
|
|
|
|
|
| |
MediaTek, Inc. |
|
|
| 17,000 |
| 266,108 |
| PREFERRED STOCK - 0.8 % |
|
|
|
|
|
Rohm Co. Ltd. |
|
|
| 1,900 |
| 90911 |
| AUTO MANUFACTURERS - 0.4 % |
|
|
|
| |
Samsung Electronics Co. Ltd. |
| 830 |
| 534935 |
| Bayerische Motoren Werke AG |
| 1,213 |
|
| 119,507 | ||
Samsung Electronics Co. Ltd. |
| 438 |
| 571,179 |
| Porsche Automobil Holding SE |
| 1,500 |
|
| 165,803 | ||
Samsung Electronics Co. Ltd. |
| 210 |
| 104,391 |
|
|
|
|
|
| 285,310 | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 21,468 |
| 431,507 |
| ELECTRIC - 0.3 % |
|
|
|
|
| |||
|
|
|
|
|
| 2,803,802 |
| Cia Energetica de Sao Paulo |
| 20,600 |
|
| 240,152 |
SOFTWARE - 0.7 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amadeus IT Holding SA - A Shares |
| 10,953 |
| 455,295 |
| FOOD - 0.1 % |
|
|
|
|
| ||
|
|
|
|
|
|
|
| Metro AG |
| 1,310 |
|
| 41,515 |
TELECOMMUNICATIONS - 9.2 % |
|
|
|
|
|
|
|
|
|
|
| ||
Bezeq The Israeli Telecommunication Corp. | 68,287 |
| 123,748 |
| TOTAL PREFERRED STOCK (Cost - $489,235) |
|
| 566,977 | |||||
BT Group PLC - ADR |
|
|
| 66,382 |
| 414,336 |
|
|
|
|
|
|
|
BT Group PLC |
|
|
| 3,487 |
| 218,530 |
| SHORT-TERM INVESTMENT - 2.4 % |
|
|
|
| |
Deutsche Telekom AG - ADR |
| 27,958 |
| 469,471 |
| MONEY MARKET FUND - 2.4 % |
|
|
|
| |||
Deutsche Telekom AG |
|
| 4,525 |
| 75,794 |
| Fidelity Institutional Money Market Funds - Government |
|
|
| |||
Millicom International Cellular SA |
| 3,125 |
| 309,040 |
| Portfolio 0.01% + |
|
|
|
|
| ||
NICE Systems Ltd. |
|
|
| 6,096 |
| 263,347 |
| (Cost - $1,620,582) |
| 1,620,582 |
|
| 1,620,582 |
Nokia Corp. - ADR* |
|
|
| 24,071 |
| 180,136 |
|
|
|
|
|
|
|
Nokia OYJ * |
|
|
| 11,111 |
| 83,333 |
| TOTAL INVESTMENTS - 100.5 % (Cost - $62,013,049) |
|
| $ 68,886,992 | ||
Orange SA - ADR |
|
|
| 14,039 |
| 227,327 |
| LIABILITIES LESS OTHER ASSETS - (0.5) % |
|
| (367,644) | ||
Orange SA |
|
|
| 9,406 |
| 151,437 |
| NET ASSETS - 100.0% |
|
|
|
| $ 68,519,348 |
Swisscom AG |
|
|
| 1,239 |
| 753,697 |
| * Non-income producing security. |
|
|
|
| |
TDC A/S |
|
|
| 11,550 |
| 108,408 |
| ADR - American Depositary Receipt. |
|
|
|
| |
Telecom Italia SpA - ADR |
|
| 6,102 |
| 59,922 |
| GDR - Global Depositary Receipt. |
|
|
|
| ||
Telecom Italia SpA |
|
|
| 187,430 |
| 240,723 |
| REIT - Real Estate Investment Trust. |
|
|
|
| |
Telefonaktiebolaget LM Ericsson - ADR |
| 32,128 |
| 385,215 |
| + Variable rate security. Interest rate is as of April 30, 2014. |
|
|
| ||||
Telefonaktiebolaget LM Ericsson - B Shares | 39,845 |
| 479,393 |
|
|
|
|
|
|
| |||
Telefonica Deutschland Holding AG |
| 35,393 |
| 294,291 |
|
|
|
|
|
|
| ||
Telenet Group Holding NV |
|
| 370 |
| 21,687 |
|
|
|
|
|
|
| |
Telenor ASA |
|
|
| 7,220 |
| 169,256 |
|
|
|
|
|
|
|
TeliaSonera AB |
|
|
| 39,796 |
| 289,028 |
|
|
|
|
|
|
|
Turk Telekomunikasyon AS |
| 92,912 |
| 279,032 |
|
|
|
|
|
|
| ||
Vodafone Group PLC - ADR |
| 18,762 |
| 712,205 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,309,356 |
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | |||||||||||||
Other Countries |
|
|
| 30.60% |
|
|
| Russia |
| 4.92% |
|
|
|
Japan |
|
|
| 19.46% |
|
|
| Spain |
| 4.90% |
|
|
|
Germany |
|
|
| 8.93% |
|
|
| Switzerland |
| 4.73% |
|
|
|
Britain |
|
|
| 7.15% |
|
|
| Italy |
| 4.14% |
|
|
|
France |
|
|
| 6.12% |
|
|
| Taiwan |
| 3.89% |
|
|
|
Sweden |
|
|
| 5.16% |
|
|
| Total |
| 100.00% |
|
|
|
* Based on total value of investments as of April 30, 2014. |
|
|
|
|
|
|
|
|
| ||||
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 (Piermont Capital Management LLC)
Small cap value stocks, as measured by the Russell 2000 Value Index, increased by 5.0 percent in the six-month period ended April 30, 2014. Small-cap growth stocks in the Russell 2000 Growth Index did not do quite as well, gaining 1.3 percent over the same time period. Both indexes underperformed larger capitalization stocks, as measured by the S&P 500 Index, which returned 8.4 percent over the same period. The energy and consumer staples sectors were the largest contributors to the Fund’s performance while transportation and basic materials lagged somewhat.
The Sub-Adviser’s strategy continues to focus on high quality firms, using 9 sector specific models that include a total of 40 factors to measure both fundamental and technical metrics. Stocks must rank in the top 20 percent to be considered for purchase and also undergo a qualitative red flag review. The red flag review may include assessing news stories that could adversely affect a stock, high turnover in senior management, or an accelerating debt ratio, among other factors. Another core premise of the strategy is that the Fund should remain sector and industry neutral so as to avoid large risks by overweighting or underweighting a particular sector and focus solely on picking the best stocks in each sector and industry, rather than trying to predict macroeconomic trends. It is this complete bottom-up selection approach that makes the Sub-Adviser somewhat unique.
The energy sector was the largest contributor to performance during the six month period ended April 30, 2014 as selections in this sector outperformed those within the benchmark index by a wide margin. Dalek US Holdings, Inc. (DK), an oil and gas refining company, was one of the larger contributors to overall performance in the sector with a 27 percent return in the six-month period ended April 30, 2014. The firm reported earnings that were better than expected in February and announced a new addition to its Board of Directors that was well received. The Sub-Adviser will continue to hold the firm as long as it meets the criteria of the Fund’s multi-factor model or another security is deemed to have better prospects.
Stocks in the basic materials sector detracted somewhat on a relative basis. One of the bright spots, however, was Mineral Technologies, Inc. (MTX), a chemical company that produces synthetic minerals. The holding returned more than 5 percent in the six-month period ended April 30, 2014. Coeur Mining, Inc. (CDE), a silver mining company, was one of the weaker performers in the sector, losing 29 percent during the same time period. Low silver prices have put pressure on these types of firms but the Sub-Adviser believes the company to be fundamentally sound as it still meets the model’s criteria.
Security selection in the consumer staples sector added value to the Fund despite a relatively small weighting as stock picks in this sector outperformed staples stocks held in the benchmark by a wide margin, as well as the overall index. The Anderson’s, Inc. (ANDE), a firm that produces a variety of farm products and owns and operates retail stores to distribute specialty foods, was a top performer in the first half of the fiscal year. The company rose by more than 26 percent over that period. The Sub-Adviser was encouraged by the companies quarterly earnings reported in February showing an impressive 104 percent year-over-year gain. The firm has also made recent acquisitions that look promising, according to the Sub-Adviser.
The transportation sector was the worst performer during the six-month period ended April 30, 2014. Transportation has the smallest weighting within the index and within the Fund thus limiting the negative influence on overall performance. Werner Enterprises, Inc. (WERN), a long-haul trucking company that transports shipments of general commodities, was the best performer in the group. The stock rose by 11 percent over that period after releasing positive earnings reports and receiving an industry award.
Going forward, the Sub-Adviser will continue its sector and industry neutral bottom-up stock picking strategy without regard to outside economic factors, interest rate changes, or any other top-down methodology. The Fund will continue to analyze its multi-factor model, only making adjustments when it is deemed that a particular metric is no longer working properly or it is found that a new fundamental or technical indicator may be useful.
Growth of $10,000 Investment – (Unaudited)
Total Returns as of April 30, 2014
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) |
Class N | 5.59% | 19.72% | 10.26% | 18.47% | 5.53% |
Class C Class A with load of 5.75% Class A without load | 5.10% (0.56)% 5.50% | 18.56% 12.52% 19.42% | 9.17% 7.91% 10.05% | 17.30% 16.84% 18.24% | 4.49% 3.67%* 4.51%* |
Russell 2000 Value Index | 4.97% | 19.61% | 11.16% | 19.13% | 5.02% |
Morningstar Small Cap Value Category | 10.82% | 22.01% | 11.52% | 20.13% | 7.70% |
* Class A commenced operations on January 3, 2007.
The Russell 2000 Value Index is an unmanaged index that measures the performance of small cap companies in the Russell 300 Index with lower price-to-book ratios and lower forecasted growth rates.
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. 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. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%. 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, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
|
| Shares |
| Value |
COMMON STOCK - 96.5 % |
|
|
|
|
|
|
|
|
|
|
|
AEROSPACE / DEFENSE - 2.7 % |
|
|
|
| COMPUTERS - 2.1 % |
|
|
|
| ||
Curtiss-Wright Corp. |
| 6,850 |
| $ 437,989 |
| DST Systems, Inc. |
| 3,070 |
| $ 283,023 | |
Ducommun, Inc. * |
| 10,840 |
| 263,087 |
| Insight Enterprises, Inc. * |
| 10,440 |
| 272,693 | |
|
|
|
| 701,076 |
|
|
|
|
|
| 555,716 |
AGRICULTURE - 1.7 % |
|
|
|
|
| DIVERSIFIED FINANCIAL SERVICES - 1.9 % |
|
|
| ||
Andersons, Inc. The |
| 7,135 |
| 444,439 |
| FBR & Co. * |
|
| 5,400 |
| 139,320 |
|
|
|
|
|
| Investment Technology Group, Inc. * | 17,500 |
| 361,200 | ||
AIRLINES - 0.5 % |
|
|
|
|
|
|
|
|
|
| 500,520 |
SkyWest, Inc. |
| 10,150 |
| 117,740 |
| ELECTRIC - 3.3 % |
|
|
|
| |
|
|
|
|
|
| Empire District Electric Co. The | 12,160 |
| 295,731 | ||
APPAREL - 0.7 % |
|
|
|
|
| IDACORP, Inc. |
|
| 4,960 |
| 278,454 |
Unifi, Inc. * |
| 7,850 |
| 173,799 |
| PNM Resources, Inc. |
| 10,190 |
| 282,059 | |
|
|
|
|
|
|
|
|
|
|
| 856,244 |
AUTO PARTS & EQUIPMENT - 1.7 % |
|
|
|
| ELECTRONICS - 2.7 % |
|
|
|
| ||
Standard Motor Products, Inc. |
| 11,780 |
| 447,522 |
| Benchmark Electronics, Inc. * | 11,630 |
| 269,583 | ||
|
|
|
|
|
| Checkpoint Systems, Inc. * |
| 10,500 |
| 134,085 | |
BANKS - 13.8 % |
|
|
|
|
| Watts Water Technologies, Inc. | 5,490 |
| 292,068 | ||
1st Source Corp. |
| 3,689 |
| 108,789 |
|
|
|
|
|
| 695,736 |
Associated Banc-Corp. |
| 16,000 |
| 280,800 |
| ENGINEERING & CONSTRUCTION - 1.0 % |
|
|
| ||
Banner Corp. |
| 7,870 |
| 311,180 |
| AECOM Technology Corp. * |
| 7,850 |
| 254,497 | |
Central Pacific Financial Corp. | 6,920 |
| 129,888 |
|
|
|
|
|
|
| |
Columbia Banking System, Inc. |
| 9,500 |
| 235,790 |
| ENTERTAINMENT - 1.2 % |
|
|
|
| |
Community Bank System, Inc. |
| 6,840 |
| 254,380 |
| Marriott Vacations Worldwide Corp. * | 5,720 |
| 311,626 | ||
First Citizens BancShares, Inc. NC - Class B | 900 |
| 202,401 |
|
|
|
|
|
|
| |
First Interstate Bancsystem, Inc. | 10,770 |
| 268,065 |
| ENVIRONMENTAL CONTROL - 0.7 % |
|
|
| |||
First Midwest Bancorp, Inc. IL |
| 15,507 |
| 253,849 |
| Darling International, Inc. * |
| 9,500 |
| 190,095 | |
Independent Bank Corp/Rockland MA | 6,500 |
| 241,280 |
|
|
|
|
|
|
| |
Sandy Spring Bancorp, Inc. |
| 6,500 |
| 156,325 |
| GAS - 2.3 % |
|
|
|
|
|
Simmons First National Corp. |
| 3,300 |
| 119,328 |
| Northwest Natural Gas Co. |
| 6,200 |
| 274,474 | |
State Bank Financial Corp. |
| 7,400 |
| 122,692 |
| Southwest Gas Corp. |
| 5,850 |
| 321,809 | |
TCF Financial Corp. |
| 17,710 |
| 278,047 |
|
|
|
|
|
| 596,283 |
Trico Bancshares |
| 5,000 |
| 121,250 |
| HEALTHCARE - PRODUCTS - 1.6 % |
|
|
| ||
Trustmark Corp. |
| 10,400 |
| 237,848 |
| Greatbatch, Inc. * |
| 8,920 |
| 410,588 | |
Wintrust Financial Corp. |
| 6,173 |
| 276,674 |
|
|
|
|
|
|
|
|
|
|
| 3,598,586 |
| HEALTHCARE-SERVICES - 1.1 % |
|
|
| ||
BIOTECHNOLOGY - 1.0 % |
|
|
|
|
| Gentiva Health Services, Inc. * | 13,630 |
| 102,634 | ||
Charles River Laboratories International, Inc. * | 5,000 |
| 268,600 |
| Magellan Health Services, Inc. * | 3,350 |
| 193,362 | |||
|
|
|
|
|
|
|
|
|
|
| 295,996 |
BUILDING MATERIALS - 1.9 % |
|
|
|
| HOME FURNISHINGS - 0.9 % |
|
|
|
| ||
Comfort Systems USA, Inc. |
| 14,303 |
| 214,545 |
| La-Z-Boy, Inc. |
|
| 10,160 |
| 246,177 |
Louisiana-Pacific Corp. * |
| 17,450 |
| 286,006 |
|
|
|
|
|
|
|
|
|
|
| 500,551 |
| INSURANCE - 5.1 % |
|
|
|
| |
CHEMICALS - 2.1 % |
|
|
|
|
| Aspen Insurance Holdings Ltd. | 6,600 |
| 302,148 | ||
Minerals Technologies, Inc. |
| 5,490 |
| 326,600 |
| CNO Financial Group, Inc. |
| 21,160 |
| 365,010 | |
Stepan Co. |
| 4,100 |
| 237,103 |
| First American Financial Corp. |
| 9,520 |
| 253,232 | |
|
|
|
| 563,703 |
| Hanover Insurance Group, Inc. | 3,200 |
| 187,040 | ||
COAL - 0.4 % |
|
|
|
|
| Selective Insurance Group, Inc. | 10,360 |
| 237,658 | ||
Walter Energy, Inc. |
| 16,490 |
| 118,728 |
|
|
|
|
|
| 1,345,088 |
|
|
|
|
|
| INTERNET - 1.1 % |
|
|
|
| |
COMMERCIAL SERVICES - 7.9 % |
|
|
|
| Conversant, Inc. * |
| 12,060 |
| 294,746 | ||
Aaron's, Inc. |
| 8,640 |
| 254,621 |
|
|
|
|
|
|
|
Albany Molecular Research, Inc. * | 19,980 |
| 320,879 |
| INVESTMENT COMPANIES - 1.4 % |
|
|
| |||
Booz Allen Hamilton Holding Corp. | 13,090 |
| 304,212 |
| Main Street Capital Corp. |
| 8,000 |
| 251,520 | ||
Convergys Corp. |
| 13,890 |
| 299,191 |
| THL Credit, Inc. |
|
| 9,000 |
| 120,870 |
ICF Internationa, Inc. * |
| 6,660 |
| 259,540 |
|
|
|
|
|
| 372,390 |
Kelly Services, Inc. |
| 9,970 |
| 209,968 |
| MEDIA - 1.0 % |
|
|
|
|
|
Matthews International Corp. - Class A | 4,470 |
| 180,364 |
| John Wiley & Sons, Inc. |
| 4,800 |
| 275,808 | ||
Quad/Graphics, Inc. |
| 11,500 |
| 248,975 |
|
|
|
|
|
|
|
|
|
|
| 2,077,750 |
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| ||||
Dunham Small Cap Value Fund (Continued) |
|
|
|
|
|
|
|
|
| ||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
|
| Shares |
| Value |
MINING - 0.6 % |
|
|
|
|
| SOFTWARE - 1.5 % |
|
|
|
| |
Coeur Mining, Inc. * |
| 17,020 |
| $ 147,393 |
| Acutate Corp. * |
|
| 26,000 |
| $ 146,380 |
|
|
|
|
|
| Digital River, Inc. * |
| 12,860 |
| 231,796 | |
MISCELLANEOUS MANUFACTURING - 0.5 % |
|
|
|
|
|
|
|
|
| 378,176 | |
Standex International Corp. |
| 2,108 |
| 125,152 |
| TELECOMMUNICATIONS - 2.4 % |
|
|
| ||
|
|
|
|
|
| Iridium Communications, Inc. * | 26,200 |
| 174,754 | ||
OIL & GAS - 3.5 % |
|
|
|
|
| Polycom, Inc. * |
|
| 22,780 |
| 280,194 |
Clayton Williams Energy, Inc. * |
| 2,970 |
| 429,106 |
| USA Mobility, Inc. |
| 10,330 |
| 176,953 | |
Swift Energy Co. * |
| 15,200 |
| 187,416 |
|
|
|
|
|
| 631,901 |
Unit Corp. * |
| 4,500 |
| 296,775 |
| TEXTILES - 1.0 % |
|
|
|
| |
|
|
|
| 913,297 |
| UniFirst Corp. MA |
| 2,760 |
| 265,622 | |
OIL & GAS SERVICES - 2.0 % |
|
|
|
|
|
|
|
|
|
|
|
Exterran Holdings, Inc. * |
| 5,900 |
| 253,818 |
| TRANSPORTATION - 1.5 % |
|
|
|
| |
Helix Energy Solutions Group, Inc. * | 11,700 |
| 281,268 |
| Quality Distribution, Inc. * |
| 15,110 |
| 189,933 | ||
|
|
|
| 535,086 |
| Werner Enterprises, Inc. |
| 7,620 |
| 195,072 | |
REAL ESTATE - 0.8 % |
|
|
|
|
|
|
|
|
|
| 385,005 |
Forestar Group, Inc. * |
| 12,030 |
| 205,112 |
|
|
|
|
|
|
|
|
|
|
|
|
| TOTAL COMMON STOCK - (Cost - $23,797,909) |
| 25,261,253 | |||
REITS - 12.3 % |
|
|
|
|
|
|
|
|
|
|
|
Campus Crest Communities, Inc. | 25,530 |
| 219,813 |
| EXCHANGE TRADED FUNDS - 2.2 % |
|
|
| |||
Chesapeake Lodging Trust |
| 10,670 |
| 287,983 |
| EQUITY FUND - 2.2 % |
|
|
|
| |
CoreSite Realty Corp. |
| 8,529 |
| 259,452 |
| iShares Russell 2000 Value ETF |
|
|
| ||
First Industrial Realty Trust, Inc. | 14,640 |
| 268,937 |
| (Cost - $ 540,995) |
| 5,800 |
| 570,082 | ||
Government Properties Income Trust | 10,830 |
| 275,624 |
|
|
|
|
|
|
| |
Healthcare Trust of America, Inc. | 26,820 |
| 313,526 |
| SHORT-TERM INVESTMENT - 3.5 % |
|
|
| |||
LaSalle Hotel Properties |
| 8,420 |
| 278,534 |
| MONEY MARKET FUND - 3.5 % |
|
|
| ||
Lexington Realty Trust |
| 27,240 |
| 293,102 |
| Invesco STIT-Treasury Portfolio - 0.02% + |
|
|
| ||
Pennsylvania Real Estate Investment Trust | 14,700 |
| 243,285 |
| (Cost - $916,361) |
| 916,361 |
| 916,361 | ||
RLJ Lodging Trust |
| 7,930 |
| 211,493 |
|
|
|
|
|
|
|
Select Income REIT |
| 8,398 |
| 258,490 |
| TOTAL INVESTMENTS - 102.2 % (Cost - $25,255,265) |
| $ 26,747,696 | |||
Sovran Self Storage, Inc. |
| 3,920 |
| 297,528 |
| LIABILITIES LESS OTHER ASSETS- (2.2) % |
| (576,787) | |||
|
|
|
| 3,207,767 |
| NET ASSETS - 100.0% |
|
|
| $ 26,170,909 | |
RETAIL - 3.1 % |
|
|
|
|
|
|
|
|
|
|
|
Bon-Ton Stores, Inc. |
| 12,830 |
| 141,130 |
| REIT - Real Estate Investment Trust |
|
|
| ||
Brown Shoe Co, Inc. |
| 11,209 |
| 264,420 |
| ETF - Exchange Traded Fund |
|
|
|
| |
DineEquity, Inc. |
| 3,000 |
| 227,430 |
| + Variable rate security - interest rate is as April 30, 2014. | |||||
Kirkland's, Inc. * |
| 10,250 |
| 175,378 |
| * Non Income producing security. |
|
|
| ||
|
|
|
| 808,358 |
|
| |||||
SAVINGS & LOANS - 1.8 % |
|
|
|
|
| ||||||
Berkshire Hills Bancorp, Inc. |
| 6,450 |
| 151,123 |
| ||||||
Dime Community Bancshares, Inc. | 7,700 |
| 125,510 |
|
|
|
|
|
|
| |
WSFS Financial Corp. |
| 2,830 |
| 191,365 |
|
|
|
|
|
|
|
|
|
|
| 467,998 |
|
|
|
|
|
|
|
SEMICONDUCTORS - 3.7 % |
|
|
|
|
|
|
|
|
|
|
|
IXYS Corp. |
| 12,842 |
| 138,565 |
|
|
|
|
|
|
|
Kulicke & Soffa Industries, Inc. * | 20,630 |
| 303,467 |
|
|
|
|
|
|
| |
OmniVision Technologies, Inc. * | 14,500 |
| 283,185 |
|
|
|
|
|
|
| |
PMC - Sierra, Inc. * |
| 36,720 |
| 251,165 |
|
|
|
|
|
|
|
|
|
|
| 976,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) |
| ||||||||||
Financial |
| 36.26% |
|
|
| Energy |
|
| 5.86% |
|
|
Consumer, Non-Cyclical |
| 13.08% |
|
|
| Utilities |
|
| 5.43% |
|
|
Industrial |
| 10.66% |
|
|
| Other Industries |
|
| 4.78% |
|
|
Consumer, Cyclical |
| 8.86% |
|
|
| Communications |
| 4.50% |
|
| |
Technology |
| 7.14% |
|
|
| Short-Term Investment |
| 3.43% |
|
| |
|
|
|
|
|
| Total |
|
| 100.00% |
|
|
* Based on total value of investments as of April 30, 2014. |
|
|
|
|
|
|
|
|
| ||
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 (Bailard, Inc.)
The MSCI Emerging Markets Index (“Benchmark Index”) declined by 3.0 percent in the six-month period ended April 30, 2014, despite a 6.8 percent gain in the final three months of the period. Performance lagged U.S. markets, as measured by the S&P 500, which increased 8.4 percent during the same timeframe. The Fund continues to focus on individual countries and bottom-up stock selection within those countries, with overweights or underweights to economic sectors being largely incidental. Top performing countries in the Fund included Vietnam and Brazil while China and Russia lagged.
The Fund recently added another factor to its model that is based on investor sentiment. Hundreds of news stories about specific companies are collected on a monthly basis and scored based on how positive or negative the articles are using computer-based textual analysis. The results are somewhat similar to momentum but have a relatively low correlation to other factors, according to the Sub-Adviser.
Exposure to Vietnam enhanced performance on a relative and absolute basis. The Benchmark Index has no exposure to this country while the Sub-Adviser held a 2 percent position during the six month period ended April 30, 2014. The Fund held the Market Vectors Vietnam ETF (VNM), which returned more than 9 percent over the same timeframe. The Sub-Adviser commented that Vietnam is a frontier market that is experiencing better efficiency in the capital markets and could not be ignored despite the fact that the Benchmark Index does not currently have any holdings in this country.
The Sub-Adviser underweighted China, which is the largest country weighting in the Benchmark Index, by approximately 2 percent in the later part of the six-month period. A relative neutral weight was held in the first three months of the period. Exposure to the country detracted from performance somewhat on a relative basis. Security selection was the main driver of underperformance. China Petroleum and Chemical Corporation (0386.HK) was one of the larger positions that outperformed. This large integrated oil and gas firm returned more than 8 percent in the first half of the fiscal year. The Sub-Adviser believes a weakened Yuan should help GDP in the country going forward but has no immediate plans to increase the weighting toward this country.
A severe underweight to Russia was a benefit to the Fund, though security selection has detracted somewhat from performance. Russian stocks have been under intense pressure due to the situation in the Ukraine and had been underperforming even prior to that. Mobile Telesystems OJSC ADR (MBT), a wireless telecommunications provider held by the Fund, lost 26.5 percent in the six-month period ended April 30, 2014 with the majority of the loss occurring in the first three months of that time period. Mobile Telesystems OJSC ADR underperformed the Market Vectors Russia ETF (RSX), which measures a broad index of Russian companies, by 5.5 percent over the same period. The Sub-Adviser will consider increasing the weight toward Russia when the Ukrainian situation shows signs of improvement as it believes the country has been oversold.
Security selection in Brazil added value as Brazilian stocks held by the Fund outperformed those on the Benchmark Index by a wide margin. Though the country had relatively poor performance in the first fiscal quarter, it rebounded nicely in the second part of the six-month period ended April 30, 2014. Embraer SA (EMBR3 BZ), an aerospace and defense firm, was one of the better performing stocks held by the Sub-Adviser. The company produces and sells jet and turboprop aircrafts for civil and defense aviation markets in Brazil and internationally. After a 19 percent return during the time period, the Sub-Adviser plans to continue to hold but may trim the position if the Sub-Advisers believes it has become overvalued.
Going forward, the Sub-Adviser believes some convergence has yet to occur between developed and emerging markets. More quantitative easing in Europe to spur inflation should help emerging markets more than developed markets. Continued economic strength in the United States should also benefit emerging markets countries. The Fund thinks emerging markets stocks overall look reasonably priced relative to historical data with many very attractive opportunities. Particularly, the Sub-Adviser believes the markets are currently undervaluing Russia. Opportunities in Latin America, Argentina and Columbia look promising as well.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2014
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) |
Class N | (6.00)% | (9.10)% | (6.89)% | 10.10% | 6.79% |
Class C Class A with load of 5.75% Class A without load | (6.51)% (11.59)% (6.18)% | (10.03)% (14.50)% (9.27)% | (7.81)% (8.92)% (7.10)% | 9.01% 8.52% 9.83% | 5.74% (1.03)%* (0.22)%* |
MSCI Emerging Markets Index (net) | (2.98)% | (1.84)% | (3.74)% | 11.08% | 10.11% |
Morningstar Diversified Emerging Markets Category | 5.98% | (1.88)% | (3.33)% | 11.17% | 8.95% |
*Class A commenced operations on January 3, 2007.
The MSCI Emerging Markets Index (net) 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.
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.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 2.01% for Class N, 3.01% for Class C and 2.26% for Class A. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%. 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, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
|
|
| Shares |
| Value |
COMMON STOCK - 92.2 % |
|
|
|
|
| ELECTRONICS - 1.5 % |
|
|
|
|
|
|
AGRICULTURE - 0.5 % |
|
|
|
|
| Hon Hai Precision Industry Co., Ltd. |
|
| 200,000 |
| $ 573,784 | |
KT&G Corp. |
| 2,500 |
| $ 200,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ENTERTAINMENT - 1.4 % |
|
|
|
|
|
|
APPAREL - 0.5 % |
|
|
|
|
| OPAP SA |
|
|
| 35,000 |
| 558,650 |
Pou Chen Corp. |
| 150,000 |
| 190,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ENVIRONMENTAL - 1.0 % |
|
|
|
|
|
|
AUTO MANUFACTURERS - 4.0 % |
|
|
|
| Coway Co. Ltd. |
|
|
| 5,000 |
| 395,238 | |
Geely Automobile Holdings Ltd. | 500,000 |
| 173,819 |
|
|
|
|
|
|
|
| |
Kia Motors Corp. |
| 8,000 |
| 443,892 |
| FOOD - 3.2 % |
|
|
|
|
|
|
Tata Motors, Inc. - ADR |
| 25,000 |
| 935,500 |
| Cia Brasileira de Distribuicao |
|
|
| 20,000 |
| 944,708 |
|
|
|
| 1,553,211 |
| Tingyi Cayman Islands Holding Corp. |
|
| 100,000 |
| 278,388 | |
BANKS - 18.4 % |
|
|
|
|
|
|
|
|
|
|
| 1,223,096 |
Banco Macro SA |
| 10,000 |
| 305,600 |
| FOREST PRODUCTS & PAPER - 0.4 % |
|
|
|
|
| |
Bancolombia SA - ADR |
| 8,000 |
| 455,440 |
| Mondi Ltd. |
|
|
| 10,000 |
| 166,342 |
Bank of China Ltd. |
| 1,700,000 |
| 749,022 |
|
|
|
|
|
|
|
|
China Construction Bank Corp. | 700,000 |
| 484,665 |
| HEALTHCARE - SERVICES - 0.6 % |
|
|
|
|
| ||
Commercial International Bank Egypt SAE - GDR | 250,000 |
| 1,262,869 |
| Netcare Ltd. |
|
|
| 100,000 |
| 242,330 | |
FirstRand Ltd. |
| 125,000 |
| 459,443 |
|
|
|
|
|
|
|
|
Grupo Financiero Galicia SA |
| 15,000 |
| 201,900 |
| HOLDING COMPANIES-DIVERSIFIED - 2.3 % |
|
|
|
|
| |
ICICI Bank Ltd. |
| 30,000 |
| 1,280,100 |
| Barloworld Ltd |
|
|
| 20,000 |
| 217,956 |
Industrial & Commercial Bank of China Ltd. | 800,000 |
| 478,018 |
| Itausa - Investimentos Itau SA |
|
|
| 150,000 |
| 657,600 | |
Industrial Bank of Korea |
| 20,000 |
| 246,365 |
|
|
|
|
|
|
| 875,556 |
OTP Bank PLC |
| 40,000 |
| 761,997 |
| HOME FURNISHINGS - 1.3 % |
|
|
|
|
|
|
Sberbank of Russia OAO - ADR | 13,000 |
| 109,590 |
| Steinhoff International Holdings Ltd. |
|
| 100,000 |
| 519,092 | ||
Sberbank of Russia - ADR |
| 37,000 |
| 310,134 |
|
|
|
|
|
|
|
|
|
|
|
| 7,105,143 |
| HOUSEHOLD PRODUCTS/WARES - 0.6 % |
|
|
|
|
| |
BUILDING MATERIALS - 0.8 % |
|
|
|
| Biostime International Holdings Ltd. |
|
| 35,000 |
| 233,048 | ||
Taiwan Cement Corp. |
| 200,000 |
| 317,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| INSURANCE - 4.0 % |
|
|
|
|
|
|
CHEMICALS - 0.7 % |
|
|
|
|
| Hanwha Life Insurance Co., Ltd. |
|
|
| 60,000 |
| 391,095 |
Sasol Ltd. |
| 5,000 |
| 279,929 |
| MMI Holdings Ltd. |
|
|
| 90000 |
| 226,039 |
|
|
|
|
|
| PICC Porperty & Casualty Co. Ltd. |
|
| 150,000 |
| 198,277 | |
COMMERCIAL SERVICES - 1.8 % |
|
|
|
| Porto Seguro SA |
|
|
| 50,000 |
| 732,531 | |
Kroton Educacional SA |
| 15,000 |
| 320,480 |
|
|
|
|
|
|
| 1,547,942 |
Zhejiang Expressway Co., Ltd. | 450,000 |
| 389,374 |
| INTERNET - 2.1 % |
|
|
|
|
|
| |
|
|
|
| 709,854 |
| MercadoLibre, Inc. |
|
|
| 4000 |
| 373,080 |
COMPUTERS - 4.3 % |
|
|
|
|
| Tencent Holdings Ltd. |
|
|
| 7000 |
| 440,722 |
Infosys Ltd. - ADR |
| 24,000 |
| 1,289,040 |
|
|
|
|
|
|
| 813,802 |
Inventec Corp. |
| 400,000 |
| 368,444 |
| IRON/STEEL - 1.2 % |
|
|
|
|
|
|
|
|
|
| 1,657,484 |
| Vale SA |
|
|
| 35,000 |
| 462,700 |
COSMETICS - 0.5 % |
|
|
|
|
|
|
|
|
|
|
|
|
AMOREPACIFIC Group |
| 400 |
| 206,960 |
| MINING - 2.0 % |
|
|
|
|
|
|
|
|
|
|
|
| AngloGold Ashanti Ltd. * |
|
|
| 17,000 |
| 307,700 |
DISTRIBUTION/WHOLESALE - 0.4 % |
|
|
|
| MMC Norilsk Nickel OJSC |
|
|
| 12,000 |
| 216,360 | |
Hanwha Corp. * |
| 5,000 |
| 145,756 |
| Sesa Sterlite Ltd |
|
|
| 20,000 |
| 244,200 |
|
|
|
|
|
|
|
|
|
|
|
| 768,260 |
DIVERSIFIED FINANCIAL SERVICES - 0.9 % |
|
|
|
| MISCELANEOUS MANUFACTURING - 0.9 % |
|
|
|
|
| ||
CTBC Financial Holding Co., Ltd. | 584,767 |
| 347,550 |
| Fosun International Ltd. |
|
|
| 300,000 |
| 363,729 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
ELECTRIC - 4.1 % |
|
|
|
|
| OIL & GAS - 11.8 % |
|
|
|
|
|
|
Cia Energetica de Minas Gerais - ADR | 91,535 |
| 690,174 |
| China Petroleum & Chemical Corp. |
|
| 600,000 |
| 532,657 | ||
Huaneng Power International, Inc. | 350,000 |
| 342,613 |
| Ecopetrol SA - ADR |
|
|
| 12,000 |
| 449,880 | |
Korean Electric Power Corp. * | 20,000 |
| 382,800 |
| Gazprom OAO - ADR |
|
|
| 90,000 |
| 649,080 | |
|
|
|
| 1,415,587 |
| Lukoil OAO - ADR |
|
|
| 20,000 |
| 1,057,000 |
|
|
|
|
|
| MOL Hungarian Oil & Gas PLC |
|
|
| 9,000 |
| 516,544 |
|
|
|
|
|
| Reliance Industries Ltd. |
|
|
| 15,000 |
| 465,000 |
|
|
|
|
|
| SK Holdings Co. Ltd. |
|
|
| 2,500 |
| 443,485 |
|
|
|
|
|
| YPF SA |
|
|
| 15,000 |
| 426,900 |
|
|
|
|
|
|
|
|
|
|
|
| 4,540,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
|
|
|
| ||
Dunham Emerging Markets Stock Fund (Continued) |
|
|
|
|
|
|
|
|
|
| ||
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
|
|
| Shares |
| Value |
OIL & GAS SERVICES - 1.2 % |
|
|
|
|
|
|
|
|
|
|
| |
China Oilfield Services Ltd. |
| 200,000 |
| $ 479,489 |
| TOTAL COMMON STOCK (Cost - $33,462,611) |
|
|
|
| $ 35,555,987 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
PHARMACEUTICALS - 3.1 % |
|
|
|
| EXCHANGE TRADED FUNDS - 5.9 % |
|
|
|
|
| ||
Dr. Reddy's Laboratories Ltd. - ADR | 15,000 |
| 676,050 |
| EQUITY FUNDS - 5.9 % |
|
|
|
|
|
| |
Richter Gedeon Nyrt |
| 15,000 |
| 256,291 |
| Global X FTSE Colombia 20 ETF |
|
| 20,000 |
| 380,400 | |
Sihuan Pharmaceutical Holdings Group Ltd. | 250,000 |
| 276,330 |
| iShares MSCI South Africa ETF |
|
|
| 15,000 |
| 1,005,900 | |
|
|
|
| 1,208,671 |
| Market Vectors Russia ETF |
|
|
| 40,000 |
| 908,400 |
REAL ESTATE - 1.0 % |
|
|
|
|
| TOTAL EXCHANGE TRADED FUNDS (Cost - $2,404,461) |
| 2,294,700 | ||||
China Overseas Land & Investment Ltd. | 80,000 |
| 196,936 |
|
|
|
|
|
|
|
| |
Shimao Property Holdings Ltd. | 100,000 |
| 198,292 |
| SHORT-TERM INVESTMENT - 1.8 % |
|
|
|
|
| ||
|
|
|
| 395,228 |
| MONEY MARKET FUND - 1.8 % |
|
|
|
|
| |
RETAIL - 1.3 % |
|
|
|
|
| First American Government Obligations Fund - 0.01 % + |
|
| ||||
GOME Electrical Appliances Holding Ltd. | 1,400,000 |
| 264,311 |
| (Cost - $692,654) |
|
|
| 692,654 |
| 692,654 | |
GS Home Shopping, Inc. |
| 1,000 |
| 226,219 |
|
|
|
|
|
|
|
|
|
|
|
| 490,530 |
| TOTAL INVESTMENTS - 99.9 % (Cost - $36,559,726) |
| $ 38,543,341 | ||||
SEMICONDUCTORS - 8.3 % |
|
|
|
|
| OTHER ASSETS LESS LIABILITIES - 0.1 % |
|
|
|
| 39,294 | |
Advanced Semiconductor Engineering, Inc. | 70,000 |
| 413,700 |
| NET ASSETS - 100.0 % |
|
|
|
|
| $ 38,582,635 | |
Samsung Electronics Co., Ltd. | 800 |
| 1,043,250 |
|
|
|
|
|
|
|
| |
SK Hynix, Inc. * |
| 25,000 |
| 974,912 |
| * Non-income producing security. |
|
|
|
|
| |
Taiwan Semiconductor Manufacturing Co., Ltd. | 200,000 |
| 785,040 |
| + Variable rate security. Interest rate is as of April 30, 2014. |
|
| |||||
|
|
|
| 3,216,902 |
| ADR - American Depositary Receipt. |
|
|
|
|
| |
SOFTWARE - 0.4 % |
|
|
|
|
| GDR - Global Depositary Receipt. |
|
|
|
|
| |
Travelsky Technology Ltd. |
| 200,000 |
| 152,805 |
|
| ||||||
|
|
|
|
|
| |||||||
TELECOMMUNICATIONS - 5.7 % |
|
|
|
| ||||||||
China Mobile Ltd. |
| 40,000 |
| 380,742 |
|
|
|
|
|
|
|
|
Global Telecom Holding - GDR * | 150,000 |
| 557,700 |
|
|
|
|
|
|
|
| |
Hellenic Telecommunications Organization SA * | 30,000 |
| 479,013 |
|
|
|
|
|
|
|
| |
Mobile Telesystems OJSC - ADR | 20,000 |
| 335,200 |
|
|
|
|
|
|
|
| |
SK Telecom Co., Ltd. |
| 1,000 |
| 207,071 |
|
|
|
|
|
|
|
|
Vodacom Group Ltd. |
| 20,000 |
| 238,434 |
|
|
|
|
|
|
|
|
|
|
|
| 2,198,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||||||
China |
| 14.69% |
|
|
| Taiwan |
|
|
| 7.78% |
|
|
Other Countries |
| 14.88% |
|
|
| United States |
|
|
| 7.75% |
|
|
South Korea |
| 13.77% |
|
|
| Russia |
|
|
| 6.95% |
|
|
India |
| 12.69% |
|
|
| South Africa |
|
|
| 6.89% |
|
|
Brazil |
| 9.88% |
|
|
| Egypt |
|
|
| 4.72% |
|
|
|
|
|
|
|
| Total |
|
|
| 100.00% |
|
|
* Based on total value of investments as of April 30, 2014. |
|
|
|
|
|
|
|
|
|
| ||
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)
Despite some increased volatility in the market, small cap growth stocks, as measured by the Russell 2000 Growth Index, increased 1.3 percent for the six-month period ended April 30, 2014. The previous six-month period had seen growth of 19.9 percent for small-cap growth stocks, but the pace of growth declined as investors reaped rewards of the strong 2013 bull market and prepared for volatility in 2014. The months of November and December saw small cap growth stocks continue the strong performance that they had achieved during the pervious fiscal period by adding 4.1 percent and 2.1 percent, respectively. In March and April investors saw value stocks outperform growth as there was an abrupt market rotation out of growth names. Investors grew wary of fast-growing, high valuation “momentum stocks” that lead to a decline of 7.5 percent in those months.
During the six-month period ended April 30, 2014, there were no material changes to the Sub-Adviser's investment decision making process. The Sub-Adviser continues to implement a bottom-up process to selecting stocks for the Fund, focusing on individual firm characteristics rather than sector weightings or the economy as a whole. It seeks companies on the verge of experiencing large increases in market share. By seeking out and identifying market catalysts, the Sub-Adviser believes that the securities it selects for the Fund are tailored towards organic growth due to some kind of market advantage. The Sub-Adviser feels that this year Europe has begun to get its act together thanks to the commitment from the central bank to improve the flow of credit. China has also improved somewhat, helping to fuel growth in many of the Fund’s holdings that are exposed to China's economy through various levels of their supply chains.
The sectors which provided a strong benefit to the Fund during the fiscal period were the industrials and energy sectors. Small cap growth energy stocks in the Fund were primarily helped by RSP Permian Inc (RSPP), an independent oil and natural gas company focused on the acquisition, exploration, development, and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin of West Texas. The company gained 38.6 percent over the six month period. From the Industrials Sector, Spirit Airlines Inc. (SAVE), an airline company, contributed to the overall performance of the Fund with a strong 31.7 percent return over the six-month period ended April 30, 2014.
Two underperforming sectors were the information technology and consumer discretionary sectors. Fleetmatics Group PLC (FLTX), a provider of fleet management solutions delivered as software-as-a-service, fell 5.4 percent during the six month period ended April 30, 2014 and was a large detractor from the Fund’s performance in the sector. Black Diamond, Inc. (BDE), a manufacturer of equipment for climbing, skiing and mountain sports was the worst performing company in the consumer discretionary sector, falling 25.2 percent in the six-month period ended April, 2014.
The Sub-Adviser believes that the challenging weather created activity disruptions during the period. The Sub-Adviser believes that stocks are still fairly attractive based on valuations and that corporations are sitting on a lot of cash that could be put to use at some point in the near future. In addition, the Sub-Adviser does not see any significant headwinds to growth on the immediate horizon. Furthermore, as the Federal Reserve tapers economic stimulus, the Sub-Adviser is optimistic that there may be a move from bonds to stocks as interest rates potentially increase. This could create an environment in which stocks show strength, though instability in emerging markets is a concern for the Sub-Adviser.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2014
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) | |
Class N |
| 0.49% | 26.02% | 7.42% | 18.63% | 8.25% |
Class C Class A with load of 5.75% Class A without load |
| (0.02)% (5.40)% 0.38% | 24.80% 18.48% 25.72% | 6.36% 5.07% 7.17% | 17.44% 16.97% 18.36% | 7.18% 7.05%* 7.92%* |
Russell 2000 Growth Index |
| 1.27% | 21.46% | 10.33% | 20.50% | 8.34% |
Morningstar Small Cap Growth Category |
| 0.81% | 21.01% | 8.86% | 19.28% | 7.17% |
**Class A commenced operations on January 3, 2007.
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.
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.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including the cost of underlying funds, are 1.36% for Class N, 2.36% for Class C and 1.61% for Class A. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%. 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, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
COMMON STOCK - 98.6 % |
|
|
|
|
|
|
|
|
|
|
ADVERTISING - 1.4 % |
|
|
|
|
| DIVERSIFIED FINANCIAL SERVICES - (Continued) 2.5 % |
|
|
|
|
MDC Partners, Inc. - Class A |
| 13,969 |
| $ 341,123 |
| WageWorks, Inc. * |
| 4,039 |
| $ 171,132 |
|
|
|
|
|
|
|
|
|
| 591,326 |
AIRLINES - 2.0 % |
|
|
|
|
| ELECTRICAL COMPONENTS & EQUIPMENT - 0.6 % |
|
|
|
|
Spirit Airlines, Inc. * |
| 8,603 |
| 488,995 |
| Canadian Solar, Inc. * |
| 5,452 |
| 147,858 |
|
|
|
|
|
|
|
|
|
|
|
APPAREL - 2.3 % |
|
|
|
|
| ELECTRONICS - 2.0 % |
|
|
|
|
Iconix Brand Group, Inc. * |
| 5,783 |
| 245,778 |
| Applied Optoelectronics, Inc. * |
| 4,857 |
| 109,283 |
Skechers U.S.A., Inc. - Class A * |
| 7,615 |
| 312,139 |
| Fluidigm Corp. * |
| 9,641 |
| 362,116 |
|
|
|
| 557,917 |
|
|
|
|
| 471,399 |
AUTO PARTS & EQUIPMENT - 2.5 % |
|
|
|
|
| ENGINEERING & CONSTRUCTION- 2.1 % |
|
|
|
|
Dana Holding Corp. |
| 4,753 |
| 100,621 |
| Chicago Bridge & Iron |
| 3,182 |
| 254,783 |
Dorman Products, Inc. * |
| 4,301 |
| 247,523 |
| Tutor Perini Corp. * |
| 8,772 |
| 259,651 |
Motorcar Parts of America, Inc. * |
| 9,023 |
| 247,591 |
|
|
|
|
| 514,434 |
|
|
|
| 595,735 |
| FOOD - 0.8 % |
|
|
|
|
BANKS - 6.0 % |
|
|
|
|
| Sprouts Farmers Market, Inc. * |
| 6,105 |
| 195,177 |
Bank of the Ozarks |
| 3,539 |
| 211,986 |
|
|
|
|
|
|
BankUnited, Inc. |
| 10,121 |
| 333,892 |
| HEALTHCARE-PRODUCTS - 8.3 % |
|
|
|
|
Customers Bancorp, Inc. * |
| 10,845 |
| 238,915 |
| Cepheid, Inc. * |
| 4,423 |
| 192,312 |
Signature Bank * |
| 2,020 |
| 240,016 |
| Cooper Cos, Inc. |
| 1,902 |
| 250,893 |
SVB Financial Group * |
| 1,963 |
| 209,432 |
| Cyberonics, Inc. * |
| 3,415 |
| 202,031 |
ViewPoint Financial Group |
| 8,228 |
| 214,504 |
| Insulet Corp. * |
| 5,824 |
| 219,157 |
|
|
|
| 1,448,745 |
| Nanostring Technologies, Inc. * |
| 5,678 |
| 92,097 |
BIOTECHNOLOGY - 1.5 % |
|
|
|
|
| Novadaq Technologies, Inc. * |
| 12,968 |
| 202,949 |
Intercept Pharmaceuticals, Inc. * |
| 616 |
| 162,698 |
| Quidel Corp. * |
| 4,354 |
| 93,393 |
Synageva BioPharma Corp. * |
| 2,376 |
| 205,215 |
| Spectranetics Corp. * |
| 8,051 |
| 171,164 |
|
|
|
| 367,913 |
| Tandem Diabetes Care, Inc. * |
| 9,259 |
| 162,681 |
BUILDING MATERIALS - 1.8 % |
|
|
|
|
| Trinity Biotech PLC |
| 8,355 |
| 204,781 |
Apogee Enterprises, Inc. |
| 6,295 |
| 199,992 |
| Zeltiq Asthetics, Inc. * |
| 11,335 |
| 207,317 |
Caesarstone Sdot-Yam Ltd. |
| 4,235 |
| 220,982 |
|
|
|
|
| 1,998,775 |
|
|
|
| 420,974 |
| HEALTHCARE-SERVICES - 2.6 % |
|
|
|
|
COMMERICAL SERVICES - 8.7 % |
|
|
|
|
| ICON PLC * |
| 187 |
| 7,250 |
Grand Canyon Education, Inc. * |
| 5,253 |
| 226,509 |
| ICON PLC - ADR * |
| 7,388 |
| 286,433 |
Huron Consulting Group, Inc. * |
| 3,706 |
| 263,867 |
| Surgical Care Affiliates, Inc. * |
| 11,297 |
| 331,906 |
Kforce, Inc. |
| 10,586 |
| 244,748 |
|
|
|
|
| 625,589 |
MAXIMUS, Inc. |
| 4,756 |
| 202,463 |
| INTERNET - 6.3 % |
|
|
|
|
Nord Anglia Education * |
| 12,290 |
| 243,957 |
| FireEye, Inc. * |
| 5,535 |
| 217,304 |
On Assignment, Inc. * |
| 7,088 |
| 248,080 |
| Marketo, Inc. * |
| 7,578 |
| 205,667 |
PAREXEL International Corp. * |
| 4,273 |
| 193,781 |
| RetailMeNot * |
| 6,930 |
| 206,583 |
Team Health Holdings, Inc. * |
| 5,188 |
| 251,514 |
| Splunk, Inc. * |
| 4,036 |
| 220,245 |
WuXi Pharma Tech Cayman - ADR * |
| 6,481 |
| 220,354 |
| SPS Commerce, Inc. * |
| 2,961 |
| 153,380 |
|
|
|
| 2,095,273 |
| Textura Corp. * |
| 8,083 |
| 143,958 |
COMPUTERS - 3.2 % |
|
|
|
|
| WIX.Com Ltd. * |
| 10,074 |
| 206,416 |
EPAM Systems * |
| 5,628 |
| 175,200 |
| Yandex NV - Class A * |
| 6,048 |
| 160,272 |
Nimble Storage, Inc. * |
| 7,306 |
| 180,093 |
|
|
|
|
| 1,513,825 |
Syntel, Inc.* |
| 2,698 |
| 216,703 |
| MACHINERY-CONSTRUCTION & MINING - 0.9 % |
|
|
| |
Varonis Systems, Inc. * |
| 7,980 |
| 201,655 |
| Astec Industries, Inc. |
| 5,237 |
| 209,218 |
|
|
|
| 773,651 |
|
|
|
|
|
|
DISTRIBUTION/WHOLESALE - 0.9 % |
|
|
|
|
| MACHINERY-DIVERSIFIED - 0.7 % |
|
|
|
|
MWI Veterinary Supply, Inc. * |
| 1,372 |
| 214,910 |
| Power Solutions International, Inc. * |
| 2,091 |
| 173,030 |
|
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 2.5 % |
|
|
|
|
| MEDIA - 0.8 % |
|
|
|
|
Portfolio Recovery Associates, Inc. * |
| 5,277 |
| 301,581 |
| Nextra Broadcastings Group, Inc. |
| 5,055 |
| 201,442 |
Pzena Investment Management Inc. |
| 10,912 |
| 118,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
|
|
|
|
Dunham Small Cap Growth Fund (Continued) |
|
|
|
|
|
|
|
|
|
|
April 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
|
|
|
|
|
|
|
|
|
|
|
MISCELLANEOUS MANUFACTURING - 0.9 % |
|
|
|
| SOFTWARE - 8.1 % |
|
|
|
| |
Movado Group |
| 5,410 |
| $ 212,505 |
| Benefitfocus, Inc. * |
| 7,987 |
| $ 258,779 |
|
|
|
|
|
| Callidus Software, Inc.* |
| 19,192 |
| 183,188 |
OIL & GAS - 5.4 % |
|
|
|
|
| Concur Technologies, Inc. * |
| 2,098 |
| 168,826 |
Athlon Energy, Inc. * |
| 5,978 |
| 241,571 |
| Cornerstone OnDemand, Inc. * |
| 3,856 |
| 141,747 |
Oasis Petroleum, Inc. * |
| 4,236 |
| 197,016 |
| Cvent, Inc. * |
| 5,918 |
| 162,923 |
PDC Energy, Inc. * |
| 4,426 |
| 281,803 |
| Demandware, Inc. * |
| 3,234 |
| 160,503 |
Penn Virginia Corp. * |
| 15,677 |
| 260,865 |
| Omnicell, Inc. * |
| 9,078 |
| 240,385 |
RSP Permian, Inc. * |
| 11,377 |
| 322,538 |
| Sciquest, Inc. * |
| 8,595 |
| 206,108 |
|
|
|
| 1,303,793 |
| Tableau Software, Inc. * |
| 3,244 |
| 179,296 |
OIL & GAS SERVICES - 0.9 % |
|
|
|
|
| Workday, Inc. - Class A * |
| 3,562 |
| 260,275 |
Willbros Group, Inc. * |
| 20,504 |
| 227,799 |
|
|
|
|
| 1,962,030 |
|
|
|
|
|
| TELECOMMUNICATIONS - 0.4 % |
|
|
|
|
PHARMACEUTICALS - 4.5 % |
|
|
|
|
| ORBCOMM, Inc. * |
| 15,535 |
| 97,404 |
Cempra, Inc. * |
| 11,120 |
| 101,414 |
|
|
|
|
|
|
Natural Grocers by Vitamin Cottage, Inc. * | 5,346 |
| 190,318 |
| TRANSPORTATION - 2.3 % |
|
|
|
| |
Pacira Pharmaceuticals, Inc. * |
| 3,172 |
| 217,250 |
| Old Dominion Freight Line, Inc. * |
| 3,760 |
| 227,969 |
Quintiles Transnational * |
| 5,247 |
| 247,291 |
| Roadrunner Transportation Systems, Inc. * |
| 8,200 |
| 201,966 |
Salix Pharmaceuticals Ltd. * |
| 2,964 |
| 326,040 |
| Saia, Inc. * |
| 2,728 |
| 112,312 |
|
|
|
| 1,082,313 |
|
|
|
|
| 542,247 |
PIPELINES - 1.0 % |
|
|
|
|
| TRUCK & LEASING - 1.1 % |
|
|
|
|
Primoris Services Corp. |
| 8,411 |
| 235,340 |
| Greenbrier Companies, Inc. * |
| 5,235 |
| 274,523 |
|
|
|
|
|
|
|
|
|
|
|
RETAIL - 13.3 % |
|
|
|
|
| TOTAL COMMON STOCK |
|
|
|
|
Buffalo Wild Wings, Inc. * |
| 1,625 |
| 237,445 |
| (Cost - $21,558,643) |
|
|
| 23,771,880 |
Burlington Stores, Inc. * |
| 8,180 |
| 212,598 |
|
|
|
|
|
|
Citi Trends, Inc. * |
| 7,029 |
| 119,423 |
| SHORT-TERM INVESTMENT - 1.4 % |
|
|
|
|
Domino's Pizza, Inc. |
| 3,190 |
| 237,272 |
| MONEY MARKET FUND - 1.4 % |
|
|
|
|
DSW, Inc. - Class A |
| 4,420 |
| 147,584 |
| Fidelity Institutional Money Market Funds - |
|
|
|
|
Five Below, Inc. * |
| 9,377 |
| 377,987 |
| Government Portfolio, 0.01% + |
| 354,481 |
| 354,481 |
Kate Spade & Co. * |
| 7,595 |
| 264,078 |
| TOTAL SHORT-TERM INVESTMENT (Cost - $354,481) |
|
| ||
Lithia Motors, Inc. - Class A |
| 5,256 |
| 390,416 |
|
|
|
|
|
|
Papa John's Intl., Inc. |
| 4,581 |
| 200,923 |
| TOTAL INVESTMENTS - 100.0 % |
|
|
|
|
Popeyes Louisiana Kitchen * |
| 2,849 |
| 108,547 |
| (Cost - $21,913,124) |
|
|
| $ 24,126,361 |
Red Robin Gourmet Burgers, Inc. * |
| 3,316 |
| 225,422 |
| OTHER ASSETS LESS LIABILITIES - 0.0 % |
|
| (10,722) | |
Restoration Hardware Holdiing * |
| 3,345 |
| 208,695 |
| NET ASSETS - 100.0 % |
|
|
| $ 24,115,639 |
Ross Stores, Inc. |
| 3,742 |
| 254,755 |
|
|
|
|
|
|
Sonic Corp. * |
| 11,855 |
| 225,720 |
| ADR - American Depositary Receipt. |
|
|
|
|
|
|
|
| 3,210,865 |
| * Non-Income producing security. |
|
|
|
|
SEMICONDUCTORS - 2.8 % |
|
|
|
|
| + Variable rate security. Interest rate is as of April 30, 2014. |
|
| ||
GT Advanced Technologies, Inc. * |
| 13,277 |
| 220,531 |
|
|
|
|
|
|
Inphi Corp. * |
| 14,457 |
| 213,819 |
|
|
|
|
|
|
NXP Semiconductors NV * |
| 4,049 |
| 241,402 |
|
|
|
|
|
|
|
|
|
| 675,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * (Unaudited) | ||||||||||
Consumer, Non-Cyclical |
|
|
| 26.38% |
| Financial |
|
|
| 8.46% |
Consumer, Cyclical |
|
|
| 21.01% |
| Energy |
|
|
| 7.32% |
Technology |
|
|
| 14.14% |
| Short-Term Investment |
|
|
| 1.47% |
Industrial |
|
|
| 12.29% |
| Total |
|
|
| 100.00% |
Communications |
|
|
| 8.93% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Based on total value of investments as of April 30, 2014. |
|
|
|
|
|
|
|
| ||
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, 2014 (Unaudited) |
|
|
|
|
|
|
|
|
| |
|
|
| Dunham | Dunham |
|
| Dunham | Dunham |
|
|
|
|
| Corporate / | Monthly | Dunham | Dunham | International | Loss Averse | Dunham | Dunham |
|
|
| Government | Distribution | Floating Rate | High-Yield | Opportunity | Equity Income | Alternative | Appreciation & |
|
|
| Bond Fund | Fund | Bond Fund | Bond Fund | Bond Fund | Fund | Strategy Fund | Income Fund |
Assets: |
|
|
|
|
|
|
|
|
| |
Investments in securities, at cost |
| $ 53,117,092 | $ 266,718,877 | $ 68,602,128 | $ 137,578,354 | $ 38,325,746 | $ 8,136,200 | $ 19,101,017 | $ 21,535,538 | |
Investments in securities, at value |
| $ 53,789,418 | $ 268,830,997 | $ 68,488,177 | $ 142,283,129 | $ 39,613,981 | $ 8,204,306 | $ 19,461,017 | $ 25,613,105 | |
Foreign currency, at value (Cost $799,105 and $231,857, respectively) | - | 1,170,403 | - | - | 232,291 | - | - | - | ||
Deposits with brokers |
| - | 13,406,980 | - | - | 255,477 | - | - | - | |
Unrealized appreciation on swap contracts |
| - | 6,912,948 | - | - | - | - | - | - | |
Cash |
| - | - | - | - | - | 1,774,799 | - | - | |
Cash held as collateral |
| - | 20,120,000 | - | - | 6,844 | - | - | - | |
Receivable for securities sold |
| 801,743 | 2,670,049 | 2,040,590 | 285,582 | 1,439,162 | - | 3,814,650 | 99,914 | |
Interest and dividends receivable |
| 458,092 | 561,848 | 340,802 | 2,357,046 | 500,088 | 19,276 | 35 | 50,316 | |
Receivable for fund shares sold |
| 160,158 | 238,348 | 334,253 | 465,211 | 52,131 | 181,287 | 1,357 | 56,584 | |
Receivable for open forward foreign currency contracts |
| - | 156,886 | - | - | - | - | - | - | |
Receivable for open foreign exchange contracts |
| - | - | - | - | 125,416 | - | - | - | |
Prepaid expenses and other assets |
| 17,768 | 332,716 | 54,043 | 31,917 | 61,381 | 11,541 | 29,691 | 19,252 | |
| Total Assets |
| 55,227,179 | 314,401,175 | 71,257,865 | 145,422,885 | 42,286,771 | 10,191,209 | 23,306,750 | 25,839,171 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
| |
Option contracts written (premiums received $16,319,212) |
| - | 16,956,920 | - | - | - | - | - | - | |
Securities sold short (proceeds $23,507,664) |
| - | 26,207,387 | - | - | - | - | - | - | |
Unrealized depreciation on swaps |
| - | 3,691,018 | - | - | - | - | - | - | |
Unrealized depreciation on futures |
| - | - | - | - | 30,806 | - | - | - | |
Payable for dividends on short sales |
| - | 66,148 | - | - | - | - | - | - | |
Payable for securities purchased |
| 1,452,726 | 6,279,095 | 4,531,166 | 1,173,284 | 1,454,395 | 47,847 | 4,363,663 | 658,237 | |
Payable for fund shares redeemed |
| 1,477 | 149,638 | 1,802 | 69,563 | 936 | 245,704 | 71,032 | 2,385 | |
Payable for closed swaps |
| - | 66,710 | - | - | - | - | - | - | |
Payable for open forward foreign currency contracts |
| - | 297,392 | - | - | 80,421 | - | - | - | |
Distributions payable |
| 129,263 | 80,065 | 148,063 | 414,796 | 18,424 | - | - | - | |
Payable to adviser |
| 22,055 | 137,532 | 32,416 | 71,000 | 19,796 | 5,214 | 10,042 | 13,319 | |
Payable to sub-adviser |
| 16,837 | 219,175 | 29,144 | 29,667 | 12,982 | 671 | 17,456 | 5,346 | |
Payable for distribution fees |
| 4,143 | 52,238 | 4,364 | 24,165 | 2,089 | 1,618 | 1,505 | 4,169 | |
Payable for administration fees |
| 11,291 | 12,739 | 2,847 | 2,879 | 963 | 1,724 | 1,527 | 2,060 | |
Payable for fund accounting fees |
| 2,037 | 4,738 | 1,571 | 2,709 | 2,002 | 452 | 1,010 | 887 | |
Payable for transfer agent fees |
| 1,258 | 1,250 | 1,250 | 1,740 | 532 | 2,173 | 1,310 | 1,250 | |
Payable for custody fees |
| 800 | 9,217 | 194 | 1,250 | 13,804 | 361 | 2,792 | - | |
Accrued expenses and other liabilities |
| 18,409 | 14,857 | 5,108 | 9,030 | 6,829 | 16,899 | 12,423 | 11,309 | |
| Total Liabilities |
| 1,660,296 | 54,246,119 | 4,757,925 | 1,800,083 | 1,643,979 | 322,663 | 4,482,760 | 698,962 |
|
|
|
|
|
|
|
|
|
|
|
Net Assets |
| $ 53,566,883 | $ 260,155,056 | $ 66,499,940 | $ 143,622,802 | $ 40,642,792 | $ 9,868,546 | $ 18,823,990 | $ 25,140,209 | |
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
| |
Paid in capital |
| $ 53,306,983 | $ 268,441,092 | $ 66,643,851 | $ 142,552,400 | $ 39,833,081 | $ 10,263,084 | $ 20,391,739 | $ 20,585,088 | |
Undistributed net investment income (loss) |
| 42,695 | 538,318 | (25,703) | 2,343 | 3,450 | 94,851 | (73,923) | (32,195) | |
Accumulated net realized gain (loss) on |
|
|
|
|
|
|
|
|
| |
investments, options, securities sold short, swap |
|
|
|
|
|
|
|
|
| |
contracts, and foreign currency transactions |
| (455,121) | (10,755,457) | (4,248) | (3,629,166) | (522,066) | (557,455) | (1,853,825) | 509,749 | |
Net unrealized appreciation (depeciation) on |
|
|
|
|
|
|
|
|
| |
investments, options, securities sold short, futures, swap |
|
|
|
|
|
|
|
|
| |
contracts, and foreign currency translations |
| 672,326 | 1,931,103 | (113,960) | 4,703,225 | 1,328,327 | 68,066 | 359,999 | 4,077,567 | |
|
|
|
|
|
|
|
|
|
|
|
Net Assets |
| $ 53,566,883 | $ 260,155,056 | $ 66,499,940 | $ 143,628,802 | $ 40,642,792 | $ 9,868,546 | $ 18,823,990 | $ 25,140,209 | |
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Per Share |
|
|
|
|
|
|
|
|
| |
| Class N Shares: |
|
|
|
|
|
|
|
|
|
| Net Assets |
| $ 45,586,449 | $ 146,724,485 | $ 55,004,584 | $ 110,502,442 | $ 36,188,471 | $ 6,825,493 | $ 15,519,980 | $ 16,811,721 |
| Shares of beneficial interest outstanding |
|
|
|
|
|
|
|
|
|
| (no par value; unlimited shares authorized) |
| 3,218,902 | 3,799,499 | 5,508,564 | 11,349,030 | 3,548,427 | 713,321 | 657,778 | 1,612,942 |
| Net asset value, offering and |
|
|
|
|
|
|
|
|
|
| redemption price per share |
| $ 14.16 | $ 38.62 | $ 9.99 | $ 9.74 | $ 10.20 | $ 9.57 | $ 23.59 | $ 10.42 |
|
|
|
|
|
|
|
|
|
|
|
| Class A Shares: |
|
|
|
|
|
|
|
|
|
| Net Assets |
| $ 3,281,621 | $ 71,536,306 | $ 8,127,690 | $ 20,286,736 | $ 2,484,294 | $ 1,641,739 | $ 2,185,969 | $ 4,318,170 |
| Shares of beneficial interest outstanding |
|
|
|
|
|
|
|
|
|
| (no par value; unlimited shares authorized) |
| 231,969 | 1,881,420 | 814,159 | 2,068,166 | 243,611 | 171,083 | 93,995 | 414,940 |
| Net asset value and |
|
|
|
|
|
|
|
|
|
| redemption price per share * |
| $ 14.15 | $ 38.02 | $ 9.98 | $ 9.81 | $ 10.20 | $ 9.60 | $ 23.26 | $ 10.41 |
| Front-end sales charge factor |
| 0.9550 | 0.9425 | 0.9425 | 0.9550 | 0.9425 | 0.9425 | 0.9425 | 0.9425 |
| Offering price per share (Net asset value per |
|
|
|
|
|
|
|
|
|
| share / front-end sales charge factor) |
| $ 14.82 | $ 40.34 | $ 10.59 | $ 10.27 | $ 10.82 | $ 10.19 | $ 24.68 | $ 11.05 |
|
|
|
|
|
|
|
|
|
|
|
| Class C Shares: |
|
|
|
|
|
|
|
|
|
| Net Assets |
| $ 4,698,813 | $ 41,894,265 | $ 3,367,666 | $ 12,839,624 | $ 1,970,027 | $ 1,401,314 | $ 1,118,041 | $ �� 4,010,318 |
| Shares of beneficial interest outstanding |
|
|
|
|
|
|
|
|
|
| (no par value; unlimited shares authorized) |
| 334,099 | 1,283,066 | 337,437 | 1,326,394 | 193,593 | 148,163 | 50,143 | 390,537 |
| Net asset value, offering and |
|
|
|
|
|
|
|
|
|
| redemption price per share |
| $ 14.06 | $ 32.65 | $ 9.98 | $ 9.68 | $ 10.18 | $ 9.46 | $ 22.30 | $ 10.27 |
* | For certain purchases of $1 million or more, a 0.75% contingent deferred sales charge may apply to redemptions made within eighteen months of purchase. |
|
|
|
|
See accompanying notes to financial statements.
STATEMENTS OF ASSETS AND LIABILITIES (Continued) |
| |||||||||
April 30, 2014 (Unaudited) |
|
|
|
|
| |||||
|
|
|
|
| Dunham |
|
|
| Dunham |
|
|
|
| Dunham | Dunham | Focused | Dunham | Dunham | Dunham | Emerging | Dunham |
|
|
| Large Cap | Alternative | Large Cap | Real Estate | International | Small Cap | Markets | Small Cap |
|
|
| Value Fund | Income Fund | Growth Fund | Stock Fund | Stock Fund | Value Fund | Stock Fund | Growth Fund |
Assets: |
|
|
|
|
|
|
|
|
| |
Investments in securities, at cost |
| $ 32,215,319 | $ 4,980,053 | $ 52,090,316 | $ 39,731,823 | $ 62,013,049 | $ 25,255,265 | $ 36,559,726 | $ 21,913,124 | |
Investments in securities, at value |
| $ 50,584,482 | $ 5,372,718 | $ 52,577,479 | $ 46,245,633 | $ 68,886,992 | $ 26,747,696 | $ 38,543,341 | $ 24,126,361 | |
Foreign currency, at value (Cost $386, $196,179 & $376, respectivly) |
| - | 743 | - | - | 180,364 | - | 326 | - | |
Receivable for securities sold |
| - | - | - | 44,740 | 1,403,155 | - | 324,534 | 538,892 | |
Interest and dividends receivable |
| 47,187 | 7,760 | 7,814 | 25,295 | 325,663 | 16,262 | 47,178 | 95 | |
Receivable for fund shares sold |
| 8,103 | 633 | 51,227 | 86,057 | 955 | 597 | 4,545 | 24,684 | |
Receivable for open forward foreign currency contracts |
| - | - | - | - | 195,579 | - | - | - | |
Prepaid expenses and other assets |
| 18,180 | 5,027 | 11,622 | 31,488 | 18,930 | 15,595 | 23,640 | 16,390 | |
| Total Assets |
| 50,657,952 | 5,386,881 | 52,648,142 | 46,433,213 | 71,011,638 | 26,780,150 | 38,943,564 | 24,706,422 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
| |
Cash overdraft |
| - | - | - | - | - | - | - | - | |
Payable for securities purchased |
| - | - | 207,130 | 118,902 | 2,212,999 | 555,468 | 289,977 | 496,726 | |
Payable for fund shares redeemed |
| 223 | 1,181 | 5,458 | 56,477 | 45,006 | 7,514 | 22,037 | 42,684 | |
Payable for open forward foreign currency contracts |
| - | - | - | - | 97,861 | - | - | - | |
Distributions Payable |
| - | - | - | - | - | - | - | - | |
Payable to adviser |
| 26,544 | 2,797 | 25,965 | 23,633 | 36,133 | 13,787 | 20,477 | 12,942 | |
Payable to sub-adviser |
| 17,560 | 581 | 12,010 | 24,375 | 53,480 | 14,882 | 3,031 | 19,959 | |
Payable for distribution fees |
| 5,916 | 2,889 | 6,347 | 3,160 | 8,781 | 3,205 | 5,496 | 3,775 | |
Payable for administration fees |
| 1,966 | 837 | 2,056 | 950 | 5,293 | 1,063 | 2,182 | 1,569 | |
Payable for fund accounting fees |
| 2,590 | - | 2,586 | 1,339 | 1,811 | 1,124 | 867 | 854 | |
Payable for transfer agent fees |
| 711 | 1,496 | 1,273 | 1,273 | 844 | 949 | 1,547 | 1,343 | |
Payable for custody fees |
| 2,170 | 805 | 1,568 | 817 | 21,566 | 1,980 | 1,862 | 2,737 | |
Accrued expenses and other liabilities |
| 9,145 | 23,586 | 13,842 | 3,157 | 8,515 | 9,269 | 13,453 | 8,194 | |
| Total Liabilities |
| 66,825 | 34,172 | 278,235 | 234,083 | 2,492,289 | 609,241 | 360,929 | 590,783 |
|
|
|
|
|
|
|
|
|
|
|
Net Assets |
| $ 50,591,127 | $ 5,352,709 | $ 52,369,907 | $ 46,199,130 | $ 68,519,349 | $ 26,170,909 | $ 38,582,635 | $ 24,115,639 | |
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
| |
Paid in capital |
| $ 33,655,284 | $ 4,778,078 | $ 52,104,245 | $ 39,390,246 | $ 63,060,855 | $ 23,639,669 | $ 41,361,626 | $ 19,841,448 | |
Undistributed net investment income (loss) |
| 71,278 | 45,050 | (156,166) | 329,790 | (261,430) | 88,991 | 8,366 | (264,558) | |
Accumulated net realized gain (loss) on |
|
|
|
|
|
|
|
|
| |
investments and foreign currency transactions |
| (2,504,598) | 136,925 | (65,335) | (34,716) | (1,235,922) | 949,818 | (4,707,232) | 2,325,512 | |
Net unrealized appreciation on |
|
|
|
|
|
|
|
|
| |
investments and foreign currency translations |
| 19,369,163 | 392,656 | 487,163 | 6,513,810 | 6,955,845 | 1,492,431 | 1,919,875 | 2,213,237 | |
|
|
|
|
|
|
|
|
|
|
|
Net Assets |
| $ 50,591,127 | $ 5,352,709 | $ 52,369,907 | $ 46,199,130 | $ 68,519,348 | $ 26,170,909 | $ 38,582,635 | $ 24,115,639 | |
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Per Share |
|
|
|
|
|
|
|
|
| |
| Class N Shares: |
|
|
|
|
|
|
|
|
|
| Net Assets |
| $ 40,369,592 | $ 1,219,739 | $ 30,947,590 | $ 39,668,454 | $ 52,702,800 | $ 20,902,256 | $ 32,127,913 | $ 13,781,270 |
| Shares of beneficial interest outstanding |
|
|
|
|
|
|
|
|
|
| (no par value; unlimited shares authorized) |
| 2,593,545 | 107,272 | 2,306,479 | 2,286,454 | 3,434,929 | 1,412,201 | 2,330,856 | 802,148 |
| Net asset value, offering and |
|
|
|
|
|
|
|
|
|
| redemption price per share |
| $ 15.57 | $11.37 | $ 13.42 | $ 17.35 | $ 15.34 | $ 14.80 | $ 13.78 | $ 17.18 |
|
|
|
|
|
|
|
|
|
|
|
| Class A Shares: |
|
|
|
|
|
|
|
|
|
| Net Assets |
| $ 4,925,387 | $ 2,476,812 | $ 17,616,318 | $ 3,445,930 | $ 9,705,380 | $ 3,081,009 | $ 3,349,103 | $ 7,729,089 |
| Shares of beneficial interest outstanding |
|
|
|
|
|
|
|
|
|
| (no par value; unlimited shares authorized) |
| 317,017 | 218,032 | 1,320,366 | 197,749 | 633,626 | 209,162 | 247,990 | 459,602 |
| Net asset value, and |
|
|
|
|
|
|
|
|
|
| redemption price per share * |
| $ 15.54 | $11.36 | $ 13.34 | $ 17.43 | $ 15.32 | $ 14.73 | $ 13.50 | $ 16.82 |
| Front-end sales charge factor |
| 0.9425 | 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) |
| $ 16.49 | $12.05 | $ 14.15 | $ 18.49 | $ 16.25 | $ 15.63 | $ 14.32 | $ 17.85 |
| Class C Shares: |
|
|
|
|
|
|
|
|
|
| Net Assets |
| $ 5,296,148 | $ 1,656,158 | $ 3,805,999 | $ 3,084,746 | $ 6,111,168 | $ 2,187,644 | $ 3,105,619 | $ 2,605,280 |
| Shares of beneficial interest outstanding |
|
|
|
|
|
|
|
|
|
| (no par value; unlimited shares authorized) |
| 350,068 | 146,286 | 290,389 | 182,762 | 410,647 | 158,728 | 240,365 | 172,271 |
| Net asset value, offering and |
|
|
|
|
|
|
|
|
|
| redemption price per share |
| $ 15.13 | $11.32 | $ 13.10 | $ 16.88 | $ 14.88 | $ 13.78 | $ 12.92 | $ 15.12 |
* | For certain purchases of $1 million or more, a 0.75% contingent deferred sales charge may apply to redemptions made within eighteen months of purchase. |
|
|
|
|
|
See accompanying notes to financial statements.
STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
|
| |
For the Six Months Ended April 30, 2014 (Unaudited) |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dunham | Dunham |
|
| Dunham | Dunham |
|
|
|
|
| Corporate / | Monthly | Dunham | Dunham | International | Loss Averse | Dunham | Dunham |
|
|
| Government | Distribution | Floating Rate | High-Yield | Opportunity | Equity Income | Alternative | Appreciation & |
|
|
| Bond Fund | Fund | Bond Fund | Bond Fund | Bond Fund | Fund | Strategy Fund | Income Fund |
|
|
|
|
|
|
|
|
|
|
|
Investment Income: |
|
|
|
|
|
|
|
|
| |
Interest income |
| $ 1,288,777 | $ 1,391,516 | $ 1,012,996 | $ 4,278,335 | $ 355,874 | $- | $ 684 | $ 181,908 | |
Dividend income |
| 34,241 | 2,412,038 | 11,923 | - | - | 291,257 | 125,365 | 149,406 | |
Less: Foreign withholding taxes |
| - | - | (4,670) | (384) | (18,772) | (3,098) | - | (1,064) | |
| Total Investment Income |
| 1,323,018 | 3,803,554 | 1,020,249 | 4,277,951 | 337,102 | 288,159 | 126,049 | 330,250 |
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
| |
Investment advisory fees |
| 151,764 | 801,354 | 159,213 | 435,143 | 99,271 | 32,402 | 80,454 | 79,138 | |
Sub-advisory fees |
| 91,059 | 1,102,525 | 106,142 | 290,096 | 74,453 | 24,925 | 80,455 | 73,050 | |
Sub-advisory performance fees |
| 55,635 | 329,397 | (34,732) | (90,686) | (34,979) | (22,626) | (28,593) | (42,919) | |
Fund accounting fees |
| 13,491 | 38,398 | 8,775 | 24,502 | 6,519 | 2,321 | 4,337 | 4,291 | |
Distribution fees- Class C Shares |
| 20,120 | 190,979 | 8,987 | 48,787 | 5,586 | 8,365 | 5,754 | 19,143 | |
Distribution fees- Class A Shares |
| 4,646 | 84,685 | 6,171 | 24,500 | 2,477 | 2,078 | 10,441 | 5,519 | |
Administration fees |
| 56,544 | 62,479 | 41,498 | 57,746 | 13,126 | 5,005 | 7,583 | 14,054 | |
Registration fees |
| 29,847 | 27,389 | 18,814 | 21,889 | 13,928 | 29,158 | 17,266 | 22,397 | |
Transfer agent fees |
| 10,689 | 25,106 | 8,267 | 11,636 | 6,830 | 7,250 | 7,592 | 5,273 | |
Custodian fees |
| 8,033 | 70,949 | 5,754 | 5,955 | 28,107 | 2,774 | 4,507 | 2,170 | |
Professional fees |
| 9,901 | 22,091 | 12,969 | 14,054 | 12,262 | 11,162 | 3,660 | 10,467 | |
Chief Compliance Officer fees |
| 9,044 | 20,345 | 4,317 | 9,575 | 2,363 | 199 | 1,056 | 1,754 | |
Printing and postage expense |
| 9,759 | 39,193 | 8,399 | 15,848 | 6,178 | 8,852 | 2,489 | 4,678 | |
Trustees' fees |
| 3,978 | 8,844 | 1,003 | 3,765 | 2,655 | 447 | - | 648 | |
Insurance expense |
| 2,251 | 12,237 | 918 | 1,904 | 512 | 150 | - | 506 | |
Non 12b-1 shareholder servicing fees |
| 979 | 39,274 | 21 | 5,312 | 76 | 3,300 | - | 1,371 | |
Dividend expenses on short sales |
| - | 252,925 | - | - | - | - | - | - | |
Security borrowing fees |
| - | 19,587 | - | - | - | - | - | - | |
Miscellaneous expenses |
| 3,280 | 7,437 | 2,439 | 3,224 | 4,094 | 1,488 | 2,971 | 2,874 | |
| Total Operating Expenses |
| 481,020 | 3,155,194 | 358,955 | 883,250 | 243,458 | 117,250 | 199,972 | 204,414 |
| Less: Advisory/Sub-advisory fees waived |
| - | (177,885) |
| - | - | - | - | - |
| Net Operating Expenses |
| 481,020 | 2,977,309 | 358,955 | 883,250 | 243,458 | 117,250 | 199,972 | 204,414 |
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income (Loss) |
| 841,998 | 826,245 | 661,294 | 3,394,701 | 93,644 | 170,909 | (73,923) | 125,836 | |
|
|
|
|
|
|
|
|
|
|
|
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 |
| (453,708) | 16,384,079 | - | 1,540,303 | 84,140 | 60,300 | (139,783) | 591,155 | |
Futures |
| - | - | - | - | (47,563) | - | - | - | |
Options purchased |
| - | (4,587,048) | - | - | - | - | - | - | |
Securities sold short |
| - | (4,363,744) | - | - | - | - | - | - | |
Written options |
| - | 1,073,530 | - | - | - | - | - | - | |
Swap Contracts |
|
| 4,864,025 | - | - | - | - | - | - | |
Foreign currency transactions |
| - | (691,039) | (4,248) | - | (152,399) | (125) | - | - | |
Foreign exchange contracts |
| - | - | - | - | (406,244) | (283) | - | - | |
Swap contracts |
| - | - | - | - | - | - | - | - | |
Net change in unrealized appreciation (depreciation) on: |
|
|
|
|
|
|
|
| ||
Investments |
| 755,906 | (6,692,423) | - | 367,278 | 1,296,179 | (237,596) | 196,305 | 402,107 | |
Options purchased |
| - | (586,648) | - | - | - | - | - | - | |
Securities sold short |
| - | 1,585,311 | - | - | - | - | - | - | |
Written options |
| - | 2,058,499 | - | - | - | - | - | - | |
Foreign currency translations |
| - | - | (113,960) | - | 17,959 | - | - | - | |
Foreign currency exchange contracts |
| - | 394,919 | - | - | 44,995 | - | - | - | |
Futures |
| - | - | - | - | (30,806) | - | - | - | |
Swap contracts |
| - | (1,932,869) | - | - | - | - | - | - | |
Net Realized and Unrealized Gain (Loss) |
| 302,198 | 7,506,592 | (118,208) | 1,907,581 | 806,261 | (177,704) | 56,522 | 993,262 | |
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
| |
Resulting From Operations |
| $ 1,144,196 | $ 8,332,837 | $ 543,086 | $ 5,302,282 | $ 899,905 | $ (6,795) | $ (17,401) | $ 1,119,098 |
See accompanying notes to financial statements.
STATEMENTS OF OPERATIONS (Continued |
| |||||||||
For the Six Months Ended April 30, 2014 (Unaudited) |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dunham |
|
|
| Dunham |
|
|
|
| Dunham | Dunham | Focused | Dunham | Dunham | Dunham | Emerging | Dunham |
|
|
| Large Cap | Alternative | Large Cap | Real Estate | International | Small Cap | Markets | Small Cap |
|
|
| Value Fund | Income Fund | Growth Fund | Stock Fund | Stock Fund | Value Fund | Stock Fund | Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
Investment Income: |
|
|
|
|
|
|
|
|
| |
Interest income |
| $ 242 | $ 20 | $ 38 | $ 30 | $ 2,833 | $ 46 | $ 32 | $ 30 | |
Dividend income |
| 509,010 | 115,638 | 39,598 | 829,111 | 745,046 | 278,290 | 302,148 | 28,092 | |
Less: Foreign withholding taxes |
| - | (1,651) | (514) | - | (84,267) | - | (50,501) | (1,109) | |
| Total Investment Income |
| 509,252 | 114,007 | 39,122 | 829,141 | 663,612 | 278,336 | 251,679 | 27,013 |
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
| |
Investment advisory fees |
| 156,859 | 16,719 | 64,618 | 133,641 | 204,007 | 76,901 | 105,166 | 82,280 | |
Sub-advisory fees |
| 103,768 | 10,289 | 34,064 | 82,241 | 204,007 | 53,239 | 80,896 | 63,293 | |
Sub-advisory performance fees |
| (47,125) | (6,184) | 10,010 | 27,951 | 100,810 | (28,569) | (64,812) | 52,729 | |
Fund accounting fees |
| 10,977 | 930 | 4,614 | 7,194 | 12,215 | 5,164 | 6,009 | 4,440 | |
Distribution fees- Class C Shares |
| 25,634 | 7,631 | 5,652 | 14,083 | 28,892 | 10,947 | 13,957 | 13,851 | |
Distribution fees- Class A Shares |
| 6,170 | 2,941 | 16,417 | 3,573 | 8,818 | 2,747 | 3,497 | 8,184 | |
Administration fees |
| 16,283 | 2,478 | 5,789 | 11,436 | 36,001 | 8,765 | 14,519 | 8,131 | |
Registration fees |
| 26,632 | 1,610 | 16,497 | 22,340 | 26,660 | 27,363 | 21,916 | 21,360 | |
Transfer agent fees |
| 8,453 | 7,007 | 7,417 | 8,557 | 9,480 | 6,736 | 7,743 | 7,927 | |
Custodian fees |
| 4,289 | 2,039 | 6,511 | 5,125 | 42,776 | 4,463 | 15,702 | 9,439 | |
Professional fees |
| 8,147 | 8,212 | 9,883 | 10,672 | 7,812 | 10,234 | 11,632 | 8,846 | |
Chief Compliance Officer fees |
| 2,148 | 1,778 | 2,790 | 2,233 | 2,560 | 1,056 | 1,281 | 1,736 | |
Printing and postage expense |
| 3,472 | 4,943 | 5,757 | 5,346 | 5,463 | 5,440 | 6,682 | 4,437 | |
Trustees' fees |
| 1,323 | 120 | 476 | 603 | 1,651 | 518 | 396 | 708 | |
Insurance expense |
| 574 | 43 | 1,032 | 529 | 723 | 368 | 275 | 447 | |
Non 12b-1 shareholder servicing fees |
| 412 | 1,720 | 1,095 | 702 | 836 | 393 | 1,604 | 853 | |
Miscellaneous expenses |
| 1,986 | 1,488 | 2,666 | 2,492 | 4,725 | 1,256 | 4,495 | 2,910 | |
| Net Operating Expenses |
| 330,002 | 63,764 | 195,288 | 338,718 | 697,436 | 187,021 | 230,958 | 291,571 |
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income (Loss) |
| 179,250 | 50,243 | (156,166) | 490,423 | (33,824) | 91,315 | 20,721 | (264,558) | |
|
|
|
|
|
|
|
|
|
|
|
Realized and Unrealized |
|
|
|
|
|
|
|
|
| |
Gain (Loss) on Investments |
|
|
|
|
|
|
|
|
| |
and Foreign Currency: |
|
|
|
|
|
|
|
|
| |
Net realized gain (loss) from: |
|
|
|
|
|
|
|
|
| |
Investments |
| 1,995,494 | 126,541 | 26,786 | 745,714 | 4,718,011 | 966,814 | (536,205) | 2,410,283 | |
Foreign currency transactions |
| - | - | - | - | 56,487 | - | 11,865 | - | |
Foreign currency exchange contracts |
| - | (239) | - | - | (449,691) | - | (33,458) | - | |
Net change in unrealized appreciation (depreciation) on: |
|
|
|
|
|
|
|
|
| |
Investments |
| 1,681,446 | 54,689 | (3,033,827) | 2,693,087 | (2,781,936) | 221,133 | (1,180,312) | (2,013,599) | |
Foreign currency translations |
| - | (9) | - | - | (3,863) | - | (58,875) | - | |
Foreign currency exchange contracts |
| - | - | - | - | 190,816 | - | - | - | |
Net Realized and Unrealized Gain (Loss) |
| 3,676,940 | 180,982 | (3,007,041) | 3,438,801 | 1,729,824 | 1,187,947 | (1,796,985) | 396,684 | |
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
| |
Resulting From Operations |
| $ 3,856,190 | $ 231,225 | $ (3,163,207) | $ 3,929,224 | $ 1,696,000 | $ 1,279,262 | $ (1,776,264) | $ 132,126 | |
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
STATEMENTS OF CHANGES IN NET ASSETS |
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dunham | Dunham | Dunham | Dunham | Dunham | Dunham | ||||
|
|
| Corporate/Government | Monthly Distribution | Floating Rate | High-Yield | International Opportunity | Loss Averse | ||||
|
|
| Bond Fund | Fund | Bond Fund (1) | Bond Fund | Bond Fund (1) | Equity Income Fund | ||||
|
|
| Six Months |
| Six Months |
|
| Six Months |
|
| Six Months |
|
|
|
| Ended | Year Ended | Ended | Year Ended | Period Ended | Ended | Year Ended | Period Ended | Ended | Year Ended |
|
|
| April 30, 2014 | Oct. 31, 2013 | April 30, 2014 | Oct. 31, 2013 | April 30, 2014 | April 30, 2014 | Oct. 31, 2013 | April 30, 2014 | April 30, 2014 | Oct. 31, 2013 |
|
|
| (Unaudited) |
| (Unaudited) |
| (Unaudited) | (Unaudited) |
| (Unaudited) | (Unaudited) |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
| |
Net investment income |
| $ 841,998 | $ 2,949,470 | $ 826,245 | $ 1,607,176 | $ 661,294 | $ 3,394,701 | $ 7,415,281 | $ 93,644 | $ 170,909 | $ 384,868 | |
Net realized gain (loss) from investments, |
|
|
|
|
|
|
|
|
|
|
| |
foreign currency, securities sold short, |
|
|
|
|
|
|
|
|
|
|
| |
swap contracts and options |
| (453,708) | 586,830 | 12,679,803 | 6,968,870 | (4,248) | 1,540,303 | 2,725,987 | (522,066) | 59,892 | (98,137) | |
Net change in unrealized appreciation |
|
|
|
|
|
|
|
|
|
|
| |
(depreciation) on investments, |
|
|
|
|
|
|
|
|
|
|
| |
foreign currency, securities sold short, |
|
|
|
|
|
|
|
|
|
|
| |
swap contracts and options |
| 755,906 | (3,958,352) | (5,173,211) | 5,688,774 | (113,960) | 367,278 | (1,522,576) | 1,328,327 | (237,596) | (222,224) | |
Net Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
|
| |
Resulting From Operations |
| 1,144,196 | (422,052) | 8,332,837 | 14,264,820 | 543,086 | 5,302,282 | 8,618,692 | 899,905 | (6,795) | 64,507 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Shareholders From: |
|
|
|
|
|
|
|
|
|
|
| |
Net Realized Gains: |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| (191,951) | (1,949,452) | (4,339,417) | (3,010,786) | - | - | - | - | - | - |
| Class A |
| (14,055) | (78,307) | (2,127,639) | (1,291,469) | - | - | - | - | - | - |
| Class C |
| (18,187) | (166,157) | (1,394,455) | (892,668) | - | - | - | - | - | - |
Net Investment Income: |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| (704,293) | (2,942,650) | - | (1,512,856) | (590,486) | (2,683,142) | (6,048,192) | (86,534) | (64,797) | (274,244) |
| Class A |
| (46,089) | (147,110) | - | (636,667) | (73,206) | (444,427) | (779,147) | (3,330) | (14,765) | (55,618) |
| Class C |
| (52,411) | (186,083) | - | (411,816) | (23,305) | (264,789) | (611,493) | (330) | (12,646) | (49,506) |
Distributions From Paid In Capital: |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| - | - | - | - | - | - | - | - | (16,650) | (19,908) |
| Class A |
| - | - | - | - | - | - | - | - | (4,019) | (4,996) |
| Class C |
| - | - | - | - | - | - | - | - | (1,883) | (5,752) |
Total Distributions to Shareholders |
| (1,026,986) | (5,469,759) | (7,861,511) | (7,756,262) | (686,997) | (3,392,358) | (7,438,832) | (90,194) | (114,760) | (410,024) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Transactions of |
|
|
|
|
|
|
|
|
|
|
| |
Beneficial Interest: |
|
|
|
|
|
|
|
|
|
|
| |
Net proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| 5,256,552 | 34,332,414 | 19,325,545 | 70,034,176 | 57,821,694 | 2,633,005 | 50,023,443 | 37,331,307 | 1,340,298 | 2,285,326 |
| Class A |
| 659,662 | 4,661,645 | 16,212,536 | 42,735,588 | 8,541,459 | 8,291,338 | 9,425,400 | 2,605,343 | 99,441 | 552,179 |
| Class C |
| 379,638 | 1,770,360 | 9,754,458 | 16,053,234 | 3,527,420 | 1,064,216 | 4,530,052 | 2,044,605 | 113,683 | 543,843 |
Reinvestment of distributions |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| 895,553 | 4,890,445 | 4,268,139 | 4,496,140 | 464,515 | 2,060,144 | 5,310,041 | 86,534 | 21,807 | 72,560 |
| Class A |
| 55,878 | 205,372 | 1,522,455 | 1,430,831 | 54,432 | 322,324 | 660,179 | 3,179 | 17,862 | 53,325 |
| Class C |
| 69,640 | 350,038 | 1,148,949 | 1,093,669 | 18,285 | 189,694 | 499,875 | 330 | 13,787 | 53,195 |
Cost of shares redeemed |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| (41,867,545) | (56,695,430) | (38,791,116) | (44,944,536) | (3,180,496) | (35,814,151) | (36,642,091) | (1,944,648) | (1,642,445) | (3,940,923) |
| Class A |
| (4,325,652) | (1,345,147) | (14,799,153) | (28,843,710) | (433,723) | (2,817,367) | (4,048,127) | (173,882) | (237,108) | (1,003,008) |
| Class C |
| (3,496,134) | (2,972,864) | (6,309,123) | (10,250,694) | (169,735) | (2,326,508) | (5,810,950) | (119,687) | (756,876) | (268,612) |
Net Increase (Decrease) in Net Assets From |
|
|
|
|
|
|
|
|
|
|
| |
Share Transactions of Beneficial Interest |
| (42,372,408) | (14,803,167) | (7,667,310) | 51,804,698 | 66,643,851 | (26,397,305) | 23,947,822 | 39,833,081 | (1,029,551) | (1,652,115) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Increase (Decrease) in Net Assets |
| (42,255,198) | (20,694,978) | (7,195,984) | 58,313,256 | 66,499,940 | (24,487,381) | 25,127,682 | 40,642,792 | (1,151,106) | (1,997,632) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
| |
| Beginning of period |
| 95,822,081 | 116,517,059 | 267,351,040 | 209,037,784 | - | 168,116,183 | 142,988,501 | - | 11,019,652 | 13,017,284 |
| End of Period* |
| $ 53,566,883 | $ 95,822,081 | $260,155,056 | $267,351,040 | $ 66,499,940 | $143,628,802 | $168,116,183 | $ 40,642,792 | $ 9,868,546 | $ 11,019,652 |
| * Includes undistributed net investment |
|
|
|
|
|
|
|
|
|
|
|
| income (loss) at end of period |
| $ 42,695 | $ 3,490 | $ 538,318 | $ (10,727) | $ (25,703) | $ 2,343 | $ - | $ 3,450 | $ 94,851 | $ 16,150 |
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|
|
| (1) Dunham Floating Rate Bond Fund and Dunham International Opportunity Bond Fund commenced operations on November 1, 2013. |
|
See accompanying notes to financial statements.
STATEMENTS OF CHANGES IN NET ASSETS (Continued) |
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| Dunham | Dunham | Dunham | Dunham | Dunham | ||||||||
|
|
| Alternative | Appreciation & | Large Cap | Alternative | Focused Large Cap | ||||||||
|
|
| Strategy Fund | Income Fund | Value Fund | Income Fund | Growth Fund | ||||||||
|
|
| Six Months |
|
|
|
| Six Months |
| Six Months |
| Six Months |
| Six Months | Period |
|
|
| Ended | Period Ended |
| Year Ended |
| Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | Ended | Ended |
|
|
| April 30, 2014 | Oct. 31, 2013 (1) |
| July 31, 2012 (2) |
| April 30, 2014 | Oct. 31, 2013 | April 30, 2014 | Oct. 31, 2013 | April 30, 2014 | Oct. 31, 2013 (3) | April 30, 2014 | Oct. 31, 2013 (4) |
|
|
| (Unaudited) |
|
|
|
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net investment income (loss) |
| $ (73,923) | $ (88,860) |
| $ (70,168) |
| $ 125,836 | $ 398,830 | $ 179,250 | $ 503,330 | $ 50,243 | $ 42,091 | $ (156,166) | $ (110,900) | |
Net realized gain (loss) from investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
and foreign currency transactions |
| (139,783) | 324,657 |
| (106,534) |
| 591,155 | 1,977,156 | 1,995,494 | 3,378,947 | 126,302 | 150,508 | 26,786 | 232,107 | |
Capital gain distributions received from |
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|
|
|
|
|
|
|
|
| |
other investment companies |
| - | - |
| - |
| - | - | - | - | - | 1,445 | - | - | |
Net change in unrealized appreciation |
|
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|
|
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|
|
|
|
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|
| |
(depreciation) on investments |
|
|
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|
|
|
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|
| |
and foreign currency translations |
| 196,305 | (329,679) |
| 447,230 |
| 402,107 | 1,547,403 | 1,681,446 | 6,249,854 | 54,680 | 370,481 | (3,033,827) | 3,363,680 | |
Net Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Resulting From Operations |
| (17,401) | (93,882) |
| 270,528 |
| 1,119,098 | 3,923,389 | 3,856,190 | 10,132,131 | 231,225 | 564,525 | (3,163,207) | 3,484,887 | |
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Distributions to Shareholders From: |
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| |
Net Realized Gains: |
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|
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|
|
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|
| |
| Class N |
| - | - |
| - |
| - | - | - | - | (21,614) | - | (11,650) | - |
| Class A |
| - | - |
| - |
| - | - | - | - | (38,405) | - | (159,298) | - |
| Class C |
| - | - |
| - |
| - | - | - | - | (27,642) | - | (8,445) | - |
Net Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| - | - |
| - |
| - | - | (429,742) | (409,455) | (15,210) | (8,858) | - | - |
| Class A |
| - | - |
| - |
| - | - | (48,768) | (27,738) | (26,538) | (17,978) | - | - |
| Class C |
| - | - |
| - |
| - | - | (9,655) | (2,534) | (12,713) | (4,390) | - | - |
Distribution From Paid in Capital: |
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|
|
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| - | - |
| - |
| (229,781) | (640,297) | - | - | (8,803) | - | - | - |
| Class A |
| - | - |
| - |
| (21,342) | (115,199) | - | - | (15,909) | - | - | - |
| Class C |
| - | - |
| - |
| (18,912) | (71,099) | - | - | (7,750) | - | - | - |
Total Distributions to Shareholders |
| - | - |
| - |
| (270,035) | (826,595) | (488,165) | (439,727) | (174,584) | (31,226) | (179,393) | - | |
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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 |
| 1,381,562 | 1,709,216 | (5) | 8,488,969 | (5) | 1,758,897 | 2,960,865 | 3,125,152 | 5,711,019 | 471,236 | 667,345 | 32,416,538 | 566,701 |
| Class A |
| 770,612 | 5,532,202 | (6) | 10,145,112 | (6) | 531,808 | 1,560,090 | 1,110,884 | 2,398,219 | 53,351 | 1,051,834 | 9,477,026 | 8,025,329 |
| Class C |
| 175,099 | 282,379 | (5) | 917,332 | (5) | 361,923 | 842,312 | 389,834 | 658,649 | 152,661 | 807,676 | 3,657,168 | 440,327 |
Reinvestment of distributions |
|
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|
|
|
|
|
|
|
|
|
| |
| Class N |
| - | - |
| - |
| 229,479 | 638,724 | 429,512 | 409,183 | 45,627 | 8,858 | 11,605 | - |
| Class A |
| - | - |
| - |
| 29,715 | 72,094 | 47,655 | 26,718 | 56,773 | 12,531 | 157,494 | - |
| Class C |
| - | - |
| - |
| 18,702 | 70,656 | 9,650 | 2,533 | 38,543 | 3,410 | 8,445 | - |
Cost of shares redeemed |
|
|
|
|
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|
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|
|
|
|
|
|
| |
| Class N |
| (1,643,120) | (1,406,512) | (5) | (3,824,878) | (5) | (1,557,531) | (13,643,285) | (3,545,166) | (13,853,801) | (406,797) | (29,579) | (367,434) | (365,484) |
| Class A |
| (14,154,961) | (623,797) | (6) | (876,506) | (6) | (763,908) | (2,318,857) | (1,538,224) | (1,232,278) | (64,850) | (32,306) | (2,229,077) | (10,206,408) |
| Class C |
| (194,508) | (97,249) | (5) | (155,372) | (5) | (275,957) | (1,471,371) | (503,958) | (2,164,053) | (20,703) | (24,500) | (142,405) | (161,914) |
Net Increase (Decrease) in Net Assets From |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Share Transactions of Beneficial Interest |
| (13,665,316) | 5,396,239 |
| 14,694,657 |
| 333,128 | (11,288,772) | (474,661) | (8,043,811) | 325,841 | 2,465,269 | 42,989,360 | (1,701,449) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Increase (Decrease) in Net Assets |
| (13,682,717) | 5,302,357 |
| 14,965,185 |
| 1,182,191 | (8,191,978) | 2,893,364 | 1,648,593 | 382,482 | 2,998,568 | 39,646,760 | 1,783,438 | |
|
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|
|
|
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|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Beginning of Period |
| 32,506,707 | 27,204,350 |
| 12,239,165 |
| 23,988,018 | 32,179,996 | 47,697,763 | 46,049,170 | 4,970,227 | 1,971,659 | 12,723,102 | 10,939,664 |
| End of Period* |
| $ 18,823,990 | $ 32,506,707 |
| $27,204,350 |
| $ 25,170,209 | $ 23,988,018 | $ 50,591,127 | $47,697,763 | $ 5,352,709 | $ 4,970,227 | $ 52,369,862 | $ 12,723,102 |
| * Includes undistributed net investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| income (loss) at end of period |
| $ (73,923) | $- |
| $ (147,891) |
| $ (32,195) | $ 142,004 | $ 71,278 | $ 380,193 | $ 45,050 | $ 49,268 | $ (156,166) | $- |
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|
|
(1) | Dunham Alternative Strategy Fund changed its fiscal year end to October 31 effective Agust 1, 2013 |
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| |||||
(2) | Includes the operations of the Sherwood Forest Alternative Fund. See Note 1. |
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| |||
(3) | The Dunham Alternative Income Fund commenced operations on September 14, 2012. |
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| |||||||
(4) | Dunham Focused Large Cap Growth Fund commenced operations December 8, 2011. |
|
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| ||||||||
(5) | Class N and Class C includes the operations of the predecessor, Sherwood Forest Alternative Fund (formerly Class I and Class C), respectively. |
|
|
|
|
|
| ||||||||
(6) | Class A includes the operations of the predecessor, Sherwood Forest Alternative Fund (formerly Class A and P). |
|
|
|
|
|
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 | Dunham | |||||
|
|
| Real Estate | International | Small Cap | Emerging Markets | Small Cap | |||||
|
|
| Stock Fund | Stock Fund | Value Fund | Stock Fund | Growth 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, 2014 | Oct. 31, 2013 | April 30, 2014 | Oct. 31, 2013 | April 30, 2014 | Oct. 31, 2013 | April 30, 2014 | Oct. 31, 2013 | April 30, 2014 | Oct. 31, 2013 |
|
|
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
| |
Net investment income (loss) |
| $ 490,423 | $ 392,972 | $ (33,824) | $ 233,163 | $ 91,315 | $ 89,782 | $ 20,721 | $ (60,745) | $ (264,558) | $ (284,015) | |
Net realized gain (loss) from investments and |
|
|
|
|
|
|
|
|
|
|
| |
foreign currency transactions |
| 745,714 | 330,082 | 4,324,807 | 7,332,424 | 966,814 | 5,976,784 | (557,798) | 2,457,339 | 2,410,283 | 5,035,035 | |
Net change in unrealized appreciation |
|
|
|
|
|
|
|
|
|
|
| |
(depreciation) on investments and foreign currency |
|
|
|
|
|
|
|
|
|
| ||
| translations |
| 2,693,087 | 841,485 | (2,594,983) | 6,163,149 | 221,133 | (1,128,203) | (1,239,187) | (1,571,872) | (2,013,599) | 3,109,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
|
| |
Resulting From Operations |
| 3,929,224 | 1,564,539 | 1,696,000 | 13,728,736 | 1,279,262 | 4,938,363 | (1,776,264) | 824,722 | 132,126 | 7,860,552 | |
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|
|
|
|
|
|
Distributions to Shareholders From: |
|
|
|
|
|
|
|
|
|
|
| |
Net Realized Gains: |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| (803,480) | (678,970) | - | - | (843,473) | - | - | - | (2,932,006) | (169,483) |
| Class A |
| (63,694) | (29,048) | - | - | (84,887) | - | - | - | (1,095,636) | (909,245) |
| Class C |
| (67,922) | (77,708) | - | - | (105,306) | - | - | - | (536,416) | (178,467) |
Net Investment Income: |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| (412,071) | (288,603) | (860,471) | (499,497) | (20,015) | (44,834) | - | - | - | - |
| Class A |
| (20,595) | (8,316) | (78,868) | (18,444) | - | - | - | - | - | - |
| Class C |
| (9,227) | (11,055) | (47,089) | (5,126) | - | - | - | - | - | - |
Total Distributions to Shareholders |
| (1,376,989) | (1,093,700) | (986,428) | (523,067) | (1,053,681) | (44,834) | - | - | (4,564,058) | (1,257,195) | |
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|
|
Share Transactions of |
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|
|
|
|
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|
| |
Beneficial Interest: |
|
|
|
|
|
|
|
|
|
|
| |
Net proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| 6,444,787 | 16,837,166 | 4,985,844 | 7,506,196 | 5,280,293 | 2,729,695 | 9,910,654 | 11,602,305 | 2,140,741 | 3,852,620 |
| Class A |
| 1,119,511 | 12,407,637 | 5,308,307 | 3,120,258 | 1,374,956 | 1,157,429 | 1,425,658 | 7,285,145 | 2,984,703 | 3,198,958 |
| Class C |
| 461,813 | 1,312,069 | 647,910 | 738,100 | 259,473 | 301,385 | 692,080 | 933,154 | 392,424 | 518,306 |
Reinvestment of distributions |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| 1,187,201 | 968,202 | 860,058 | 499,351 | 863,222 | 44,831 | - | - | 2,930,877 | 908,916 |
| Class A |
| 83,235 | 36,666 | 75,419 | 17,835 | 83,534 | - | - | - | 738,749 | 93,769 |
| Class C |
| 77,148 | 88,832 | 46,594 | 5,109 | 105,306 | - | - | - | 536,416 | 169,522 |
Cost of shares redeemed |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| (3,692,537) | (6,020,786) | (3,442,611) | (14,268,216) | (2,079,137) | (5,976,097) | (1,099,307) | (4,299,719) | (4,788,873) | (7,832,827) |
| Class A |
| (487,115) | (9,643,082) | (569,334) | (706,518) | (153,968) | (254,272) | (374,618) | (15,441,706) | (630,453) | (1,133,529) |
| Class C |
| (314,493) | (1,193,047) | (286,289) | (2,342,153) | (240,784) | (874,113) | (140,996) | (837,394) | (478,483) | (1,395,926) |
Net Increase (Decrease) in Net Assets From |
|
|
|
|
|
|
|
|
|
|
| |
Share Transactions of Beneficial Interest |
| 4,879,550 | 14,793,657 | 7,625,898 | (5,430,038) | 5,492,895 | (2,871,142) | 10,413,471 | (758,215) | 3,826,101 | (1,620,191) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Increase (Decrease) in Net Assets |
| 7,431,785 | 15,264,496 | 8,335,470 | 7,775,631 | 5,718,476 | 2,022,387 | 8,637,207 | 66,507 | (605,831) | 4,983,166 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
| |
| Beginning of Period |
| 38,767,345 | 23,502,849 | 60,183,878 | 52,408,247 | 20,452,433 | 18,430,046 | 29,945,428 | 29,878,921 | 24,721,470 | 19,738,304 |
| End of Period* |
| $ 46,199,130 | $38,767,345 | $ 68,519,348 | $ 60,183,878 | $ 26,170,909 | $ 20,452,433 | $ 38,582,635 | $ 29,945,428 | $ 24,115,639 | $ 24,721,470 |
| * Includes undistributed net investment |
|
|
|
|
|
|
|
|
|
|
|
| income (loss) at end of period |
| $ 329,790 | $ 281,260 | $ (261,430) | $ 751,602 | $ 88,991 | $ (16,067) | $ 8,366 | $ (12,355) | $ (264,558) | $ (212,059) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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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| |||||||
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| Class N |
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| |||||
|
| Six |
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|
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| Months Ended | Year Ended |
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|
| ||||
|
| April 30, | October 31, |
|
|
|
|
|
| ||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 14.07 | $ 14.74 | $ 14.32 | $ 14.99 | $ 14.32 | $ 12.73 |
|
|
|
|
|
| |
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income* | 0.20 | 0.37 | 0.36 | 0.52 | 0.54 | 0.52 |
|
|
|
|
|
|
| Net realized and unrealized gain (loss) | 0.13 | (0.36) | 0.77 | (0.20) | 0.76 | 1.60 |
|
|
|
|
|
|
| Total income from investment operations | 0.33 | 0.01 | 1.13 | 0.32 | 1.30 | 2.12 |
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.19) | (0.41) | (0.42) | (0.56) | (0.56) | (0.53) |
|
|
|
|
|
|
| Distributions from net realized gains | (0.05) | (0.27) | (0.29) | (0.43) | (0.07) | 0.00 |
|
|
|
|
|
|
| Total distributions | (0.24) | (0.68) | (0.71) | (0.99) | (0.63) | (0.53) |
|
|
|
|
|
|
Net asset value, end of period | $ 14.16 | $ 14.07 | $ 14.74 | $ 14.32 | $ 14.99 | $ 14.32 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return +# | 2.30% | 0.09% | 8.10% | 2.33% | 9.32% | 16.92% |
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 45,586 | $ 81,201 | $ 103,912 | $ 58,810 | $ 78,181 | $ 65,445 |
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.50% | 1.21% | 1.14% | 1.30% | 1.37% | 1.21% |
|
|
|
|
|
|
| After fee waivers ^ | 1.50% | 1.21% | 1.14% | 1.30% | 1.37% | 1.18% |
|
|
|
|
|
|
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 2.85% | 2.56% | 2.50% | 3.62% | 3.66% | 3.77% |
|
|
|
|
|
|
| After fee waivers ^ | 2.85% | 2.56% | 2.50% | 3.62% | 3.66% | 3.80% |
|
|
|
|
|
|
| Portfolio turnover rate | 32% (1) | 32% | 211% | 178% | 174% | 266% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A |
| Class C | |||||||||
|
| Six |
|
|
|
|
| Six |
|
|
|
|
|
|
| Months Ended | Year Ended | Months Ended | Year Ended | ||||||||
|
| April 30, | October 31, | April 30, | October 31, | ||||||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
| (Unaudited) |
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 14.06 | $ 14.73 | $ 14.31 | $ 14.98 | $ 14.36 | $ 12.77 | $ 13.98 | $ 14.64 | $ 14.23 | $ 14.90 | $ 14.24 | $ 12.66 | |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income* | 0.18 | 0.34 | 0.29 | 0.49 | 0.50 | 0.48 | 0.15 | 0.26 | 0.27 | 0.41 | 0.42 | 0.41 |
| Net realized and unrealized gain (loss) | 0.14 | (0.36) | 0.79 | (0.20) | 0.76 | 1.61 | 0.12 | (0.35) | 0.74 | (0.20) | 0.76 | 1.59 |
| Total income (loss) from investment operations | 0.32 | (0.02) | 1.08 | 0.29 | 1.26 | 2.09 | 0.27 | (0.09) | 1.01 | 0.21 | 1.18 | 2.00 |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.18) | (0.38) | (0.37) | (0.53) | (0.57) | (0.50) | (0.14) | (0.30) | (0.31) | (0.45) | (0.45) | (0.42) |
| Distributions from net realized gains | (0.05) | (0.27) | (0.29) | (0.43) | (0.07) | 0.00 | (0.05) | (0.27) | (0.29) | (0.43) | (0.07) | 0.00 |
| Total distributions | (0.23) | (0.65) | (0.66) | (0.96) | (0.64) | (0.50) | (0.19) | (0.57) | (0.60) | (0.88) | (0.52) | (0.42) |
Net asset value, end of period | $ 14.15 | $ 14.06 | $ 14.73 | $ 14.31 | $ 14.98 | $ 14.36 | $ 14.06 | $ 13.98 | $ 14.64 | $ 14.23 | $ 14.90 | $ 14.24 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 2.25% | (0.15)% | 7.78% | 2.15% | 8.98% | 16.61% | 1.93% | (0.59)% | 7.30% | 1.57% | 8.48% | 16.05% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 3,282 | $ 6,888 | $ 3,598 | $ 610 | $ 518 | $ 212 | $ 4,699 | $ 7,733 | $ 9,007 | $ 9,250 | $ 12,466 | $ 13,119 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.75% | 1.46% | 1.39% | 1.55% | 1.62% | 1.46% | 2.25% | 1.96% | 1.89% | 2.05% | 2.12% | 1.96% |
| After fee waivers ^ | 1.75% | 1.46% | 1.39% | 1.55% | 1.62% | 1.43% | 2.25% | 1.96% | 1.89% | 2.05% | 2.12% | 1.93% |
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 2.60% | 2.37% | 2.25% | 3.37% | 3.41% | 3.52% | 2.12% | 1.80% | 1.75% | 2.87% | 2.91% | 3.02% |
| After fee waivers ^ | 2.60% | 2.37% | 2.25% | 3.37% | 3.41% | 3.55% | 2.12% | 1.80% | 1.75% | 2.87% | 2.91% | 3.05% |
| Portfolio turnover rate | 32% (1) | 32% | 211% | 178% | 174% | 266% | 32% (1) | 32% | 211% | 178% | 174% | 266% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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. | |||||||||||||
(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. | |||||||||||||
^ Annualized for periods less than one year. |
|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
| |||||
Dunham Monthly Distribution Fund |
|
|
|
|
|
|
|
|
|
|
|
| ||
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. |
|
|
|
|
|
| ||||||||
|
|
|
|
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|
|
|
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|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Class N | Class A | |||||||||||
|
| Six |
|
|
| Six |
|
|
|
|
| |||
|
| Months Ended | Year Ended | Months Ended | Year Ended | |||||||||
|
| April 30, | October 31, | April 30, | October 31, | |||||||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |
|
| (Unaudited) |
|
|
|
|
| (Unaudited) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net asset value, beginning of period | $ 38.47 | $ 37.22 | $ 35.87 | $ 36.52 | $ 34.09 | $ 34.78 | $ 37.95 | $ 36.82 | $ 35.58 | $ 36.32 | $ 33.99 | $ 34.78 | ||
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| ||
| Net investment income (loss)* | 0.17 | 0.36 | 0.14 | 0.01 | 0.22 | (0.03) | 0.12 | 0.24 | 0.03 | (0.09) | 0.14 | (0.11) | |
| Net realized and unrealized gain ** | 1.18 | 2.13 | 2.41 | 0.53 | 3.35 | 1.39 | 1.15 | 2.13 | 2.40 | 0.54 | 3.33 | 1.37 | |
| Total income from investment operations | 1.35 | 2.49 | 2.55 | 0.54 | 3.57 | 1.36 | 1.27 | 2.37 | 2.43 | 0.45 | 3.47 | 1.26 | |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| ||
| Distributions from net investment income | 0.00 | (0.41) | (0.22) | 0.00 | 0.00 | 0.00 | 0.00 | (0.41) | (0.21) | 0.00 | 0.00 | 0.00 | |
| Distributions from net realized gains | (1.20) | (0.83) | (0.32) | (1.19) | (1.14) | (1.15) | (1.20) | (0.83) | (0.32) | (1.19) | (1.14) | (1.15) | |
| Tax return of capital | 0.00 | 0.00 | (0.66) | 0.00 | 0.00 | (0.90) | 0.00 | 0.00 | (0.66) | 0.00 | 0.00 | (0.90) | |
| Total distributions | (1.20) | (1.24) | (1.20) | (1.19) | (1.14) | (2.05) | (1.20) | (1.24) | (1.19) | (1.19) | (1.14) | (2.05) | |
Net asset value, end of period | $ 38.62 | $ 38.47 | $ 37.22 | $ 35.87 | $ 36.52 | $ 34.09 | $ 38.02 | $ 37.95 | $ 36.82 | $ 35.58 | $ 36.32 | $ 33.99 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total return + | 3.56% | 6.75% | 7.19% | 1.47% | 10.64% | 4.29% | 3.42% | 6.50% | 6.92% | 1.22% | 10.38% | 3.99% | ||
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| ||
| Net assets, end of period (in 000s) | $ 146,724 | $ 161,347 | $ 127,346 | $ 65,621 | $ 38,328 | $ 16,612 | $ 71,536 | $ 68,427 | $ 51,485 | $ 32,381 | $ 23,453 | $ 24,080 | |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
| |
| After waivers | 2.19% | 2.23% | 2.75% | 2.57% | 2.45% | 2.35% | 2.44% | 2.48% | 3.00% | 2.82% | 2.70% | 2.60% | |
| Dividends/borrowings on short sales | 0.24% | 0.24% | 0.52% | 0.30% | 0.26% | 0.10% | 0.24% | 0.24% | 0.52% | 0.30% | 0.26% | 0.10% | |
| Excluding dividends/borrowings on short sales: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Before fee waivers | 2.19% | 2.10% | 2.23% | 2.27% | 2.19% | 2.28% | 2.44% | 2.34% | 2.48% | 2.52% | 2.44% | 2.53% | |
| After fee waivers | 2.34% | 1.99% | 2.23% | 2.27% | 2.19% | 2.25% | 2.59% | 2.24% | 2.48% | 2.52% | 2.44% | 2.53% | |
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
|
|
|
| |
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Before fee waivers | 0.90% | 0.84% | 0.39% | 0.03% | 0.62% | (0.11)% | 0.64% | 0.52% | 0.14% | (0.22)% | 0.37% | (0.36)% | |
| After fee waivers | 0.75% | 0.95% | 0.39% | 0.03% | 0.62% | (0.08)% | 0.50% | 0.63% | 0.14% | (0.22)% | 0.37% | (0.33)% | |
| Portfolio turnover rate | 114% (1) | 227% | 205% | 277% | 370% | 480% | 114% (1) | 227% | 205% | 277% | 370% | 480% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Class C |
|
|
|
|
|
| ||||||
|
| Six |
|
|
|
|
|
|
|
|
|
|
| |
|
| Months Ended | Year Ended |
|
|
|
|
|
| |||||
|
| April 30, | October 31, |
|
|
|
|
|
| |||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
|
|
|
|
| |
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net asset value, beginning of period | $ 32.87 | $ 32.29 | $ 31.55 | $ 32.59 | $ 30.83 | $ 32.00 |
|
|
|
|
|
| ||
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| ||
| Net investment loss* | (0.02) | (0.07) | (0.18) | (0.32) | (0.12) | (0.33) |
|
|
|
|
|
| |
| Net realized and unrealized gain ** | 1.00 | 1.89 | 2.09 | 0.47 | 3.02 | 1.21 |
|
|
|
|
|
| |
| Total income from investment operations | 0.98 | 1.82 | 1.91 | 0.15 | 2.90 | 0.88 |
|
|
|
|
|
| |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| ||
| Distributions from net investment income | 0.00 | (0.41) | (0.19) | 0.00 | 0.00 | 0.00 |
|
|
|
|
|
| |
| Distributions from net realized gains | (1.20) | (0.83) | (0.32) | (1.19) | (1.14) | (1.15) |
|
|
|
|
|
| |
| Tax return of capital | 0.00 | 0.00 | (0.66) | 0.00 | 0.00 | (0.90) |
|
|
|
|
|
| |
| Total distributions | (1.20) | (1.24) | (1.17) | (1.19) | (1.14) | (2.05) |
|
|
|
|
|
| |
Net asset value, end of period | $ 32.65 | $ 32.87 | $ 32.29 | $ 31.55 | $ 32.59 | $ 30.83 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total return + | 3.07% | 5.71% | 6.13% | 0.43% | 9.59% | 3.12% |
|
|
|
|
|
| ||
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| ||
| Net assets, end of period (in 000s) | $ 41,894 | $ 37,577 | $ 30,206 | $ 27,701 | $ 21,181 | $ 19,553 |
|
|
|
|
|
| |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
| |
| After waivers | 3.19% | 3.23% | 3.75% | 3.57% | 3.45% | 3.35% |
|
|
|
|
|
| |
| Dividends/borrowings on short sales | 0.24% | 0.24% | 0.52% | 0.30% | 0.26% | 0.10% |
|
|
|
|
|
| |
| Excluding dividends/borrowings on short sales: |
|
|
|
|
|
|
|
|
|
|
| ||
| Before fee waivers ^ | 3.19% | 3.10% | 3.23% | 3.27% | 3.19% | 3.28% |
|
|
|
|
|
| |
| After fee waivers ^ | 3.34% | 2.99% | 3.23% | 3.27% | 3.19% | 3.25% |
|
|
|
|
|
| |
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
|
|
|
| |
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Before fee waivers ^ | (0.11)% | (0.32)% | (0.61)% | (0.97)% | (0.38)% | (1.11)% |
|
|
|
|
|
| |
| After fee waivers ^ | (0.26)% | (0.21)% | (0.61)% | (0.97)% | (0.38)% | (1.08)% |
|
|
|
|
|
| |
| Portfolio turnover rate | 114% (1) | 227% | 205% | 277% | 370% | 480% |
|
|
|
|
|
| |
* | The net investment income (loss) per share data was determined using the average shares outstanding throughout each period. |
|
|
|
|
|
| |||||||
** | 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. | |||||||||||||
+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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
^ Annualized for periods of less than one year. |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
| |
Dunham Floating Rate Bond Fund |
|
|
|
|
|
| |
The table sets forth financial data for one share of beneficial interest outstanding for the period. | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class N |
| Class A |
| Class C |
|
|
| Six |
| Six |
| Six |
|
|
| Months Ended |
| Months Ended |
| Months Ended |
|
|
| April 30, |
| April 30, |
| April 30, |
|
|
| 2014* |
| 2014* |
| 2014* |
|
|
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.00 |
| $ 10.00 |
| $ 10.00 |
| |
Income from investment operations: |
|
|
|
|
|
| |
| Net investment income** | 0.12 |
| 0.13 |
| 0.09 |
|
| Net realized and unrealized loss | (0.01) |
| (0.04) |
| (0.03) |
|
| Total income from investment operations | 0.11 |
| 0.09 |
| 0.06 |
|
Less distributions: |
|
|
|
|
|
| |
| Distributions from net investment income | (0.12) |
| (0.11) |
| (0.08) |
|
| Total distributions | (0.12) |
| (0.11) |
| (0.08) |
|
Net asset value, end of period | $ 9.99 |
| $ 9.98 |
| $ 9.98 |
| |
|
|
|
|
|
|
|
|
Total return + | 1.07% |
| 0.86% |
| 0.57% |
| |
Ratios/Supplemental Data: |
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 55,005 |
| $ 8,128 |
| $ 3,368 |
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
| Before fee waivers ^ | 1.28% |
| 1.53% |
| 2.03% |
|
| After fee waivers ^ | 1.28% |
| 1.53% |
| 2.03% |
|
| Ratios of net investment income to |
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
| Before fee waivers ^ | 2.52% |
| 2.77% |
| 1.52% |
|
| After fee waivers ^ | 2.52% |
| 2.77% |
| 1.52% |
|
| Portfolio turnover rate | 27%(1) |
| 27%(1) |
| 27%(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The Fund commenced operations on November 1, 2013. |
|
|
|
|
| ||
* The net investment income (loss) per share data was determined using the average shares outstanding for the 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. | |||||||
(1) | Not annualized. |
|
|
|
|
|
|
^ Annualized for periods less than one year. |
|
|
|
|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund |
|
|
|
|
|
|
|
|
|
|
|
| |
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. |
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class N |
|
|
|
|
|
| |||||
|
| Six |
|
|
|
|
|
|
|
|
|
|
|
|
| Months Ended | Year Ended |
|
|
|
|
|
| ||||
|
| April 30, | October 31, |
|
|
|
|
|
| ||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.61 | $ 9.52 | $ 9.08 | $ 9.36 | $ 8.65 | $ 7.30 |
|
|
|
|
|
| |
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income* | 0.23 | 0.47 | 0.53 | 0.65 | 0.72 | 0.62 |
|
|
|
|
|
|
| Net realized and unrealized gain (loss) | 0.13 | 0.09 | 0.44 | (0.28) | 0.70 | 1.34 |
|
|
|
|
|
|
| Total income from investment operations | 0.36 | 0.56 | 0.97 | 0.37 | 1.42 | 1.96 |
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.23) | (0.47) | (0.53) | (0.65) | (0.71) | (0.61) |
|
|
|
|
|
|
| Total distributions | (0.23) | (0.47) | (0.53) | (0.65) | (0.71) | (0.61) |
|
|
|
|
|
|
Net asset value, end of period | $ 9.74 | $ 9.61 | $ 9.52 | $ 9.08 | $ 9.36 | $ 8.65 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 3.80% | 6.05% | 10.96% | 4.03% | 17.11% | 28.20% |
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 110,502 | $ 134,487 | $ 114,810 | $ 45,586 | $ 58,597 | $ 51,747 |
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers | 1.12% | 1.11% | 1.23% | 1.38% | 1.23% | 1.58% |
|
|
|
|
|
|
| After fee waivers | 1.12% | 1.11% | 1.23% | 1.38% | 1.23% | 1.55% |
|
|
|
|
|
|
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers | 4.78% | 4.89% | 5.70% | 6.92% | 7.99% | 8.00% |
|
|
|
|
|
|
| After fee waivers | 4.78% | 4.89% | 5.70% | 6.92% | 7.99% | 8.03% |
|
|
|
|
|
|
| Portfolio turnover rate | 42% (1) | 94% | 58% | 49% | 60% | 103% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A | Class C | ||||||||||
|
| Six |
|
|
|
|
| Six |
|
|
|
|
|
|
| Months Ended | Year Ended | Months Ended | Year Ended | ||||||||
|
| April 30, | October 31, | April 30, | October 31, | ||||||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
| (Unaudited) |
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.68 | $ 9.59 | $ 9.15 | $ 9.42 | $ 8.71 | $ 7.34 | $ 9.55 | $ 9.47 | $ 9.04 | $ 9.31 | $ 8.61 | $ 7.27 | |
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income* | 0.22 | 0.45 | 0.51 | 0.63 | 0.70 | 0.63 | 0.19 | 0.40 | 0.47 | 0.58 | 0.65 | 0.55 |
| Net realized and unrealized gain (loss) | 0.13 | 0.09 | 0.44 | (0.27) | 0.71 | 1.33 | 0.14 | 0.08 | 0.43 | (0.28) | 0.69 | 1.35 |
| Total income from investment operations | 0.35 | 0.54 | 0.95 | 0.36 | 1.41 | 1.96 | 0.33 | 0.48 | 0.90 | 0.30 | 1.34 | 1.90 |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.22) | (0.45) | (0.51) | (0.63) | (0.70) | (0.59) | (0.20) | (0.40) | (0.47) | (0.57) | (0.64) | (0.56) |
| Total distributions | (0.22) | (0.45) | (0.51) | (0.63) | (0.70) | (0.59) | (0.20) | (0.40) | (0.47) | (0.57) | (0.64) | (0.56) |
Net asset value, end of period | $ 9.81 | $ 9.68 | $ 9.59 | $ 9.15 | $ 9.42 | $ 8.71 | $ 9.68 | $ 9.55 | $ 9.47 | $ 9.04 | $ 9.31 | $ 8.61 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 3.65% | 5.74% | 10.70% | 3.84% | 16.85% | 27.91% | 3.44% | 5.17% | 10.19% | 3.28% | 16.16% | 27.37% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 20,287 | $ 19,888 | $ 13,722 | $ 6,457 | $ 5,366 | $ 4,909 | $ 12,840 | $ 13,741 | $ 14,457 | $ 10,404 | $ 9,214 | $ 7,678 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.37% | 1.36% | 1.48% | 1.63% | 1.48% | 1.83% | 1.87% | 1.86% | 1.98% | 2.13% | 1.98% | 2.33% |
| After fee waivers ^ | 1.37% | 1.36% | 1.48% | 1.63% | 1.48% | 1.80% | 1.87% | 1.86% | 1.98% | 2.13% | 1.98% | 2.30% |
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 4.53% | 4.64% | 5.45% | 6.67% | 7.74% | 7.75% | 4.03% | 4.15% | 4.95% | 6.17% | 7.24% | 7.25% |
| After fee waivers ^ | 4.53% | 4.64% | 5.45% | 6.67% | 7.74% | 7.78% | 4.03% | 4.15% | 4.95% | 6.17% | 7.24% | 7.28% |
| Portfolio turnover rate | 42% (1) | 94% | 58% | 49% | 60% | 103% | 42% (1) | 94% | 58% | 49% | 60% | 103% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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. | |||||||||||||
(1) | Not annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
^ Annualized for periods less than one year. |
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
| |
Dunham International Opportunity Bond Fund |
|
|
|
|
|
| |
The table sets forth financial data for one share of beneficial interest outstanding for the period. |
| ||||||
|
|
|
|
|
|
|
|
|
| Class N |
| Class A |
| Class C |
|
|
| Six |
| Six |
| Six |
|
|
| Months Ended |
| Months Ended |
| Months Ended |
|
|
| April 30, |
| April 30, |
| April 30, |
|
|
| 2014* |
| 2014* |
| 2014* |
|
|
| (Unaudited) |
| (unaudited) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.00 |
| $ 10.00 |
| $ 10.00 |
| |
Income from investment operations: |
|
|
|
|
|
| |
| Net investment income (loss)** | 0.03 |
| 0.02 |
| (0.02) |
|
| Net realized and unrealized gain | 0.20 |
| 0.20 |
| 0.20 |
|
| Total income from investment operations | 0.23 |
| 0.22 |
| 0.18 |
|
Less distributions: |
|
|
|
|
|
| |
| Distributions from net investment income | (0.03) |
| (0.02) |
| 0.00 | (a) |
| Total distributions | (0.03) |
| (0.02) |
| 0.00 |
|
Net asset value, end of period | $ 10.20 |
| $ 10.20 |
| $ 10.18 |
| |
|
|
|
|
|
|
|
|
Total return + | 2.29% |
| 2.17% |
| 1.82% |
| |
Ratios/Supplemental Data: |
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 36,188 |
| $ 2,484 |
| $ 1,970 |
|
|
|
|
|
|
|
|
|
| Ratios of expenses to average net assets ^ | 1.41% |
| 1.66% |
| 2.16% |
|
| Ratios of net investment income (loss) to average net assets ^ | 0.62% |
| 0.37% |
| (0.13)% |
|
|
|
|
|
|
|
|
|
| Portfolio turnover rate (1) | 41% |
| 41% |
| 41% |
|
|
|
|
|
|
|
|
|
* The Fund commenced operations on November 1, 2013. |
|
|
|
|
|
| |
**The net investment income (loss) per share data was determined using the average shares outstanding throughout each period. |
| ||||||
(a) Represents less than $0.01 per share. | |||||||
+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. |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class N |
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months | Year Ended | Period Ended |
|
|
|
| |||
|
| Ended | October 31, | October 31, |
|
|
|
| |||
|
| April 30, 2014 | 2013 | 2012 | 2011 | 2010 |
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.67 | $ 9.95 | $ 10.10 | $ 10.17 | $ 10.00 |
|
|
|
|
| |
Income from investment operations: |
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)** | 0.17 | 0.33 | 0.30 | 0.17 | (0.13) |
|
|
|
|
|
| Net realized and unrealized gain (loss) | (0.15) | (0.25) | 0.02 | (0.15) | 0.30 |
|
|
|
|
|
| Total income from investment operations | 0.02 | 0.08 | 0.32 | 0.02 | 0.17 |
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.10) | (0.33) | (0.35) | 0.00 | 0.00 |
|
|
|
|
|
| Distributions from net realized gains | 0.00 | 0.00 | 0.00 | (0.09) | 0.00 |
|
|
|
|
|
| Tax return of capital | (0.02) | (0.03) | (0.12) | 0.00 | 0.00 |
|
|
|
|
|
| Total distributions | (0.12) | (0.36) | (0.47) | (0.09) | 0.00 |
|
|
|
|
|
Net asset value, end of period | $ 9.57 | $ 9.67 | $ 9.95 | $ 10.10 | $ 10.17 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Total return +, # | 0.22% | 0.80% | 3.29% | 0.20% | 1.70% |
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 6,825 | $ 7,185 | $ 9,002 | $ 8,798 | $ 4,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios of expenses to average net assets: ^ |
|
|
|
|
|
|
|
|
|
|
| Before fee waivers^ | 2.14% | 1.67% | 2.28% | 1.98% | 2.75% |
|
|
|
|
|
| After fee waivers^ | 2.14% | 1.67% | 2.28% | 1.98% | 2.75% |
|
|
|
|
|
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
|
|
| average net assets: ^ |
|
|
|
|
|
|
|
|
|
|
| Before fee waivers^ | 3.67% | 3.35% | 2.94% | 1.71% | (2.39)% |
|
|
|
|
|
| After fee waivers^ | 3.67% | 3.35% | 2.94% | 1.71% | (2.39)% |
|
|
|
|
|
| Portfolio turnover rate | 85% (1) | 292% | 418% | 704% | 402% (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A | Class C | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months | Year Ended | Period Ended | Six Months | Year Ended | Period Ended | ||||
|
| Ended | October 31, | October 31, | Ended | October 31, | October 31, | ||||
|
| April 30, 2014 | 2013 | 2012 | 2011 | 2010 | April 30, 2014 | 2013 | 2012 | 2011 | 2010 |
|
| (Unaudited) |
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.70 | $ 9.98 | $ 10.06 | $ 10.16 | $ 10.00 | $ 9.56 | $ 9.86 | $ 9.96 | $ 10.13 | $ 10.00 | |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)** | 0.16 | 0.31 | 0.26 | 0.02 | (0.14) | 0.12 | 0.23 | 0.17 | 0.07 | (0.17) |
| Net realized and unrealized gain (loss) | (0.15) | (0.25) | 0.03 | (0.03) | 0.30 | (0.14) | (0.26) | 0.05 | (0.15) | 0.30 |
| Total income (loss) from investment operations | 0.01 | 0.06 | 0.29 | (0.01) | 0.16 | (0.02) | (0.03) | 0.22 | (0.08) | 0.13 |
Less distributions: |
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.09) | (0.31) | (0.25) | 0.00 | 0.00 | (0.07) | (0.24) | (0.20) | 0.00 | 0.00 |
| Distributions from net realized gains | 0.00 | 0.00 | 0.00 | (0.09) | 0.00 | 0.00 | 0.00 | 0.00 | (0.09) | 0.00 |
| Tax return of capital | (0.02) | (0.03) | (0.12) | 0.00 | 0.00 | (0.01) | (0.03) | (0.12) | 0.00 | 0.00 |
| Total distributions | (0.11) | (0.34) | (0.37) | (0.09) | 0.00 | (0.08) | (0.27) | (0.32) | (0.09) | 0.00 |
Net asset value, end of period | $ 9.60 | $ 9.70 | $ 9.98 | $ 10.06 | $ 10.16 | $ 9.46 | $ 9.56 | $ 9.86 | $ 9.96 | $ 10.13 | |
|
|
|
|
|
|
|
|
|
|
|
|
Total return +, # | 0.12% | 0.55% | 3.00% | (0.10)% | 1.60% | (0.23)% | (0.29)% | 2.27% | (0.79)% | 1.30% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 1,642 | $ 1,782 | $ 2,230 | $ 1,788 | $ 6,224 | $ 1,401 | $ 2,053 | $ 1,786 | $ 1,067 | $160 |
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios of expenses to average net assets: ^ |
|
|
|
|
|
|
|
|
|
|
| Before fee waivers^ | 2.39% | 1.92% | 2.53% | 2.23% | 3.00% | 3.14% | 2.67% | 3.28% | 2.98% | 3.75% |
| After fee waivers^ | 2.39% | 1.92% | 2.53% | 2.23% | 3.00% | 3.14% | 2.67% | 3.28% | 2.98% | 3.75% |
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
|
|
| average net assets: ^ |
|
|
|
|
|
|
|
|
|
|
| Before fee waivers^ | 3.36% | 3.13% | 2.69% | 1.46% | (2.64)% | 2.67% | 2.38% | 1.94% | 0.71% | (3.39)% |
| After fee waivers^ | 3.36% | 3.13% | 2.69% | 1.46% | (2.64)% | 2.67% | 2.38% | 1.94% | 0.71% | (3.39)% |
| Portfolio turnover rate | 85% (1) | 292% | 418% | 704% | 402% (1) | 85% (1) | 292% | 418% | 704% | 402% (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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. |
|
|
|
|
|
| |||||
+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. |
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Dunham Alternative Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. |
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class N |
|
|
|
|
|
|
|
| ||||||
|
| Six Months | Period Ended |
|
|
|
| Period ended |
|
|
|
|
|
|
|
|
|
| Ended | October 31, | Year Ended July 31, | July 31, |
|
|
|
|
|
|
|
| |||
|
| April 30, 2014 | 2013 * | 2013 | 2012 | 2011 | 2010 | 2009 ** |
|
|
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 23.74 | $ 23.85 | $ 23.45 | $ 26.90 | $ 25.15 | $ 26.71 | $ 25.00 |
|
|
|
|
|
|
|
| |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment loss *** | (0.05) | (0.07) | (0.10) | (0.29) | (0.21) | (0.26) | (0.16) |
|
|
|
|
|
|
|
|
| Net realized and unrealized gain (loss) | (0.10) | (0.04) | 0.50 | (1.66) | 1.96 | (0.23) | 1.87 |
|
|
|
|
|
|
|
|
| Total income (loss) from investment operations | (0.15) | (0.11) | 0.40 | (1.95) | 1.75 | (0.49) | 1.71 |
|
|
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | 0.00 | 0.00 | 0.00 | (1.50) | 0.00 | (0.89) | 0.00 |
|
|
|
|
|
|
|
|
| Distributions from net realized gains | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.18) | 0.00 |
|
|
|
|
|
|
|
|
| Total distributions | - | - | - | (1.50) | 0.00 | (1.07) | 0.00 |
|
|
|
|
|
|
|
|
Net asset value, end of period | $ 23.59 | $ 23.74 | $ 23.85 | $ 23.45 | $ 26.90 | $ 25.15 | $ 26.71 |
|
|
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|
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|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | (0.63)% | (0.46)% | 1.71% | (7.23)% | 6.96% | (1.97)% | 6.84% |
|
|
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 15,520 | $ 15,873 | $15,641 | $ 10,818 | $15,716 | $18,300 | $ 11,336 |
|
|
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^(1) | 1.55% | 1.85% | 2.35% | 2.29% | 1.94% | 2.10% | 2.29% |
|
|
|
|
|
|
|
|
| After fee waivers ^(1) | 1.55% | 1.85% | 1.67% | 1.65% | 1.65% | 1.65% | 1.65% |
|
|
|
|
|
|
|
|
| Ratios of net investment loss to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^(1,2) | (0.44)% | (1.13)% | (1.11)% | (1.79)% | (1.06)% | (1.43)% | (1.97)% |
|
|
|
|
|
|
|
|
| After fee waivers ^(1,2) | (0.44)% | (1.13)% | (0.43)% | (1.15)% | (0.77)% | (0.98)% | (1.33)% |
|
|
|
|
|
|
|
|
| Portfolio turnover rate | 1,035% (3) | 934% | 2,340% | 5,840% | 1,959% | 2,121% | 1,286% |
|
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|
|
| Class A |
| Class C | ||||||||||||
|
| Six Months | Period Ended |
|
|
|
| Period Ended |
| Six Months | Period Ended |
|
|
|
| Period Ended |
|
| Ended | October 31, | Year Ended July 31, | July 31, |
| Ended | October 31, | Year Ended July 31, | July 31, | ||||||
|
| April 30, 2014 | 2013 * | 2013 | 2012 | 2011 | 2010 | 2009 ** |
| April 30, 2014 | 2013 * | 2013 | 2012 | 2011 | 2010 | 2009 ** |
|
| (Unaudited) |
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 23.43 | $ 23.55 | $ 23.22 | $ 26.73 | $ 25.07 | $ 26.69 | $ 24.69 |
| $ 22.55 | $ 22.71 | $ 22.55 | $ 26.22 | $ 24.77 | $ 26.58 | $ 25.81 | |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment loss *** | (0.09) | (0.07) | (0.11) | (0.35) | (0.27) | (0.32) | (0.16) |
| (0.16) | (0.12) | (0.35) | (0.53) | (0.47) | (0.51) | (0.14) |
| Net realized and unrealized gain (loss) | (0.08) | (0.05) | 0.44 | (1.66) | 1.93 | (0.23) | 2.16 |
| (0.09) | (0.04) | 0.51 | (1.64) | 1.92 | (0.23) | 0.91 |
| Total income (loss) from investment operations | (0.17) | (0.12) | 0.33 | (2.01) | 1.66 | (0.55) | 2.00 |
| (0.25) | (0.16) | 0.16 | (2.17) | 1.45 | (0.74) | 0.77 |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | 0.00 | 0.00 | 0.00 | (1.50) | 0.00 | (0.89) | 0.00 |
| 0.00 | 0.00 | 0.00 | (1.50) | 0.00 | (0.89) | 0.00 |
| Distributions from net realized gains | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.18) | 0.00 |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.18) | 0.00 |
| Total distributions | 0.00 | 0.00 | 0.00 | (1.50) | 0.00 | (1.07) | 0.00 |
| 0.00 | 0.00 | 0.00 | (1.50) | 0.00 | (1.07) | 0.00 |
Net asset value, end of period | $ 23.26 | $ 23.43 | $ 23.55 | $ 23.22 | $ 26.73 | $ 25.07 | $ 26.69 |
| $ 22.30 | $ 22.55 | $ 22.71 | $ 22.55 | $ 26.22 | $ 24.77 | $ 26.58 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return +^ | (0.73)% | (0.51)% | 1.42% | (7.51)% | 6.62% | (2.20)% | 8.10% |
| 1.11% (4) | (0.70)% | 0.71% | (8.33)% | 5.85% | (2.94)% | 2.98% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 2,186 | $ 15,484 | $10,591 | $ 1,016 | $12,069 | $ 4,672 | $ 476 |
| $ 1,118 | $ 1,150 | $ 972 | $ 212 | $ 1,854 | $ 2,351 | $ 656 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^(1) | 1.80% | 2.10% | 2.36% | 2.54% | 2.19% | 2.35% | 2.54% |
| 2.55% | 2.85% | 3.11% | 3.29% | 2.94% | 3.10% | 3.29% |
| After fee waivers ^(1) | 1.80% | 2.10% | 1.98% | 1.90% | 1.90% | 1.90% | 1.90% |
| 2.55% | 2.85% | 2.67% | 2.65% | 2.65% | 2.65% | 2.65% |
| Ratios of net investment loss to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^(1,2) | (0.69)% | (1.14)% | (0.85)% | (2.04)% | (1.31)% | (1.68)% | (2.37)% |
| (1.44)% | (2.06)% | (1.99)% | (2.80)% | (2.06)% | (2.43)% | (3.25)% |
| After fee waivers ^(1,2) | (0.69)% | (1.14)% | (0.48)% | (1.40)% | (1.02)% | (1.23)% | (1.73)% |
| (1.44)% | (2.06)% | (1.56)% | (2.16)% | (1.77)% | (1.98)% | (2.61)% |
| Portfolio turnover rate | 1,035% (3) | 934% | 2,340% | 5,840% | 1,959% | 2,121% | 1,286% |
| 1,035% (3) | 934% | 2,340% | 5,840% | 1,959% | 2,121% | 1,286% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | The Fund's fiscal year end changed from July 31 to October 31 effective August 1, 2013. |
|
|
|
|
|
| |||||||||
** | Class N (formerly Sherwood Forest Alternative Fund Class I) commenced operations February 13, 2009, Class A (formerly Sherwood Forest Alternative Fund Class P) commenced operations March 25, 2009 and Class C (formerly Sherwood Forest Alternative Fund Class C) commenced operation May 14, 2009. |
| ||||||||||||||
*** | The net investment 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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|
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|
|
|
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|
|
(1) | The ratios of expenses to average net assets and net investment income (loss) to average net assets do not reflect the expenses of the underlying investment companies in which the Fund invests. |
| ||||||||||||||
(2) | Recognition of net investment loss by the Fund is affected by the timing and declaration of dividends by the underlying investment companies in which the Fund invests. |
| ||||||||||||||
(3) | Not annualized. |
|
|
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|
|
|
|
|
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|
|
|
|
|
|
(4) | 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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|
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|
|
|
|
|
|
|
| |
Dunham Appreciation & Income 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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| |||||||
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|
|
| Class N |
|
|
|
|
|
| |||||
|
| Six Months |
|
|
|
|
|
|
|
|
| ||
|
| Ended | Year Ended |
|
|
|
|
|
| ||||
|
| April 30, | October 31, |
|
|
|
|
|
| ||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.09 | $ 8.90 | $ 8.86 | $ 8.47 | $ 7.53 | $ 5.77 |
|
|
|
|
|
| |
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income** | 0.06 | 0.16 | 0.10 | 0.08 | 0.16 | 0.14 |
|
|
|
|
|
|
| Net realized and unrealized gain | 0.42 | 1.28 | 0.05 | 0.55 | 0.90 | 1.70 |
|
|
|
|
|
|
| Total income from investment operations | 0.48 | 1.44 | 0.15 | 0.63 | 1.06 | 1.84 |
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.15) | (0.25) | (0.11) | (0.24) | (0.12) | (0.08) |
|
|
|
|
|
|
| Total distributions | (0.15) | (0.25) | (0.11) | (0.24) | (0.12) | (0.08) |
|
|
|
|
|
|
Net asset value, end of period | $ 10.42 | $ 10.09 | $ 8.90 | $ 8.86 | $ 8.47 | $ 7.53 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 4.74% | 16.59% | 1.83% | 7.56% | 14.22% | 32.37% |
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 16,812 | $ 15,855 | $ 23,843 | $ 24,475 | $ 23,718 | $ 20,515 |
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers | 1.48% | 1.39% | 1.60% | 1.91% | 1.52% | 1.86% |
|
|
|
|
|
|
| After fee waivers | 1.48% | 1.39% | 1.60% | 1.91% | 1.52% | 1.83% |
|
|
|
|
|
|
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers | 1.24% | 1.70% | 1.13% | 0.90% | 1.99% | 2.15% |
|
|
|
|
|
|
| After fee waivers | 1.24% | 1.70% | 1.13% | 0.90% | 1.99% | 2.18% |
|
|
|
|
|
|
| Portfolio turnover rate | 25% (1) | 62% | 51% | 69% | 71% | 69% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A | Class C | ||||||||||
|
| Six Months |
|
|
|
|
| Six Months |
|
|
|
|
|
|
| Ended | Year Ended | Ended | Year Ended | ||||||||
|
| April 30, | October 31, | April 30, | October 31, | ||||||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
| (Unaudited) |
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.06 | $ 8.88 | $ 8.83 | $ 8.45 | $ 7.52 | $ 5.74 | $ 9.90 | $ 8.74 | $ 8.70 | $ 8.32 | $ 7.40 | $ 5.64 | |
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)** | 0.05 | 0.13 | 0.08 | 0.06 | 0.14 | 0.13 | 0.01 | 0.06 | 0.01 | (0.01) | 0.08 | 0.07 |
| Net realized and unrealized gain | 0.42 | 1.27 | 0.06 | 0.55 | 0.90 | 1.70 | 0.41 | 1.26 | 0.06 | 0.55 | 0.89 | 1.69 |
| Total income from investment operations | 0.47 | 1.40 | 0.14 | 0.61 | 1.04 | 1.83 | 0.42 | 1.32 | 0.07 | 0.54 | 0.97 | 1.76 |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.12) | (0.22) | (0.09) | (0.23) | (0.11) | (0.05) | (0.05) | (0.16) | (0.03) | (0.16) | (0.05) | 0.00 |
| Total distributions | (0.12) | (0.22) | (0.09) | (0.23) | (0.11) | (0.05) | (0.05) | (0.16) | (0.03) | (0.16) | (0.05) | 0.00 |
Net asset value, end of period | $ 10.41 | $ 10.06 | $ 8.88 | $ 8.83 | $ 8.45 | $ 7.52 | $ 10.27 | $ 9.90 | $ 8.74 | $ 8.70 | $ 8.32 | $ 7.40 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 4.68% | 16.21% | 1.63% | 7.33% | 13.96% | 32.09% | 4.25% | 15.35% | 0.84% | 6.49% | 13.14% | 31.21% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 4,318 | $ 4,368 | $ 4,470 | $ 2,994 | $ 7,530 | $ 2,498 | $ 4,010 | $ 3,765 | $ 3,867 | $ 4,130 | $ 3,471 | $ 3,513 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.73% | 1.64% | 1.85% | 2.16% | 1.77% | 2.11% | 2.48% | 2.39% | 2.60% | 2.91% | 2.52% | 2.86% |
| After fee waivers ^ | 1.73% | 1.64% | 1.85% | 2.16% | 1.77% | 2.08% | 2.48% | 2.39% | 2.60% | 2.91% | 2.52% | 2.83% |
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 0.99% | 1.45% | 0.88% | 0.65% | 1.74% | 1.90% | 0.24% | 0.70% | 0.13% | (0.10)% | 0.99% | 1.15% |
| After fee waivers ^ | 0.99% | 1.45% | 0.88% | 0.65% | 1.74% | 1.93% | 0.24% | 0.70% | 0.13% | (0.10)% | 0.99% | 1.18% |
| Portfolio turnover rate | 25% (1) | 62% | 51% | 69% | 71% | 69% | 25% (1) | 62% | 51% | 69% | 71% | 69% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**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. | |||||||||||||
(1) | Not annualized. |
|
|
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|
|
|
|
|
|
|
|
^ | Annualized for periods less than one year. |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
|
|
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|
|
|
|
| |
Dunham Large Cap Value 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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| |||||||
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|
| Class N |
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| |||||
|
| Six Months |
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|
| Ended | Year Ended |
|
|
|
|
|
|
| ||||
|
| April 30, | October 31, |
|
|
|
|
|
|
| ||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 14.55 | $ 11.74 | $ 10.60 | $ 9.96 | $ 8.70 | $ 8.09 |
|
|
|
|
|
|
| |
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income * | 0.06 | 0.16 | 0.12 | 0.06 | 0.06 | 0.07 |
|
|
|
|
|
|
|
| Net realized and unrealized gain | 1.13 | 2.78 | 1.07 | 0.64 | 1.25 | 0.62 |
|
|
|
|
|
|
|
| Total income from investment operations | 1.19 | 2.94 | 1.19 | 0.70 | 1.31 | 0.69 |
|
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.17) | (0.13) | (0.05) | (0.06) | (0.05) | (0.08) |
|
|
|
|
|
|
|
| Total distributions | (0.17) | (0.13) | (0.05) | (0.06) | (0.05) | (0.08) |
|
|
|
|
|
|
|
Net asset value, end of period | $ 15.57 | $ 14.55 | $ 11.74 | $ 10.60 | $ 9.96 | $ 8.70 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 8.20% | 25.30% | 11.29% | 7.06% | 15.11% | 8.72% |
|
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 40,370 | $ 37,688 | $ 37,650 | $ 34,171 | $ 31,436 | $ 29,315 |
|
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.24% | 1.00% | 1.17% | 1.62% | 1.40% | 1.72% |
|
|
|
|
|
|
|
| After fee waivers ^ | 1.24% | 1.00% | 1.17% | 1.62% | 1.40% | 1.69% |
|
|
|
|
|
|
|
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 0.87% | 1.25% | 1.04% | 0.53% | 0.61% | 0.90% |
|
|
|
|
|
|
|
| After fee waivers ^ | 0.87% | 1.25% | 1.04% | 0.53% | 0.61% | 0.93% |
|
|
|
|
|
|
|
| Portfolio turnover rate | 8% (1) | 16% | 30% | 30% | 23% | 47% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A | Class C | |||||||||||
|
| Six Months |
|
|
|
|
| Six Months |
|
|
|
|
|
|
|
| Ended | Year Ended | Ended | Year Ended | |||||||||
|
| April 30, | October 31, | April 30, | October 31, | |||||||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2014 | 2013 | 2012 |
| 2011 | 2010 | 2009 |
|
| (Unaudited) |
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 14.52 | $ 11.72 | $ 10.57 | $ 9.95 | $ 8.69 | $ 8.06 | $ 14.09 | $ 11.36 | $ 10.31 |
| $ 9.73 | $ 8.53 | $ 7.93 | |
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)* | 0.05 | 0.13 | 0.09 | 0.04 | 0.01 | 0.05 | (0.01) | 0.03 | 0.00 | (a) | (0.05) | (0.04) | (0.01) |
| Net realized and unrealized gain | 1.11 | 2.77 | 1.08 | 0.64 | 1.28 | 0.63 | 1.08 | 2.71 | 1.05 |
| 0.63 | 1.24 | 0.61 |
| Total income from investment operations | 1.16 | 2.90 | 1.17 | 0.68 | 1.29 | 0.68 | 1.07 | 2.74 | 1.05 |
| 0.58 | 1.20 | 0.60 |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.14) | (0.10) | (0.02) | (0.06) | (0.03) | (0.05) | (0.03) | (0.01) | 0.00 |
| 0.00 | 0.00 | 0.00 |
| Total distributions | (0.14) | (0.10) | (0.02) | (0.06) | (0.03) | (0.05) | (0.03) | (0.01) | 0.00 |
| 0.00 | 0.00 | 0.00 |
Net asset value, end of period | $ 15.54 | $ 14.52 | $ 11.72 | $ 10.57 | $ 9.95 | $ 8.69 | $ 15.13 | $ 14.09 | $ 11.36 |
| $ 10.31 | $ 9.73 | $ 8.53 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 7.97%# | 24.99% | 11.04% | 6.78% | 14.82% | 8.55% | 7.58%# | 24.09%# | 10.18% |
| 5.96% | 14.07% | 7.57% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 4,925 | $ 4,980 | $ 2,969 | $ 2,874 | $ 3,844 | $ 55 | $ 5,296 | $ 5,029 | $ 5,431 |
| $ 6,129 | $ 5,769 | $ 4,953 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.49% | 1.25% | 1.42% | 1.87% | 1.65% | 1.97% | 2.24% | 2.00% | 2.17% |
| 2.62% | 2.40% | 2.72% |
| After fee waivers ^ | 1.49% | 1.25% | 1.42% | 1.87% | 1.65% | 1.94% | 2.24% | 2.00% | 2.17% |
| 2.62% | 2.40% | 2.69% |
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 0.62% | 0.99% | 0.79% | 0.28% | 0.36% | 0.65% | (0.13)% | 0.25% | 0.04% |
| (0.47)% | (0.39)% | (0.10)% |
| After fee waivers ^ | 0.62% | 0.99% | 0.79% | 0.28% | 0.36% | 0.68% | (0.13)% | 0.25% | 0.04% |
| (0.47)% | (0.39)% | (0.07)% |
| Portfolio turnover rate | 8% (1) | 16% | 30% | 30% | 23% | 47% | 8% (1) | 16% | 30% |
| 30% | 23% | 47% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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. | ||||||||||||||
(a) Represents less than $0.01 per share. |
|
|
|
| ||||||||||
# 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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
| |
Dunham Alternative Income Fund |
|
|
|
|
|
|
|
|
|
|
| |
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. |
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class N |
|
|
|
|
|
|
| |||
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
| Ended |
|
| Period Ended |
|
|
|
|
|
|
|
|
| April 30, | Year Ended |
| October 31, |
|
|
|
|
|
|
|
|
| 2014 | Oct. 31, 2013 |
| 2012 * |
|
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 11.24 | $ 9.73 |
| $ 10.00 |
|
|
|
|
|
|
| |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)** | 0.13 | 0.17 |
| (0.07) |
|
|
|
|
|
|
|
| Net realized and unrealized gain (loss) | 0.39 | 1.46 |
| (0.20) |
|
|
|
|
|
|
|
| Total income (loss) from investment operations | 0.52 | 1.63 |
| (0.27) |
|
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.13) | (0.12) |
| 0.00 |
|
|
|
|
|
|
|
| Distributions from net realized gains | (0.18) | 0.00 |
| 0.00 |
|
|
|
|
|
|
|
| Tax Return of Capital | (0.08) | 0.00 |
| 0.00 |
|
|
|
|
|
|
|
| Total distributions | (0.39) | (0.12) |
| 0.00 |
|
|
|
|
|
|
|
Net asset value, end of period | $ 11.37 | $ 11.24 |
| $ 9.73 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 4.75% | 16.84% |
| (2.70)% |
|
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 1,220 | $ 1,099 |
| $ 341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios of expenses to average net assets ^ | 2.11% | 2.90% |
| 9.47% |
|
|
|
|
|
|
|
| Ratios of net investment income (loss) to average net assets ^ | 2.32% | 1.66% |
| (6.42)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Portfolio turnover rate | 41% (1) | 69% |
| 7% | (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A | Class C |
| ||||||||
|
| Six Months |
|
|
|
| Six Months |
|
|
|
|
|
|
| Ended |
|
| Period Ended |
| Ended |
|
|
| Period Ended |
|
|
| April 30, | Year Ended |
| October 31, |
| April 30, |
| Year Ended |
| October 31, |
|
|
| 2014 | Oct. 31, 2013 |
| 2012 * |
| 2014 |
| Oct. 31, 2013 |
| 2012 * |
|
|
| (Unaudited) |
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 11.24 | $ 9.73 |
| $ 10.00 |
| $ 11.21 |
| $ 9.72 |
| $ 10.00 |
| |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)** | 0.12 | 0.15 |
| (0.08) |
| 0.07 |
| 0.07 |
| (0.11) |
|
| Net realized and unrealized gain (loss) | 0.38 | 1.46 |
| (0.19) |
| 0.39 |
| 1.46 |
| (0.17) |
|
| Total income (loss) from investment operations | 0.50 | 1.61 |
| (0.27) |
| 0.46 |
| 1.53 |
| (0.28) |
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.12) | (0.10) |
| 0.00 |
| (0.09) |
| (0.04) |
| 0.00 |
|
| Distributions from net realized gains | (0.19) | 0.00 |
| 0.00 |
| (0.21) |
| 0.00 |
| 0.00 |
|
| Tax Return of Capital | (0.07) | 0.00 |
| 0.00 |
| (0.05) |
| 0.00 |
| 0.00 |
|
| Total distributions | (0.38) | (0.10) |
| 0.00 |
| (0.35) |
| (0.04) |
| 0.00 |
|
Net asset value, end of period | $ 11.36 | $ 11.24 |
| $ 9.73 |
| $ 11.32 |
| $ 11.21 |
| $ 9.72 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 4.55% | 16.60% |
| (2.70)% |
| 4.17% |
| 15.75% |
| (2.80)% |
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 2,477 | $ 2,405 |
| $ 1,106 |
| $ 1,656 |
| $ 1,466 |
| $ 525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios of expenses to average net assets ^ | 2.36% | 3.15% |
| 9.72% |
| 3.11% |
| 3.90% |
| 10.47% |
|
| Ratios of net investment income (loss) to average net assets ^ | 2.07% | 1.42% |
| (6.67)% |
| 1.32% |
| 0.67% |
| (7.42)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Portfolio turnover rate | 41% (1) | 69% |
| 7% | (1) | 41% (1) |
| 69% |
| 7% | (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
* The Fund commenced operations on September 14, 2012. |
|
|
|
|
|
|
|
|
|
|
| |
**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. |
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
| |
Dunham Focused Large Cap Growth Fund |
|
|
|
|
|
| ||
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class N |
|
|
| |||
|
| Six Months |
|
|
|
|
|
|
|
| Ended | Year Ended | Period Ended |
|
|
|
|
|
| April 30, | October 31, | October 31, |
|
|
|
|
|
| 2014 | 2013 | 2012 * |
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $14.02 | $ 10.42 | $ 10.00 |
|
|
|
| |
Income (loss) from investment operations: |
|
|
|
|
|
|
| |
| Net investment loss** | (0.05) | (0.10) | (0.16) |
|
|
|
|
| Net realized and unrealized gain (loss) | (0.36) | 3.70 | 0.58 |
|
|
|
|
| Total income (loss) from investment operations | (0.41) | 3.60 | 0.42 |
|
|
|
|
Less distributions: |
|
|
|
|
|
|
| |
| Distributions from net investment income | 0.00 | 0.00 | 0.00 |
|
|
|
|
| Distributions from net realized gains | (0.19) | 0.00 | 0.00 |
|
|
|
|
| Total distributions | (0.19) | 0.00 | 0.00 |
|
|
|
|
Net asset value, end of period | $13.42 | $ 14.02 | $ 10.42 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
Total return + | (3.01)% | 34.55% | 4.20% |
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 30,948 | $ 814 | $ 450 |
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
| Before fee waivers | 1.59% | 1.71% | 2.11% |
|
|
|
|
| After fee waivers | 1.59% | 1.69% | 1.80% |
|
|
|
|
| Ratios of net investment loss to |
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
| Before fee waivers | (0.76)% | (0.70)% | (1.06)% |
|
|
|
|
| After fee waivers | (0.76)% | (0.67)% | (0.75)% |
|
|
|
|
| Portfolio turnover rate | 13% (1) | 91% | 27% (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A | Class C | |||||
|
| Six Months |
|
|
| Six Months |
|
|
|
| Ended | Year Ended | Period Ended |
| Ended | Year Ended | Period Ended |
|
| April 30, | October 31, | October 31, |
| April 30, | October 31, | October 31, |
|
| 2014 | 2013 | 2012 * |
| 2014 | 2013 | 2012 * |
|
| (Unaudited) |
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $13.96 | $ 10.39 | $ 10.00 |
| $ 13.76 | $ 10.33 | $ 10.00 | |
Income (loss) from investment operations: |
|
|
|
|
|
|
| |
| Net investment loss** | (0.13) | (0.11) | (0.09) |
| (0.15) | (0.26) | (0.30) |
| Net realized and unrealized gain (loss) | (0.30) | 3.68 | 0.48 |
| (0.32) | 3.69 | 0.63 |
| Total income (loss) from investment operations | (0.43) | 3.57 | 0.39 |
| (0.47) | 3.43 | 0.33 |
Less distributions: |
|
|
|
|
|
|
| |
| Distributions from net investment income | 0.00 | 0.00 | 0.00 |
| 0.00 | 0.00 | 0.00 |
| Distributions from net realized gains | (0.19) | 0.00 | 0.00 |
| (0.19) | 0.00 | 0.00 |
| Total distributions | (0.19) | 0.00 | 0.00 |
| (0.19) | 0.00 | 0.00 |
Net asset value, end of period | $13.34 | $ 13.96 | $ 10.39 |
| $ 13.10 | $ 13.76 | $ 10.33 | |
|
|
|
|
|
|
|
|
|
Total return + | (3.17)% | 34.36% | 3.90% |
| (3.44)% | 33.20% | 3.30% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 17,616 | $ 11,399 | $ 10,344 |
| $ 3,806 | $ 510 | $ 146 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.84% | 1.96% | 2.36% |
| 2.59% | 2.71% | 3.11% |
| After fee waivers ^ | 1.84% | 1.94% | 2.05% |
| 2.59% | 2.69% | 2.80% |
| Ratios of net investment loss to |
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
| Before fee waivers ^ | (1.01)% | (0.95)% | (1.31)% |
| (1.76)% | (1.70)% | (2.06)% |
| After fee waivers ^ | (1.01)% | (0.92)% | (1.00)% |
| (1.76)% | (1.67)% | (1.75)% |
| Portfolio turnover rate | 13% (1) | 91% | 27% (1) |
| 13% (1) | 91% | 27% (1) |
|
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|
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|
|
* The Fund commenced opperations on December 8, 2011. | ||||||||
**The net investment loss per share data was determined using the average shares outstanding throughout each period. | ||||||||
^ Annualized for periods less then a 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 Real Estate 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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| |||||
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| Six Months |
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| Ended | Year Ended |
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| ||||
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| April 30, | October 31, |
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| ||||
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| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
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| (Unaudited) |
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Net asset value, beginning of period | $ 16.53 | $ 15.79 | $ 13.80 | $ 12.84 | $ 9.27 | $ 9.14 |
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| |
Income from investment operations: |
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|
|
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|
| |
| Net investment income * | 0.20 | 0.23 | 0.21 | 0.14 | 0.14 | 0.08 |
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|
|
| Net realized and unrealized gain | 1.21 | 1.27 | 1.90 | 0.98 | 3.54 | 0.23 |
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|
|
| Total income from investment operations | 1.41 | 1.50 | 2.11 | 1.12 | 3.68 | 0.31 |
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Less distributions: |
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|
|
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|
| |
| Distributions from net investment income | (0.20) | (0.23) | (0.12) | (0.16) | (0.11) | (0.18) |
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|
|
| Distributions from net realized gains | (0.39) | (0.53) | 0.00 | 0.00 | 0.00 | 0.00 |
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|
|
| Total distributions | (0.59) | (0.76) | (0.12) | (0.16) | (0.11) | (0.18) |
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Net asset value, end of period | $ 17.35 | $ 16.53 | $ 15.79 | $ 13.80 | $ 12.84 | $ 9.27 |
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| |
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Total return + | 9.02% | 9.85% | 15.46% | 8.82% | 39.91% | 3.89% |
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| |
Ratios/Supplemental Data: |
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| |
| Net assets, end of period (in 000s) | $ 39,668 | $ 33,545 | $ 20,424 | $ 12,507 | $ 7,686 | $ 5,542 |
|
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| Ratios of expenses to average net assets: |
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|
|
|
|
|
|
|
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| Before fee waivers | 1.56% | 1.30% | 1.46% | 1.51% | 2.26% | 3.05% |
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|
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| After fee waivers | 1.56% | 1.30% | 1.46% | 1.51% | 2.26% | 3.02% |
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|
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| Ratios of net investment income to |
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|
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|
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| average net assets: |
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|
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|
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| Before fee waivers | 2.47% | 1.40% | 1.42% | 1.09% | 1.22% | 1.05% |
|
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| After fee waivers | 2.47% | 1.40% | 1.42% | 1.09% | 1.22% | 1.08% |
|
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|
|
| Portfolio turnover rate | 58% (1) | 163% | 123% | 59% | 157% | 221% |
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| Class A | Class C | ||||||||||
|
| Six Months |
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| Six Months |
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|
| Ended | Year Ended | Ended | Year Ended | ||||||||
|
| April 30, | October 31, | April 30, | October 31, | ||||||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
| (Unaudited) |
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|
|
| (Unaudited) |
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|
Net asset value, beginning of period | $ 16.55 | $ 15.77 | $ 13.80 | $ 12.85 | $ 9.27 | $ 9.13 | $ 16.02 | $ 15.33 | $ 13.40 | $ 12.49 | $ 9.01 | $ 8.82 | |
Income from investment operations: |
|
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|
|
|
|
|
|
|
|
|
| |
| Net investment income * | 0.18 | 0.15 | 0.21 | 0.13 | 0.10 | 0.06 | 0.12 | 0.07 | 0.07 | 0.01 | 0.02 | 0.01 |
| Net realized and unrealized gain | 1.33 | 1.31 | 1.87 | 0.95 | 3.56 | 0.22 | 1.18 | 1.23 | 1.86 | 0.94 | 3.46 | 0.22 |
| Total income from investment operations | 1.51 | 1.46 | 2.08 | 1.08 | 3.66 | 0.28 | 1.30 | 1.30 | 1.93 | 0.95 | 3.48 | 0.23 |
Less distributions: |
|
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|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.24) | (0.15) | (0.11) | (0.13) | (0.08) | (0.14) | (0.05) | (0.08) | 0.00 | (0.04) | 0.00 | (0.04) |
| Distributions from net realized gains | (0.39) | (0.53) | 0.00 | 0.00 | 0.00 | 0.00 | (0.39) | (0.53) | 0.00 | 0.00 | 0.00 | 0.00 |
| Total distributions | (0.63) | (0.68) | (0.11) | (0.13) | (0.08) | (0.14) | (0.44) | (0.61) | 0.00 | (0.04) | 0.00 | (0.04) |
Net asset value, end of period | $ 17.43 | $ 16.55 | $ 15.77 | $ 13.80 | $ 12.85 | $ 9.27 | $ 16.88 | $ 16.02 | $ 15.33 | $ 13.40 | $ 12.49 | $ 9.01 | |
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Total return + | 8.86% | 9.60% | 15.20% | 8.48% | 39.66% | 3.64% | 8.51% | 8.73% | 14.40% | 7.65% | 38.62% | 2.76% | |
Ratios/Supplemental Data: |
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|
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|
|
| |
| Net assets, end of period (in 000s) | $ 3,446 | $ 2,539 | $ 709 | $ 6,962 | $ 47 | $ 20 | $ 3,085 | $ 2,684 | $ 2,370 | $ 1,944 | $ 1,310 | $ 943 |
| Ratios of expenses to average net assets: |
|
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|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.81% | 1.55% | 1.71% | 1.76% | 2.51% | 3.30% | 2.56% | 2.30% | 2.46% | 2.51% | 3.26% | 4.05% |
| After fee waivers ^ | 1.81% | 1.55% | 1.71% | 1.76% | 2.51% | 3.27% | 2.56% | 2.30% | 2.46% | 2.51% | 3.26% | 4.02% |
| Ratios of net investment income to |
|
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|
|
|
|
|
|
|
|
|
| average net assets: |
|
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|
|
|
|
|
|
|
|
| Before fee waivers ^ | 2.22% | 1.15% | 1.17% | 0.81% | 0.97% | 0.80% | 1.47% | 0.40% | 0.42% | 0.07% | 0.22% | 0.05% |
| After fee waivers ^ | 2.22% | 1.15% | 1.17% | 0.81% | 0.97% | 0.83% | 1.47% | 0.40% | 0.42% | 0.07% | 0.22% | 0.08% |
| Portfolio turnover rate | 58% (1) | 163% | 123% | 59% | 157% | 221% | 58% (1) | 163% | 123% | 59% | 157% | 221% |
|
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|
* 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. |
|
|
|
|
|
|
| ||||||
(1) | Not annualized. |
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^ | Annualized for periods less than one year. |
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|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
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|
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|
|
|
|
| |
Dunham International 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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| |||||||
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| Class N |
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| |||||
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| Six Months |
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| Ended | Year Ended |
|
|
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| ||||
|
| April 30, | October 31, |
|
|
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| ||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
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| (Unaudited) |
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|
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|
|
Net asset value, beginning of period | $ 15.22 | $ 12.05 | $ 11.85 | $ 12.79 | $ 11.12 | $ 8.09 |
|
|
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|
| |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income* | 0.00 | 0.07 | 0.14 | 0.15 | 0.08 | 0.05 |
|
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|
|
| Net realized and unrealized gain (loss) | 0.38 | 3.24 | 0.22 | (0.98) | 1.80 | 3.09 |
|
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|
| Total income (loss) from investment operations | 0.38 | 3.31 | 0.36 | (0.83) | 1.88 | 3.14 |
|
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|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.26) | (0.14) | (0.16) | (0.11) | (0.21) | (0.11) |
|
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|
|
| Total distributions | (0.26) | (0.14) | (0.16) | (0.11) | (0.21) | (0.11) |
|
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|
|
Net asset value, end of period | $ 15.34 | $ 15.22 | $ 12.05 | $ 11.85 | $ 12.79 | $ 11.12 |
|
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| |
|
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|
|
Total return + # | 2.53% | 27.64% | 3.16% | (6.56)% | 17.15% | 39.44% |
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
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|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 52,703 | $ 49,815 | $ 44,947 | $ 39,163 | $ 36,546 | $ 31,858 |
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 2.10% | 2.11% | 1.97% | 2.28% | 2.53% | 2.63% |
|
|
|
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|
|
| After fee waivers ^ | 2.10% | 2.11% | 1.97% | 2.28% | 2.53% | 2.60% |
|
|
|
|
|
|
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | (0.02)% | 0.52% | 1.24% | 1.19% | 0.67% | 0.55% |
|
|
|
|
|
|
| After fee waivers ^ | (0.02)% | 0.52% | 1.24% | 1.19% | 0.67% | 0.58% |
|
|
|
|
|
|
| Portfolio turnover rate | 51% (1) | 131% | 142% | 110% | 118% | 173% |
|
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|
| Class A | Class C | ||||||||||
|
| Six Months | Year Ended | Six Months |
|
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|
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| ||||
|
| Ended | Ended | Year Ended | |||||||||
|
| April 30, | October 31, | April 30, | October 31, | ||||||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
| (Unaudited) |
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|
|
| (Unaudited) |
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|
Net asset value, beginning of period | $ 15.19 | $ 12.03 | $ 11.84 | $ 12.79 | $ 11.13 | $ 8.05 | $ 14.70 | $ 11.64 | $ 11.44 | $ 12.37 | $ 10.78 | $ 7.81 | |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)* | 0.00 | 0.06 | 0.10 | 0.18 | 0.04 | 0.03 | (0.08) | (0.06) | 0.03 | 0.02 | (0.04) | (0.04) |
| Net realized and unrealized gain (loss) | 0.37 | 3.22 | 0.22 | (1.04) | 1.82 | 3.10 | 0.38 | 3.13 | 0.21 | (0.95) | 1.75 | 3.01 |
| Total income (loss) from investment operations | 0.37 | 3.28 | 0.32 | (0.86) | 1.86 | 3.13 | 0.30 | 3.07 | 0.24 | (0.93) | 1.71 | 2.97 |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.24) | (0.12) | (0.13) | (0.09) | (0.20) | (0.05) | (0.12) | (0.01) | (0.04) | 0.00 | (0.12) | 0.00 |
| Total distributions | (0.24) | (0.12) | (0.13) | (0.09) | (0.20) | (0.05) | (0.12) | (0.01) | (0.04) | 0.00 | (0.12) | 0.00 |
Net asset value, end of period | $ 15.32 | $ 15.19 | $ 12.03 | $ 11.84 | $ 12.79 | $ 11.13 | $ 14.88 | $ 14.70 | $ 11.64 | $ 11.44 | $ 12.37 | $ 10.78 | |
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|
Total return + # | 2.42% | 27.40% | 2.80% | (6.78)% | 16.85% | 39.17% | 2.04% | 26.40% | 2.10% | (7.52)% | 16.00% | 38.03% | |
Ratios/Supplemental Data: |
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|
|
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|
| |
| Net assets, end of period (in 000s) | $ 9,705 | $ 4,741 | $ 1,580 | $ 1,309 | $ 322 | $ 57 | $ 6,111 | $ 5,627 | $ 5,881 | $ 6,849 | $ 7,036 | $ 5,766 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 2.35% | 2.36% | 2.22% | 2.53% | 2.78% | 2.88% | 3.10% | 3.11% | 2.97% | 3.28% | 3.53% | 3.63% |
| After fee waivers ^ | 2.35% | 2.36% | 2.22% | 2.53% | 2.78% | 2.85% | 3.10% | 3.11% | 2.97% | 3.28% | 3.53% | 3.60% |
| Ratios of net investment income (loss) to |
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|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 0.04% | 0.41% | 0.99% | 0.94% | 0.42% | 0.30% | (1.03)% | (0.46)% | 0.24% | 0.19% | (0.33)% | (0.45)% |
| After fee waivers ^ | 0.04% | 0.41% | 0.99% | 0.94% | 0.42% | 0.33% | (1.03)% | (0.46)% | 0.24% | 0.19% | (0.33)% | (0.42)% |
| Portfolio turnover rate | 51% (1) | 131% | 142% | 110% | 118% | 173% | 51% (1) | 131% | 142% | 110% | 118% | 173% |
|
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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. |
|
|
|
|
|
| |||||||
+ 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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|
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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 |
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| Ended | Year Ended |
|
|
|
|
|
| ||||||
|
| April 30, | October 31, |
|
|
|
|
|
| ||||||
|
| 2014 | 2013 | 2012 |
| 2011 | 2010 |
| 2009 |
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
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|
|
Net asset value, beginning of period | $ 14.65 | $ 11.21 | $ 10.44 |
| $ 9.78 | $ 7.94 |
| $ 7.64 |
|
|
|
|
|
| |
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income * | 0.07 | 0.07 | 0.00 | (a) | 0.02 | 0.03 |
| 0.08 |
|
|
|
|
|
|
| Net realized and unrealized gain | 0.77 | 3.40 | 0.77 |
| 0.66 | 1.90 |
| 0.32 |
|
|
|
|
|
|
| Total income from investment operations | 0.84 | 3.47 | 0.77 |
| 0.68 | 1.93 |
| 0.40 |
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.02) | (0.03) | 0.00 |
| (0.02) | (0.09) |
| (0.10) |
|
|
|
|
|
|
| Distributions from net realized gains | (0.67) | 0.00 | 0.00 |
| 0.00 | 0.00 |
| 0.00 |
|
|
|
|
|
|
| Total distributions | (0.69) | (0.03) | 0.00 |
| (0.02) | (0.09) |
| (0.10) |
|
|
|
|
|
|
Net asset value, end of period | $ 14.80 | $ 14.65 | $ 11.21 |
| $ 10.44 | $ 9.78 |
| $ 7.94 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + # | 5.59% | 31.05% | 7.38% |
| 6.94% | 24.39% |
| 5.54% |
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 20,902 | $ 16,640 | $ 15,764 |
| $ 14,739 | $ 14,378 |
| $ 13,288 |
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.47% | 1.29% | 2.02% |
| 2.10% | 2.08% |
| 1.48% |
|
|
|
|
|
|
| After fee waivers ^ | 1.47% | 1.29% | 2.02% |
| 2.10% | 2.08% |
| 1.45% |
|
|
|
|
|
|
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 0.89% | 0.62% | 0.04% |
| 0.06% | 0.37% |
| 1.19% |
|
|
|
|
|
|
| After fee waivers ^ | 0.89% | 0.62% | 0.04% |
| 0.06% | 0.37% |
| 1.22% |
|
|
|
|
|
|
| Portfolio turnover rate | 0% (1) | 0% | 62% |
| 50% | 41% |
| 40% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A | Class C | ||||||||||||
|
| Six Months |
|
|
|
|
|
|
| Six Months |
|
|
|
|
|
|
| Ended | Year Ended | Ended | Year Ended | ||||||||||
|
| April 30, | October 31, | April 30, | October 31, | ||||||||||
|
| 2014 | 2013 | 2012 |
| 2011 | 2010 |
| 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
| (Unaudited) |
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 14.59 | $ 11.16 | $ 10.40 |
| $ 9.75 | $ 7.92 |
| $ 7.61 | $ 13.74 | $ 10.59 | $ 9.96 | $ 9.40 | $ 7.65 | $ 7.32 | |
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)* | 0.04 | 0.01 | 0.00 | (a) | (0.01) | 0.00 | (a) | 0.07 | 0.00 | (0.03) | (0.10) | (0.09) | (0.06) | 0.01 |
| Net realized and unrealized gain | 0.77 | 3.42 | 0.76 |
| 0.66 | 1.89 |
| 0.32 | 0.71 | 3.18 | 0.73 | 0.65 | 1.82 | 0.32 |
| Total income from investment operations | 0.81 | 3.43 | 0.76 |
| 0.65 | 1.89 |
| 0.39 | 0.71 | 3.15 | 0.63 | 0.56 | 1.76 | 0.33 |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | 0.00 | 0.00 | 0.00 |
| 0.00 | (0.06) |
| (0.08) | 0.00 | 0.00 | 0.00 | 0.00 | (0.01) | 0.00 |
| Distributions from net realized gains | (0.67) | 0.00 | 0.00 |
| 0.00 | 0.00 |
| 0.00 | (0.67) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total distributions | (0.67) | 0.00 | 0.00 |
| 0.00 | (0.06) |
| (0.08) | (0.67) | 0.00 | 0.00 | 0.00 | (0.01) | 0.00 |
Net asset value, end of period | $ 14.73 | $ 14.59 | $ 11.16 |
| $ 10.40 | $ 9.75 |
| $ 7.92 | $ 13.78 | $ 13.74 | $ 10.59 | $ 9.96 | $ 9.40 | $ 7.65 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 5.50% | 30.74% | 7.31% |
| 6.67% | 24.01% |
| 5.35% | 5.10% | 29.75% | 6.33% | 5.96% | 23.02% | 4.51% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 3,081 | $ 1,756 | $ 567 |
| $ 193 | $ 154 |
| $ 19 | $ 2,188 | $ 2,057 | $ 2,099 | $ 2,574 | $ 2,341 | $ 2,012 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.72% | 1.54% | 2.27% |
| 2.35% | 2.33% |
| 1.73% | 2.47% | 2.29% | 3.02% | 3.10% | 3.08% | 2.48% |
| After fee waivers ^ | 1.72% | 1.54% | 2.27% |
| 2.35% | 2.33% |
| 1.70% | 2.47% | 2.29% | 3.02% | 3.10% | 3.08% | 2.45% |
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 0.59% | 0.15% | (0.21)% |
| (0.22)% | 0.12% |
| 0.94% | (0.07)% | (0.37)% | (0.96)% | (0.95)% | (0.63)% | 0.19% |
| After fee waivers ^ | 0.59% | 0.15% | (0.21)% |
| (0.22)% | 0.12% |
| 0.97% | (0.07)% | (0.37)% | (0.96)% | (0.95)% | (0.63)% | 0.22% |
| Portfolio turnover rate | 0% (1) | 0% | 62% |
| 50% | 41% |
| 40% | 0% (1) | 0% | 62% | 50% | 41% | 40% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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. | |||||||||||||||
(a) Represents less than $0.01 per share. |
|
|
|
|
|
| |||||||||
(1) | Not annualized. Amount is less than 1%. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# 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 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Dunham Emerging Markets Stock Fund |
|
|
|
|
|
|
|
|
|
|
|
| ||
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class N |
|
|
|
|
|
| ||||||
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ended | Year Ended |
|
|
|
|
|
| |||||
|
| April 30, | October 31, |
|
|
|
|
|
| |||||
|
| 2014 | 2013 |
| 2012 | 2011 | 2010 | 2009 |
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 14.66 | $ 13.82 |
| $ 13.43 | $ 16.03 | $ 13.41 | $ 7.32 |
|
|
|
|
|
| |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)* | 0.02 | 0.00 | (a) | 0.04 | (0.05) | (0.11) | (0.08) |
|
|
|
|
|
|
| Net realized and unrealized gain (loss) | (0.90) | 0.84 |
| 0.35 | (2.55) | 3.01 | 6.28 |
|
|
|
|
|
|
| Total income (loss) from investment operations | (0.88) | 0.84 |
| 0.39 | (2.60) | 2.90 | 6.20 |
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | 0.00 | 0.00 |
| 0.00 | 0.00 | (0.28) | 0.00 |
|
|
|
|
|
|
| Distributions from net realized gains | 0.00 | 0.00 |
| 0.00 | 0.00 | 0.00 | (0.11) |
|
|
|
|
|
|
| Total distributions | 0.00 | 0.00 |
| 0.00 | 0.00 | (0.28) | (0.11) |
|
|
|
|
|
|
Net asset value, end of period | $ 13.78 | $ 14.66 |
| $ 13.82 | $ 13.43 | $ 16.03 | $ 13.41 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return +, # | (6.00)% | 6.08% |
| 2.90% | (16.22)% | 21.98% | 86.15% |
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 32,128 | $ 24,736 |
| $ 16,017 | $ 14,616 | $ 13,592 | $ 10,999 |
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.32% | 2.00% |
| 1.75% | 2.10% | 2.24% | 2.45% |
|
|
|
|
|
|
| After fee waivers ^ | 1.32% | 2.00% |
| 1.75% | 2.10% | 2.24% | 2.42% |
|
|
|
|
|
|
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 0.24% | 0.03% |
| 0.29% | (0.35)% | (0.80)% | (0.91)% |
|
|
|
|
|
|
| After fee waivers ^ | 0.24% | 0.03% |
| 0.29% | (0.35)% | (0.80)% | (0.88)% |
|
|
|
|
|
|
| Portfolio turnover rate | 55% (1) | 166% |
| 104% | 98% | 206% | 63% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A | Class C | |||||||||||
|
| Six Months |
|
|
|
|
|
| Six Months |
|
|
|
|
|
|
| Ended | Year Ended | Ended | Year Ended | |||||||||
|
| April 30, | October 31, | April 30, | October 31, | |||||||||
|
| 2014 | 2013 |
| 2012 | 2011 | 2010 | 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
| (Unaudited) |
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 14.39 | $ 13.59 |
| $ 13.23 | $ 15.83 | $ 13.28 | $ 7.27 | $ 13.82 | $ 13.16 | $ 12.90 | $ 15.56 | $ 13.06 | $ 7.20 | |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)* | 0.00 | (0.07) |
| 0.05 | (0.12) | (0.15) | (0.12) | (0.05) | (0.14) | (0.09) | (0.20) | (0.24) | (0.17) |
| Net realized and unrealized gain (loss) | (0.89) | 0.87 |
| 0.31 | (2.48) | 2.98 | 6.24 | (0.85) | 0.80 | 0.35 | (2.46) | 2.91 | 6.14 |
| Total income (loss) from investment operations | (0.89) | 0.80 |
| 0.36 | (2.60) | 2.83 | 6.12 | (0.90) | 0.66 | 0.26 | (2.66) | 2.67 | 5.97 |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | 0.00 | 0.00 |
| 0.00 | 0.00 | (0.28) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.17) | 0.00 |
| Distributions from net realized gains | 0.00 | 0.00 |
| 0.00 | 0.00 | 0.00 | (0.11) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.11) |
| Total distributions | 0.00 | 0.00 |
| 0.00 | 0.00 | (0.28) | (0.11) | 0.00 | 0.00 | 0.00 | 0.00 | (0.17) | (0.11) |
Net asset value, end of period | $ 13.50 | $ 14.39 |
| $ 13.59 | $ 13.23 | $ 15.83 | $ 13.28 | $ 12.92 | $ 13.82 | $ 13.16 | $ 12.90 | $ 15.56 | $ 13.06 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return +, # | (6.18)% | 5.89% |
| 2.72% | (16.42)% | 21.62% | 85.64% | (6.51)% | 5.02% | 2.02% | (17.10)% | 20.67% | 84.37% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 3,349 | $ 2,475 |
| $ 11,364 | $ 951 | $ 2,663 | $ 635 | $ 3,106 | $ 2,735 | $ 2,497 | $ 2,755 | $ 2,746 | $ 2,169 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.57% | 2.25% |
| 2.00% | 2.35% | 2.49% | 2.70% | 2.32% | 3.00% | 2.75% | 3.10% | 3.24% | 3.45% |
| After fee waivers ^ | 1.57% | 2.25% |
| 2.00% | 2.35% | 2.49% | 2.67% | 2.32% | 3.00% | 2.75% | 3.10% | 3.24% | 3.42% |
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | (0.02)% | (0.48)% |
| 0.04% | (0.80)% | (1.05)% | (1.16)% | (0.77)% | (1.03)% | (0.71)% | (1.35)% | (1.80)% | (1.91)% |
| After fee waivers ^ | (0.02)% | (0.48)% |
| 0.04% | (0.80)% | (1.05)% | (1.13)% | (0.77)% | (1.03)% | (0.71)% | (1.35)% | (1.80)% | (1.88)% |
| Portfolio turnover rate | 55% (1) | 166% |
| 104% | 98% | 206% | 63% | 55% (1) | 166% | 104% | 98% | 206% | 63% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Represents less than $0.01 per share. |
|
|
| |||||||||||
*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 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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
|
| |
Dunham Small Cap Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
| |
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. |
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class N |
|
|
|
|
|
| |||||
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
| Ended | Year Ended |
|
|
|
|
|
| ||||
|
| April 30, | October 31, |
|
|
|
|
|
| ||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 20.62 | $ 15.69 | $ 14.75 | $ 13.67 | $ 11.02 | $ 9.34 |
|
|
|
|
|
| |
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment loss** | (0.18) | (0.19) | (0.17) | (0.18) | (0.24) | (0.17) |
|
|
|
|
|
|
| Net realized and unrealized gain | 0.47 | 6.10 | 1.11 | 1.26 | 2.89 | 1.85 |
|
|
|
|
|
|
| Total income from investment operations | 0.29 | 5.91 | 0.94 | 1.08 | 2.65 | 1.68 |
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net realized gains | (3.73) | (0.98) | 0.00 | 0.00 | 0.00 | 0.00 |
|
|
|
|
|
|
| Total distributions | (3.73) | (0.98) | 0.00 | 0.00 | 0.00 | 0.00 |
|
|
|
|
|
|
Net asset value, end of period | $ 17.18 | $ 20.62 | $ 15.69 | $ 14.75 | $ 13.67 | $ 11.02 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + # | 0.49% | 40.28% | 6.37% | 7.90% | 24.05% | 17.99% |
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
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|
|
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|
| |
| Net assets, end of period (in 000s) | $ 13,781 | $ 16,146 | $ 14,627 | $ 14,975 | $ 14,301 | $ 14,217 |
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|
| Ratios of expenses to average net assets: |
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|
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| Before fee waivers ^ | 2.12% | 1.35% | 1.34% | 1.45% | 2.22% | 2.35% |
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| After fee waivers ^ | 2.12% | 1.35% | 1.34% | 1.45% | 2.22% | 2.32% |
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| Ratios of net investment loss to |
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| average net assets: |
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|
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| Before fee waivers ^ | (1.91)% | (1.08)% | (1.12)% | (1.15)% | (1.88)% | (1.82)% |
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| After fee waivers ^ | (1.91)% | (1.08)% | (1.12)% | (1.15)% | (1.88)% | (1.79)% |
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| Portfolio turnover rate | 79% (1) | 231% | 211% | 235% | 194% | 214% |
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| Class A | Class C | ||||||||||
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| Six Months |
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| Six Months |
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| Ended | Year Ended | Ended | Year Ended | ||||||||
|
| April 30, | October 31, | April 30, | October 31, | ||||||||
|
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
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| (Unaudited) |
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| (Unaudited) |
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Net asset value, beginning of period | $ 20.28 | $ 15.49 | $ 14.59 | $ 13.56 | $ 10.96 | $ 9.31 | $ 18.66 | $ 14.43 | $ 13.69 | $ 12.82 | $ 10.44 | $ 8.94 | |
Income from investment operations: |
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| |
| Net investment loss** | (0.20) | (0.24) | (0.21) | (0.24) | (0.25) | (0.20) | (0.25) | (0.32) | (0.30) | (0.31) | (0.34) | (0.25) |
| Net realized and unrealized gain | 0.47 | 6.01 | 1.11 | 1.27 | 2.85 | 1.85 | 0.44 | 5.53 | 1.04 | 1.18 | 2.72 | 1.75 |
| Total income from investment operations | 0.27 | 5.77 | 0.90 | 1.03 | 2.60 | 1.65 | 0.19 | 5.21 | 0.74 | 0.87 | 2.38 | 1.50 |
Less distributions: |
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| |
| Distributions from net realized gains | (3.73) | (0.98) | 0.00 | 0.00 | 0.00 | 0.00 | (3.73) | (0.98) | 0.00 | 0.00 | 0.00 | 0.00 |
| Total distributions | (3.73) | (0.98) | 0.00 | 0.00 | 0.00 | 0.00 | (3.73) | (0.98) | 0.00 | 0.00 | 0.00 | 0.00 |
Net asset value, end of period | $ 16.82 | $ 20.28 | $ 15.49 | $ 14.59 | $ 13.56 | $ 10.96 | $ 15.12 | $ 18.66 | $ 14.43 | $ 13.69 | $ 12.82 | $ 10.44 | |
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Total return + # | 0.38% | 39.88% | 6.17% | 7.60% | 23.72% | 17.72% | (0.02)% | 38.87% | 5.41% | 6.79% | 22.80% | 16.78% | |
Ratios/Supplemental Data: |
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| |
| Net assets, end of period (in 000s) | $ 7,729 | $ 5,890 | $ 2,418 | $ 1,950 | $ 852 | $ 149 | $ 2,605 | $ 2,685 | $ 2,694 | $ 3,193 | $ 3,291 | $ 3,041 |
| Ratios of expenses to average net assets: |
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| Before fee waivers ^ | 2.37% | 1.60% | 1.59% | 1.70% | 2.47% | 2.60% | 3.12% | 2.35% | 2.34% | 2.45% | 3.22% | 3.35% |
| After fee waivers ^ | 2.37% | 1.60% | 1.59% | 1.70% | 2.47% | 2.57% | 3.12% | 2.35% | 2.34% | 2.45% | 3.22% | 3.32% |
| Ratios of net investment loss to |
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| average net assets: |
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|
| Before fee waivers ^ | (2.16)% | (1.33)% | (1.37)% | (1.40)% | (2.13)% | (2.07)% | (2.91)% | (2.08)% | (2.12)% | (2.15)% | (2.88)% | (2.82)% |
| After fee waivers ^ | (2.16)% | (1.33)% | (1.37)% | (1.40)% | (2.13)% | (2.04)% | (2.91)% | (2.08)% | (2.12)% | (2.15)% | (2.88)% | (2.79)% |
| Portfolio turnover rate | 79% (1) | 231% | 211% | 235% | 194% | 214% | 79% (1) | 231% | 211% | 235% | 194% | 214% |
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**The net investment loss per share data was determined using the average shares outstanding throughout each 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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# 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. | |||||||||||||
^ Annualized for periods less than one year. |
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See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
April 30, 2014
1.
ORGANIZATION
Each Dunham Fund (each, a “Fund” and collectively 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, as amended, (the “1940 Act”) 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 sixteen funds: Corporate/Government Bond Fund; Monthly Distribution Fund; Floating Rate Bond Fund; High-Yield Bond Fund; Loss Averse Equity Income Fund; Alternative Strategy Fund; Appreciation & Income Fund; Large Cap Value Fund; Alternative Income Fund; Focused Large Cap Growth Fund; Real Estate Stock Fund; International Stock Fund; Small Cap Value Fund; Emerging Markets Stock Fund and Small Cap Growth Fund. Alternative Strategy Fund, Alternative Income Fund, Focused Large Cap Growth Fund, International Opportunity Bond 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 | ||
Corporate/Government Bond Monthly Distribution Floating Rate Bond High-Yield Bond |
| Current income and capital appreciation Positive returns in rising and falling market environments High level of current income High level of current income | ||
International Opportunity Bond Loss Averse Equity Income |
| High level of current income Maximize total return from capital appreciation and dividends | ||
Alternative Strategy Appreciation & Income |
| Long-term capital appreciation by realizing gains during periods of rising and declining markets Total return under varying market conditions through both current income and capital appreciation | ||
Large Cap Value |
| Maximize total return from capital appreciation and dividends | ||
Alternative Income |
| Maximize income | ||
Focused Large Cap Growth |
| Maximize capital appreciation | ||
Real Estate Stock |
| Maximize total return from capital appreciation and dividends | ||
International Stock Small Cap Value Emerging Markets Stock |
| Maximize total return from capital appreciation and dividends Maximize total return from capital appreciation and income Maximize capital appreciation | ||
Small Cap Growth |
| Maximize capital appreciation | ||
|
|
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 differences being that Class A shares are subject to a front-end sales charge and an annual distribution fee, Class C shares are subject to an annual service and distribution fee and class N have a higher minimum investment amount. Investors that purchase $1,000,000 or more of Class A shares will not pay any initial sales charge on the purchase. However, purchases of $1,000,000 or more of Class A shares may be subject to a contingent deferred sales charge ("CDSC") on shares redeemed during the first 18 months after their purchase in the amount of the commissions paid on the shares redeemed. The Class C and N shares, with the exception of Monthly Distribution, High-Yield Bond, Loss Averse Equity Income, Focused Large Cap Growth, Alternative Income, Alternative Strategy, Floating Rate Bond, and International Opportunity Bond 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, Alternative Income, Alternative Strategy, Floating Rate Bond, and International Opportunity Bond 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’s 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. Alternative Strategy’s Predecessor Fund’s Class N shares commenced operations on February 13, 2009 and Alternative Strategy Class A shares commenced operations on March 25, 2009. Alternative Strategy Class C shares commenced operations on May 14, 2009. Floating Rate Bond and International Opportunity Bond commenced operations on November 1, 2013.
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.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
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 mean between the current bid and ask price is used. If market quotations are not readily available, then securities are valued at fair value as determined by the Board of Trustees of the Trust (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 instruments with a remaining maturity of more than 60 days, intermediate and long-term bonds, convertible bonds, bank loans 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.
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.
Futures and future options are valued at the final settled price or, in the absence of a settled price, at the mean between the current bid and ask prices on the day of valuation.
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 New York Stock Exchange (“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.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
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.
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, 2014 for the Funds’ assets and liabilities measured at fair value:
Corporate/Government Bond
Assets | Level 1 | Level 2 | Level 3 | Total |
Bonds & Notes * | $ - | $ 30,870,665 | $ - | $ 30,870,665 |
Foreign Government Bond | - | 449,796 | - | 449,796 |
Municipal | - | 809,401 | - | 809,401 |
U.S. Government & Agency | - | 14,593,889 | - | 14,593,889 |
Bank Loans | - | 4,428,390 | - | 4,428,390 |
Preferred Stock * | 770,564 | - | - | 770,564 |
Short-Term Investment | 1,866,713 | - | - | 1,866,713 |
Total | $ 2,637,277 | $ 51,152,141 | $ - | $ 53,789,418 |
|
|
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|
|
Monthly Distribution
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 205,192,448 | $ - | $ - | $ 205,192,448 |
Exchange Traded Funds * | 1,848,410 | - | - | 1,848,410 |
Preferred Stock * | 27,879,718 | - | - | 27,879,718 |
Bonds & Notes * | - | 17,081,267 | - | 17,081,267 |
Purchased Put Options | 1,621,562 |
| - | 1,621,562 |
Short-Term Investment | 15,207,592 | - | - | 15,207,592 |
Total Assets | $ 251,749,730 | $ 17,081,267 | $ - | $ 268,830,997 |
Derivatives |
|
|
|
|
Forward Currency Exchange Contracts | - | 156,886 | - | 156,886 |
Equity Swap Contracts | 6,912,948 | - | - | 6,912,948 |
Total Derivatives | $ 6,912,948 | $ 156,886 | $ - | $ 7,069,834 |
Liabilities |
|
|
|
|
Securities Sold Short | 26,207,387 |
| - | 26,207,387 |
Total Liabilities | $ 26,207,387 | $ - | $ - | $ 26,207,387 |
Derivatives |
|
|
|
|
Written Call Options | 16,692,524 |
| - | 16,692,524 |
Written Put Options | 264,396 |
| - | 264,396 |
Equity Swap Contracts | 3,691,018 | - | - | 3,691,018 |
Forward Currency Exchange Contracts | - | 297,392 | - | 297,392 |
Total Derivatives | $ 20,647,938 | $ 297,392 | $ - | $ 20,945,330 |
|
|
|
|
|
Floating Rate Bond
Assets | Level 1 | Level 2 | Level 3 | Total |
Bank Loans * | $ - | $ 58,573,444 |
| $ 58,573,444 |
Bonds & Notes * | - | 5,123,612 | - | 5,123,612 |
Short-Term Investment | 4,992,148 | - | - | 4,992,148 |
Total | $ 4,992,148 | $ 63,697,056 | $ - | $ 68,689,204 |
|
|
|
|
|
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
High-Yield Bond
Assets | Level 1 | Level 2 | Level 3 | Total |
Bonds & Notes * | $ - | $ 138,458,901 | $ - | $ 138,458,901 |
Short-Term Investment | 3,824,228 | - | - | 3,824,228 |
Total | $ 3,824,228 | $ 138,458,901 | $ - | $ 142,283,129 |
|
|
|
|
|
International Opportunity Bond
Assets | Level 1 | Level 2 | Level 3 | Total |
Bonds & Notes * | $ - | $ 15,945,556 | $ - | $ 15,945,556 |
Foreign Government Bond * | - | 23,543,249 | - | 23,543,249 |
Short-Term Investment | 125,176 | - | - | 125,176 |
Total | $ 125,176 | $ 39,488,805 | $ - | $ 39,613,981 |
Derivatives |
|
|
|
|
Futures Contracts * | 19,195 | - | - | 19,195 |
Foreign Exchange Contracts | 125,416 | - | - | 125,416 |
Total | $ 144,611 | $ - | $ - | $ 144,611 |
Liabilities |
|
|
|
|
Derivatives |
|
|
|
|
Futures Contracts * | (50,001) | - | - | (50,001) |
Foreign Exchange Contracts | (80,421) |
|
| (80,421) |
Total | $ (130,422) | $ - | $ - | $ (130,422) |
Loss Averse Equity Income
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 6,249,371.00 | $ - | $ - | $ 6,249,371 |
Exchange Traded Funds * | 1,954,935 | - | - | 1,954,935 |
Total | $ 8,204,306 | $ - | $ - | $ 8,204,306 |
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Alternative Strategy
Assets | Level 1 | Level 2 | Level 3 | Total |
Exchange Traded Funds * | $ 13,094,154.00 | $ - | $ - | $ 13,094,154 |
Short-Term Investment | 6,366,863 | - | - | 6,366,863 |
Total | $ 19,461,017 | $ - | $ - | $ 19,461,017 |
|
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|
|
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 12,370,643 | $ - | $ - | $ 12,370,643 |
Convertible Bonds * | - | 9,193,983 | - | 9,193,983 |
Preferred Stock * | 2,395,804 | - | - | 2,395,804 |
Short-Term Investment | 1,652,675 | - | - | 1,652,675 |
Total | $ 16,419,122 | $ 9,193,983 | $ - | $ 25,613,105 |
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|
|
Large Cap Value
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 49,100,835 | $ - | $ - | $ 49,100,835 |
Short-Term Investment | 1,483,647 | - | - | 1,483,647 |
Total | $ 50,584,482 | $ - | $ - | $ 50,584,482 |
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|
Alternative Income
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 5,340,266 | $ - | $ - | $ 5,340,266 |
Short-Term Investment | 32,452 | - | - | 32,452 |
Total | $ 5,372,718 | $ - | $ - | $ 5,372,718 |
|
|
|
|
|
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
Focused Large Cap Growth
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 51,682,971 | $ - | $ - | $ 51,682,971 |
Short-Term Investment | 894,508 | - | - | 894,508 |
Total | $ 52,577,479 | $ - | $ - | $ 52,577,479 |
|
|
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|
|
Real Estate Stock
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 1,340,452 | $ - | $ - | $ 1,340,452 |
REITS * | 44,667,456 | - | - | 44,667,456 |
Short-Term Investment | 237,725 | - | - | 237,725 |
Total | $ 46,245,633 | $ - | $ - | $ 46,245,633 |
|
|
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|
|
International Stock
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 3,172,261 | $ 63,527,172 | $ - | $ 66,699,433 |
Preferred Stock * | 566,977 | - | - | 566,977 |
Rights* | - | - | - | - |
Short-Term Investment | 1,620,582 | - | - | 1,620,582 |
Total Assets | $ 5,359,820 | $ 63,527,172 | $ - | $ 68,886,992 |
Assets - Derivatives |
|
|
|
|
Forward Currency Exchange Contracts | - | 195,579 | - | 195,579 |
Total Derivatives | $ - | $ 195,579 | $ - | $ 195,579 |
Liabilities - Derivatives |
|
|
|
|
Forward Currency Exchange Contracts | - | 97,861 | - | 97,861 |
Total Liabilities | $ - | $ 97,861 | $ - | $ 97,861 |
|
|
|
|
|
Small Cap Value
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 25,261,253 | $ - | $ - | $ 25,261,253 |
Exchange Traded Funds | 570,082 | - | - | 570,082 |
Short-Term Investment | 916,361 | - | - | 916,361 |
Total | $ 26,747,696 | $ - | $ - | $ 26,747,696 |
|
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|
|
Emerging Markets Stock
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 35,555,987.00 | $ - | $ - | $ 35,555,987 |
Exchange Traded Funds | $ 2,294,700.00 |
|
| 2,294,700 |
Short-Term Investment | 692,654 | - | - | 692,654 |
Total | $ 38,543,341 | $ - | $ - | $ 38,543,341 |
|
|
|
|
|
Small Cap Growth
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 23,771,880 | $ - | $ - | $ 23,771,880 |
Short-Term Investment | 354,481 | - | - | 354,481 |
Total | $ 24,126,361 | $ - | $ - | $ 24,126,361 |
|
|
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|
|
* 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.
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
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
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, 2014, International Stock and Emerging Markets Stock had net realized gains of $56,487 and $11,865, respectively. Monthly Distribution, Loss Averse Equity Income and International Opportunity Bond had net realized losses of $691,039, $283 and 406,244, respectively on forward currency contracts. At April 30, 2014, net unrealized losses for Monthly Distribution and International Stock were $140,091 and $93,099, respectively, on open forward currency contracts.
d. Options – Monthly Distribution is subject to stock market 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 that 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 a 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, that Fund will 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 a Fund has written on an equity security is exercised, the amount of the premium originally received reduces the cost of the security that a Fund purchases upon exercise of the option. When a Fund writes a put option, that 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 that Fund’s portfolio. If such a decline occurs, the put options will permit that 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 that Fund upon exercise of the option, and, unless the price of the underlying security rises or declines sufficiently, the option may expire worthless to that 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 that Fund, the benefits realized by that 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, 2014, Monthly Distribution had net realized losses of $3,513,518 resulting from option activity.
e. Swap Agreements – Monthly Distribution is subject to stock market risk in the normal course of pursuing its investment objectives. The Fund may enter into various swap transactions for investment purposes to manage equity risk. These are 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, 2014, Monthly Distribution had net realized gains of $4,864,025 resulting from swap activity.
f. Futures Contracts – International Opportunity Bond Fund is subject to interest rate risk and forward currency exchange rate risk in the normal course of pursuing its investment objective. The Fund may purchase or sell futures contracts to gain exposure to, or hedge against, changes in the value of equities and interest rates. Initial margin deposits required upon entering into futures contracts
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
are satisfied by the segregation of specific securities or cash as collateral for the account of the broker (the Fund’s agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by “marking to market” on a daily basis to reflect the market value of the contracts at the end of each day’s trading. Variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. When the contracts are closed, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. The Fund segregates cash having a value at least equal to the amount of the current obligation under any open futures contract. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. With futures, there is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
The derivative instruments outstanding as of April 30, 2014 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 year as disclosed in the Statement of Operations, serve as indicators of the volume of derivative activity for each Fund. For the six months ended April 30, 2014, International Opportunity Bond had net realized losses of $47,563 and $30,806 in unrealized depreciation resulting from futures activities.
g. Short Sales – A "short sale" is a transaction in which a Fund sells a security it does not own but has borrowed in anticipation that the market price of that security will decline. The Fund would be 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. For the six months ended April 30, 2014, Monthly Distribution had net realized losses of $4,363,744 resulting from short sales.
h. Offsetting of Financial Assets and Derivative Assets – Monthly Distribution Fund’s, International Opportunity Bond Fund’s and International Stock Fund’s policies are to recognize a net asset or liability equal to the unrealized futures contracts. During the period ended April 30, 2014, the Funds are subject to a master netting arrangement for the swaps. The following table shows additional information regarding the offsetting of assets and liabilities at April 30, 2014.
Monthly Distribution |
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
| Gross Amounts Not Offset in the Statement of Assets & Liabilities |
|
| ||
Description | Gross Amounts of Recognized Assets |
| Gross Amounts Offset in the Statement of Assets & Liabilities |
| Net Amounts of Assets Presented in the Statement of Assets & Liabilities |
| Financial Instruments |
| Cash Collateral Received |
| Net Amount |
Forward Foreign Currency Contracts | $ 156,886 |
| $ - |
| $ 156,886 |
| $ - |
| $ 156,886 |
| $ - |
Equity Swap Contracts | 6,912,948 |
| - |
| 6,912,948 |
| - |
| 6,912,948 |
| - |
Total | $ 7,069,834 |
| $ - |
| $ 7,069,834 |
| $ - |
| $ 7,069,834 |
| $ - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
| Gross Amounts Not Offset in the Statement of Assets & Liabilities |
|
| ||
Description | Gross Amounts of Recognized Liabilities |
| Gross Amounts Offset in the Statement of Assets & Liabilities |
| Net Amounts of Liabilities Presented in the Statement of Assets & Liabilities |
| Financial Instruments |
| Cash Collateral Pledged |
| Net Amount |
Securities Sold Short | $ 26,207,387 |
| $ - |
| $ 26,207,387 |
| $ 26,207,387 |
| $ - |
| $ - |
Written Options | 16,956,920 |
| - |
| 16,956,920 |
| 16,956,920 |
| - |
| - |
Equity Swap Contracts | 3,691,018 |
| - |
| 3,691,018 |
| - |
| 3,691,018 |
| - |
Forward Foreign Currency Contracts | 297,392 |
| - |
| 297,392 |
| - |
| 297,392 |
| - |
Total | $ 47,152,717 |
| $ - |
| $ 47,152,717 |
| $ 43,164,307 |
| $ 3,988,410 |
| $ - |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
International Opportunity Bond |
|
|
|
|
|
|
|
|
|
| |
Assets: |
|
|
|
|
|
| Gross Amounts Not Offset in the Statement of Assets & Liabilities |
|
| ||
Description | Gross Amounts of Recognized Assets |
| Gross Amounts Offset in the Statement of Assets & Liabilities |
| Net Amounts of Assets Presented in the Statement of Assets & Liabilities |
| Financial Instruments |
| Cash Collateral Received |
| Net Amount |
Futures Contracts | $ 19,195 |
| $ (19,195) |
| $ - |
| $ - |
| $ - |
| $ - |
Forward Foreign Currency Contracts | 125,416 |
| $ - |
| 125,416 |
| 80,421 |
|
|
| 44,995 |
Total | $ 144,611 |
| $ (19,195) |
| $ 125,416 |
| $ 80,421 |
| $ - |
| $ - |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
| Gross Amounts Not Offset in the Statement of Assets & Liabilities |
|
| ||
Description | Gross Amounts of Recognized Liabilities |
| Gross Amounts Offset in the Statement of Assets & Liabilities |
| Net Amounts of Liabilities Presented in the Statement of Assets & Liabilities |
| Financial Instruments |
| Cash Collateral Pledged |
| Net Amount |
Futures Contracts | $ (50,001) |
| $ 19,195 |
| $ (30,806) |
| $ - |
| $ 30,806 |
| $ - |
Forward Foreign Currency Contracts | (80,421) |
| - |
| (80,421) |
| 80,421 |
| - |
| - |
Total | $ (130,422) |
| $ 19,195 |
| $ (111,227) |
| $ 80,421 |
| $ 30,806 |
| $ - |
International Stock |
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
| Gross Amounts Not Offset in the Statement of Assets & Liabilities |
|
| ||
Description | Gross Amounts of Recognized Assets |
| Gross Amounts Offset in the Statement of Assets & Liabilities |
| Net Amounts of Assets Presented in the Statement of Assets & Liabilities |
| Financial Instruments |
| Cash Collateral Received |
| Net Amount |
Forward Foreign Currency Contracts | $ 195,578 |
| $ (97,861) |
| $ 97,717 |
| $ - |
| $ - |
| $ 97,717 |
i. 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.
j. 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.
k. 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
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
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.
Certain Funds may invest in collateralized mortgage obligations which are secured by groups of individual mortgages, but are similar to a conventional bond where the investor looks only to the issuer for payment of principal and interest. Although the obligations are recourse obligations to the issuer, the issuer typically has no significant assets, other than assets pledged as collateral for the obligations, and the market value of the collateral, which is sensitive to interest rate movements, may affect the market value of the obligations. A public market for a particular collateralized mortgage obligation may or may not develop and thus, there can be no guarantee of liquidity of an investment in such obligations.
The risk in writing a call option is that a 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 a 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 a 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.
l. 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 2011 to 2013 (and July 31, 2013 for Alternative Strategy), and expected to be taken in tax year 2014 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 period, the Funds did not incur any interest or penalties. Generally tax authorities can examine tax returns filed for the last three years.
m. 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, High-Yield Bond, Floating Rate Bond and International Opportunity Bond which will distribute their respective net investment income, if any, monthly. 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 between the classes are due to service and distribution related expenses. Dividends and distributions to shareholders are recorded on ex-date.
n. 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 Trust, on behalf of 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.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
Management Fee | Adviser’s Portion | Sub-Adviser’s Portion | |
Corporate/Government Bond* | 0.65% – 0.95% | 0.50% | 0.15% – 0.45% |
Monthly Distribution** | 0.90% – 1.90% | 0.65% | 0.25% – 1.25% |
Floating Rate Bond | 0.80% – 1.20% | 0.60% | 0.20% – 0.60% |
High-Yield Bond | 0.80% – 1.20% | 0.60% | 0.20% – 0.60% |
International Opportunity Bond | 0.80% – 1.30% | 0.60% | 0.20% – 0.70% |
Loss Averse Equity Income*** | 0.75% – 1.55% | 0.65% | 0.10% – 0.90% |
Alternative Strategy | 0.95% – 1.65% | 0.65% | 0.30% – 1.00% |
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% |
Focused Large Cap Growth**** | 0.85% – 1.15% | 0.65% | 0.20% – 0.50% |
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 | 0.75% – 1.45% | 0.65% | 0.10% – 0.80% |
Emerging Markets Stock | 0.75% – 1.55% | 0.65% | 0.10% – 0.90% |
Small Cap Growth | 0.65% – 1.65% | 0.65% | 0.00% – 1.00% |
* Prior to July 1, 2013, when a new fee schedule became effective, the Sub-Adviser had contractually agreed to reduce its base Sub-Advisory fee by 0.05%, from 0.35% to 0.30% annually as of May 10, 2013 until February 28, 2015.
** Effective April 1, 2013, the Sub-Adviser has contractually agreed to waive a portion of its fee (excluding 12b-1 fees) until at least February 28, 2015, 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 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 February 28, 2015.
**** Prior to April 1, 2014, the Sub-Adviser received a base fee of 0.34% with a performance fee of +/- 0.24%.
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 employ 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 Small Cap Value, Emerging Markets Stock, Floating Rate Bond and International Opportunity Bond which are in their initial year of its Fulcrum Fee arrangement, are calculating Performance Fees on a rolling 12-month basis as of April 30, 2014.
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” 12-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.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
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 |
Corporate/Government Bond* | Newfleet Asset Management, LLC | Barclays Aggregate Bond Index | 0.30% | +/- 0.10% | 0.15% | 0.45% |
Monthly Distribution** | Westchester Capital Management, LLC | IQ Hedge Market Neutral Beta Index | 0.75% | +/- 0.15% | 0.25% | 1.25% |
Floating Rate Bond | Newfleet Asset Management, LLC | S&P/LSTA Leveraged Loan Index | 0.40% | +/- 0.00% | 0.20% | 0.60% |
High-Yield Bond | PENN Capital Management Co., Inc. | BofA Merrill Lynch BB U.S. Non-Distressed BB-B High-Yield Index | 0.40% | +/- 0.20% | 0.20% | 0.60% |
International Opportunity Bond | Rogge Global Partners PLC | Barclays Global ex US Aggregate Bond Index | 0.45% | +/-0.00% | 0.20% | 0.70% |
Loss Averse Equity Income*** | PVG Asset Management Corp. | IQ Hedge Long/Short Beta Index | 0.50% | +/- 0.20% | 0.10% | 0.90% |
Alternative Strategy | Market Concepts, LLC | Dow Jones Credit Suisse Managed Futures Liquid Index | 0.65% | +/- 0.15% | 0.30% | 1.00% |
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% |
Focused Large Cap Growth**** | The Ithaka Group, LLC | Russell 1000 Growth Index | 0.35% | +/- 0.30% | 0.20% | 0.50% |
Real Estate Stock | Cornerstone Real Estate Advisers LLC | FTSE NAREIT All REITs 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 | Piermont Capital Management, LLC | Russell 2000 Value Index | 0.45% | +/- 0.00% | 0.10% | 0.80% |
Emerging Markets Stock | Bailard, Inc. | MSCI Emerging Markets Index USD (Net) | 0.50% | +/- 0.00% | 0.10% | 0.90% |
Small Cap Growth | Pier Capital, LLC | Russell 2000 Growth Index | 0.50% | +/- 0.20% | 0.00% | 1.00% |
* Prior to July 1, 2013, when a new fee schedule became effective, the Sub-Adviser had contractually agreed to reduce its base Sub-Advisory fee by 0.05%, from 0.35% to 0.30% annually as of May 10, 2013 until May 30, 2014.
** Effective April 1, 2013, the Sub-Adviser has contractually agreed to waive a portion of its fee (excluding 12b-1 fees) until at least February 28, 2015, 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 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.
**** Prior to April 1, 2014, the Sub-Adviser received a base fee of 0.34% with a performance fee of +/- 0.24%.
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. Effective May 1, 2013, GFS receives from each Fund a monthly fee based on the combined average daily net assets at the following annual rates: 0.07% on the first $250 million of average net assets; 0.06% on average net assets between $250 million and $500 million; 0.05% on average net assets over $500 million; 0.3% on average net assets over $1 billion. 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: 0.03% on the first $500 million of average net assets; 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.
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.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
c. 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, 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.
d. Trustees’ Fees – 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.
With the exception of the Trust’s Chief Compliance Officer as discussed below, officers of the Trust and Trustees who are interested persons of the Trust do not receive any compensation from the Trust or any other Funds managed by the Adviser. The Trust has agreed to pay the Adviser a fee in the amount of $130,000 per annum as compensation for providing an officer or employee of the Adviser to serve as Chief Compliance Officer for the Funds (each Fund bearing its pro rata share of the fee), plus the cost of reasonable expenses related to the performance of the Chief Compliance Officer’s duties, including travel expenses, and may compensate the Adviser for the time of other officers or employees of the Adviser who serve in other compliance capacities for the Funds.
e. Other Affiliates–During the six months ended April 30, 2014, 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 Loss Averse Equity Income. 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’s Sub-Adviser, executed trades on behalf of Alternative Income. B. Riley & Co., LLC, a registered broker/dealer and an affiliate of the Market Concept, LLC, Alternative Strategy’s Sub-Adviser, executed trades on behalf of Alternative Strategy. These trades were cleared through National Financial Services, LLC. The affiliated brokers for Loss Averse Equity Income, Alternative Income and Alternative Strategy received $7,518, $2,905 and $147,459, respectively, in trade commissions for the six months ended April 30, 2014.
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, 2014 were as follows:
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 |
Corporate/Government Bond |
| $9,294,322 |
| $29,522,583 |
| $9,845,407 |
| $25,707,491 |
Monthly Distribution |
| 296,836,552 |
| 286,382,025 |
| - |
| - |
Floating Rate Bond |
| 77,883,975 |
| 14,123,510 |
| - |
| - |
High-Yield Bond |
| 58,812,910 |
| 66,024,327 |
| - |
| - |
International Opportunity Bond |
| 51,174,068 |
| 13,047,249 |
| - |
| - |
Loss Averse Equity Income |
| 7,792,065 |
| 8,892,611 |
| - |
| - |
Alternative Strategy |
| 180,125,834 |
| 182,681,231 |
| - |
| - |
Appreciation & Income |
| 6,521,929 |
| 6,031,655 |
| - |
| - |
Large Cap Value |
| 4,028,693 |
| 5,669,791 |
| - |
| - |
Alternative Income |
| 2,534,971 |
| 2,109,115 |
| - |
| - |
Focused Large Cap Growth |
| 44,484,440 |
| 2,525,862 |
| - |
| - |
Real Estate Stock |
| 28,249,098 |
| 23,950,002 |
| - |
| - |
International Stock |
| 39,311,653 |
| 32,007,215 |
| - |
| - |
Small Cap Value |
| 3,826 |
| 11,485,005 |
| - |
| - |
Emerging Markets Stock |
| 27,645,083 |
| 17,417,133 |
| - |
| - |
Small Cap Growth |
| 22,010,092 |
| 22,746,833 |
| - |
| - |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
Transactions in option contracts purchased/written for Monthly Distribution during the six months ended April 30, 2014 were as follows:
|
| Options Purchased |
| Options Written | ||||
|
| Contracts |
| Premium |
| Contracts |
| Premium |
Outstanding at October 31, 2013 |
| 31,440 |
| $1,706,748 |
| 37,825 |
| $10,071,361 |
Options purchased/written during period |
| 86,535 |
| 7,737,967 |
| 142,703 |
| 31,377,080 |
Options exercised during period |
| (1) |
| (106) |
| (21,147) |
| (5,298,496) |
Options expired during period |
| (57,604) |
| (3,837,876) |
| (18,203) |
| (1,363,831) |
Options closed during period |
| (17,970) |
| (2,392,268) |
| (78,094) |
| (18,466,901) |
Outstanding at April 30, 2014 |
| 42,400 |
| $ 3,214,465 |
| 63,084 |
| $ 16,319,213 |
5.
AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION – TAX BASIS
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, 2014, were as follows:
Fund | Identified Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Unrealized Appreciation/ Depreciation* |
|
Corporate/Government Bond | $ 53,117,975 | $ 1,271,527 | $ (600,084) | $ 671,443 |
|
Monthly Distribution * | 258,273,556 | 8,203,750 | 2,353,691 | 10,557,441 |
|
Floating Rate Bond | 68,803,223 | 227,369 | (341,388) | (114,019) |
|
High-Yield Bond | 137,578,354 | 4,951,529 | (246,754) | 4,704,775 |
|
International Opportunity Bond | 38,625,746 | 1,318,566 | (30,331) | 1,288,235 |
|
Loss Averse Equity Income | 8,308,374 | 415,753 | (519,821) | (104,068) |
|
Alternative Strategy * | 20,302,015 | 316,420 | (1,157,418) | (840,998) |
|
Appreciation & Income | 21,626,525 | 4,395,248 | (408,668) | 3,986,580 |
|
Large Cap Value | 32,024,807 | 18,706,730 | (147,055) | 18,559,675 |
|
Alternative Income | 4,975,783 | 572,519 | (175,584) | 396,935 |
|
Focused Large Cap Growth | 52,180,301 | 2,151,207 | (1,754,029) | 397,178 |
|
Real Estate Stock | 40,426,706 | 5,931,985 | (113,058) | 5,818,927 |
|
International Stock * | 62,242,957 | 8,694,976 | (2,050,941) | 6,644,035 |
|
Small Cap Value | 25,272,112 | 2,387,700 | (912,116) | 1,475,584 |
|
Emerging Markets Stock | 36,591,249 | 3,378,715 | (1,426,623) | 1,952,092 |
|
Small Cap Growth | 21,934,110 | 3,684,078 | (1,491,827) | 2,192,251 |
|
* Excludes Unrealized Appreciation (Depreciation) on Foreign Currency Translations. |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.
FORWARD FOREIGN CURRENCY CONTRACTS
At April 30, 2014, Monthly Distribution and International Stock had the following open forward foreign currency contracts:
|
|
|
|
|
|
Monthly Distribution: |
|
|
|
| Unrealized |
| Settlement |
| Local | U.S. Dollar | Appreciation |
Foreign Currency | Date | Counterparty | Currency | Value | (Depreciation) |
To Buy: |
|
|
|
|
|
British Pound | 5/6/2014 | JP Morgan | $ 3,792,139 | $ 6,403,062 | $ 121,289 |
Hong Kong Dollar | 5/15/2014 | JP Morgan | 60,731 | 7,834 | 1 |
Swedish Krona | 5/21/2014 | JP Morgan | 7,880,200 | 1,208,737 | 11,641 |
Australian Dollar | 5/28/2014 | JP Morgan | 288,858 | 267,113 | 2,227 |
Canadian Dollar | 6/20/2014 | JP Morgan | 714,367 | 650,240 | 2,141 |
|
|
|
| $ 8,536,986 | $ 137,299 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
Monthly Distribution: |
|
|
|
| Unrealized |
| Settlement |
| Local | U.S. Dollar | Appreciation |
Foreign Currency | Date | Counterparty | Currency | Value | (Depreciation) |
To Sell: |
|
|
|
|
|
British Pound | 5/6/2014 | JP Morgan | $ 3,792,139 | $ 6,403,062 | $ (221,876) |
Japanese Yen | 5/9/2014 | JP Morgan | 260,800 | 2,553 | (24) |
Hong Kong Dollar | 5/15/2014 | JP Morgan | 8,562,984 | 1,104,530 | 403 |
Swedish Krona | 5/21/2014 | JP Morgan | 7,880,200 | 1,208,735 | 19,184 |
Australian Dollar | 5/28/2014 | JP Morgan | 1,529,404 | 1,414,274 | (24,466) |
Euro | 5/29/2014 | JP Morgan | 1,816,068 | 2,518,089 | (6,781) |
British Pound | 6/11/2014 | JP Morgan | 611,266 | 1,031,811 | (20,567) |
Canadian Dollar | 6/20/2014 | JP Morgan | 714,367 | 650,240 | (603) |
Euro | 6/26/2014 | JP Morgan | 2,462,950 | 3,414,757 | (6,096) |
Euro | 7/23/2014 | JP Morgan | 1,844,400 | 2,557,445 | (231) |
Hong Kong Dollar | 8/20/2014 | JP Morgan | 3,632,475 | 468,649 | (208) |
Euro | 10/22/2014 | JP Morgan | 762,564 | 1,047,158 | (16,540) |
|
|
|
| $ 21,821,303 | $ (277,805) |
|
|
|
|
|
|
International Stock: |
|
|
|
| Unrealized |
| Settlement |
| Local | U.S. Dollar | Appreciation |
Foreign Currency | Date | Counterparty | Currency | Value | (Depreciation) |
To Buy: |
|
|
|
|
|
Canadian Dollar | 5/1/2014 | Deutsche Bank | 170,930 | $ 155,773 | $ 749 |
Canadian Dollar | 5/2/2014 | Bank of New York | 339,336 | 309,318 | (214) |
Australian Dollar | 5/5/2014 | Deutsche Bank | 69,013 | 63,933 | 14 |
South African Rand | 5/6/2014 | UBS | 803,018 | 76,175 | 621 |
South African Rand | 5/8/2014 | Bank of New York | 1,724,005 | 163,631 | 69 |
Australian Dollar | 6/18/2014 | Royal Bank of Scotland | 3,717,421 | 3,432,589 | 76,002 |
Australian Dollar | 6/18/2014 | Royal Bank of Scotland | 195,590 | 180,604 | (1,310) |
British Pound | 6/18/2014 | Deutsche Bank | 2,495,127 | 4,211,526 | 42,746 |
Canadian Dollar | 6/18/2014 | UBS | 2,700,127 | 2,457,861 | 5,084 |
Danish Krone | 6/18/2014 | UBS | 114,655 | 21,306 | 91 |
Danish Krone | 6/18/2014 | UBS | 36,225 | 6,731 | (22) |
Euro | 6/18/2014 | Bank of New York | 706,549 | 979,616 | 5,382 |
Euro | 6/18/2014 | Bank of New York | 51,066 | 70,802 | (301) |
Hong Kong Dollar | 6/18/2014 | UBS | 6,018,179 | 774,344 | 272 |
Hong Kong Dollar | 6/18/2014 | UBS | 53,385 | 6,887 | (1) |
Israeli Shekel | 6/18/2014 | Royal Bank of Scotland | 55,826 | 16,125 | 87 |
Japanese Yen | 6/18/2014 | Bank of New York | 168,353,244 | 1,648,187 | 2,693 |
Japanese Yen | 6/18/2014 | Bank of New York | 77,908,962 | 762,733 | (3,252) |
New Zealand Dollar | 6/18/2014 | Royal Bank of Scotland | 170,875 | 146,088 | 2,070 |
New Zealand Dollar | 6/18/2014 | Royal Bank of Scotland | 8,005 | 6,844 | (8) |
Norwegian Krone | 6/18/2014 | Royal Bank of Scotland | 2,229,167 | 373,375 | 707 |
Norwegian Krone | 6/18/2014 | Royal Bank of Scotland | 39,471 | 6,611 | (4) |
Singapore Dollar | 6/18/2014 | UBS | 828,263 | 659,738 | 4,121 |
Singapore Dollar | 6/18/2014 | UBS | 17,038 | 13,571 | (55) |
Swedish Krona | 6/18/2014 | Bank of New York | 2,176,919 | 340,510 | 3,177 |
Swedish Krona | 6/18/2014 | Bank of New York | 1,293,337 | 191,523 | (4,760) |
Swiss Franc | 6/18/2014 | Deutsche Bank | 6,083 | 6,911 | (0) |
Swiss Franc | 6/18/2014 | Deutsche Bank | 2,219,731 | 2,523,015 | 4,134 |
|
|
|
| $ 19,606,327 | $ 138,092 |
|
|
|
|
|
|
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
|
|
|
|
|
|
International Stock: |
|
|
|
| Unrealized |
| Settlement |
| Local | U.S. Dollar | Appreciation |
Foreign Currency | Date | Counterparty | Currency | Value | (Depreciation) |
To Sell: |
|
|
|
|
|
Japanese Yen | 5/1/2014 | Bank of New York | 547,989 | $ 5,363 | $ 8 |
Swedish Krona | 5/2/2014 | Bank of New York | 164,638 | 25,263 | (175) |
Swiss Franc | 5/2/2014 | Deusche Bank | 257,175 | 292,184 | (1,114) |
Euro | 5/2/2014 | Deusche Bank | 18,574 | 25,754 | (1) |
British Pound | 5/2/2014 | Bank of New York | 32,857 | 55,480 | (2) |
Swiss Franc | 5/5/2014 | Deusche Bank | 40,533 | 46,037 | (13) |
Japanese Yen | 5/7/2014 | Bank of New York | 9,236,343 | 90,426 | 33 |
Australian Dollar | 6/18/2014 | Royal Bank of Scotland | 171,810 | 158,653 | (1,722) |
Australian Dollar | 6/18/2014 | Royal Bank of Scotland | 348,887 | 322,156 | 1,310 |
British Pound | 6/18/2014 | Deusche Bank | 108,724 | 183,515 | (1,778) |
Canadian Dollar | 6/18/2014 | UBS | 411,947 | 375,063 | (1,633) |
Canadian Dollar | 6/18/2014 | UBS | 170,861 | 155,531 | 166 |
Danish Krone | 6/18/2014 | UBS | 1,481,756 | 275,279 | (463) |
Danish Krone | 6/18/2014 | UBS | 45,537 | 8,462 | 42 |
Euro | 6/18/2014 | Bank of New York | 2,604,365 | 3,610,890 | (8,814) |
Euro | 6/18/2014 | Bank of New York | 52,194 | 72,366 | 107 |
Hong Kong Dollar | 6/18/2014 | UBS | 7,856,173 | 1,013,443 | (931) |
Israeli Shekel | 6/18/2014 | Royal Bank of Scotland | 1,789,587 | 516,885 | (1,581) |
Israeli Shekel | 6/18/2014 | Royal Bank of Scotland | 30,894 | 8,923 | 8 |
Japanese Yen | 6/18/2014 | Bank of New York | 677,254,460 | 6,630,355 | (58,385) |
New Zealand Dollar | 6/18/2014 | Royal Bank of Scotland | 7,739 | 6,616 | (27) |
New Zealand Dollar | 6/18/2014 | Royal Bank of Scotland | 15,737 | 13,454 | 54 |
Norwegian Krone | 6/18/2014 | Royal Bank of Scotland | 5,261,659 | 881,291 | (5,804) |
Singapore Dollar | 6/18/2014 | UBS | 31,421 | 25,028 | (131) |
Singapore Dollar | 6/18/2014 | UBS | 20,177 | 16,072 | 16 |
Swedish Krona | 6/18/2014 | Bank of New York | 772,306 | 118,405 | (686) |
Swedish Krona | 6/18/2014 | Bank of New York | 18,157,009 | 2,783,694 | 45,318 |
Swiss Franc | 6/18/2014 | Deusche Bank | 75,890 | 86,259 | 498 |
Swiss Franc | 6/18/2014 | Deusche Bank | 1,036,497 | 1,178,114 | (4,674) |
|
|
|
| $ 18,980,961 | $ (40,374) |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
International Opportunity Bond |
|
| Unrealized | ||
| Settlement |
| Local Currency | U.S. Dollar | Appreciation |
Foreign Currency | Date | Counterparty | Amount Purchased | Market Value | (Depreciation) |
To Buy: |
|
|
|
|
|
Australian Dollar | 6/12/2014 | Barclays Bank | 173,711 | $ 160,468 | $ 468 |
Australian Dollar | 6/12/2014 | Deutsche Bank | 1,065,927 | 984,662 | 3,753 |
British Pound | 6/12/2014 | Barclays Bank | 174,359 | 294,315 | 4,315 |
Canadian Dollar | 6/12/2014 | Barclays Bank | 170,000 | 154,769 | 830 |
Canadian Dollar | 6/12/2014 | Credit Suisse | 863,705 | 786,323 | 3,656 |
Canadian Dollar | 6/12/2014 | Deutsche Bank | 400,512 | 364,630 | 1,628 |
Canadian Dollar | 6/12/2014 | Barclays Bank | 450,000 | 409,683 | (1,859) |
Canadian Dollar | 6/12/2014 | Deutsche Bank | 445,000 | 405,131 | (2,520) |
Euro | 6/12/2014 | Deutsche Bank | 999,754 | 1,386,160 | 6,160 |
Euro | 6/12/2014 | Credit Suisse | 351,278 | 487,048 | 2,677 |
Japanese Yen | 6/12/2014 | Deutsche Bank | 266,035,614 | 2,604,411 | 38,870 |
Japanese Yen | 6/12/2014 | Barclays Bank | 3,241,548 | 31,734 | 493 |
Swiss Franc | 6/12/2014 | Credit Suisse | 379,400 | 431,215 | 1,855 |
Israeli Shekel | 7/3/2014 | Deutsche Bank | 530,000 | 153,067 | 1,357 |
Malaysian Ringgit | 7/3/2014 | Deutsche Bank | 2,690,000 | 821,194 | 5,623 |
Mexican Peso | 7/3/2014 | Deutsche Bank | 6,287,000 | 477,683 | (1,665) |
Singapore Dollar | 7/3/2014 | Barclays Bank | 120,000 | 95,584 | 685 |
South African Rand | 7/3/2014 | Credit Suisse | 789,330,000 | 885,325 | 17,317 |
Russian Ruble | 7/3/2014 | Barclays Bank | 3,760,000 | 103,671 | 478 |
|
|
|
| $ 11,037,073 | $ 84,121 |
|
|
|
|
| Unrealized |
| Settlement |
| Local | U.S. Dollar | Appreciation |
Foreign Currency | Date | Counterparty | Currency | Value | (Depreciation) |
To Sell: |
|
|
|
|
|
Australian Dollar | 6/12/2014 | Barclays Bank | 410,000 | $ 378,742 | $ 2,942 |
British Pound | 6/12/2014 | Barclays Bank | 265,246 | 447,730 | (6,926) |
British Pound | 6/12/2014 | Credit Suisse | 198,192 | 334,544 | (4,748) |
British Pound | 6/12/2014 | Deutsche Bank | 120,330 | 203,115 | (812) |
Euro | 6/12/2014 | Barclays Bank | 3,650,975 | 5,062,083 | (29,976) |
Euro | 6/12/2014 | Deutsche Bank | 31,832 | 44,135 | 65 |
Japanese Yen | 6/12/2014 | Barclays Bank | 16,675,745 | 163,251 | (2,747) |
Japanese Yen | 6/12/2014 | Deutsche Bank | 48,660,000 | 476,367 | (4,968) |
Japanese Yen | 6/12/2014 | Barclays Bank | 38,520,000 | 377,100 | 1,407 |
New Zealand Dollar | 6/12/2014 | Deutsche Bank | 359,516 | 307,518 | (937) |
New Zealand Dollar | 6/12/2014 | Credit Suisse | 270,000 | 230,949 | (712) |
Swedish Krona | 6/12/2014 | Deutsche Bank | 531,524 | 81,498 | 156 |
Swiss Franc | 6/12/2014 | Barclays Bank | 476,475 | 541,548 | (2,339) |
Israeli Shekel | 7/3/2014 | Barclays Bank | 260,000 | 75,089 | (668) |
Mexican Peso | 7/3/2014 | Barclays Bank | 5,277,840 | 401,008 | 2,008 |
Peruvian Nuevo Sol | 7/3/2014 | Credit Suisse | 1,531,500 | 541,157 | (2,011) |
|
|
|
| $ 9,665,834 | $ (50,266) |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
International |
|
|
|
|
|
|
|
|
Opportunity Bond |
|
|
|
|
|
|
| |
Fund |
|
|
|
|
|
|
|
|
|
|
|
| Local Currency | Local Currency | U.S. Dollar | U.S. Dollar | Unrealized |
|
| Settlement |
| Amount Purchased | Amount Purchased | Market Value | Market Value | Appreciation |
Foreign Currency | Date | Counterparty | Buy | Sell | Buy | Sell | (Depreciation) | |
To Buy: | To Sell: |
|
|
|
|
|
|
|
Australian Dollar | British Pound | 6/12/2014 | Credit Suisse | 1,037,368 | 573,724 | $ 958,280 | $ 968,433 | $ (14,359) |
British Pound | Euro | 6/12/2014 | Deutsche Bank | 475,376 | 573,689 | 802,424 | 795,421 | 6,213 |
Canadian Dollar | Australian Dollar | 6/12/2014 | Barclays Bank | 24,549 | 24,174 | 22,350 | 22,331 | 113 |
Canadian Dollar | Euro | 6/12/2014 | Barclays Bank | 75,484 | 49,607 | 68,721 | 68,781 | (146) |
Danish Krone | Euro | 6/12/2014 | Credit Suisse | 1,018,467 | 136,478 | 189,246 | 189,228 | 83 |
Euro | Danish Krone | 6/12/2014 | Barclays Bank | 122,633 | 915,070 | 170,030 | 170,034 | (74) |
Euro | Norwegian Krone | 6/12/2014 | Barclays Bank | 223,652 | 1,846,133 | 310,094 | 309,295 | 1,965 |
Euro | Swedish Krona | 6/12/2014 | Barclays Bank | 1,155,675 | 10,309,323 | 1,602,345 | 1,580,712 | 22,108 |
Japanese Yen | British Pound | 6/12/2014 | Credit Suisse | 49,788,562 | 288,362 | 487,416 | 486,748 | 335 |
Japanese Yen | Euro | 6/12/2014 | Deutsche Bank | 26,595,103 | 185,886 | 260,358 | 257,732 | 2,192 |
Norwegian Krone | Euro | 6/12/2014 | Deutsche Bank | 2,454,564 | 297,343 | 411,230 | 412,266 | (2,612) |
Swedish Krona | Euro | 6/12/2014 | Credit Suisse | 1,916,248 | 214,800 | 293,815 | 297,820 | (4,109) |
Swedish Krona | Euro | 6/12/2014 | Barclays Bank | 8,439,863 | 929,934 | 1,294,071 | 1,289,355 | 3,699 |
Swiss Franc | British Pound | 6/12/2014 | Barclays Bank | 241,570 | 164,297 | 274,561 | 277,329 | (2,131) |
Polish Zloty | Euro | 7/3/2014 | Deutsche Bank | 500,000 | 119,373 | 164,414 | 165,503 | (2,138) |
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| $ 11,139 |
7.
SHARES OF BENEFICIAL INTEREST
At April 30, 2014, each Fund had an unlimited number of shares authorized with no par value.
Following is a summary of shareholder transactions for each Fund for six months ended and the year/period ended April 30, 2014 and October 31, 2013, respectively:
For the Six Months Ended April 30, 2014:
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|
|
| 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 |
Corporate/Government Bond | 373,034 | 63,815 | (2,987,183) | (2,550,334) |
| 46,961 | 3,987 | (308,842) | (257,894) |
Monthly Distribution | 504,215 | 111,774 | (1,010,313) | (394,324) |
| 429,215 | 40,454 | (391,557) | 78,112 |
Floating Rate Bond | 5,779,382 | 46,358 | (317,176) | 5,508,564 |
| 852,003 | 5,434 | (43,278) | 814,159 |
High-Yield Bond | 855,206 | 212,854 | (3,713,334) | (2,645,274) |
| 269,820 | 33,067 | (289,437) | 13,450 |
International Opportunity Bond | 3,735,140 | 8,642 | (195,356) | 3,548,426 |
| 260,650 | 318 | (17,358) | 243,610 |
Loss Averse Equity Income | 139,962 | 2,297 | (171,848) | (29,589) |
| 10,332 | 1,878 | (24,825) | (12,615) |
Alternative Strategy | 58,688 | - | (69,401) | (10,713) |
| 33,008 | - | (599,855) | (566,847) |
Appreciation & Income | 171,499 | 22,324 | (151,856) | 41,967 |
| 51,847 | 2,893 | (73,883) | (19,143) |
Large Cap Value | 210,944 | 28,500 | (235,647) | 3,797 |
| 74,048 | 3,166 | (103,229) | (26,015) |
Alternative Income | 42,789 | 4,124 | (37,377) | 9,536 |
| 4,856 | 5,135 | (6,007) | 3,984 |
Focused Large Cap Growth | 2,272,552 | 798 | (24,952) | 2,248,398 |
| 646,621 | 10,877 | (153,875) | 503,623 |
Real Estate Stock | 402,768 | 77,292 | (223,068) | 256,992 |
| 68,449 | 5,391 | (29,509) | 44,331 |
International Stock | 330,496 | 56,397 | (225,568) | 161,325 |
| 353,988 | 4,952 | (37,508) | 321,432 |
Small Cap Value | 358,281 | 57,741 | (139,414) | 276,608 |
| 93,576 | 5,610 | (10,388) | 88,798 |
Emerging Markets Stock | 724,091 | - | (80,144) | 643,947 |
| 104,199 | - | �� (28,211) | 75,988 |
Small Cap Growth | 111,726 | 162,465 | (256,144) | 18,047 |
| 162,873 | 41,784 | (34,243) | 170,414 |
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|
|
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
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| Class C Shares | |||
Fund | Issued | Distributions Reinvested | Redeemed | Net Increase (Decrease) in Shares |
Corporate/Government Bond | 27,181 | 4,999 | (251,331) | (219,151) |
Monthly Distribution | 298,176 | 35,425 | (193,699) | 139,902 |
Floating Rate Bond | 352,551 | 1,826 | (16,940) | 337,437 |
High-Yield Bond | 110,371 | 19,718 | (241,841) | (111,752) |
International Opportunity Bond | 205,582 | 33 | (12,023) | 193,592 |
Loss Averse Equity Income | 12,033 | 1,471 | (79,955) | (66,451) |
Alternative Strategy | 7,828 | - | (8,678) | (850) |
Appreciation & Income | 35,763 | 1,841 | (27,329) | 10,275 |
Large Cap Value | 27,116 | 656 | (34,759) | (6,987) |
Alternative Income | 13,872 | 3,500 | (1,882) | 15,490 |
Focused Large Cap Growth | 263,131 | 592 | (10,358) | 253,365 |
Real Estate Stock | 29,755 | 5,147 | (19,641) | 15,261 |
International Stock | 44,177 | 3,140 | (19,535) | 27,782 |
Small Cap Value | 18,913 | 7,538 | (17,430) | 9,021 |
Emerging Markets Stock | 53,432 | - | (11,020) | 42,412 |
Small Cap Growth | 23,237 | 33,652 | (28,549) | 28,340 |
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|
Year/Period Ended October 31, 2013:
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|
|
|
| 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 | |
Corporate/Government Bond | 2,381,525 | 341,521 | (4,002,516) | (1,279,470) |
| 325,412 | 14,410 | (94,239) | 245,583 |
Monthly Distribution | 1,830,606 | 117,751 | (1,176,085) | 772,272 |
| 1,131,805 | 37,956 | (764,662) | 405,099 |
High-Yield Bond | 5,210,150 | 554,985 | (3,825,036) | 1,940,099 |
| 975,667 | 68,545 | (420,302) | 623,910 |
Loss Averse Equity Income | 226,680 | 7,400 | (395,745) | (161,665) |
| 56,148 | 5,427 | (101,294) | (39,719) |
Alternative Strategy * | 71,957 | - | (59,341) | 12,616 |
| 237,814 | - | (26,717) | 211,097 |
Appreciation & Income | 314,888 | 73,501 | (1,495,624) | (1,107,235) |
| 166,924 | 8,296 | (244,675) | (69,455) |
Large Cap Value | 435,005 | 35,033 | (1,086,212) | (616,174) |
| 183,468 | 2,287 | (96,015) | 89,740 |
Alternative Income | 64,654 | 849 | (2,768) | 62,735 |
| 102,390 | 1,203 | (3,255) | 100,338 |
Focused Large Cap Growth | 47,156 | - | (32,236) | 14,920 |
| 713,884 | - | (892,489) | (178,605) |
Real Estate Stock | 1,045,340 | 62,748 | (372,434) | 735,654 |
| 728,843 | 2,369 | (622,738) | 108,474 |
International Stock | 553,162 | 38,921 | (1,049,855) | (457,772) |
| 231,244 | 1,390 | (51,732) | 180,902 |
Small Cap Value | 207,714 | 3,933 | (481,849) | (270,202) |
| 89,318 | - | (19,782) | 69,536 |
Emerging Markets Stock | 820,281 | - | (291,961) | 528,320 |
| 508,434 | - | (1,172,682) | (664,248) |
Small Cap Growth | 232,898 | 62,814 | (444,769) | (149,057) |
| 190,451 | 6,576 | (62,737) | 134,290 |
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|
|
|
|
|
|
|
|
|
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
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| Class C Shares | |||
Fund | Issued | Distributions Reinvested | Redeemed | Net Increase (Decrease) in Shares |
Corporate/Government Bond | 124,203 | 24,592 | (210,613) | (61,818) |
Monthly Distribution | 486,720 | 33,290 | (312,346) | 207,664 |
High-Yield Bond | 471,607 | 52,511 | (612,365) | (88,247) |
Loss Averse Equity Income | 55,038 | 5,487 | (27,096) | 33,429 |
Alternative Strategy * | 12,502 | - | (4,300) | 8,202 |
Appreciation & Income | 91,681 | 8,215 | (162,228) | (62,332) |
Large Cap Value | 51,439 | 222 | (172,653) | (120,992) |
Alternative Income | 79,003 | 326 | (2,539) | 76,790 |
Focused Large Cap Growth | 35,576 | - | (12,698) | 22,878 |
Real Estate Stock | 82,379 | 5,891 | (75,409) | 12,861 |
International Stock | 55,580 | 409 | (178,465) | (122,476) |
Small Cap Value | 24,089 | - | (72,599) | (48,510) |
Emerging Markets Stock | 69,764 | - | (61,643) | 8,121 |
Small Cap Growth | 32,928 | 12,843 | (88,557) | (42,786) |
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* Prior year shareholder transactions presented for Alternative Strategy are representative of the period August 1, 2013 to October 31, 2013.
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, 2013, permanent book and tax differences, attributable primarily from differing treatments for foreign currency transactions, dividend reclassifications, reclassifications of gains on contingent convertible debt securities, passive foreign investments companies, partnerships, real estate investment trusts, swaps, C-Corporation return of capital distributions, 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 |
Corporate/Government Bond | $ - | $ 329,863 | $ (329,863) |
Monthly Distribution | - | (54,213) | 54,213 |
High-Yield Bond | (14,027) | 14,027 | - |
Loss Averse Equity Income | - | (18,886) | 18,886 |
Alternative Strategy | (236,751) | 236,751 | - |
Appreciation & Income | (143,447) | 140,828 | 2,619 |
Alternative Income | - | 52,286 | (52,286) |
Focused Large Cap Growth | - | 141,048 | (141,048) |
Real Estate Stock | - | 501 | (501) |
International Stock | - | 611,611 | (611,611) |
Small Cap Value | - | (11,190) | 11,190 |
Emerging Markets Stock | (158,262) | 80,626 | 77,636 |
Small Cap Growth | - | 496,074 | (496,074) |
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|
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
The tax character of distributions paid during the year or period ended October 31, 2013 was as follows:
| Year or period Ended October 31, 2013 | |||
Fund | Ordinary Income | Long-Term Capital Gain | Return of Capital | Total |
Corporate/Government Bond | $ 4,989,941 | $ 479,818 | $ - | $ 5,469,759 |
Monthly Distribution | 7,756,262 | - | - | 7,756,262 |
High-Yield Bond | 7,438,832 | - | - | 7,438,832 |
Loss Averse Equity Income | 379,368 | - | 30,656 | 410,024 |
Appreciation & Income | 826,595 | - | - | 826,595 |
Large Cap Value | 439,727 | - | - | 439,727 |
Alternative Income | 31,226 | - | - | 31,226 |
Real Estate Stock | 307,473 | 786,227 | - | 1,093,700 |
International Stock | 523,067 | - | - | 523,067 |
Small Cap Value | 44,834 | - | - | 44,834 |
Small Cap Growth | - | 1,257,195 | - | 1,257,195 |
The tax character of distributions paid during the year or period ended October 31, 2012 was as follows:
| Year or period Ended October 31, 2012 | |||
Fund | Ordinary Income | Long-Term Capital Gain | Return of Capital | Total |
Corporate/Government Bond | $ 2,294,277 | $ 1,421,777 | $ - | $ 3,716,054 |
Monthly Distribution | 2,251,818 | - | 2,676,179 | 4,927,997 |
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 |
Real Estate Stock | 169,262 | - | - | 169,262 |
International Stock | 544,245 | - | - | 544,245 |
As of October 31, 2013, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
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 |
Emerging Markets Stock | $ 12,355 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2014
At October 31, 2013, 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 | 2018 | 2019 | Non-Expiring | Non-Expiring | Total |
Monthly Distribution* | $ 9,058,497 | $ - | $ 5,028,568 | $ - | $ - | $ - | $ - | $ 14,087,065 |
High-Yield Bond | - | - | 5,169,469 | - | - | - | - | 5,169,469 |
Loss Averse Equity Income | - | - | - | - | 152,058 | 293,116 | - | 445,174 |
Alternative Strategy | - | - | - | - | - | 513,044 |
| 513,044 |
Appreciation & Income | - | - | 79,600 | - | - | - | - | 79,600 |
Large Cap Value | - | - | 3,690,604 | - | - | - | - | 3,690,604 |
International Stock | - | - | 5,330,820 | - | - | - |
| 5,330,820 |
Emerging Markets Stock | - | - | 3,386,845 | - | 351,019 | 380,047 | - | 4,117,911 |
* For Monthly Distribution, $2,748,605, $2,433,901 and $1,561,082 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. UNDERLYING INVESTMENT IN OTHER INVESTMENT COMPANIES
Alternative Strategy currently invests a portion of its assets in Invesco STIT - Treasury Portfolio. Alternative Strategy Fund may redeem its investment from the Invesco STIT - Treasury Portfolio at any time if the Advisor determines that it is in the best interest of the Fund and its shareholders to do so.
The performance of the Fund may be directly affected by the performance of the Invesco STIT - Treasury Portfolio. The financial statements of the Invesco STIT - Treasury Portfolio, including the portfolio of investments, can be found at www.federatedinvestors.com or the Securities and Exchange Commission’s website www.sec.gov and should be read in conjunction with Alternative Strategy financial statements. As of March 31, 2014, the percentage of the Fund’s net assets invested in the Invesco STIT - Treasury Portfolio, was 33.8%.
11.
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 relating to the Funds presented in this report.
ADDITIONAL INFORMATION (Unaudited)
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
Meeting of the Board of Trustees Held on September 17, 2013
At a regular meeting (the “Meeting”) of the Board of Trustees (the “Board” or “Trustees) of the Dunham Funds (the “Trust”) held on September 17, 2013, the Board, including a majority of the Trustees who are not interested persons of the Trust (the “Independent Trustees”), considered the approval of an investment advisory agreement (the “Investment Advisory Agreement”) between Dunham & Associates Investment Counsel, Inc. (the “Adviser”) and the Trust, with respect to the Dunham Floating Rate Bond Fund (“Floating Rate Bond”) and the approval of an investment sub-advisory agreement between Newfleet Asset Management, LLC (“Newfleet”), the Trust and the Adviser, with respect to Floating Rate Bond (the “Newfleet Sub-Advisory Agreement”) (collectively, the “Advisory Agreements”). In connection with its review and approval of the Advisory Agreements, the Board considered materials on the applicable Advisory Agreement furnished by the Adviser and Newfleet. At the Meeting, representatives from the Adviser presented information regarding Floating Rate Bond and responded to questions from the Trustees. A representative from Newfleet was also present at the Meeting to discuss and answer questions regarding Floating Rate Bond. The Board reviewed the terms of the Advisory Agreements and discussed the performance goals and fulcrum fee arrangements set forth in the Newfleet Sub-Advisory Agreement. In their consideration of the proposed Advisory Agreements, the Board, including the Independent Trustees, did not identify any single factor as controlling, and the following summary does not detail all the matters considered.
Floating Rate Bond - Investment Advisory Agreement with the Adviser
Matters considered by the Board, including the Independent Trustees, in connection with its approval of the Investment Advisory Agreement with respect to Floating Rate Bond included the following:
Nature, Extent and Quality of Services. The Board, including the Independent Trustees, discussed the qualifications of the Adviser’s key personnel and the experience of the Adviser in managing mutual funds. The Trustees noted that the continuity in the senior management of the Adviser affords a high-level of confidence that the Adviser will continue to provide superior service to the Funds in the Trust, including Floating Rate Bond.
Performance. The Board, including the Independent Trustees, discussed that the Adviser does not serve any other funds similar to Floating Rate Bond, but expressed confidence in the Adviser’s track record with respect to the selection and recommendation of high-quality sub-advisers. The Independent Trustees considered the Adviser’s past performance with the existing Funds in the Trust and its active and consistent approach to monitoring the performance of the sub-advisers. The Board concluded that the Adviser’s overall past performance was acceptable and will prove beneficial to Floating Rate Bond.
Costs of Services. As to the costs of the services to be provided by the Adviser, the Board, including the Independent Trustees, discussed the comparison of advisory fees and total operating expense data and reviewed Floating Rate Bond’s projected advisory fees and overall expenses compared to the peer groups of similarly managed funds. The Trustees noted that the peer group’s average advisory fee is slightly below the advisory fee of 60 basis points, but the gross estimated expense ratio, assuming only the fulcrum base fee rate is earned, is lower than the average of the peer group and Morningstar category. The Trustees also discussed the total estimated advisory fee (including sub-advisory fees) compared to the peer group and Morningstar category averages, and discussed that Floating Rate Bond’s fees are, in total, higher than average. The Trustees noted that floating rate bank loan funds are in a relatively new asset class and that most of the funds in the peer group are affiliated with large fund complexes that generally benefit from economies of scale. The Trustees concluded that the proposed advisory fee is reasonable.
Economies of Scale. As to the extent to which Floating Rate Bond will realize economies of scale, the Independent Trustees considered whether there will be economies of scale with respect to the management of Floating Rate Bond. After discussion, it was the consensus of the Board that any material economies of scale would not be achieved by Floating Rate Bond in the near term and that it would re-evaluate the matter as Floating Rate Bond’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 in connection with the operation of Floating Rate Bond. The Trustees reviewed estimated profitability information provided by the Adviser and noted that the estimated profits are not significant and, if realized, reflect a reasonable profit-margin in light of the Adviser’s responsibility and entrepreneurial risk related to launching a new fund. The Trustees, including the Independent Trustees, concluded that the Adviser would not reap excessive profits from its relationship with Floating Rate Bond.
ADDITIONAL INFORMATION (Unaudited) (Continued)
Floating Rate Bond - Newfleet Sub-Advisory Agreement
Matters considered by the Board, including the Independent Trustees, in connection with its approval of the Newfleet Sub-Advisory Agreement with respect to Floating Rate Bond included the following:
Nature, Extent and Quality of Services. The Board, including the Independent Trustees, reviewed information regarding Newfleet’s professional management team and favorably discussed the depth of experience among portfolio managers, analysts and compliance personnel. The Trustees further noted the thorough and enthusiastic telephone presentation to the Board by a Newfleet portfolio manager and the quality of the sub-advisory services currently being provided by Newfleet to another fund in the Trust.
Performance. The Board, including the Independent Trustees, reviewed performance data comparing a Newfleet floating rate composite to a Morningstar category average peer group since inception on March 1, 2008 and for the 1-year and 5-years ended July 31, 2013. The Trustees noted the composite’s outperformance for each time period and their expectation that Newfleet would obtain an acceptable level of investment return for Floating Rate Bond.
Costs of Services. As to the cost of the services to be provided by Newfleet, the Board, including the Independent Trustees, considered the Base Fee and Performance Fee components of the Fulcrum Fee (as defined in the Newfleet Sub-Advisory Agreement). The Trustees noted that the Fulcrum Fee will result in a +/-20 basis points adjustment to the Base Fee of 40 basis points based on the performance of the Fund’s Class N share versus the performance benchmark. They agreed that the S&P/LSTA Leveraged Loan Index is an appropriate benchmark for the Floating Rate Bond Fund, and that the proposed fee adjustment of 0.01% for each 0.0875% of outperformance would reward Newfleet for material outperformance, and appropriately penalize for material underperformance. The Trustees discussed at length the operation of the Performance Fee and the impact on fees and expenses based on various performance results and concluded that sub-advisory fee would be in a reasonable range.
Economies of Scale. As to the extent to which Floating Rate Bond will realize economies of scale, the Board, including the Independent Trustees, concurred that any material economies of scale would not be achieved by Floating Rate Bond 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 Newfleet in connection with Floating Rate Bond. The Trustees noted that no payments will be made by the Fund to Newfleet other than fees paid pursuant to the Newfleet Sub-Advisory Agreement and concluded that Newfleet would not reap excessive profits from its relationship with Floating Rate Bond.
Conclusion. Having requested and received such information from the Adviser and Sub-Adviser as the Board believed to be reasonably necessary to evaluate the terms of the proposed Advisory Agreements, and as assisted by the advice of independent counsel, the Board, including all of the Independent Trustees, unanimously concluded that (a) the terms of each of the Advisory Agreements are fair and reasonable; (b) that the advisory fee and sub-advisory fees were for services different than those provided by the subsidiaries or any underlying fund’s adviser and are not duplicative; and (c) the Advisory Agreement and Sub-Advisory Agreements are in the best interests of the Fund, shareholders and their prospective shareholders.
Meeting of the Board of Trustees Held on October 8, 2013
At a special meeting (the “Meeting”) of the Board of Trustees (the “Board” or the “Trustees”) of the Dunham Funds (the “Trust”) held on October 8, 2013, the Board, including a majority of the Trustees who are not interested persons of the Trust (the “Independent Trustees”), considered the approval of an investment advisory agreement between the Trust and Dunham & Associates Investment Counsel, Inc. (the “Adviser”) with respect to the Dunham International Opportunity Bond Fund (the “Fund”) and a sub-advisory agreement between Rogge Global Partners Plc (“Rogge”), the Adviser and the Trust, with respect to the Fund (the “Rogge Sub-Advisory Agreement”, and collectively, the “Advisory Agreements”). In connection with its review and approval of the Advisory Agreements, the Board considered materials furnished by Rogge and the Adviser. At the meeting, representatives from the Adviser and Rogge presented information regarding the Fund, and responded to questions from the Trustees. The Board reviewed the terms of the Advisory Agreements, and discussed the performance goals and fulcrum fee arrangements set forth in the Advisory Agreements. In their consideration of the proposed Advisory Agreements, the Board, including the Independent Trustees, did not identify any single factor as controlling, and the following summary does not detail all the matters considered.
ADDITIONAL INFORMATION (Unaudited) (Continued)
International Opportunity Bond – Investment Advisory Agreement
Matters considered by the Board, including the Independent Trustees, in connection with its approval of the Investment Advisory Agreement with respect to the Fund included the following:
Nature, Extent and Quality of Services. The Board reviewed the materials provided by the Adviser at the meeting and discussed the Adviser’s due diligence in selecting sub-advisers and the qualifications, experience and responsibilities of the Adviser’s key personnel in managing the activities of the Funds in the Trust. They noted that the Adviser has demonstrated an ability to attract and retain talented personnel that provide excellent service to the Trust and shareholders. The Trustees concluded that it is reasonable to expect the Adviser will provide top-quality services to the Fund.
Performance. The Board discussed that the Adviser does not serve any other funds similar to the Fund. They considered the Adviser’s past performance with the existing Funds in the Trust and its active and consistent approach to monitoring the performance of the sub-advisers. They discussed the role of the Adviser’s research staff. The Board concluded that the Adviser’s overall past performance was acceptable and will prove beneficial to the Fund.
Costs of Services. As to the costs of the services to be provided by the Adviser, the Board, including the Independent Trustees, discussed the comparison of advisory fees and total operating expense data and reviewed the Fund’s projected advisory fees and overall expenses compared to the peer groups of similarly managed funds. The Trustees noted that the peer group’s average advisory fee is slightly below the advisory fee of 60 basis points, but the gross estimated expense ratio, assuming no performance fee, is lower than the average of the peer group and Morningstar category. The Trustees also discussed the total estimated advisory fee (including sub-advisory fees) compared to the peer group and Morningstar category averages, and discussed that the Fund’s total advisory fees are, in total, higher than average. The Trustees considered the nature of the Fund will require greater oversight by the Adviser than other types of funds and that most of the funds in the peer group are affiliated with large fund complexes that generally benefit from economies of scale. The Trustees concluded that the proposed advisory fee is reasonable.
Economies of Scale. As to the extent to which the Fund will realize economies of scale, the Trustees considered whether there will be economies of scale with respect to the management of the Fund. 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 at the next renewal period.
Profitability. The Board next considered the anticipated profits to be realized by the Adviser in connection with the operation of the Fund. The Trustees reviewed estimated profitability information provided by the Adviser and noted that the estimated profits are not significant and, if realized, reflect a reasonable profit-margin in light of the Adviser’s responsibility and entrepreneurial risk related to launching a new fund. The Trustees, including the Independent Trustees, concluded that the Adviser would not reap excessive profits from its relationship with the Fund.
International Opportunity Bond – Rogge Sub-Advisory Agreement
Matters considered by the Board, including the Independent Trustees, in connection with its approval of the Rogge Sub-Advisory Agreement with respect to the Fund include the following:
Nature, Extent and Quality of Services. The Board reviewed information received at the meeting and at a prior Board meeting, and considered the telephonic presentation by a Rogge representative in which the firm’s history and the qualifications and experience of key personnel was discussed. The Board considered Rogge’s almost 30-years’ experience in the global fixed income arena, long-standing relationships with other accounts, the thoroughness and timeliness of Rogge in responding to information requests from the Adviser, and enthusiasm for managing the Fund. They discussed with the Trust’s CCO his assessment of Rogge’s compliance program. The Board, including the Independent Trustees, concluded that Rogge had sufficient resources and depth of experience to provide quality service to the Fund.
Performance. The Board reviewed data comparing the performance of two international aggregate unhedged accounts managed by Rogge (the “Rogge Accounts”) to the Barclays Global Aggregate-XUSD Index for the1- and 5-years and since inception of each account. The Trustees noted that the returns for the Rogge Accounts were reasonable, particularly over the longer-term, and concluded that Rogge has the potential to deliver reasonable performance for the Fund.
Costs of Services. As to the cost of the services to be provided by Rogge, the Board considered the Base Fee and Performance Fee components (as defined in the Rogge Sub-Advisory Agreement) of the Fulcrum Fee. They noted that fulcrum fee will result in a +/-25 basis points adjustment to the Base Fee of 45 basis points based on the performance of the Fund’s Class N share versus the performance benchmark and agreed that the Barclays Global Aggregate Bond ex-US Index Unhedged is an appropriate benchmark for the Fund. The Trustees discussed at length the operation of the Performance Fee and the impact on fees and expenses based on various performance results. The Trustees noted that the Performance Fee rate will
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increase/decrease by 0.01% for each 0.04% of outperformance/underperformance of the benchmark and discussed that the base fee is higher than Rogge’s flat fee for managing other accounts. The Board, including the Independent Trustees, took into account that the minimum fee rate of 20 basis points is low for managing this asset class and concluded that the fee adjustments under the fulcrum fee arrangement are reasonable and appropriate to reward or penalize outperformance or underperformance, respectively and would not be the result of immaterial performance variance.
Economies of Scale. As to the extent to which the Fund will realize economies of scale, the Board, including the Independent Trustees, concurred 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 at the next renewal period.
Profitability. The Board next considered the anticipated profits to be realized by Rogge in connection with managing the Fund. The Trustees noted that no payments will be made by the Fund to Rogge other than fees paid pursuant to the Rogge Sub-Advisory Agreement. The Board discussed a profitability analysis provided by Rogge. The Board, including the Independent Trustees, concluded that amount of revenue projected to be earned by Rogge is not unreasonable for managing a global fund.
Conclusion. Having requested and received such information from the Adviser and Rogge as the Board believed to be reasonably necessary to evaluate the terms of the proposed Advisory Agreements, and as assisted by the advice of independent counsel, the Board, including all of the Independent Trustees, unanimously concluded that the terms of each Advisory Agreement is fair and reasonable and approval is in the best interest of the Fund, its shareholders and prospective shareholders.
Meeting of the Board of Trustees Held on December 17, 2013
At a regular meeting (the “Meeting”) of the Board of Trustees (the “Board”) of the Dunham Funds (the “Trust”) held on December 17, 2013, the Board, including a majority of the Trustees who are not interested persons of the Trust (the “Independent Trustees”), considered the renewal of an investment advisory agreement between the Trust and Dunham & Associates Investment Counsel, Inc. (the “Adviser”) (“Investment Advisory Agreement”) and sub-advisory agreements (the “Sub-Advisory Agreements”) between the Trust, the Adviser and the following sub-advisers (each a “Sub-Adviser”, collectively, the “Sub-Advisers”) with respect to each of the following: 1) International Stock with Arrowstreet Capital, L.P. (“Arrowstreet”), 2) Appreciation & Income with Calamos Advisors LLC (“Calamos”), 3) Large Cap Value with C.S. McKee, L.P. (“C.S. McKee”), 4) High-Yield Bond with PENN Capital Management Co., Inc. (“PENN”), 5) Small Cap Growth Fund with Pier Capital, LLC (“Pier”), 6) Corporate/Government Bond with Newfleet Asset Management LLC (“Newfleet”), 7) Monthly Distribution with Westchester Capital Management, LLC (“Westchester”), 8) Loss Averse Equity Income with PVG Asset Management Corporation (“PVG”), 9) Large Cap Growth with Mar Vista Investment Partners, LLC (“Mar Vista”), 10) Focused Large Cap Growth with The Ithaka Group, LLC (“Ithaka”), and 11) Real Estate Stock with Cornerstone Real Estate Advisers LLC (“Cornerstone”) (each a “Fund” and, collectively, the “Funds”). The Board’s deliberations included the following:
Continuance of Investment Advisory Agreement for each of Monthly Distribution, Corporate/Government Bond, High-Yield Bond, Loss Averse Equity Income, Appreciation & Income, Large Cap Value, Large Cap Growth, Focused Large Cap Growth, Small Cap Value, Small Cap Growth, Real Estate Stock, Alternative Income, International Stock and Emerging Markets Stock
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. The conclusions reached by the Board were based on a comprehensive evaluation of all of the information provided and were not the result of any one factor. Matters considered by the Board, including the Independent Trustees, in connection with its approval of the continuance of the Investment Advisory Agreement included the following:
Nature, Extent and Quality of Services. As to the nature, extent and quality of the services provided by the Adviser to the Funds, the Trustees noted the level of difficulty involved in actively, consistently and effectively overseeing the Funds’ Sub-Advisers and the value that the Adviser brings to the process. They noted that the Adviser’s investment committee meets at least quarterly to conduct a quantitative and qualitative analysis of each Sub-Adviser and that the Adviser conducts structured conference calls with each Sub-Adviser, monitors the Sub-Advisers’ compliance with their respective Fund’s investment objectives and policies and monitors performance relative to each Fund’s assigned benchmark index and peer group. The Trustees further noted that the Adviser monitors performance and the relationship to fulcrum fees to monitor for situations where Fund performance might be attained by undue risk-taking. The Trustees discussed the Adviser’s history of hiring and retaining high-quality key personnel, bringing new Funds to market to complement the array of Funds offered to current and prospective shareholders, the Adviser’s integrity, and responsiveness to the Board’s questions and requests for
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information. They acknowledged the Adviser’s commitment to hiring and retaining talented personnel. The Board concluded that the Adviser had sufficient quality and depth of personnel and resources, and that the nature, overall quality and extent of the services provided by the Adviser to the Trust are satisfactory.
Performance. As to investment performance, the Board reviewed the performance of each of the Funds as compared to a peer group average (the “Peer Group”) and Morningstar category average (“Morningstar Average”) (collectively, the “Comparison Groups”) for 1-year, 3-year, 5-year and since inception time periods (as applicable):
With respect to Monthly Distribution, the Board noted that the Fund has outperformed its Peer Group and Morningstar Average across all the time periods. They discussed the 1-year performance of 5.20% compared to 0.83% and 1.98% for the peer group and Morningstar Average, respectively, as well as the superior long-term performance.
With respect to Corporate/Government Bond, the Board noted that the Fund performed in line with the Morningstar Average and slightly underperformed the Peer Group over the past 12-month period; performed in line with the Comparison Groups over the 3-year period; and outperformed its Peer Group and performed in-line with the Morningstar Average over the past 5-year and since inception time periods. They agreed that, since inception, the Fund has generally performed consistently, relative to the Comparison Groups.
With respect to High-Yield Bond, the Board noted that the Fund has underperformed its Peer Group and Morningstar Category during the relevant time periods. The Board considered that the Fund’s strategy is generally more conservative in nature and less volatile, which provides for less downside in a negative high-yield environment but at the expense of lower positive performance in more positive high-yield environments. The Board further noted that since inception, the Fund’s performance was less than 1% lower than its Comparison Groups.
With respect to Loss Averse Equity Income, the Board noted that the Fund has generally lagged the Comparison Groups since the Fund’s inception in 2010. The Board considered that the Sub-Adviser generally utilizes inverse ETFs to "hedge" the Fund from negative movements in the broad equity indices, such as the S&P 500, which detracted from performance given the S&P 500’s strong performance over the past year. The Trustees concluded that the Adviser and Sub-Adviser should be evaluated over a full market cycle in light of the Fund’s loss averse strategy.
With respect to Appreciation & Income, the Board noted that the Fund generally performed in line with or outperformed its Comparison Groups across all the time periods. They considered the Fund’s performance as strong, with since inception and 1-year returns of 5.81% and 11.33%, respectively, compared to 5.53% and 10.88% for the Peer Group and 5.08% and 11.87% for the Morningstar Average, respectively.
With respect to Large Cap Value, the Board noted that the Fund generally performed in line with or outperformed its Comparison Groups across all the time periods. The Board considered that while the Fund underperformed over the 1-year timeframe, returning 18.16% compared to 20.53% and 21.22% for the Peer Group and Morningstar Average, respectively, it performed in-line with or outperformed over longer timeframes. The Trustees indicated their satisfaction with the Fund’s performance.
With respect to Large Cap Growth, the Board noted that the Fund underperformed the 5-year and since inception timeframes primarily due to the previous sub-adviser's significant underperformance during the final months of 2008 and the market rebound in early 2009. The Board considered that the Fund’s 3-year underperformance is far less pronounced and is primarily due to the more conservative style of investing implemented by the current Sub-Adviser. The Trustees agreed that the 1-year performance of 17.70%, while trailing the Morningstar Average of 20.68%, was very encouraging for future results.
With respect to Focused Large Cap Growth, the Board noted that the Fund significantly outperformed over the 1-year and underperformed since inception, with returns of 26.04% and 18.73% over the 1-year and since inception periods, compared to 20.31% and 19.62% for the Peer Group, and 20.68% and 20.47% for the Morningstar Average over the same time periods. The Board considered that the Fund’s low assets in the first three months of operations detracted from the Fund’s early performance, and overall they were very pleased with the Fund’s returns.
With respect to Small Cap Value, the Board noted that the Fund generally outperformed its Peer Group over the past 3-year and since inception time periods and generally underperformed over the past 1-year and 5-year time periods. The Board considered that the Fund’s sub-adviser was replaced effective July 1, 2013 and the Board will continue to monitor the Sub-Adviser’s progress.
With respect to Small Cap Growth, the Board noted that the Fund significantly outperformed its Peer Group across the 1-year, 3-year, and 5-year and since inception time periods and performed in line with or outperformed the Morningstar Average across each of these the time periods. They noted with satisfaction the strong 1-year returns of 32.19%, compared
ADDITIONAL INFORMATION (Unaudited) (Continued)
to 25.87% and 30.36% for the Peer Group and Morningstar Average, respectively, and the Sub-Advisor’s ability to capitalize on the strong bull market.
With respect to Real Estate Stock, the Board noted that the Fund performed in line with or outperformed its Comparison Groups across all time periods. They agreed with the Adviser’s assessment of the impact of expenses on Fund performance.
With respect to Alternative Income, the Board noted that the Fund underperformed its Comparison Groups for the 1-year and since inception time periods. The Board considered that the Fund generally does not align with other Funds in its Comparison Groups because the Fund generally invests in securities that generate a higher-than-average dividend yield where the funds in its Comparison Groups generally seek a high total return. They also considered the Adviser’s input that the Fund generally has a higher weighting in MLPs, Utility Stocks, and REITs than the category constituents, and that these differences generally detracted from performance over the past 1-year and since inception time periods. The Trustees discussed the size of the Fund relative to the size of the Funds in the Comparison Groups, and the correlation of Fund size to overall expenses, and the resulting impact on performance. The Trustees concluded that the Adviser and Sub-Adviser are managing the Fund consistent with its mandate and performance was acceptable.
With respect to International Stock, the Board noted that the Fund outperformed its Comparison Groups across all the time periods. They were pleased with the Funds 1-year, 3-year, 5-year and since inception performance of 22.61%, 7.38%, 9.39% and 5.72%, respectively, and indicated their satisfaction with both the Adviser and Sub-Adviser.
With respect to Emerging Markets Stock, the Board noted that the Fund generally underperformed its Comparison Groups for the 1-year, 3-year, and since inception time periods and outperformed its Comparison Groups for the 5-year timeframe. The Board considered that the Fund's sub-adviser responsible for this performance was replaced effective July 1, 2013 and noted that the new Sub-Adviser is expected to perform better over the long-term. A representative of the Adviser discussed the Sub-Adviser’s investment philosophy and reminded the Trustees of the Adviser’s work to select the Sub-Adviser. The Trustees agreed that they are optimistic regarding the Sub-Adviser’s prospects.
As a result of their review, the Trustees concluded that each Fund’s performance was acceptable.
Fees and Expenses. As to comparative fee information, the Board reviewed the fees and expenses of each of the Funds as compared to the Peer Group and Morningstar Average.
With respect to Monthly Distribution, the Board noted that the net expense ratio was higher than the Comparison Groups. The Board considered the performance record, noting that Monthly Distribution consistently outperformed the Peer Group and Morningstar Average, and that the investment strategy (i.e., short-selling, option writing, etc.) was a more expensive strategy to execute.
With respect to Corporate/Government Bond, the Board discussed the Fund's management fee and noted the reduction in the base Sub-Advisory fee by 0.05% that became effective in May 2013, noting that the reduction is permanent.
With respect to High-Yield Bond, the Board discussed the Fund's management fee and noted the reduction in the base Sub-Advisory fee by 0.10% that became effective in May 2013. The Board also noted the reduction in the performance fee rate by 0.10%, which should translate into a lower expense ratio.
With respect to Loss Averse Equity Income, the Board discussed the Fund’s net expense ratio and noted that the Sub-Advisor had contractually agreed to waive a portion of its annual Sub-Advisory fee to maintain the Fund’s total annual operating expenses at 1.59% for Class N Shares, 1.94% for Class A shares, and 2.59% for Class C shares. They discussed that the agreement was effective as of March 18, 2013 and remains in effect until at least February 28, 2015.
With respect to Appreciation & Income, the Board considered that, although the Fund's net expense ratio was above the Comparison Groups, it was within an acceptable range given its strong performance.
With respect to Large Cap Value, the Board considered that the management fee of 0.77% was slightly below the Peer Group by 0.04% and above the Morningstar Average by 0.12%.
With respect to Large Cap Growth, the Board considered that, although the Fund's net expense ratio was above the Comparison Groups, it was within an acceptable range.
With respect to Focused Large Cap Growth, the Board considered that the management fee of 0.82% was slightly below the Peer Group by 0.04% and above the Morningstar Average by 0.13%. The Board also considered that the Fund was launched at the end of 2011 and that as the Fund's assets grew the Fund's net total operating expenses would trend lower.
ADDITIONAL INFORMATION (Unaudited) (Continued)
With respect to Small Cap Value, the Board considered that, although the Fund's net expense ratio was above the Comparison Groups, it was within an acceptable range.
With respect to Small Cap Growth, the Board discussed the Fund's management fee and noted that it was lower than the Comparison Groups. The Board also discussed the Fund’s net expense ratio, which was lower than the Peer Group and within the range of the Morningstar Average.
With respect to Real Estate Stock, the Board discussed the Fund's management fee and noted that it was slightly lower than the Peer Group and slightly above the Morningstar Average.
With respect to Alternative Income, the Board discussed the Fund’s net expense ratio and noted that it was below the Peer Group and above the Morningstar Average.
With respect to International Stock, the Board considered that, although the Fund's net expense ratio was above the Comparison Groups, it was acceptable given the Fund’s strong performance.
With respect to Emerging Markets Stock, the Board discussed the Fund’s management fee and noted that it was below the Comparison Groups.
As to the cost of the services provided by the Adviser, the Trustees reviewed and discussed each Fund’s advisory fees and overall expenses compared to peer groups of similarly managed funds. The Trustees discussed that while the advisory fees do not necessarily have to be the lowest compared to the peer groups, it is their duty to evaluate whether the advisory fees are reasonable. The Trustees noted that the Adviser’s advisory fees range from 0.50% to 0.65%, which, when combined with the Sub-Advisor fees, are generally higher than the Peer Group averages when a Fund is performing well, but in some cases lower than the Peer Group averages when a Fund is underperforming. They noted that the Adviser’s fee ranges are reasonably applied based on the nature of the Fund (i.e. bond vs. equity or alternative vs. traditional). The Trustees noted that currently five Funds are considered “alternative” and generally require enhanced oversight compared to more traditional asset classes. The Trustees discussed the level of difficulty involved in the Adviser’s oversight of the Funds and its on-going quantitative and qualitative analysis of Sub-Advisers and concluded that the advisory fees are reasonable in light of such services.
Profitability. The Trustees reviewed an analysis of profitability provided by the Adviser. The Trustees took into account possible benefits derived by the Adviser from its relationship with the Funds. The Trustees acknowledged that the Adviser, in its capacity as a broker, receives commissions and distribution fees when its customers purchase the Funds, but the Adviser does not execute trades on behalf of the Funds and therefore receives no compensation on portfolio trades. They concluded that profits from the Adviser’s relationship with each Fund was not only reasonable, but also at a level to adequately incentive the Adviser to continue to provide high quality services.
Economies of Scale. As to economies of scale, the Trustees noted that the 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 its 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 need to be considered in future as net asset levels of the Funds grow. A representative of the Adviser explained that the Adviser is prepared to offer concessions to the Funds at appropriate asset levels, and in anticipation of such, presented a proposed breakpoint schedule that reflects the economies of scale that the Adviser anticipates realizing. The Trustees expressed their appreciation for the Adviser’s proactive approach. The Trustees concluded that the absence of breakpoints was acceptable under the current circumstances, and would continue to evaluate the issue with respect to each Fund as asset increase, and work with the Adviser to negotiate reasonable breakpoints.
Continuance of Sub-Advisory Agreements for each of International Stock, Appreciation & Income, Large Cap Value, High Yield Bond, Small Cap Growth, Corporate/Government Bond, Monthly Distribution, Loss Averse Equity Income, Large Cap Growth, Focused Large Cap Growth, and Real Estate Stock
The Trustees discussed the extensive written materials provided by the Adviser and each Sub-Adviser prior to the Meeting. In its deliberations, the Board did not identify any single piece of information that was all-important or controlling. 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 each of the Sub-Advisers, the Board reviewed the materials provided by each Sub-Adviser. The Trustees considered the experience
ADDITIONAL INFORMATION (Unaudited) (Continued)
and education of the portfolio management and professional staff of each of the Sub-Advisers and noted the Adviser’s overall satisfaction with the level of services provided by each Sub-Adviser. A representative of the Adviser reviewed their working relationship with each Sub-Adviser, including the observation of the Trust’s Chief Compliance Officer with respect to compliance matters. The Trustees noted that the Adviser actively and continuously evaluates quality of service delivered by the Sub-Advisers and is satisfied with the current line-up of Sub-Advisers. The Trustees concluded that each of the Sub-Advisers provides a level of service that is consistent with the Board’s expectations.
Performance. As to the performance of each Sub-Adviser, the Trustees noted its thorough review and discussion of each Fund’s performance during its earlier evaluation of the Advisory Agreement and their conclusion that the performance of each Fund is acceptable.
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 relevant 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 noted its thorough review and discussion of each Fund’s fees and expenses during its earlier evaluation of the Advisory Agreement and their conclusion the fees were within a reasonable range.
The Board then considered the potential fee adjustments to be made to each Fund’s Base Fee based on performance. The Trustees affirmed their belief 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 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 continue to reflect 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 all of the factors discussed.
Profitability. As to profitability, the Trustees discussed the total fees previously paid, and expected to be paid to each Sub-Adviser based on each Fund’s current assets, and noted that payments above the Base Fee are dependent on the Sub-Adviser's performance relative to the applicable Index. They noted that the Sub-Advisers generally receive no other compensation from the Fund or the Adviser except the sub-advisory fees earned pursuant to the Sub-Advisory Agreement and in some cases, soft dollars and brokerage fees paid to affiliates. The Trustees reviewed financial information and profitability analysis of the Sub-Advisers that provided this information. 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 because any increase in fees are tied to performance. 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. The Trustees discussed the relevance of economies of scale in the context of Sub-Advisers that receive a performance based fee. They agreed that the Adviser had successfully negotiated a favorable Base Fee with each Sub-Adviser, and that reductions based on asset growth, when coupled with the possibility of fee reductions based on performance, could hinder the Adviser’s ability to attract top sub-advisory talent. The Trustees agreed that pursuing breakpoints with any of the Sub-Advisers would not be in the best interests of shareholders at this time.
Conclusion. Having requested and received such information from the Adviser and Sub-Advisers as the Board believed to be reasonably necessary to evaluate the terms of the Investment Advisory Agreement and Sub-Advisory Agreements, and as assisted by the advice of independent counsel, the Board, including all of the Independent Trustees, unanimously concluded that (a) the terms of the Investment Advisory Agreement and each of the Sub-Advisory Agreements are fair and reasonable; (b) that the advisory fee and sub-advisory fees were for services different than those provided by any underlying fund’s adviser and are not duplicative; and (c) the Investment Advisory Agreement and each of the Sub-Advisory Agreements are in the best interests of the Funds, their shareholders and their shareholders.
ADDITIONAL INFORMATION (Unaudited) (Continued)
Meeting of the Board of Trustees Held on March 25, 2014
New Sub-Advisory Agreement for Focused Large Cap Growth
At a regular meeting (the “Meeting”) of the Board of Trustees of the Dunham Funds held on March 25, 2014, the trustees who are not “interested persons,” as that term is defined in the Investment Company Act of 1940, as revised (the “1940 Act”) (the “Independent Trustees”), approved a new sub-advisory agreement with The Ithaka Group (“Ithaka” or the “Sub-Adviser”) (the “New Sub-Advisory Agreement”) with respect to the Focused Large Cap Growth, on substantially identical terms as the prior sub-advisory agreement (the “Prior Sub-Advisory Agreement”) with the exception of a new fee schedule. The Independent Trustees considered materials furnished by Ithaka, including information about, but not limited to, Ithaka’s personnel and operations. The Independent Trustees noted that with the exception of the date and fees, the New Sub-Advisory Agreement is the same as the Prior Sub-Advisory Agreement. The Independent Trustees agreed that other than their discussion that day of the new Sub-Advisory fees, their conclusions regarding continuance of the Prior Sub-Advisory Agreement reached at the December 17, 2013 Board meeting were substantially the same and appropriate for adoption that day:
Nature, Extent and Quality of Services. In considering the approval of the New Sub-Advisory Agreement, the Independent Trustees examined the nature, scope and quality of the services that Ithaka historically had provided to the Fund. The Independent Trustees took note of the experience of Ithaka’s portfolio managers. The Independent Trustees also considered the experience of senior personnel at Ithaka. The Independent Trustees noted that the Adviser actively and continuously evaluates the quality of service delivered by Ithaka and is satisfied with the level of service provided to the Fund and its shareholders. The Independent Trustees concluded that they were satisfied with the nature, quality and extent of the services currently provided by Ithaka under the Prior Sub-Advisory Agreement and expected to be provided by Ithaka under the New Sub-Advisory Agreement, and such services were reasonable and appropriate in relation to the sub-advisory fee.
Performance. As to investment performance, the Independent Trustees noted that in December 2013 they reviewed the performance of the Fund as compared to the Peer Group and Morningstar Average, (collectively, the “Comparison Groups”) for 1-year and since inception time periods. The Independent Trustees noted that the Fund significantly outperformed the Comparison Groups over the 1-year period and slightly underperformed since inception, with returns of 26.04% and 18.73% over the 1-year and since inception periods, respectively, compared to 20.31% and 19.62% for the Peer Group Average, and 20.68% and 20.47% for the Morningstar Average over the same time periods. The Independent Trustees considered that the Fund’s low assets in the first three months of operations detracted from the Fund’s early performance, and overall they were very pleased with the Fund’s returns.
Cost of Services. As to the cost of the services, the Independent Trustees considered the Base Fee and Performance Fee components (as defined in the Sub-Advisory Agreement) of the new Fulcrum Fee. As to comparative fee information, the Independent Trustees noted that, although the Fund's net expense ratio was above the Comparison Groups, it was acceptable given the Fund’s strong performance. The Independent Trustees also noted that while the base fee would increase by 0.01%, the maximum advisory fee that could be earned by Ithaka was reduced by 0.08%, which should help to lower total operating expenses. The Independent Trustees further noted that the new Performance Fee will result in a +/-15 basis points adjustment to the Base Fee of 35 basis points relative to the fulcrum fee comparative index, the Russell 1000 Growth Index (the “Index”), which caps the potential outperformance fee at a slightly lower level. They agreed that the Russell 1000 Growth Index continues to be an appropriate index. They further noted that there will be no adjustment to the Base Fee, i.e., the performance fee rate will be 0% if the Fund performs within the null zone (+/-0.30% relative to the Index). The Independent Trustees discussed at length the operation of the Performance Fee and the impact on fees and expenses based on various performance results and concluded that Sub-Advisory Fee fees would continue to be in a reasonable range. The Independent Trustees agreed that the fee adjustments under the fulcrum fee arrangement are reasonable and appropriate to reward or penalize outperformance or underperformance, respectively and would not be the result of immaterial performance variance. The Independent Trustees concluded that the Base Fee and Performance Fee under the proposed new Sub-Advisory Agreement are reasonable to keep the Sub-Adviser appropriately incentivized.
Profitability. As to profitability, the Independent Trustees discussed the total fees previously paid, and expected to be paid to Ithaka based on the Fund’s current assets and projected net assets, and noted that payments above the Base Fee are dependent on the Sub-Adviser's performance relative to the applicable index. The Independent Trustees noted that based on the Fund’s current net assets Ithaka realized a substantial loss in managing the Fund previously. The Independent Trustees considered that following the consolidation of the two large cap funds in the Trust, Ithaka may receive more in advisory fees even though the base fee only increased by 0.01% due to the fact that Ithaka will manage a larger fund going forward. The Independent Trustees reviewed financial information and profitability analysis provided by Ithaka. The Independent Trustees agreed that, in light of the alignment of interests between Ithaka and shareholders created by the
ADDITIONAL INFORMATION (Unaudited) (Continued)
performance based fulcrum fee arrangement, the increase is reasonable and Ithaka would not reap excessive profits from its relationship with the Fund because any increase in fees are tied to performance.
Economies of Scale. The Independent Trustees discussed the relevance of economies of scale in the context of Ithaka noting that it receives a performance based fee. They agreed that the Adviser had successfully negotiated a favorable Base Fee with the Sub-Adviser, and that reductions based on asset growth, when coupled with the possibility of fee reductions based on performance, could hinder the Adviser’s ability to attract top sub-advisory talent. The Independent Trustees agreed that pursuing breakpoints with the Sub-Adviser would not be in the best interests of shareholders at this time.
As a result of their considerations, the Independent Trustees determined that approval of the New Sub-Advisory Agreement was in the best interests of the Fund and its shareholders. Accordingly, the Independent Trustees unanimously approved the New Sub-Advisory Agreement.
New Sub-Advisory Agreement for International Stock
At a meeting held on December 17, 2013, the Board of Trustees of the Dunham Funds (the “Board”), including a majority of the trustees who are not “interested persons,” as that term is defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Trustees”), renewed the sub-advisory agreement with Arrowstreet Capital, Limited Partnership (“Arrowstreet” or the “Sub-Adviser”) as sub-adviser to International Stock. Subsequent to that meeting, the Board was informed of Arrowstreet’s plan to implement a number of changes to its ownership and corporate governance structure effective April 1, 2014. Because Arrowstreet’s ownership and governance changes may be deemed to be a "change in control," at a meeting held on March 25, 2014 (the “Meeting’), the Independent Trustees unanimously elected to approve an amended and restated sub-advisory agreement with Arrowstreet (the “New Sub-Advisory Agreement”) on materially identical terms as the prior sub-advisory agreement with Arrowstreet (“Prior Sub-Advisory Agreement”). In connection with their review and approval of the New Sub-Advisory Agreement with Arrowstreet at the Meeting, the Independent Trustees considered materials furnished by Arrowstreet, including information about, but not limited to, Arrowstreet’s personnel and operations. The Independent Trustees discussed that the terms of the New Sub-Advisory Agreement and the performance goals and fulcrum fee arrangements set forth in the New Sub-Advisory Agreement were not being changed. After reviewing the materials in light of the New Sub-Advisory Agreement, it was the consensus of the Independent Trustees that their conclusions with respect to approving continuation of the Sub-Advisory Agreement with Arrrowstreet that were discussed at the Board meeting held on December 17, 2013 were unchanged and pertinent to approving the New Sub-Advisory Agreement with Arrowstreet:
Nature, Extent and Quality of Services. The Independent Trustees reviewed the nature, extent and quality of the services provided by Arrowstreet, including the investment advisory services and the resulting performance of the Fund. The Independent Trustees reviewed details of the Transaction in order to evaluate Arrowstreet’s history, structure, size and investment experience, visibility and resources, which are needed to attract and retain highly qualified investment professionals. In evaluating the nature, quality and extent of the services to be provided by Arrowstreet under the New Sub-Advisory Agreement, the Independent Trustees considered, among other things, the expected impact of the Transaction on the operations, facilities, organization and personnel of Arrowstreet and how it would affect the Fund, the ability of Arrowstreet to perform its duties after the Transaction and any anticipated changes to the current investment practices and related services provided to the Fund. The Independent Trustees noted that it was anticipated that the Transaction would not result in a change in the portfolio managers. The Independent Trustees concluded that they were satisfied with the nature, quality and extent of the services currently provided by Arrowstreet under the Prior Sub-Advisory Agreement and expected to be provided by Arrowstreet under the New Sub-Advisory Agreement, and such services were reasonable and appropriate in relation to the sub-advisory fee. The Independent Trustees concluded that the quality of services to be provided by Arrowstreet to the Fund after the Transaction should continue to be high.
Performance. As to investment performance, the Independent Trustees noted that in December 2013 they reviewed the performance of the Fund as compared to a peer group average (the “Peer Group”) and Morningstar category average (“Morningstar Average”) (collectively, the “Comparison Groups”) for 1-year, 3-year, 5-year and since inception time periods. The Independent Trustees noted that the Fund outperformed its Comparison Groups across all these time periods. The Independent Trustees concluded that they were satisfied with the Fund’s performance.
Cost of Services. The Independent Trustees received and reviewed information regarding the fees to be paid by the Fund to Arrowstreet pursuant to the Sub-Advisory Agreement. As to comparative fee information, the Independent Trustees noted that, although the Fund's net expense ratio was above the Comparison Groups, it was acceptable given the quality of services provided. The Independent Trustees noted that the sub-advisory fees payable to Arrowstreet would remain the same under the New Sub-Advisory Agreement as under the Prior Sub-Advisory Agreement. The Independent
ADDITIONAL INFORMATION (Unaudited) (Continued)
Trustees examined this information in order to determine the reasonableness of the fees in light of the nature and quality of services to be provided and any potential additional benefits to be received by Arrowstreet in connection with providing such sub-advisory services to the Fund. The Independent Trustees concluded that the sub-advisory fees were reasonable in light of the factors discussed.
Profitability. As to profitability, the Independent Trustees noted that as previously determined in December 2013, the fee arrangement was reasonable and Arrowstreet would not reap excessive profits from its relationship with the Fund because any increase in fees are tied to performance. The Independent Trustees discussed the total fees previously paid, and expected to be paid to the Sub-Adviser based on the Fund’s current assets, and noted that payments above the Base Fee are dependent on the Sub-Adviser's performance relative to the applicable index. The Independent Trustees reviewed financial information and profitability analysis provided by Arrowstreet. The Independent Trustees concluded that in light of the alignment of interests between Arrowstreet and shareholders created by the performance-based fulcrum fee arrangement, the fee arrangement is reasonable and it would not reap excessive profits from its relationship with the Fund because any increase in fees are tied to performance. The Independent Trustees noted that they did not expect this to change going forward since there were no changes to the fee arrangements. The Trustees concluded that Arrowstreet’s expected profitability did not appear to be excessive.
Economies of Scale. The Independent Trustees discussed the relevance of economies of scale in the context of Arrowstreet noting that it receives a performance based fee. They agreed that the Adviser had successfully negotiated a favorable Base Fee with the Sub-Adviser, and that reductions based on asset growth, when coupled with the possibility of fee reductions based on performance, could hinder the Adviser’s ability to attract top sub-advisory talent. The Independent Trustees agreed that pursuing breakpoints with the Sub-Adviser would not be in the best interests of shareholders at this time.
As a result of their considerations, the Independent Trustees determined that approval of the New Sub-Advisory Agreement was in the best interests of the Fund and its shareholders and unanimously approved the New Sub-Advisory Agreement.
DUNHAM FUNDS’ EXPENSES (Unaudited)
Example
Shareholders of mutual funds will pay (1) transitional costs, such as sales load, and (2) 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.
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| Actual |
| Hypothetical (5% return before expenses) | ||
| Fund’s Annualized Expense Ratio | Beginning Account Value 11/1/13 | Ending Account Value 4/30/14 | Expenses Paid During Period* | Ending Account Value 4/30/14 | Expenses Paid During Period* | |
Class N: |
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Corporate/Government Bond Fund | 1.50% | $1,000.00 | $1,023.00 | $ 7.52 |
| $1,017.36 | $ 7.50 |
Monthly Distribution Fund | 2.19% | $1,000.00 | $1,035.60 | $11.05 |
| $1,013.93 | $10.94 |
Floating Rate Bond Fund ** | 1.28% | $1,000.00 | $1,010.70 | $ 6.38 |
| $1,018.35 | $ 6.37 |
High-Yield Bond Fund | 1.12% | $1,000.00 | $1,047.50 | $ 5.69 |
| $1,019.24 | $ 5.61 |
International Opportunity Bond Fund ** | 1.41% | $1,000.00 | $1,022.90 | $ 7.03 |
| $1,017.80 | $ 7.05 |
Loss Averse Equity Income Fund | 2.14% | $1,000.00 | $1,002.20 | $10.62 |
| $1,014.18 | $10.69 |
Alternative Strategy Fund | 1.55% | $1,000.00 | $ 993.70 | $ 7.66 |
| $1,017.11 | $ 7.75 |
Appreciation & Income Fund | 1.48% | $1,000.00 | $1,047.40 | $ 7.51 |
| $1,017.46 | $ 7.40 |
Large Cap Value Fund | 1.24% | $1,000.00 | $1,082.00 | $ 6.40 |
| $1,018.65 | $ 6.21 |
Alternative Income Fund | 2.11% | $1,000.00 | $1,047.50 | $10.71 |
| $1,014.33 | $10.54 |
Focused Large Cap Growth Fund | 1.59% | $1,000.00 | $ 969.90 | $ 5.52 |
| $1,019.19 | $ 5.66 |
Real Estate Stock Fund | 1.56% | $1,000.00 | $1,090.20 | $ 8.08 |
| $1,017.06 | $ 7.80 |
International Stock Fund | 2.10% | $1,000.00 | $1,025.30 | $10.55 |
| $1,014.38 | $10.49 |
Small Cap Value Fund | 1.47% | $1,000.00 | $1,055.90 | $ 7.49 |
| $1,017.50 | $ 7.35 |
Emerging Markets Stock Fund | 1.32% | $1,000.00 | $ 940.00 | $ 6.35 |
| $1,018.25 | $ 6.61 |
Small Cap Growth Fund | 2.12% | $1,000.00 | $1,004.90 | $10.54 |
| $1,014.28 | $10.59 |
Class A: |
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Corporate/Government Bond Fund | 1.75% | $1,000.00 | $1,022.50 | $ 8.78 |
| $1,016.12 | $ 8.75 |
Monthly Distribution Fund | 2.44% | $1,000.00 | $1,034.20 | $12.31 |
| $1,012.69 | $12.18 |
Floating Rate Bond Fund ** | 0.86% | $1,000.00 | $1,008.60 | $ 7.62 |
| $1,017.11 | $ 7.61 |
High-Yield Bond Fund | 1.37% | $1,000.00 | $1,045.00 | $ 6.95 |
| $1,018.00 | $ 6.85 |
International Opportunity Bond Fund ** | 1.66% | $1,000.00 | $1,021.70 | $ 8.28 |
| $1,016.56 | $ 8.30 |
Loss Averse Equity Income Fund | 2.39% | $1,000.00 | $1,001.20 | $11.86 |
| $1,012.94 | $11.93 |
Alternative Strategy Fund | 1.80% | $1,000.00 | $ 992.70 | $ 8.89 |
| $1,015.87 | $ 9.00 |
Appreciation & Income Fund | 1.73% | $1,000.00 | $1,046.80 | $ 8.78 |
| $1,016.22 | $ 8.65 |
Large Cap Value Fund | 1.49% | $1,000.00 | $1,055.00 | $ 7.59 |
| $1,017.41 | $ 7.45 |
Alternative Income Fund | 2.36% | $1,000.00 | $1,045.50 | $11.97 |
| $1,013.09 | $11.78 |
Focused Large Cap Growth Fund | 1.84% | $1,000.00 | $ 968.30 | $ 6.73 |
| $1,017.95 | $ 6.90 |
Real Estate Stock Fund | 1.81% | $1,000.00 | $1,003.80 | $ 8.99 |
| $1,015.82 | $ 9.05 |
International Stock Fund | 2.35% | $1,000.00 | $1,024.20 | $11.79 |
| $1,013.14 | $11.73 |
Small Cap Value Fund | 1.72% | $1,000.00 | $1,055.00 | $ 8.76 |
| $1,016.27 | $ 8.60 |
Emerging Markets Stock Fund | 1.57% | $1,000.00 | $ 938.20 | $ 7.54 |
| $1,017.01 | $ 7.85 |
Small Cap Growth Fund | 2.37% | $1,000.00 | $1,003.80 | $11.77 |
| $1,013.04 | $11.83 |
YOUR FUNDS’ EXPENSES (Unaudited) (Continued)
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| Actual |
| Hypothetical (5% return before expenses) | ||
| Fund’s Annualized Expense Ratio | Beginning Account Value 11/1/13 | Ending Account Value 4/30/14 | Expenses Paid During Period* | Ending Account Value 4/30/14 | Expenses Paid During Period* | |
Class C: |
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Corporate/Government Bond Fund | 2.25% | $1,000.00 | $1,019.30 | $11.27 |
| $1,013.64 | $11.23 |
Monthly Distribution Fund | 3.19% | $1,000.00 | $1,030.70 | $16.06 |
| $1,008.98 | $15.89 |
Floating Rate Bond Fund ** | 2.03% | $1,000.00 | $1,005.70 | $11.34 |
| $1,013.41 | $11.32 |
High-Yield Bond Fund | 1.87% | $1,000.00 | $1,040.00 | $ 9.46 |
| $1,015.52 | $ 9.35 |
International Opportunity Bond Fund ** | 2.16% | $1,000.00 | $1,018.20 | $10.75 |
| $1,014.08 | $10.79 |
Loss Averse Equity Income Fund | 3.14% | $1,000.00 | $ 997.70 | $15.55 |
| $1,009.22 | $15.64 |
Alternative Strategy Fund | 2.55% | $1,000.00 | $ 989.40 | $12.58 |
| $1,012.15 | $12.72 |
Appreciation & Income Fund | 2.48% | $1,000.00 | $1,042.50 | $12.56 |
| $1,012.50 | $12.37 |
Large Cap Value Fund | 2.24% | $1,000.00 | $1,076.50 | $11.53 |
| $1,013.69 | $11.18 |
Alternative Income Fund | 3.11% | $1,000.00 | $1,041.70 | $15.74 |
| $1,009.37 | $15.49 |
Focused Large Cap Growth Fund | 2.59% | $1,000.00 | $ 965.60 | $10.38 |
| $1,014.23 | $10.64 |
Real Estate Stock Fund | 2.56% | $1,000.00 | $1,085.10 | $13.23 |
| $1,012.10 | $12.77 |
International Stock Fund | 3.10% | $1,000.00 | $1,020.40 | $15.53 |
| $1,009.42 | $15.45 |
Small Cap Value Fund | 2.47% | $1,000.00 | $1,051.00 | $12.56 |
| $1,012.55 | $12.33 |
Emerging Markets Stock Fund | 2.32% | $1,000.00 | $ 934.90 | $11.13 |
| $1,013.29 | $11.58 |
Small Cap Growth Fund | 3.12% | $1,000.00 | $ 999.80 | $15.47 |
| $1,009.32 | $15.54 |
*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, 2014).
**Expenses Paid During Period Actual are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period,
multiplied by 180 days and divided by 365 (to reflect the number of days in the six month period ending April 30, 2014).
Privacy Notice
March 2011
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 doesn’t 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 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
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
By (Signature and Title)
/s/ Denise Iverson
Denise Iverson, Treasurer
Date