Dunham Funds N-CSR/A Certified annual shareholder report (management investment company) (amended)

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)

Richard Malinowski

Gemini Fund Services, LLC., 80Arkay Drive 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:10/31/17

Item 1. Reports to Stockholders.

This 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. 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 and the applicable fund’s prospectus. 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,

Over the past fiscal year, the markets have had strong returns. While this can be attributed to a variety of factors, most of the momentum, on the surface, can be linked to optimism about the change in leadership in the United States with President Donald Trump entering the White House. Will the optimism start to fade as the passing of policy continually comes into question? Will a pro-business President be able to push through an agenda? Will the policy achieve what it is designed to do? These are just a few questions which answers will determine the path of the stock markets over the upcoming fiscal year.

During the past fiscal year, U.S. markets overall remained bullish. Even with doubts that policy can be passed into law, markets continued with a synchronized global market rally. A “risk-on” attitude has led investors to feel comfortable to chase higher returns outside of the U.S. stock market. This risk appetite combined with low volatility levels may lead to the idea that the run can continue. If central banks at some point change their course and do not remain as accommodative with low interest rates, there is a likelihood that historical volatility of international markets will return. The global upturn can also be attributed to China’s rising import demand over the past year.

As discussed earlier, the past year has seen a global rise across all markets. For the fiscal year, the S&P 500 returned 23.6 percent while the Dow Jones Industrial Average and the tech-heavy NASDAQ Composite returned 32.1 and 31.1 percent respectively. International developed markets, as measured by the MSCI EAFE Index, returned 23.4 percent during the same time period. Doing well in its own right, emerging markets, as measured by the MSCI Emerging Markets Index, returned 26.5 percent. Both domestic and international markets had very strong overall returns.

The U.S. economy continues to show signs of growth even if the pace has slowed down since the initial excitement of a pro-business President in the White House. Strong labor markets and wage growth are keeping recession chances low. Continuing low inflation seems to have prolonged the upward cycle. Without the inflation component reaching certain levels, the Federal Reserve has had to remain cautious and has avoided tightening monetary policy too fast. U.S. markets may still have room to run as tax-cut legislation still offers an opportunity for stronger corporate earnings.

The global economy, after two years of mediocre growth, appears to have momentum to continue the upward trend. The Eurozone is doing well due to a weak currency and rising confidence and demand. Latin American countries, Canada, and Australia have all rebounded due to rising demand for commodities. While China often leads the international gains, their returns have been slowed as the local authorities try to stem financial speculation.

The oil market has stayed relatively range-bound as the Organization of Petroleum Exporting Countries (OPEC) and Russia continue to try and work on limiting production. The last twelve months has seen the price of WTI Crude bounce around from $45 per barrel and topping out near $60 per barrel. Since hitting the low point in June, the price was climbing over the course of the last four months as production cuts seemed to be working. The wild card will be if U.S. shale oil production can replace any cutback as a higher per barrel price would make domestic production more profitable. It will be important to see if the rising price and production cuts can continue.

Domestic bonds had a poor year compared to the equity markets. After hitting the low of 2.04 percent at the beginning of September, the yield on the 10-year U.S. Treasury finished at 2.38 percent to end the 12-month period ended October 31, 2017. The Barclays US Aggregate Bond Index returned only 0.90 percent for the fiscal year. Global bonds also were a weak performer. The Barclays Global Aggregate Bond Index ex-US returned only 1.26 percent for the 12-month period ended October 31, 2017, which was only slightly higher compared to the broad US bond market.

Keeping with interest rates, the Federal Reserve continues to be cautious about raising the Federal Funds rate. With two hikes so far in 2017 and one more expected in December, the Fed continues to monitor targets for the dual mandate of low unemployment and a goal inflation rate. At this point, the low unemployment numbers look good, but low wage growth has led to a lower inflation number than would be expected. The pace of rate increases will be something to monitor in the upcoming fiscal year.

Meanwhile, escalating tensions in the Korean peninsula represent a potential catalyst for meaningful market risk, as the U.S. and China are the world’s 2 economies that are most central to global trade. The Fed’s unwinding of its balance sheet, and the European Central Bank’s likely tapering of asset purchases next year, could pose a liquidity challenge to markets. Overall, the global economy is in a synchronized expansion amid low inflation, with low risk of recession. Going forward, a shift toward global monetary policy normalization may boost market volatility.

We thank you for your continued trust and the confidence you have placed in us. We take that trust very seriously and look forward to servicing your investment needs for years to come.

Sincerely,

Jeffrey A. Dunham

President

Dunham & Associates Investment Counsel, Inc.

October 31, 2017

1

Dunham Floating Rate Bond Fund (Unaudited)

Message from the Sub-Adviser (Newfleet Asset Management, LLC)

Interest rates rose over the fiscal year, but the path was anything but direct. The yield on the 10-year Treasury began the fiscal year at 1.83 percent and hit its low for the fiscal year of 2.04 percent a few days in, trading within an 82 basis point range through the end of December. From that point, the yield began to undulate, hitting its fiscal year high of 2.63 percent in mid-March, at which point the yield began a somewhat steady decline through late June. Yields began to fluctuate again, before trending steadily upward to finish the fiscal year 55 basis points higher than they began, at 2.38 percent. The overall increase in rates aided the performance for bank loans, as measured by the S&P / LSTA Leveraged Loan Index. The path of bank loan returns generally followed the moves in U.S. Treasury yields, gaining more earlier in the fiscal year and less as the year neared its close. For the most recent fiscal year, bank loans returned 5.1 percent, after rising 6.5 percent during the previous fiscal year. Similar to U.S. Treasury yields, the London Interbank Offered Rate (“LIBOR”) increased during the fiscal year. Three-month LIBOR began the fiscal year at 0.88 percent and ended the fiscal year at 1.38 percent.

The rise in interest rates over the fiscal year coincided with an equity market increase over the same time period. At the beginning of the fiscal year, the average bank loan in the Fund had a price of $98.6. By the end of the fiscal year, the average price saw a slight increase to $98.7. At the beginning of the fiscal year, approximately 22 bank loans in the Fund had a price below $95, which represented approximately 7.2 percent of the bank loans in the Fund. By the end of the fiscal year, the Fund still held approximately 22 bank loans with a price below $95, but which represented approximately 6.9 percent of the bank loans in the Fund. The Sub-Adviser remains optimistic about the asset class’ potential as interest rates rise and investor sentiment towards the loan space allows the prices to continue to increase.

The yields on bank loans, as measured by the S&P / LSTA Leveraged Loan 100 Index, moved in similar fashion to broader Treasury yield movements during the fiscal year. Bank loans in general began the fiscal year with a yield-to-maturity of 5.1 percent, approximately 1.4 percent less than their traditional high-yield bond counterparts, as measured by the Bank of America Merrill Lynch High-Yield Bond Cash Pay Index. Bank loans underperformed traditional high-yield bonds during the fiscal year by 4.1 percent. As bank loans underperformed traditional high-yield bonds, the yield gap between bank loans and traditional high-yield bonds saw a contraction. At the end of the fiscal year, the yields on bank loans stood at 4.8 percent and traditional high-yield bonds ended at 6.0 percent. The Fund held approximately 5.7 percent of its assets in traditional high-yield bonds, which from an allocation perspective enhanced relative performance during the fiscal year.

The Sub-Adviser continued to focus on higher-rated first lien loans within the bank loan space, limiting its exposure to bank loans rated CCC and lower. The exposure to lower-rated loans, second lien loans, and traditional bonds has been limited to instances where the Sub-Adviser has determined that the additional reward is expected to significantly outweigh the additional risk. However, with the significant increase in lower-rated securities, some of the Fund’s bonds also benefited. For example, the Fund held the CCC+ rated traditional bonds issued by FTS International, Inc. (30283WAB0) (holding percentage*: 0.02 percent) for the entire fiscal year. The company is a provider of oil field services and high-pressure hydraulic fracturing, operating throughout the United States. The company’s bonds increased 77.3 percent on a total return basis over the fiscal year. An example of a CCC+ rated bond that had a challenging fiscal year was the that of Argos Merger Sub, Inc. (04021LAA8) (holding percentage*: 0.05 percent). Argos Merger Sub, Inc. is a debt issuing company that operates as a subsidiary of Argo Holdings, Inc., a private company made up of a consortium of private equity firms that acquired Petsmart, Inc. in 2015. Over the entire fiscal year, the bonds lost 19.9 percent in total return.

As the price of oil rose 16 percent over the fiscal year, from $46.86 a barrel at the beginning, to $54.38 a barrel at the end, many energy-related issuers saw increases in their bank loans. One such issuer that benefited the Fund over the fiscal year was Seadrill Partners (BL1232042) (holding percentage*: 0.31 percent). The company explores and produces oil and gas, offering crude oil, natural gas, and other oil products. The Seadrill bank loans saw a price increase of 35.9 percent over the fiscal year. A bank loan that detracted from Fund performance was from issuer Fieldwood Energy, LLC (BL1112129) (holding percentage*: 0.03 percent). The company explores, produces, and develops oil and natural gas, and acquires and develops oil and natural gas opportunity assets throughout the United States. Fieldwood’s bank loan lost 36.9 percent from its price from the beginning of the fiscal year through the end.

The Sub-Adviser remains constructive on markets but believes there are still a number of uncertainties to monitor going forward, including geopolitical tensions; energy-related volatility; and what could be signs of a flattening of the yield curve. As the supply of new money loan issuance declined in October while demand remained strong, the Sub-Adviser anticipates the supply/demand imbalance to continue in the near term, expecting the loan market to exhibit coupon-like returns for the foreseeable future. The Sub-Adviser believes that President Trump’s nomination of Jerome Powell to succeed Fed Chair Janet Yellen in February of 2018 provides some continuity to the Fed, as it is widely viewed that Mr. Powell will adopt the existing framework of gradually increasing interest rates and predictably reducing the Fed’s balance sheet. The Sub-Adviser expects the Fed to increase interest rates in December and possibly even in March of 2018. The Sub-Adviser believes the U.S. economy and its underpinnings, as well as issuers and their earnings, show continued broad-based improvement. Add to that improving global macro fundamentals and stabilized oil prices, the Sub-Adviser believes that this credit cycle should continue into 2018.

* Holdings percentage(s) as of 10/31/2017

Growth of $100,000 Investment

Total Returns as of October 31, 2017

		Annualized	Annualized
	One	Three	Since Inception
	Year	Years	(11/1/13)
Class N	3.91%	3.04%	2.63%
Class C	3.20%	2.27%	1.86%
Class A with load of 4.50%	(1.05)%	1.17%	1.19%
Class A without load	3.64%	2.75%	2.36%
S&P/LSTA Leveraged Loan 100 Index	5.08%	3.35%	3.35%
Morningstar Bank Loan Category	4.45%	3.24%	3.04%

The S&P/LSTA 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 1.20% for Class N, 1.95% for Class C and 1.45% 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

2

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund

October 31, 2017

Security			Shares					Value
COMMON STOCKS - 0.3%
ELECTRIC - 0.1%
Vistra Energy Corp. ^				10,588				$	205,831
LODGING - 0.0%
Caesars Entertainment Corp. * ^				5,010					64,879
OIL & GAS - 0.1%
Ocean Rig UDW, Inc. *				4,980					133,365
REAL ESTATE - 0.1%
Vici Properties, Inc. *				7,261					134,328
TOTAL COMMON STOCKS (Cost - $482,496)									538,403
EXCHANGE TRADED FUNDS - 2.0%
DEBT EXCHANGE TRADED FUNDS - 2.0%
PowerShares Senior Loan Portfolio				76,935					1,778,737
SPDR Bloomberg Barclays Short Term High Yield				65,000					1,814,800
TOTAL EXCHANGE TRADED FUNDS (Cost - $3,593,447)									3,593,537
	Variable		Principal		Interest		Maturity
	Rate		Amount		Rate		Date
BANK LOANS - 83.3%
CONSUMER DISCRETIONARY - 22.8%
Accuride Corp., Term Loan Retired +	LIBOR + 7.000	%	$	367,325	8.334	%	11/16/2023		369,161
Advantage Sales & Marketing, Inc., Term Loan +	LIBOR + 6.500			247,000	7.877		7/24/2022		208,450
Advantage Solutions, Initial Term Loan +	LIBOR + 3.250			284,288	4.631		7/24/2021		269,984
Advantage Solutions, Term B-2 Loan +	LIBOR + 3.250			394,385	4.627		7/24/2021		374,541
Affinity Gaming, Initial Term Loan +	LIBOR + 3.500			368,359	4.834		6/30/2023		371,815
American Axle & Manufacturing, Inc., Tranche B Term Loan +	LIBOR + 2.250			281,437	3.624		4/6/2024		282,406
Aristocrat Leisure Ltd., New 2017 Term Loan +	LIBOR + 2.000			600,187	3.365		10/20/2021		604,784
Aristocrat Leisure Ltd., Term B-2 Loan +	LIBOR + 2.000			565,000	3.363		10/20/2024		568,672
Bass Pro Group LLC, Initial Term Loan +	LIBOR + 5.000			700,000	6.377		9/24/2024		681,188
Cablevision, March 2017 Refinancing Term Loan +	LIBOR + 2.250			1,783,181	3.604		7/16/2025		1,784,135
Caesars, Term B-1 Loan +	LIBOR + 3.500			147,671	4.897		10/16/2022		148,066
Caesars, Term B Loan +	LIBOR + 4.000			235,000	5.377		7/8/2024		238,048
Caesars Entertainment, Inc., Term B Loan +	LIBOR + 3.500			811,117	4.881		10/12/2020		812,711
Caesars Entertainment, Inc., Term B Loan +	LIBOR + 2.500			1,415,000	3.881		10/8/2024		1,417,766
Caesars Growth Partners, 2017 Term Loan +	LIBOR + 3.000			646,465	4.381		5/8/2021		647,477
Caesars Resort Collection, Term Loan +	LIBOR + 2.750			2,245,000	4.086		10/2/2024		2,261,838
CBS Radio, Inc., Term B Loan Retired +	LIBOR + 3.500			293,698	4.874		10/16/2023		296,195
Charter Communications Operating LLC, Term E-1 Loan +	LIBOR + 2.000			321,771	3.381		6/30/2020		323,602
Charter Communications Operating LLC, Term H-1 Loan +	LIBOR + 2.000			135,930	3.381		1/16/2022		136,703
Charter Communications Operating LLC, Term I-1 Loan +	LIBOR + 2.250			896,370	3.631		1/16/2024		903,890
Cirque Du Soleil, Term B Loan +	LIBOR + 3.750			631,838	5.084		7/8/2022		637,433
CityCenter Holdings LLC, Term B Loan +	LIBOR + 2.500			563,588	3.881		4/18/2024		566,865
Cooper-Standard Automotive, Additional Term B-1 Loan +	LIBOR + 2.250			188,074	3.584		11/2/2023		189,438
Dexko Global, U.S. Dollar Term B Loan +	LIBOR + 4.000			520,000	5.371		7/24/2024		525,093
Eldorado Resorts, Inc., Term Loan +	LIBOR + 2.250			826,471	3.647		4/16/2024		829,227
FCA US LLC, Tranche D Term Loan +	LIBOR + 6.750			1,510,000	8.084		1/30/2019		1,136,962
Federal-Mogul Holdings Corp., Tranche C Term Loan +	LIBOR + 3.750			774,024	5.119		4/16/2021		782,008
Formula One, Facility B3 +	LIBOR + 3.000			700,000	4.381		1/31/2024		706,416
Gates Global LLC, Initial B-1 Dollar Term Loan Retired +	LIBOR + 3.250			632,773	4.584		3/31/2024		638,034
Gateway Casinos & Entertainment, Initial Tranche B-1 Term Loan +	LIBOR + 3.750			164,588	5.084		2/22/2023		167,288
Greektown Holdings LLC, Initial Term Loan +	LIBOR + 3.000			169,575	4.381		4/24/2024		170,571
Hilton Worldwide Finance LLC, Series B-2 Term Loan +	LIBOR + 2.000			1,525,915	3.374		10/24/2023		1,537,947
KAR Auction Services, Inc., Tranche B-4 Term Loan +	LIBOR + 2.250			202,669	3.584		3/12/2021		204,822
KAR Auction Services, Inc., Tranche B-5 Term Loan +	LIBOR + 2.500			58,157	3.834		3/8/2023		58,679
Landry’s, Inc., Initial B Term Loan +	LIBOR + 3.250			478,790	4.628		10/4/2023		484,277
Laureate International Universities, Series 2024 Term Loan +	LIBOR + 4.500			1,042,288	5.881		4/26/2024		1,049,782
Leslie’s Poolmart, Tranche B-1 Term Loan +	LIBOR + 3.750			316,901	5.131		8/16/2023		316,901

See accompanying notes to financial statements.

3

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2017

	Variable		Principal		Interest		Maturity
Security	Rate		Amount		Rate		Date	Value
BANK LOANS - 83.3% (Continued)
CONSUMER DISCRETIONARY (Continued) - 22.8%
Libbey Glass, Inc., Initial Loan +	LIBOR + 3.000	%	$	507,616	4.357	%	4/8/2021	$	480,966
Lionsgate, Term B Loan +	LIBOR + 3.000			145,225	4.377		12/8/2023		146,496
Masergy Communications, Refinancing Term B Loan +	LIBOR + 2.500			852,759	3.910		9/16/2023		858,959
McGraw-Hill, Term B Loan +	LIBOR + 4.000			839,647	5.381		5/4/2022		839,735
Mediacom, Tranche K Term Loan +	LIBOR + 2.250			153,673	3.642		2/16/2024		154,394
Mediacom Broadband LLC, Tranche H Term Loan +	LIBOR + 2.500			295,114	3.880		1/29/2021		295,943
Mediacom Broadband LLC, Tranche M Term Loan +	LIBOR + 2.000			500,000	3.378		1/24/2025		502,710
MGM Growth Properties, Term B Loan +	LIBOR + 2.250			371,345	3.631		4/24/2023		373,865
Michaels Stores, Inc., 2016 New Replacement Term B-1 Loan +	LIBOR + 2.750			524,673	4.125		1/30/2023		525,756
Mission Broadcasting, Inc., Term B-2 Loan +	LIBOR + 2.500			19,805	3.885		1/16/2024		19,950
Mohegan Tribal Gaming Authority, Term B Loan +	LIBOR + 4.000			248,125	5.381		10/12/2023		251,362
Neiman Marcus Group LTD, Inc., Other Term Loan +	LIBOR + 3.250			265,179	4.647		10/24/2020		209,325
Nexstar Broadcasting, Inc., Term B-2 Loan +	LIBOR + 2.500			157,740	3.885		1/16/2024		158,896
Numericable US LLC, USD TLB-11 Term Loan +	LIBOR + 2.750			158,800	4.131		8/1/2025		159,041
PetSmart, Inc., Tranche B-2 Loan +	LIBOR + 3.000			733,715	4.380		3/12/2022		629,326
Playa Resorts Holdings, Initial Term Loan +	LIBOR + 3.000			503,938	4.380		4/28/2024		506,009
Scientific Games International, Initial Term B-4 Loan +	LIBOR + 3.250			795,000	4.594		8/14/2024		805,212
Serta Simmons Bedding LLC, Initial Term Loan +	LIBOR + 3.500			303,705	4.852		11/8/2023		300,004
ServiceMaster Co. LLC, Tranche C Term Loan +	LIBOR + 2.500			870,415	3.881		11/8/2023		875,855
SFR, USD TLB-11 Term Loan +	LIBOR + 2.750			648,375	4.131		8/1/2025		648,492
SharkNinja Operating LLC, Tranche B Term Loan +	LIBOR + 4.000			405,000	5.334		9/28/2024		406,855
Sinclair Broadcasting, Tranche B Term Loan +	LIBOR + 2.250			366,605	3.631		1/4/2024		368,071
SRAM Corp., New Term Loan +	LIBOR + 3.250			506,018	4.583		3/16/2024		508,075
St. George’s University Scholastic Services, Term Loan +	LIBOR + 4.250			213,436	5.631		7/6/2022		215,570
Staples, Closing Date Term Loan +	LIBOR + 4.000			369,000	5.319		9/12/2024		348,152
Station Casinos LLC, Term B Facility Loan +	LIBOR + 2.500			877,909	3.867		6/8/2023		882,088
Suddenlink, March 2017 Refinancing Term Loan +	LIBOR + 2.250			333,974	3.631		7/28/2025		334,182
TI Group Automotive Systems LLC, Initial US Term Loan +	LIBOR + 2.750			301,844	4.131		6/30/2022		303,872
Toys R Us, Inc., DIP Term Loan +	LIBOR + 6.750			450,000	8.127		1/18/2019		452,137
Tribune Media Co., Term B Loan +	LIBOR + 3.000			22,405	4.381		12/28/2020		22,503
Tribune Media Co., Term C Loan +	LIBOR + 3.000			279,252	4.381		1/26/2024		280,300
UFC Holdings LLC, Term Loan +	LIBOR + 3.250			601,933	4.624		8/18/2023		607,739
Univision Communications, Inc., 2017 Replacement Repriced First-Lien Term Loan +	LIBOR + 2.750			3,347,980	4.131		3/16/2024		3,342,305
US Farathane LLC, Term B-4 Loan +	LIBOR + 3.500			407,258	4.834		12/24/2021		411,331
Vivid Seats, Initial Term Loan +	LIBOR + 4.000			239,400	5.381		6/30/2024		241,495
Ziggo BV, Term Loan E Facility +	LIBOR + 2.500			890,000	3.854		4/16/2025		893,035
									41,063,181
CONSUMER STAPLES - 4.8%
Albertsons Companies LLC, 2017-1 Term B-4 Loan +	LIBOR + 2.750			1,159,509	4.131		8/24/2021		1,126,631
Albertsons Companies LLC, 2017-1 Term B-5 Loan +	LIBOR + 3.000			250,479	4.333		12/20/2022		243,079
Amplify Snack Brands, Inc., Term Loan +	LIBOR + 5.500			157,728	6.891		9/2/2023		157,038
Aramark Corp., U.S. Term B Loan +	LIBOR + 2.000			330,489	3.381		3/28/2024		332,195
Chobani LLC, New Term Loan +	LIBOR + 3.500			332,925	4.897		10/10/2023		337,364
Diversey, Inc., Initial USD Term Loan +	LIBOR + 3.000			410,000	4.317		9/6/2024		412,399
Dole Food Co, Inc., Tranche B Term Loan +	LIBOR + 2.750			536,625	4.120		4/6/2024		539,834
Hostess Brands LLC, 2017 Refinancing Term B Loan +	LIBOR + 2.500			374,630	3.881		8/4/2022		377,112
JBS USA Lux, Initial Term Loan +	LIBOR + 2.500			1,384,825	3.854		10/30/2022		1,358,867
Milk Specialties Co., New Term Loan +	LIBOR + 4.000			339,570	5.334		8/16/2023		342,894
PDC Brands, Initial Term Loan +	LIBOR + 4.750			448,875	6.084		6/30/2024		454,136
Post, Series A Incremental Term Loan +	LIBOR + 2.250			224,438	3.631		5/24/2024		225,860
Prestige Brands, Inc., Term B-4 Loan +	LIBOR + 2.750			178,977	4.131		1/26/2024		180,361
Revlon, Initial Term B Loan +	LIBOR + 3.500			213,920	4.881		9/8/2023		185,664
Reynolds Group Holdings, Inc., Incremental U.S. Term Loan +	LIBOR + 2.750			835,147	4.131		2/4/2023		841,014
Rite Aid Corp., Tranche 2 Term Loan +	LIBOR + 3.875			430,000	5.256		6/20/2021		431,972
TKC Holdings, Inc., Initial Term Loan +	LIBOR + 4.250			606,950	5.584		1/31/2023		614,409
US Foods, Inc., Initial Term Loan +	LIBOR + 2.750			463,138	4.131		6/28/2023		467,528
									8,628,357

See accompanying notes to financial statements.

4

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2017

	Variable		Principal		Interest		Maturity
Security	Rate		Amount		Rate		Date	Value
BANK LOANS - 83.3% (Continued)
ENERGY - 2.8%
Blackhawk Mining LLC, Initial Term Loan +	LIBOR + 9.500	%	$	248,504	10.881	%	2/16/2022	$	229,763
Chesapeake Energy Corp., Class A Loan +	LIBOR + 7.500			300,000	8.817		8/24/2021		322,875
Chief Exploration & Development, Term Loan +	LIBOR + 6.500			172,000	7.825		5/16/2021		168,847
Contura Energy, Inc., Term Loan +	LIBOR + 5.000			543,900	6.334		3/18/2024		540,503
Fieldwood Energy LLC, Reserve Based Term Loan +	LIBOR + 7.000			180,554	8.334		9/1/2020		164,530
Fieldwood Energy LLC, FLLO Facility +	LIBOR + 7.125			81,748	8.459		9/30/2020		58,722
Fieldwood Energy LLC, Closing Date Loan +	LIBOR + 7.125			134,102	8.459		9/30/2020		50,791
Gavilan Resources LLC, Initial Term Loan +	LIBOR + 6.000			490,000	7.357		2/29/2024		477,750
MEG Energy Corp., Initial Term Loan +	LIBOR + 3.500			591,222	4.834		1/1/2024		593,995
Ocean Rig UDW, Inc., Loan				36,488	8.000		9/20/2024		37,035
Paragon Offshore Finance Co, Term Loan +	LIBOR + 2.750			1,766	4.135		7/16/2021		—
Peabody Energy Corp., Term Loan +	LIBOR + 3.500			197,202	4.881		4/1/2022		199,075
Seadrill Operating LP, Initial Term Loan +	LIBOR + 3.000			807,021	4.334		2/20/2021		617,012
Thermon Industries, Inc., Term B Loan +	LIBOR + 3.750			180,000	5.128		10/30/2024		181,350
Traverse Midstream Partners LLC, Advance +	LIBOR + 4.000			580,000	5.333		9/28/2024		588,773
Ultra Petroleum Corp., Loan +	LIBOR + 3.000			260,000	4.334		4/12/2024		260,423
Weatherford International, Loan +	LIBOR + 2.300			515,000	3.681		7/12/2020		503,415
									4,994,859
FINANCIALS - 3.9%
AlixPartners, 2017 Refinancing Term Loan +	LIBOR + 2.750			1,155,700	4.084		4/4/2024		1,162,929
Asurion LLC, Amendment No. 14 Replacement B-4 Term Loan +	LIBOR + 2.750			650,069	4.131		8/4/2022		656,010
Asurion LLC, Replacement B-5 Term Loan +	LIBOR + 3.000			338,828	4.381		11/4/2023		342,191
Asurion LLC, Second Lien Replacement B-2 Term Loan +	LIBOR + 6.000			537,456	7.381		8/4/2025		556,184
Focus Financial Partners, Initial Term Loan +	LIBOR + 3.250			435,000	4.593		7/4/2024		440,438
Fortress Investment Group LLC, Initial Term Loan +	LIBOR + 2.750			390,000	4.113		7/14/2022		396,338
International Lease Finance Corp., New Loan +	LIBOR + 2.000			300,000	3.334		10/6/2023		302,625
iStar Financial, Inc., Loan +	LIBOR + 3.000			15,664	4.381		9/30/2021		15,879
Lightstone Generation LLC, Refinanced Term C Loan +	LIBOR + 4.500			7,884	5.881		1/30/2024		7,929
Lightstone Holdco LLC, Refinanced Term B Loan +	LIBOR + 4.500			126,529	5.881		1/30/2024		127,254
TransUnion LLC, 2017 Replacement Term B-3 Loan +	LIBOR + 2.000			1,155,973	3.381		4/10/2023		1,161,389
Vertafore, Inc., Term B-1 Loan +	LIBOR + 3.250			648,550	4.631		6/30/2023		653,738
Walter Investment Management Corp., Tranche B Term Loan +	LIBOR + 3.750			1,340,546	5.131		12/18/2020		1,269,611
									7,092,515
HEALTHCARE - 8.9%
21st Century Oncology, Inc., Tranche B Term Loan +	LIBOR + 6.125			146,612	7.459		4/30/2022		139,037
Acadia Healthcare Co, Inc., Tranche B-2 Term Loan +	LIBOR + 2.750			302,022	4.147		2/16/2023		304,147
Air Medical Resource Group, Inc., Incremental Term Loan B +	LIBOR + 4.250			95,000	5.581		9/26/2024		95,564
Akorn, Inc., Loan +	LIBOR + 4.250			258,135	5.631		4/16/2021		259,748
Amneal Pharmaceuticals LLC, Term Loan B +	LIBOR + 3.500			328,892	4.834		10/31/2019		331,513
Ardent Legacy Acquisitions, Inc., Term Loan +	LIBOR + 5.500			189,150	6.834		8/4/2021		190,096
Catalent, Inc., Dollar Term Loan +	LIBOR + 2.250			724,492	3.631		5/20/2024		732,019
Change Healthcare Holdings, Closing Date Term Loan +	LIBOR + 2.750			990,025	4.131		2/29/2024		996,831
CHG Healthcare Services, Inc., New Term Loan +	LIBOR + 3.250			144,137	4.631		6/8/2023		145,681
Community Health Systems, Inc., Incremental 2019 Term G Loan +	LIBOR + 2.750			621,173	4.068		1/1/2020		608,836
Community Health Systems, Inc., Incremental 2021 Term H Loan +	LIBOR + 3.000			826,596	4.318		1/28/2021		802,034
Concordia Healthcare Corp., Initial Dollar Term Loan +	LIBOR + 4.250			145,688	5.631		10/20/2021		121,973
DJO Finance LLC, Initial Term Loan +	LIBOR + 3.250			564,313	4.636		6/8/2020		565,784
Endo International PLC, Initial Term Loan +	LIBOR + 4.250			503,737	5.631		4/28/2024		511,231
Envision Healthcare Corp., Initial Term Loan +	LIBOR + 3.000			759,814	4.381		11/30/2023		764,206
eResearch Technology, Inc., Initial Term Loan +	LIBOR + 3.750			398,990	5.131		5/2/2023		403,145
Greatbatch Ltd., New Term B Loan +	LIBOR + 3.500			86,051	4.857		10/28/2022		86,535
Herbalife, Senior Lien Term Loan +	LIBOR + 5.500			178,063	6.881		2/16/2023		180,919
Immucor, Inc., Term B-3 Loan +	LIBOR + 5.000			39,900	6.381		6/16/2021		40,742
IMS Health, Inc., Term B-1 Dollar Loan +	LIBOR + 2.000			320,610	3.334		3/2/2024		323,359
IMS Health, Inc., Incremental Term B-2 Dollar Loan +	LIBOR + 2.000			75,000	3.325		1/16/2025		75,643
INC Research Holdings, Initial Term B Loan +	LIBOR + 2.250			280,547	3.631		7/31/2024		282,432
Kindred Healthcare, Inc., New Term Loan	LIBOR + 3.500			169,376	4.857		4/8/2021		170,277
MultiPlan, Inc., Initial Term Loan +	LIBOR + 3.000			120,927	4.334		6/8/2023		122,222

See accompanying notes to financial statements.

5

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2017

	Variable		Principal		Interest		Maturity
Security	Rate		Amount		Rate		Date	Value
BANK LOANS - 83.3% (Continued)
HEALTHCARE - 8.9% (Continued)
National Mentor Holdings, Inc., Tranche B Term Loan +	LIBOR + 3.000	%	$	262,713	4.374	%	2/1/2021	$	265,381
National Veterinary Associates, Term Loan +	LIBOR + 7.000			206,174	8.334		8/14/2022		208,064
NVA Holdings, Inc., Term B-2 Loan +	LIBOR + 3.500			146,015	4.834		8/14/2021		147,688
Ortho-Clinical Diagnostics, Inc., Initial Term Loan +	LIBOR + 3.750			652,557	5.084		6/30/2021		656,837
PAREXEL International, Initial Term Loan +	LIBOR + 3.000			625,000	4.381		9/28/2024		631,641
PharMerica, First Lien Term Loan +	LIBOR + 3.500			305,000	4.831		9/26/2024		307,478
PharMerica, Second Lien Term Loan +	LIBOR + 7.750			30,000	9.081		9/26/2025		30,338
Pharmaceutical Product Development, LLC, 2017 Term Loan +	LIBOR + 2.750			547,254	4.106		8/18/2022		550,931
Quorum Health Corp., Term Loan +	LIBOR + 6.750			214,055	8.100		4/28/2022		216,731
Sedgwick, Inc., Initial Loan +	LIBOR + 5.750			125,000	7.131		2/28/2022		126,719
Select Medical Group, Tranche B Term Loan +	LIBOR + 3.500			298,500	4.851		2/28/2021		302,854
Sterigenics-Nordion Holdings LLC, Incremental Term Loan +	LIBOR + 3.000			426,984	4.381		5/16/2022		427,919
Surgery Partners, Initial Term Loan +	LIBOR + 3.250			765,000	4.631		9/2/2024		760,314
Team Health, Inc., Initial Term Loan +	LIBOR + 2.750			571,323	4.131		2/6/2024		567,752
US Anesthesia Partners, Initial Term Loan +	LIBOR + 3.250			174,563	4.631		6/23/2024		175,217
US Renal Care, Inc., Initial Term Loan +	LIBOR + 4.250			626,172	5.584		12/30/2022		606,939
Valeant Pharmaceuticals International, Series F-4 Tranche B Term Loan +	LIBOR + 4.750			1,673,858	6.107		3/31/2022		1,712,783
									15,949,560
INDUSTRIALS - 12.7%
84 Lumber Co., Initial Term Loan Retired +	LIBOR + 5.750			461,188	7.124		10/24/2023		466,809
Accudyne Industries, Initial Term Loan +	LIBOR + 3.750			420,000	5.084		8/18/2024		423,937
ADS Waste Holdings, Inc., Additional Term Loan +	LIBOR + 2.750			979,882	4.142		11/10/2023		989,681
American Airlines, Inc., 2017 Replacement Term Loan +	LIBOR + 2.000			426,723	3.380		6/28/2020		428,628
American Airlines, Inc., 2017 Class B Term Loans +	LIBOR + 2.000			88,110	3.377		4/28/2023		88,375
American Airlines, Inc., Class B Term Loan Retired +	LIBOR + 2.500			499,550	3.854		12/14/2023		501,631
APEX Tool Group LLC, Term Loan +	LIBOR + 3.250			548,231	4.631		2/1/2020		544,560
Avantor Performance Materials, Inc., Cov-Lite Term Loan +	LIBOR + 4.000			665,000	5.329		9/20/2024		669,452
Beacon Roofing Supply, Inc., Term Loan B +	LIBOR + 2.250			740,000	3.603		10/12/2024		745,898
Brand Energy & Infrastructure Services, Initial Term Loan +	LIBOR + 4.250			708,725	5.619		6/20/2024		714,040
Brickman Group Holdings, Inc., Initial Term Loan +	LIBOR + 3.000			669,018	4.373		12/18/2020		674,313
Brickman Group Holdings, Inc., Initial Term Loan +	LIBOR + 6.500			116,553	7.863		12/16/2021		117,324
Casella Waste Systems, Inc., Term B-1 Loan +	LIBOR + 2.750			397,000	3.857		10/16/2023		400,722
CSC Service Works, Term B-1 Loan +	LIBOR + 3.750			832,745	5.121		11/14/2022		840,036
Element Materials Technology, Initial USD Term B Loan +	LIBOR + 3.500			255,000	4.834		6/28/2024		258,825
Filtration Group, Inc., Term Loan +	LIBOR + 3.000			512,298	4.381		11/24/2020		517,101
Fort Dearborn Co., Initial Term Loan +	LIBOR + 4.000			398,627	5.347		10/20/2023		400,620
Garda World Security Corp., Term B Loan +	LIBOR + 4.000			230,667	5.390		5/24/2024		233,089
Gardner Denver, Inc., Tranche B-1 Dollar Term Loan +	LIBOR + 2.750			1,385,033	4.130		7/30/2024		1,394,645
Harland Clarke Holdings Corp., Tranche B-5 Term Loan +	LIBOR + 6.000			143,357	7.334		12/31/2021		143,828
Harland Clarke Holdings Corp., Tranche B-6 Term Loan +	LIBOR + 5.500			267,387	6.834		2/9/2022		268,318
Hayward Acquisition Corp., Initial Term Loan +	LIBOR + 3.500			280,000	4.881		8/4/2024		282,975
HD Supply, Inc., Term B-3 Loan +	LIBOR + 2.250			345,945	3.584		8/12/2021		349,621
HD Supply, Inc., Term B-4 Loan +	LIBOR + 2.500			512,130	3.834		10/16/2023		518,373
Husky Injection Molding Systems Ltd., New Term Loan +	LIBOR + 3.250			696,724	4.631		6/30/2021		703,256
International Equipment Solutions LLC, Loan +	LIBOR + 5.500			190,000	6.831		8/16/2022		191,425
McJunkin Red Man Corp., 2017 Refinancing Term Loan +	LIBOR + 3.500			400,000	4.881		9/20/2024		405,750
Navistar, Inc., Tranche B Term Loan +	LIBOR + 4.000			293,748	5.385		8/7/2020		294,666
NN, Inc., 2017 Incremental Term Loan +	LIBOR + 3.750			186,200	5.131		4/2/2021		187,597
NN, Inc., Tranche B Term Loan +	LIBOR + 4.250			216,585	5.631		10/20/2022		217,668
PAE Holding Corp., Initial Term Loan +	LIBOR + 5.500			207,486	6.881		10/20/2022		209,042
Pro Mach Group, Inc., Dollar Term Loan +	LIBOR + 3.750			618,639	5.131		10/22/2021		624,825
Protection One, Inc., 2016-2 Refinancing Term B-1 Loan +	LIBOR + 2.750			470,021	4.131		5/2/2022		474,693
Quikrete Co, Inc., Initial Loan +	LIBOR + 2.750			811,865	4.131		11/16/2023		816,825
Red Ventures, Term Loan +	LIBOR + 4.000			540,000	5.363		11/8/2024		537,300
Rexnord Corp., Term B Loan Refinancing +	LIBOR + 2.750			366,357	4.104		8/20/2023		369,068
Science Applications International, Tranche B Incremental Loan +	LIBOR + 2.500			231,946	3.903		5/4/2022		234,265
Sedgwick CMS Holdings, Inc., Initial Term Loan +	LIBOR + 2.750			666,739	4.131		2/28/2021		671,046
Sedgwick CMS Holdings, Inc., New Loan +	LIBOR + 5.750			195,000	7.068		2/28/2022		198,291

See accompanying notes to financial statements.

6

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2017

	Variable		Principal		Interest		Maturity
Security	Rate		Amount		Rate		Date	Value
BANK LOANS - 83.3% (Continued)
INDUSTRIALS - 12.7% (Continued)
SiteOne Landscape Supply Holding LLC, Tranche C Term Loan +	LIBOR + 3.500	%	$	207,034	4.881	%	4/28/2022	$	208,457
TransDigm, Inc., Tranche D Term Loan +	LIBOR + 3.000			80,302	4.337		6/4/2021		80,905
TransDigm, Inc., Tranche E Term Loan +	LIBOR + 3.000			390,481	4.365		5/14/2022		392,753
TransDigm, Inc., Tranche F Term Loan +	LIBOR + 3.000			1,028,377	4.365		6/8/2023		1,034,028
TransDigm, Inc., Tranche G Term Loan +	LIBOR + 3.000			749,125	4.371		8/22/2024		753,867
Transplace, Inc., Closing Date Term Loan +	LIBOR + 4.250			200,000	5.647		10/8/2024		202,150
United Continental Holdings, Inc., Class B Term Loan +	LIBOR + 2.250			492,525	3.631		3/31/2024		495,665
Waste Industries USA, Inc., Initial Term Loan +	LIBOR + 3.000			765,000	4.381		9/28/2024		773,059
WEX, Inc., Term B-2 Loan +	LIBOR + 2.750			490,758	4.131		6/30/2023		496,936
Zodiac Pool Solutions, Tranche B-1 Term Loan +	LIBOR + 4.000			322,567	5.334		12/20/2023		326,600
									22,872,938
INFORMATION TECHNOLOGY - 8.1%
Alorica, Inc., New Term B Loan +	LIBOR + 3.750			49,821	5.131		6/30/2022		50,382
Applied Systems, Inc., Initial Term Loan +	LIBOR + 3.250			635,000	4.576		9/20/2024		644,039
Applied Systems, Inc., Initial Term Loan +	LIBOR + 7.000			105,000	8.326		9/20/2025		108,577
Avaya, Inc., Term Facility +	LIBOR + 7.500			200,000	8.870		1/24/2018		201,250
Avaya, Inc., Term B-7 Loan +	LIBOR + 5.250			183,899	6.628		5/28/2020		153,365
Blackboard, Inc., Term B-4 Loan +	LIBOR + 5.000			812,372	6.363		6/30/2021		780,641
BMC Software, Inc., Initial B-1 US Term Loan +	LIBOR + 4.000			715,839	5.381		9/10/2022		721,794
Cologix, Inc., Delayed Draw Term Loan +	LIBOR + 3.000			110,000	4.323		12/16/2021		110,550
Cologix, Inc., Initial Term Loan +	LIBOR + 3.000			218,900	4.317		3/20/2024		219,402
Dell International LLC, Refinancing Term B Loan +	LIBOR + 2.000			1,475,380	3.381		9/8/2023		1,480,810
First Data Corp., 2022D New Dollar Term Loan +	LIBOR + 2.250			1,381,406	3.621		7/8/2022		1,386,766
First Data Corp., 2024 New Dollar Term Loan +	LIBOR + 2.500			1,611,807	3.871		4/26/2024		1,620,583
Global Cash Access Holdings, Inc., Term B Loan +	LIBOR + 4.500			394,013	5.881		5/8/2024		397,421
Go Daddy Operating Co. LLC, Initial Term Loan +	LIBOR + 2.500			384,373	3.881		2/16/2024		386,897
Infor US, Inc., Tranche B-6 Term Loan +	LIBOR + 2.750			1,242,516	4.084		1/31/2022		1,245,883
Kronos, Inc., Incremental Term Loan +	LIBOR + 3.500			694,759	4.809		10/31/2023		700,494
Kronos, Inc., Initial Term Loan +	LIBOR + 8.250			120,000	9.635		10/31/2024		123,994
Lockheed Martin, B Term Loan +	LIBOR + 2.000			210,410	3.381		8/16/2023		212,142
Mitchell International, Inc., Initial Term Loan +	LIBOR + 3.500			363,804	4.881		10/12/2020		367,973
North American Bancard LLC, Initial Term Loan +	LIBOR + 3.500			583,538	4.834		6/30/2024		589,008
ON Semiconductor Corp., 2017 New Replacement Term Loan +	LIBOR + 2.250			155,376	3.631		4/1/2023		156,266
Presidio, Inc., Term B Loan +	LIBOR + 3.000			165,981	4.587		2/2/2022		167,523
Rackspace Hosting, Inc., 2017 Refinancing Term B Loan +	LIBOR + 3.250			520,775	4.392		11/4/2023		521,790
RCN Corp., Closing Date Term Loan +	LIBOR + 3.000			288,076	4.381		1/31/2024		285,576
Sorenson Communications LLC, Initial Term Loan +	LIBOR + 5.750			389,910	8.000		4/30/2020		392,590
Tempo Acquisition LLC, Initial Term Loan +	LIBOR + 3.000			558,600	4.381		4/30/2024		561,220
Veritas US, Inc., New Dollar Term B Loan +	LIBOR + 4.500			568,618	5.834		1/28/2023		574,253
Western Digital Corp., U.S. Term B-2 Loan +	LIBOR + 2.750			404,965	3.380		4/28/2023		407,243
									14,568,432
MATERIALS- 9.5%
Americna Builders Contractors Supply Co, Inc., Additional Term B-1 Loan +	LIBOR + 2.500			586,364	3.881		11/1/2023		590,794
Anchor Glass Container Corp., July 2017 Additional Term Loan +	LIBOR + 2.750			434,605	4.092		12/8/2023		437,967
Anchor Glass Container Corp., Term Loan +	LIBOR + 7.750			244,000	9.067		12/8/2024		247,355
Atotech, Initial Term B-1 Loan +	LIBOR + 3.000			149,625	4.334		2/1/2024		150,934
Berlin Packaging LLC, 2017 Replacement Term Loans +	LIBOR + 3.250			392,565	4.615		9/30/2021		396,002
Berry Plastics Group, Inc., Term K Loan +	LIBOR + 2.250			291,526	3.607		2/8/2020		293,348
Berry Plastics Group, Inc., Term L Loan +	LIBOR + 2.250			417,785	3.607		1/6/2021		420,298
Berry Plastics Group, Inc., Term M Loan +	LIBOR + 2.250			328,143	3.622		9/30/2022		330,058
Berry Plastics Group, Inc., Term N Loan +	LIBOR + 2.250			529,350	3.607		1/20/2024		531,708
BWAY Corp., Initial Term Loan +	LIBOR + 3.250			488,775	4.607		4/4/2024		492,563
CPG International, Inc., New Term Loan +	LIBOR + 3.750			538,022	5.084		5/4/2024		544,327
CPI Card Group, Term Loan +	LIBOR + 4.500			1,008,336	5.857		8/16/2022		736,085
Cypress Performance Group LLC, Initial Term Loan +	LIBOR + 3.250			290,000	4.630		11/8/2024		292,900
Cypress Performance Group LLC, Initial Term Loan +	LIBOR + 7.500			35,000	8.880		11/8/2025		35,656
H.B. Fuller Co., Commitment +	LIBOR + 2.250			750,000	3.615		10/20/2024		755,104

See accompanying notes to financial statements.

7

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2017

	Variable		Principal		Interest		Maturity
Security	Rate		Amount		Rate		Date	Value
BANK LOANS - 83.3% (Continued)
MATERIALS- 9.5% (Continued)
Huntsman International LLC, 2023 Term B Loan +	LIBOR + 3.000	%	$	221,017	4.381	%	3/31/2023	$	222,537
INEOS, New 2022 Dollar Term Loan +	LIBOR + 2.750			1,203,072	4.131		3/31/2022		1,205,797
INEOS, New 2024 Dollar Term Loan +	LIBOR + 2.750			104,213	4.131		3/31/2024		104,474
INEOS, New 2024 Dollar Term Loan +	LIBOR + 2.000			1,920,000	3.378		3/31/2024		1,924,608
Kloeckner Pentaplast Group, Dollar Term Loan +	LIBOR + 4.250			875,000	5.584		6/30/2022		883,566
KMG Chemicals, Inc., Initial Term Loan +	LIBOR + 4.250			115,182	5.631		6/16/2024		116,574
Kraton Corp., Dollar Replacement Term Loan +	LIBOR + 3.000			405,832	4.381		1/6/2022		412,301
New Arclin US Holdings, First Lien Term Loan +	LIBOR + 4.250			274,313	5.584		2/14/2024		276,971
Omnova Solutions, Inc., Term B-2 Loan +	LIBOR + 4.250			573,210	5.631		8/24/2023		580,375
Plastipak Holdings, Inc., Tranche B Term Loan +	LIBOR + 2.750			150,000	4.109		10/14/2024		151,331
Platform Specialty Products Corp., Tranche B-7 Term Loan +	LIBOR + 2.500			568,912	3.881		6/8/2020		574,305
PQ Corp., Second Amendment Tranche B-1 Term Loan +	LIBOR + 3.250			91,840	4.631		11/4/2022		93,093
Solenis International LP, Initial Dollar Term Loan +	LIBOR + 3.250			346,971	4.568		8/1/2021		349,139
Summit Materials, Restatement Effective Date Term Loan +	LIBOR + 2.750			384,158	4.131		7/18/2022		386,960
Tekni-Plex, Inc., Tranche B-1 Term Loan +	LIBOR + 3.250			500,000	4.607		10/16/2024		504,140
Transcendia Holdings, Inc., Initial Term Loan +	LIBOR + 4.000			528,675	5.381		5/30/2024		534,292
Tricorbraun, Inc., Delayed Draw Term Loan +	LIBOR + 3.750			31,818	5.067		11/30/2023		32,113
Tricorbraun, Inc., Closing Date Term Loan +	LIBOR + 3.750			315,795	5.084		11/30/2023		318,717
Tronox Ltd., Blocked Dollar Term Loan +	LIBOR + 3.000			114,883	4.329		9/24/2024		115,949
Tronox Ltd., Initial Dollar Term Loan +	LIBOR + 3.000			265,117	4.329		9/24/2024		267,576
Univar, Inc., Term B-2 Loan +	LIBOR + 2.750			840,863	4.131		6/30/2022		846,417
Vantage Specialty Chemicals, Inc., Closing Date Term Loan +	LIBOR + 4.000			80,000	5.378		10/28/2024		80,883
Venator Materials LLC, Initial Term Loan +	LIBOR + 3.000			515,000	4.381		8/8/2024		521,759
Zep, Inc., Initial Term Loan +	LIBOR + 4.000			280,000	5.381		8/12/2024		283,413
									17,042,389
REAL ESTATE - 1.4%
Capital Automotive LLC, Initial Tranche B-2 Term Loan +	LIBOR + 2.500			135,567	3.881		3/24/2024		136,109
Capital Automotive LLC, Initial Tranche B Term Loan +	LIBOR + 6.000			386,850	7.334		3/24/2025		398,455
Communications Sales & Leasing, Inc., Shortfall Term Loan +	LIBOR + 3.000			583,895	4.381		10/24/2022		561,724
DTZ Bank Loan, 2015-1 Additional Term Loan +	LIBOR + 3.250			586,500	4.587		11/4/2021		590,579
Extended Stay America, Inc., Repriced Term Loan +	LIBOR + 2.500			344,638	3.881		8/30/2023		347,294
Realogy Holdings Corp., Initial Term B Loan +	LIBOR + 2.250			450,989	3.627		7/20/2022		454,726
									2,488,887
TELECOMMUNICATION SERVICES - 5.7%
Altice Financing S.A., March 2017 Refinancing Term Loan +	LIBOR + 2.750			417,900	4.104		7/16/2025		418,640
Cable & Wireless Communications Ltd., Additional Term B-3 Loan +	LIBOR + 3.500			215,000	4.881		2/1/2025		216,226
Centurylink, Inc., Initial Term B Loan +	LIBOR + 2.750			635,000	4.135		2/1/2025		628,056
Digicel, Initial Term B Loan +	LIBOR + 3.750			215,000	5.068		5/28/2024		217,123
Frontier Communications Corp., Term B-1 Loan +	LIBOR + 3.750			603,988	5.130		6/16/2024		576,524
Global Tel Link Corp., Term Loan +	LIBOR + 4.000			351,708	5.334		5/24/2020		356,280
Level 3 Financing, Inc., Tranche B 2024 Term Loan +	LIBOR + 2.250			1,825,000	3.617		2/22/2024		1,834,289
Neustar, Inc., TLB1 +	LIBOR + 3.250			61,740	4.660		1/8/2020		62,666
Neustar, Inc., TLB2 +	LIBOR + 3.750			235,000	5.160		8/8/2024		237,791
SBA Communications Corp., Incremental Tranche B-2 Term Loan +	LIBOR + 2.250			157,378	3.631		6/10/2022		158,110
SBA Senior Finance II LLC, Incremental Tranche B-1 Term Loan +	LIBOR + 2.250			440,237	3.631		3/24/2021		442,683
Securus Technologies, Incremental 2015 Term Loan +	LIBOR + 4.250			83,938	5.630		4/17/2020		84,042
Securus Technologies, Initial Term Loan +	LIBOR + 3.500			139,926	4.880		4/17/2020		140,101
Securus Technologies, Initial Term Loan +	LIBOR + 4.500			550,000	5.885		10/31/2024		557,563
Securus Technologies, Initial Loan +	LIBOR + 8.250			160,000	9.573		6/20/2025		161,800
SFR Group SA, USD TLB-[12] Term Loan +	LIBOR + 3.000			700,000	4.381		2/1/2026		701,631
Sprint Communications, Inc., Initial Term Loan +	LIBOR + 2.500			457,700	3.881		2/2/2024		459,940
UPC Financing Partnership, Facility AR +	LIBOR + 2.500			1,800,000	4.055		1/16/2026		1,807,875
Virgin Media PLC, I Facility +	LIBOR + 2.750			660,000	4.283		2/1/2025		663,383
West Corp., Term B Loan +	LIBOR + 4.000			450,790	5.381		10/10/2024		452,305
									10,177,028

See accompanying notes to financial statements.

8

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2017

	Variable		Principal		Interest		Maturity
Security	Rate		Amount		Rate		Date	Value
BANK LOANS - 83.3% (Continued)
UTILITIES - 2.7%
Atlantic Power Corp., Term Loan +	LIBOR + 3.500	%	$	357,734	5.584	%	4/12/2023	$	361,982
Calpine Construction Finance Co. LP, Term Loan +	LIBOR + 2.750			261,688	4.084		6/1/2023		263,235
Calpine Corp., Term B-1 Loan +	LIBOR + 2.250			660,870	3.631		5/4/2020		662,109
Dayton Power & Light Co., Loan +	LIBOR + 3.250			93,295	4.631		8/24/2022		94,637
Dynergy, Inc., Tranche C-1 Term Loan +	LIBOR + 3.250			608,981	4.631		2/8/2024		613,521
Energy Future Holdings Corp., Term Loan +	LIBOR + 3.000			1,000,000	4.381		6/30/2018		1,007,500
NRG Energy, Inc., Term Loan +	LIBOR + 2.250			955,240	3.584		6/30/2023		959,529
Talen Energy Supply LLC, Term B-1 Loan +	LIBOR + 4.000			198,503	5.381		7/16/2023		198,378
Talen Energy Supply LLC, Initial Term Loan +	LIBOR + 4.000			332,990	5.381		4/16/2024		332,782
Tex Operations Co. LLC, Initial Term C Loan +	LIBOR + 2.750			53,571	4.142		8/4/2023		53,806
Tex Operations Co. LLC, Initial Term Loan +	LIBOR + 2.750			230,908	4.133		8/4/2023		231,951
Vistra Operations Co., 2016 Incremental Term Loan +	LIBOR + 2.750			119,100	4.116		12/14/2023		120,109
									4,899,539
TOTAL BANK LOANS (Cost - $149,602,684)									149,777,685
BONDS & NOTES - 4.9%
AIRLINES - 0.0%
American Airlines Group, Inc. - 144A				45,000	4.625		3/1/2020		46,631
BUILDING MATERIALS - 0.1%
Standard Industries, Inc. - 144A				95,000	5.500		2/15/2023		100,463
CHEMICALS - 0.2%
Hexion, Inc.				105,000	6.625		4/15/2020		93,975
INEOS - 144A ^				200,000	5.625		8/1/2024		208,500
NOVA Chemicals Corp. - 144A				75,000	4.875		6/1/2024		76,594
NOVA Chemicals Corp. - 144A				55,000	5.000		5/1/2025		56,100
									435,169
COAL - 0.3%
Alliance Resource Operating Partners LP - 144A				257,000	7.500		5/1/2025		272,420
Peabody Energy Corp. - 144A				15,000	6.000		3/31/2022		15,506
Peabody Energy Corp. - 144A				260,000	6.375		3/31/2025		269,100
									557,026
COMPUTERS - 0.3%
Diamond 1 & 2 Finance Corp. - 144A ^				570,000	5.450		6/15/2023		625,314
DIVERSIFIED FINANANCIAL SERVICES - 0.2%
International Lease Finance Corp.				120,000	3.875		4/15/2018		121,116
Springleaf Financial ^				250,000	6.125		5/15/2022		264,375
									385,491
ELECTRIC - 0.0%
Talen Energy Supply LLC - 144A				18,000	4.625		7/15/2019		18,270
Texas Competitive Electric Holdings Co. LLC				635,000	11.500		10/1/2020		445
									18,715
ENTERTAINMENT - 0.1%
Scientific Games International, Inc. - 144A				145,000	7.000		1/1/2022		153,700
FOOD - 0.1%
Dole Food Co., Inc. - 144A				175,000	7.250		6/15/2025		189,875
HEALTHCARE-SERVICES - 0.5%
CHS/Community Health Systems, Inc.				190,000	6.250		3/31/2023		183,588
Eagle Holding Co II LLC - 144A				90,000	7.625		5/15/2022		93,037
Surgery Center Holdings, Inc. - 144A				130,000	8.875		4/15/2021		133,250
Tenet Healthcare Corp. - 144A				405,000	4.625		7/15/2024		399,938
									809,813

See accompanying notes to financial statements.

9

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2017

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate		Date	Value
BONDS & NOTES - 4.9% (Continued)
HOME BUILDERS - 0.1%
TRI Pointe Group, Inc.		$	70,000	4.375	%	6/15/2019	$	72,188
TRI Pointe Group, Inc.			130,000	4.875		7/1/2021		136,500
								208,688
MEDIA - 0.7%
CCO Holdings LLC - 144A			180,000	4.000		3/1/2023		183,038
Cequel Communications Holding LLC - 144A			34,000	6.375		9/15/2020		34,769
Charter Communications Operating LLC			225,000	4.464		7/23/2022		237,862
iHeartCommunications, Inc.			95,000	9.000		12/15/2019		70,538
Numericable US LLC - 144A			410,000	6.000		5/15/2022		427,937
Sirius XM Radio, Inc. - 144A			105,000	3.875		8/1/2022		107,494
Univision Communications, Inc. - 144A			200,000	5.125		5/15/2023		203,000
								1,264,638
OIL & GAS - 0.5%
Alta Mesa Holdings LP - 144A			135,000	7.875		12/15/2024		147,825
Carrizo Oil & Gas, Inc. ^			140,000	6.250		4/15/2023		143,150
Chesapeake Energy Corp.			170,000	6.625		8/15/2020		175,525
Denbury Resources, Inc.			140,000	5.500		5/1/2022		88,550
EP Energy LLC / Everest Acquisition Finance, Inc. - 144A ^			160,000	8.000		11/29/2024		164,000
MEG Energy Corp. - 144A ^			115,000	6.500		1/15/2025		114,856
								833,906
OIL & GAS SERVICES - 0.1%
FTS International, Inc. - 144A +	LIBOR + 7.500		120,000	8.820		6/15/2020		122,550
FTS International, Inc.			50,000	6.250		5/1/2022		48,750
								171,300
PACKAGING & CONTAINERS - 0.5%
Ardagh Packaging Finance PLC - 144A			235,000	6.000		2/15/2025		249,981
BWAY Holding Co. - 144A			265,000	5.500		4/15/2024		276,925
Reynolds Group Holdings Ltd.			50,000	5.750		10/15/2020		50,938
Reynolds Group Holdings Ltd. - 144A +	LIBOR + 3.500		230,000	4.859		7/15/2021		235,175
								813,019
PHARMACEUTICALS - 0.0%
Valeant Pharmaceuticals International, Inc. - 144A			70,000	5.375		3/15/2020		69,125
PIPELINES - 0.1%
Energy Transfer Equity LP			190,000	4.250		3/15/2023		193,802
PRIVATE EQUITY - 0.0%
Icahn Enterprises LP			60,000	6.250		2/1/2022		62,850
REITS - 0.2%
IStar Financial, Inc.			120,000	5.000		7/1/2019		121,275
IStar Financial, Inc.			60,000	6.000		4/1/2022		62,550
IStar Financial, Inc.			130,000	5.250		9/15/2022		133,575
								317,400
RETAIL - 0.2%
Argos Merger Sub, Inc. - 144A ^			140,000	7.125		3/15/2023		107,100
Cumberland Farms, Inc. - 144A			125,000	6.750		5/1/2025		133,125
Ferrellgas Partners LP ^			200,000	6.750		6/15/2023		187,000
PetSmart, Inc. - 144A			20,000	5.875		6/1/2025		17,550
								444,775
SEMICONDUCTORS - 0.3%
Broadcom Corp.- 144A			500,000	2.200		1/15/2021		497,305
SOFTWARE - 0.2%
First Data Corp. - 144A			190,000	5.375		8/15/2023		198,313
First Data Corp. - 144A			90,000	5.000		1/15/2024		93,825
First Data Corp. - 144A			25,000	5.750		1/15/2024		26,250
								318,388

See accompanying notes to financial statements.

10

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2017

	Principal		Interest		Maturity
Security	Amount		Rate		Date	Value
BONDS & NOTES - 4.9% (Continued)
TELECOMMUNICATIONS - 0.2%
Frontier Communications Corp.	$	105,000	6.250	%	9/15/2021	$	86,362
T-Mobile USA, Inc.		205,000	6.000		4/15/2024		219,862
							306,224
TOTAL BONDS & NOTES (Cost - $8,783,858)							8,823,617
ASSET BACKED SECURITIES - 1.6%
Drive Auto Receivables Trust		450,000	2.800		7/15/2022		451,582
JP Morgan Mortgage Trust - 144A		836,930	2.601		12/25/2046		840,304
Residential Mortgage Trust		89,303	6.110		6/25/2037		89,744
Santander Drive Auto Receivables Trust		355,000	2.760		12/15/2022		358,120
SoFi Professional Loan Program LLC - 144A		535,000	2.720		11/26/2040		533,987
Vericrest Opportunity Loan Trust - 144A		395,652	3.500		3/25/2047		399,566
Vericrest Opportunity Loan Trust - 144A		282,984	3.125		9/25/2047		283,072
TOTAL ASSET BACKED SECURITIES (Cost - $2,950,942)							2,956,375
Security	Shares					Value
RIGHTS - 0.0%
TRA Rights		10,588				$	11,201
TOTAL RIGHTS (Cost - $17,470)
			Interest
			Rate
SHORT-TERM INVESTMENT - 17.8%
MONEY MARKET FUND - 17.8%
Fidelity Investments Money Market Fund - Class I		31,968,937	0.92%	+			31,968,937
TOTAL SHORT-TERM INVESTMENT - (Cost - $31,968,937)
COLLATERAL FOR SECURITIES LOANED - 1.2%
Mount Vernon Prime Portfolio (Cost - $2,147,100)		2,147,100	1.32%	+			2,147,100
TOTAL INVESTMENTS - 111.1% (Cost - $199,546,934)							199,816,855
LIABILITIES IN EXCESS OF OTHER ASSETS - (11.1)%							(19,887,827	)
NET ASSETS - 100.0%						$	179,929,028

REITs - Real Estate Investment Trusts.

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. As of October 31, 2017 the total market value of 144A securites is $8,125,770 or 4.52% of net assets.

* Non-Income producing security.

^ All or a portion of these securities are on loan. Total loaned securities had a value of $2,113,114 at October 31, 2017.

+ Variable rate security. Interest rate is as of October 31, 2017.

Portfolio Composition* - (Unaudited)
Bank Loans	75.0	%	Healthcare-Services	0.4	%
Short-Term Investment	16.1	%	Packaging & Containers	0.4	%
Exchange Traded Fund	1.8	%	Coal	0.3	%
Asset Backed Securities	1.5	%	Chemicals	0.2	%
Other **	1.3	%	Diversified Financial Services	0.2	%
Collateral for Securities Loaned	1.1	%	REITs	0.2	%
Media	0.6	%	Retail	0.2	%
Oil & Gas	0.5	%	Semiconductors	0.2	%
			Total	100.0	%

* Based on total value of investments as of October 31, 2017.

** Groupings less than 0.20% of holdings.

Percentage may differ from Schedule of Investments which are based on Fund net assets.

See accompanying notes to financial statements.

11

Dunham Corporate/Government Bond Fund (Unaudited)

Message from the Sub-Adviser (Newfleet Asset Management, LLC)

Investment-grade bonds, as measured by the Barclays Aggregate Bond Index, gained 0.9 percent in the fiscal year ended October 31, 2017, after increasing 4.4 percent over the previous fiscal year. Treasuries in the middle of the yield curve, as measured by the BofA ML Treasuries 5-7 Years Index, fell 0.8 percent, while long-term Treasuries, as measured by the BofA ML Treasuries 10+ Years Index, declined 2.2 percent over the same time period. Corporate bonds, as measured by the BofA ML U.S. Corporate Bond Master Index, outperformed intermediate-term Treasury bonds, rising 3.5 percent over the fiscal quarter. High-yield bonds, as measured by the BofA ML High-Yield Bond Cash Pay Index, had another strong fiscal year, adding 10.1 percent, outperforming all of the aforementioned indexes.

The Sub-Adviser continued to balance risk versus reward by choosing to emphasize lower duration bonds and overweighting lower credit quality securities, which benefitted the Fund for the second consecutive year. By the end of the fiscal year, the average effective duration of the Fund was 5.40 years, while the benchmark index had an average duration of 5.96 years. While the lower duration exposure did not adversely affect performance during the most recent fiscal year, the overweight to lower credit quality securities versus the benchmark contributed to the Fund’s performance. Treasury yields fluctuated within an 85 basis point range over the fiscal year. The 10-year Treasury yield went from its lowest point of 1.78 percent early in the fiscal year to its highest point of 2.63 late in the fiscal year, before settling at 2.38 percent on October 31, 2017. The overweights to corporate high-yield securities and corporate investment-grade securities were the largest contributors to performance over the fiscal year. The Sub-Adviser’s overweight to the corporate high-yield sector was slightly less at the end of the fiscal year, investing roughly 12 percent of the Fund in such securities. The index held less than 1 percent in high-yield securities. The overweight to corporate investment-grade securities was slightly higher than the overweight at the beginning of the fiscal year, equaling roughly 31 percent of the Fund’s assets, and approximately 5 percent greater than the index’s allocation to that sector.

Contributors for the fiscal quarter included Valeant Pharmaceuticals International, Inc. 5.5% due 03/01/2023 (91911KAE2) (holding percentage*: 0.06 percent). These bonds performed well in the most recent fiscal year due to a combination of factors including meeting first quarter earnings expectations and modestly raising full-year 2017 guidance, positive developments around its Xifaxin franchise extending a stay on generic litigation, and the FDA requirement of bioequivalence studying for the approval of a generic, and continued asset sales and debt pay down toward its goal of reducing $5 billion of debt by January 2018. There have also been rumors of the potential of either a debt-for-equity swap or the issuance of a convertible debt investment to de-lever the balance sheet. Another contributor over the fiscal year was the Corrections Corporation of America (CXW) 5.00% due 10/15/2022 (2202YAQ3) (holding percentage*: 0.16 percent). The company provides detention and corrections services to government agencies in the United States and United Kingdom. CXW may have been the largest beneficiary from Trump’s surprise presidential victory. The bonds had been beaten down on fears that a Clinton victory would bring further cuts to privately owned prisons. Industry trade groups supported Trump during the campaign and have benefited from Trump’s anti-illegal-immigration policies and tough-on-crime stance. In addition to the presidential elections, CXW was boosted by the conclusion of an Immigration and Customs Enforcement review of private prison usage. That review found no need/ability to reduce exposure to private prisons. The bonds rose 19.4 percent over the fiscal year.

Detractors for the fiscal year included Tops Holdings LLC 8% 06/15/2022 (89078YAA3) (holding percentage*: 0.09 percent). The Sub-Adviser believes that Tops Markets bonds declined on continued margin compression driven by an unprecedented deflationary period for food prices and a highly promotional competitive environment in food retailing. Compounding the industry-wide headwinds, Tops faced liquidity concerns as the 2018 holding company maturity approached. The holding company bonds were exchanged into amortizing unsecured operating company bonds with a 2021 maturity date, which addressed the near term refinancing risk, but still left the company with liquidity challenges as they will need to fund the required amortization payments and the stub 2018 maturity of roughly $10 million of unexchanged holding company bonds. This position declined 25.3 percent over the fiscal year, but the Sub-Adviser believes that a return of food inflation in recent months may help Tops return to prior profitability levels and positive same-store sales. Frontier Communications Corp., 10.5% 09/15/2022 (35906AAW8) (holding percentage*: 0.12 percent), a telecommunications company in the United States, detracted from performance over the most recent fiscal year. Frontier Communications Corp. has been struggling to integrate Verizon’s wireline properties in California, Texas, and Florida which it recently acquired. This has had a negative impact on subscriber trends and pushed out management’s expected deleveraging schedule. Guidance was lowered for the full year and the market is skeptical in management’s ability to turn around operating performance.

The Sub-Adviser remains constructive on markets but believes there are still a number of uncertainties to monitor going forward, including the unfolding of Trump’s economic policies, the strength of the U.S. dollar, and commodities prices. The Sub-Adviser expects U.S. growth in the 2 percent to 2.5 percent range for the year and believes the Fed will remain data dependent, but will raise rates one more time this year. The Sub-Adviser believes that housing and consumer fundamentals are still in good shape and feels good about mortgage credit and the Fund’s exposure to Asset Backed Securities. The Sub-Adviser believes global growth will be driven by emerging markets, and expects an improvement in global growth this year after hitting a bottom last year. The Sub-Adviser continues to believe it is important to stay diversified and granular, keeping small positions and maintaining liquidity. The Sub-Adviser has slightly reduced its double-B exposure, opting for a slight increase in single-Bs, and is considering further opportunities in emerging markets debt. The Sub-Adviser believes that the prospect of continued volatility in the bond market will present opportunities and feels they are positioned well to take advantage of those opportunities as they arise.

* Holdings percentage(s) as of 10/31/2017.

Growth of $100,000 Investment

Total Returns as of October 31, 2017

		Annualized	Annualized	Annualized	Annualized Since Inception
	One Year	Three Years	Five Years	Ten Years	(12/10/04)
Class N	1.72%	2.04%	2.01%	4.25%	4.04%
Class C	0.98%	1.26%	1.24%	3.47%	3.27%
Class A with load of 4.50%	(3.06)%	0.21%	0.82%	3.50%	3.46%*
Class A without load	1.47%	1.77%	1.74%	3.98%	3.90%*
Barclays Aggregate Bond Index	0.90%	2.40%	2.04%	4.19%	4.14%
Morningstar Intermediate-Term Bond Category	1.52%	2.27%	2.08%	3.89%	3.76%

* Class A commenced operations on January 3, 2007.

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.

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.

As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.14% for Class N, 1.89% for Class C and 1.39% 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

12

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund

October 31, 2017

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
CORPORATE BONDS & NOTES - 59.7%
AEROSPACE / DEFENSE - 0.2%
TransDigm, Inc.		$	95,000	6.000		7/15/2022	$	98,800
TransDigm, Inc.			45,000	6.500		5/15/2025		46,519
								145,319
AGRICULTURE - 0.3%
BAT Capital Corp. - 144A			195,000	3.222		8/15/2024		196,581
AIRLINES ABS - 0.1%
America West Airlines 2001-1 Pass Through Trust			63,619	7.100		4/2/2021		68,922
AUTO MANUFACTURERS - 1.1%
Daimler Finance LLC - 144A			165,000	2.200		10/30/2021		163,022
Ford Motor Credit Co. LLC.			270,000	5.750		2/1/2021		297,394
General Motors Financial Co., Inc.			105,000	3.500		7/10/2019		107,349
General Motors Financial Co., Inc.			60,000	4.200		3/1/2021		63,050
Hyundai Capital America - 144A			135,000	2.450		6/15/2021		132,788
								763,603
AUTO PARTS & EQUIPMENT - 0.8%
Cooper Standard Auto - 144A			135,000	5.625		11/15/2026		140,400
Delphi Automotive PLC			105,000	3.150		11/19/2020		107,557
Delphi Automotive PLC			30,000	4.150		3/15/2024		31,872
Lear Corp.			195,000	3.800		9/15/2027		196,048
TI Group Automotive Systems LLC - 144A			75,000	8.780		7/15/2023		81,375
								557,252
AUTOMOBILE ABS - 5.7%
American Credit Acceptance Receivables Trust 2017-2 - 144A			135,000	2.860		6/12/2023		134,726
AmeriCredit Automobile Receivables Trust 2013-5			220,000	2.860		12/9/2019		221,476
Avis Budget Rental Car Funding AESOP LLC - 144A			115,000	2.970		2/20/2020		115,937
Avis Budget Rental Car Funding AESOP LLC - 144A			245,000	2.630		12/20/2021		245,704
California Republic Auto Receivables Trust 2014-3			201,248	1.790		3/16/2020		201,360
Capital Auto Receivables Asset Trust 2017-1 - 144A			160,000	2.700		9/20/2022		159,981
Centre Point Funding LLC			119,297	2.610		8/20/2020		117,565
CPS Auto Trust - 144A			100,000	2.430		1/18/2022		99,988
Drive Auto Receivables Trust 2016-B -144A			183,725	2.560		6/15/2020		184,073
Drive Auto Receivables Trust			135,000	2.800		7/15/2022		135,475
Drive Auto Receivables Trust 2015-A - 144A			160,015	3.060		5/17/2021		160,905
Drive Auto Receivables Trust 2017-A - 144A			160,000	2.980		1/18/2022		161,603
Drive Auto Receivables Trust 2015-D - 144A			141,145	3.380		11/15/2021		142,356
DT Auto Owner Trust 2017-3 - 144A			160,000	3.010		5/15/2023		159,583
DT Auto Owner Trust 2016-4 - 144A			195,000	2.740		10/17/2022		195,342
Exeter Automobile Receivables Trust 2017-2 - 144A			160,000	2.820		5/16/2022		159,753
First Investors Auto Owner Trust 2017-2 - 144A			135,000	2.650		11/15/2022		134,657
Flagship Credit Auto Trust 2016-1 - 144A			66,945	2.770		12/15/2020		67,341
Flagship Credit Auto Trust 2017-3 - 144A			160,000	2.910		9/15/2023		159,959
GLS Auto Receivables Trust			160,000	2.980		12/15/2021		160,107
Hyundai Auto Receivables Trust 2017-B			160,000	2.230		2/15/2023		159,006
OneMain Direct Auto Receivables Trust 2016-1 - 144A			135,000	2.760		5/15/2021		135,757
Prestige Auto Receivables Trust 2017-1 - 144A			160,000	2.810		1/17/2023		159,998
Santander Drive Auto Receivables Trust 2016-1			120,000	3.090		4/15/2022		121,393
Santander Drive Auto Receivables Trust 2014-4			160,000	3.100		11/16/2020		162,045
Westlake Automobile Receivables Trust 2016-3 - 144A			240,000	2.070		12/15/2021		239,461
								4,095,551
BANKS - 10.6%
Banco de Credito e Inversiones - 144A			325,000	4.000		2/11/2023		341,996
Banco de Credito del Peru/Panama - 144A			120,000	6.125		4/24/2027		132,900
Banco Internacional del Peru SAA Interbank - 144A			155,000	6.625		3/19/2029		175,925
Banco Santander Chile - 144A			150,000	3.875		9/20/2022		157,592
Bank of America Corp			351,000	4.200		8/26/2024		370,990
Bank of America Corp			215,000	5.625		7/1/2020		233,396
Bank of America Corp			65,000	2.000		1/11/2018		65,053
Bank of New York Mellon Corp/The			165,000	2.800		5/4/2026		162,153
Bank of New York Mellon Corp/The	3 Month LIBOR + 3.420%		135,000	4.950	+	Perpetual		141,244

See accompanying notes to financial statements.

13

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2017

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
CORPORATE BONDS & NOTES - 59.7% (Continued)
BANKS (Continued) - 10.6%
Barclays Bank PLC - 144A		$	270,000	6.050		12/4/2017	$	271,036
Capital One Financial Corp			165,000	3.750		7/28/2026		164,384
Capital One Financial Corp			165,000	4.200		10/29/2025		170,409
Citigroup, Inc.	3 Month LIBOR + 4.517%		195,000	6.250	+	8/15/2026		222,300
Citigroup, Inc.			130,000	3.200		10/21/2026		128,569
Citigroup, Inc. ^			160,000	4.050		7/30/2022		168,062
Goldman Sachs Group Inc/The			200,000	4.250		10/21/2025		209,016
Goldman Sachs Group Inc/The			225,000	5.750		1/24/2022		252,030
JPMorgan Chase & Co			330,000	3.300		4/1/2026		332,791
JPMorgan Chase & Co	3 Month LIBOR + 3.800%		205,000	5.300	+	Perpetual		216,049
KeyCorp	3 Month LIBOR + 3.606%		170,000	5.000	+	Perpetual		177,862
M&T Bank Corp	3 Month LIBOR + 3.520%		65,000	5.125	+	Perpetual		69,436
Macquarie Group Ltd - 144A			125,000	6.250		1/14/2021		138,706
Morgan Stanley			195,000	3.125		7/27/2026		192,386
Morgan Stanley			225,000	4.100		5/22/2023		237,176
Morgan Stanley			275,000	6.375		7/24/2042		374,794
Nordea Bank AB - 144A			200,000	2.125		5/29/2020		200,195
PNC Financial Services Group Inc/The	3 Month LIBOR + 3.300%		170,000	5.000	+	11/1/2026		180,625
Santander Holdings USA Inc - 144A			165,000	3.700		3/28/2022		168,994
Santander Holdings USA Inc - 144A			65,000	4.400		7/13/2027		66,881
The PNC Financial Services Group Inc/The	3 Month LIBOR + 3.040%		310,000	4.850	+	Perpetual		321,625
Turkiye Vakiflar Bankasi TAO - 144A			200,000	5.625		5/30/2022		200,000
UBS AG/Stamford CT			650,000	7.625		8/17/2022		768,625
Wells Fargo & Co.			85,000	3.069		1/24/2023		86,188
Wells Fargo & Co.			195,000	3.550		9/29/2025		200,350
Wells Fargo & Co.	3 Month LIBOR + 3.110%		165,000	5.900	+	6/15/2024		181,137
Zions Bancorporation			140,000	4.500		6/13/2023		148,407
								7,629,282
BEVERAGES - 0.4%
Anheuser-Busch InBev Finance, Inc.			80,000	3.300		2/1/2023		82,444
Anheuser-Busch InBev Finance, Inc. ^			165,000	3.650		2/1/2026		170,555
								252,999
BUILDING MATERIALS - 1.2%
CRH America Finance, Inc. - 144A			200,000	3.400		5/9/2027		201,056
Masco Corp			50,000	3.500		4/1/2021		51,455
Masco Corp			30,000	4.450		4/1/2025		32,301
Masco Corp			56,000	5.950		3/15/2022		62,882
Owens Corning			165,000	3.400		8/15/2026		162,496
Standard Industries Inc/NJ - 144A			195,000	6.000		10/15/2025		211,819
Vulcan Materials Co			165,000	3.900		4/1/2027		169,988
								891,997
CHEMICALS - 0.9%
NewMarket Corp			305,000	4.100		12/15/2022		322,127
NOVA Chemicals Corp. - 144A			105,000	5.000		5/1/2025		107,100
NOVA Chemicals Corp. - 144A			65,000	4.875		6/1/2024		66,381
Valvoline, Inc. - 144A			140,000	4.375		8/15/2025		141,575
								637,183
COMMERCIAL MBS - 2.9%
Aventura Mall Trust 2013-AVM - 144A	3 Month LIBOR + 2.151%		155,000	3.743	+	12/5/2032		161,121
Aventura Mall Trust 2013-AVM - 144A	3 Month LIBOR + 2.151%		100,000	3.743	+	12/5/2032		102,281
BAMLL Commercial Mortgage Securities Trust 2015-200P - 144A			105,000	3.218		4/14/2033		106,757
Cold Storage Trust 2017-ICE3 - 144A	1 Month LIBOR + 1.000%		260,000	2.234	+	4/15/2036		261,531
GAHR Commercial Mortgage Trust 2015-NRF - 144A	3 Month LIBOR + 1.906%		105,000	3.382	+	12/15/2034		106,222
GS Mortgage Securities Corp Trust 2012-ALOHA - 144A			132,000	3.551		4/10/2034		137,315
Hilton USA Trust 2016-SFP - 144A			185,000	3.323		11/5/2035		185,784
JP Morgan Chase Commercial Mortgage Securities Trust 2011-C4 - 144A			94,155	4.106		7/15/2046		94,824
JP Morgan Chase Commercial Mortgage Securities Trust 2011-C4 -144A			100,000	4.388		7/15/2046		106,020
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C13			240,000	4.266		11/15/2046		255,365
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C22			290,000	3.561		4/15/2048		293,745
One Market Plaza Trust 2017-1MKT - 144A			105,000	3.614		2/10/2032		109,215
Wells Fargo Commercial Mortgage Trust 2015-LC20			165,000	3.719		4/15/2050		166,390
								2,086,570

See accompanying notes to financial statements.

14

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2017

	Variable	Principal		Interest	Maturity
Security	Rate	Amount		Rate %	Date	Value
CORPORATE BONDS & NOTES - 59.7% (Continued)
COMMERCIAL SERVICES - 0.9%
Ashtead Capital, Inc. - 144A		$	200,000	4.375	8/15/2027	$	202,750
Prime Security Services Borrower LLC / Prime Finance Inc - 144A			55,000	9.250	5/15/2023		61,089
S&P Global Inc			170,000	4.000	6/15/2025		180,061
Team Health Holdings, Inc. - 144A			70,000	6.375	2/1/2025		64,750
Verisk Analytics, Inc.			165,000	4.000	6/15/2025		173,050
							681,700
COMPUTERS - 0.9%
Apple Inc			155,000	3.250	2/23/2026		158,909
Apple, Inc. ^			138,000	2.900	9/12/2027		137,179
Dell International LLC / EMC Corp - 144A			30,000	6.020	6/15/2026		33,487
Dell International LLC / EMC Corp - 144A			65,000	8.100	7/15/2036		82,648
Hewlett Packard Enterprise Co			100,000	3.600	10/15/2020		103,472
Hewlett Packard Enterprise Co. ^			100,000	4.900	10/15/2025		106,496
							622,191
DIVERSIFIED FINANCIAL SERVICES - 1.5%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust			150,000	3.650	7/21/2027		150,194
Air Lease Corp			170,000	2.625	9/4/2018		171,112
Ally Financial, Inc. ^			165,000	5.750	11/20/2025		182,738
Brookfield Finance LLC			174,000	4.000	4/1/2024		180,884
Jefferies Group LLC			75,000	5.125	1/20/2023		81,742
Navient Corp.			105,000	6.750	6/25/2025		109,988
Navient Corp.			35,000	7.250	9/25/2023		38,084
OM Asset Management Plc			165,000	4.800	7/27/2026		170,828
							1,085,570
ELECTRIC - 0.8%
Dominion Energy, Inc.			20,000	2.962	7/1/2019		20,276
Duke Energy Corp			170,000	2.650	9/1/2026		163,462
Exelon Corp			230,000	3.497	6/1/2022		236,962
Southern Power Co			170,000	4.150	12/1/2025		179,930
							600,630
ELECTRONICS - 0.5%
Arrow Electronics, Inc.			175,000	3.875	1/12/2028		175,761
Flex Ltd			165,000	4.750	6/15/2025		177,945
							353,706
ENERGY - ALTERNATE RESOURCES - 0.2%
TerraForm Power Operating LLC - 144A			110,000	5.875	2/1/2023		115,775
ENTERTAINMENT - 0.4%
Eldorado Resorts, Inc			75,000	6.000	4/1/2025		79,500
Gateway Casinos & Entertainment Ltd. - 144A			45,000	8.250	3/1/2024		47,925
Scientific Games International, Inc.			80,000	6.625	5/15/2021		83,100
Scientific Games International, Inc. - 144A			10,000	7.000	1/1/2022		10,600
Scientific Games International, Inc. - 144A			75,000	5.000	10/15/2025		76,313
							297,438
FOOD - 0.3%
Kraft Heinz Foods Co			165,000	3.000	6/1/2026		159,731
Safeway, Inc.			85,000	7.250	2/1/2031		73,950
							233,681
GAS - 0.2%
NGL Energy Partners LP			130,000	5.125	7/15/2019		130,325
HEALTHCARE PRODUCTS - 1.0%
Abbott Laboratories			35,000	3.400	11/30/2023		35,948
Abbott Laboratories			200,000	3.750	11/30/2026		206,686
Becton Dickinson and Co			33,000	3.363	6/6/2024		33,322
Becton Dickinson and Co			200,000	3.700	6/6/2027		201,867
Fresenius US Finance II, Inc. - 144A			25,000	4.500	1/15/2023		26,523
Zimmer Biomet Holdings Inc			230,000	3.550	4/1/2025		234,357
							738,703

See accompanying notes to financial statements.

15

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2017

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
CORPORATE BONDS & NOTES - 59.7% (Continued)
HEALTHCARE - SERVICES - 0.9%
Cardinal Health, Inc.		$	140,000	3.410		6/15/2027	$	138,744
CHS/Community Health Systems, Inc.			85,000	6.250		3/31/2023		82,131
Envision Healthcare Corp. - 144A			30,000	6.250		12/1/2024		31,238
HCA, Inc.			125,000	5.375		2/1/2025		129,219
Surgery Center Holdings, Inc. - 144A			100,000	8.875		4/15/2021		102,500
Tenet Healthcare Corp. - 144A			145,000	4.625		7/15/2024		143,189
								627,021
HOLDING COMPANIES - DIVERSIFIED - 0.2%
Leucadia National Corp.			130,000	5.500		10/18/2023		138,518
HOME BUILDERS - 0.9%
CalAtlantic Group, Inc.			140,000	5.250		6/1/2026		149,625
DR Horton, Inc. ^			165,000	4.750		2/15/2023		178,415
MDC Holdings, Inc.			160,000	5.500		1/15/2024		173,000
TRI Pointe Holdings, Inc.			160,000	5.875		6/15/2024		174,000
								675,040
HOME EQUITY ABS - 0.7%
Bayview Financial Mortgage Pass-Through Trust 2006-A (a)			193,299	6.087		2/28/2041		199,986
GSAA Trust 2005-1 AF4 (a)			173,331	5.619		11/25/2034		177,136
NovaStar Mortgage Funding Trust Series 2004-4	1 Month LIBOR + 1.725%		140,000	2.963	+	3/25/2035		140,522
								517,644
INSURANCE - 1.5%
Allstate Corp.	3 Month LIBOR + 2.938%		150,000	5.750	+	8/15/2053		164,250
Berkshire Hathaway, Inc. ^			35,000	3.125		3/15/2026		35,469
Manulife Financial Corp.			160,000	4.150		3/4/2026		170,322
MetLife, Inc.			195,000	4.368		9/15/2023		212,249
Prudential Financial, Inc.	3 Month LIBOR + 3.920%		300,000	5.625	+	6/15/2043		326,325
Teachers Insurance & Annuity Association of America - 144A	3 Month LIBOR + 2.661%		110,000	4.375	+	9/15/2054		111,513
Trinity Acquisition PLC			60,000	4.400		3/15/2026		64,131
Trinity Acquisition PLC			10,000	3.500		9/15/2021		10,199
								1,094,458
INVESTMENT COMPANIES - 0.5%
Ares Capital Corp.			23,000	4.875		11/30/2018		23,658
Ares Capital Corp.			59,000	3.875		1/15/2020		60,499
Ares Capital Corp.			80,000	3.500		2/10/2023		79,307
FS Investment Corp.			110,000	4.250		1/15/2020		112,516
FS Investment Corp.			50,000	4.750		5/15/2022		51,947
								327,927
LEISURE TIME - 0.2%
Vista Outdoor, Inc.			140,000	5.875		10/1/2023		145,250
LODGING - 0.4%
Caesars Growth Properties Holdings LLC			45,000	9.375		5/1/2022		48,510
Wyndham Worldwide Corp.			175,000	5.100		10/1/2025		186,399
Wyndham Worldwide Corp.			45,000	4.500		4/1/2027		46,052
								280,961
MACHINERY- DIVERSIFIED - 0.2%
CNH Industrial NV			137,000	4.500		8/15/2023		145,220
MEDIA - 0.8%
CCO Holdings LLC / CCO Holdings Capital Corp - 144A			60,000	4.000		3/1/2023		61,013
Discovery Communications LLC			160,000	3.950		3/20/2028		159,026
SFR Group SA - 144A			200,000	7.375		5/1/2026		215,750
Sirius XM Radio, Inc. - 144A			130,000	5.375		7/15/2026		137,313
								573,102
MINING - 0.8%
Anglo American Capital PLC ^- 144A			200,000	4.000		9/11/2027		200,524
BHP Billiton Finance USA Ltd - 144A	3 Month LIBOR + 5.093		200,000	6.750	+	10/19/2075		236,000
Glencore Funding LLC - 144A			165,000	4.000		3/27/2027		166,425
								602,949

See accompanying notes to financial statements.

16

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2017

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
CORPORATE BONDS & NOTES - 59.7% (Continued)
MISCELLANEOUS MANUFACTURING - 0.8%
Bombardier, Inc. - 144A		$	110,000	6.125		1/15/2023	$	110,413
General Electric Co.	3 Month LIBOR + 3.330%		421,000	5.000	+	Perpetual		439,945
								550,358
OFFICE / BUSINESS EQUIPMENT - 0.2%
Pitney Bowes, Inc.			159,000	3.875		5/15/2022		154,115
OIL & GAS - 1.6%
Alta Mesa Holdings LP / Alta Mesa Finance Services Corp. - 144A			55,000	7.875		12/15/2024		60,225
EP Energy LLC / Everest Acquisition Finance, Inc. ^ - 144A			65,000	8.000		11/29/2024		66,625
Helmerich & Payne International Drilling Co.			100,000	4.650		3/15/2025		106,357
Holly Frontier Corp.			165,000	5.875		4/1/2026		183,436
Oasis Petroleum Inc			65,000	6.875		1/15/2023		66,463
Parsley Energy LLC / Parsley Finance Corp - 144A			155,000	5.625		10/15/2027		160,329
Petrobras Global Finance BV ^			160,000	7.375		1/17/2027		178,000
Petrobras Global Finance BV - 144A			80,000	5.299		1/27/2025		80,360
Petroleos Mexicanos			125,000	6.875		8/4/2026		140,750
Petroleos Mexicanos - 144A			85,000	6.500		3/13/2027		92,926
								1,135,471
OTHER ABS - 5.0%
American Homes 4 Rent 2014-SFR2 Trust - 144A			130,000	4.705		10/17/2036		139,002
American Homes 4 Rent 2015-SFR2 Trust- 144A			120,000	4.691		10/17/2045		128,838
Bayview Opportunity Master Fund IVa Trust 2017-SPL5 - 144A	3 Month LIBOR + 1.465%		100,000	4.000	+	6/28/2057		106,020
Bayview Opportunity Master Fund IVa Trust 2017-RT1 - 144A			111,992	3.000		3/28/2057		113,189
Bayview Opportunity Master Fund IVa Trust 2017-SPL1 - 144A			99,646	4.250		10/28/2064		104,405
Bayview Opportunity Master Fund IVb Trust 2017-SPL3 - 144A			100,000	4.250		11/28/2053		105,258
CWABS Asset-Backed Certificates Trust 2005-1			199,664	5.081		7/25/2035		207,295
DB Master Finance LLC - 144A			131,625	3.980		2/20/2045		134,786
Diamond Resorts Owner Trust ^ - 144A			180,000	3.270		10/22/2029		179,866
MVW Owner Trust 2016-1 - 144A			120,876	2.250		12/20/2033		118,893
MVW Owner Trust 2017-1 - 144A			157,156	2.420		12/20/2034		156,596
Oak Hill Advisors Residential Loan Trust 2017-NPL2 - 144A			213,625	3.000		7/25/2057		214,086
RCO Mortgage LLC 2017-1 - 144A			225,179	3.375		8/25/2022		226,740
Sierra Timeshare 2014-2 Receivables Funding LLC - 144A			16,975	2.050		6/20/2031		16,945
Sofi Consumer Loan Program 2017-5 LLC - 144A			105,000	2.780		9/25/2026		104,782
TGIF Funding LLC 2017-1A - 144A			134,325	5.500		4/30/2047		138,242
Towd Point Mortgage Trust 2015-1 - 144A			172,000	3.250		10/25/2053		174,491
Towd Point Mortgage Trust 2015-1 - 144A			190,000	3.250		11/25/2060		193,881
Towd Point Mortgage Trust 2015-3 - 144A			97,592	3.000		3/25/2054		98,671
Towd Point Mortgage Trust 2016-2 - 144A			74,756	3.000		8/25/2055		75,634
Towd Point Mortgage Trust 2015-6 - 144A			130,000	3.750		4/25/2055		135,863
Towd Point Mortgage Trust 2017-1 - 144A			115,000	3.750		10/25/2056		117,470
Tricon American Homes 2017-SFR1 Trust - 144A			100,000	2.716		9/17/2034		99,204
VSE 2017-A VOI Mortgage LLC - 144A			131,621	2.330		3/20/2035		131,594
VOLT LXIII LLC - 144A			100,000	3.000		10/25/2047		100,000
VOLT LVI LLC - 144A			158,261	3.500		3/25/2047		159,826
VOLT LX LLC - 144A			150,164	3.250		4/25/2059		151,313
								3,632,890
PHARMACEUTICALS - 1.0%
AbbVie, Inc.			55,000	3.600		5/14/2025		56,628
AbbVie, Inc.			100,000	2.850		5/14/2023		100,512
AbbVie, Inc.			100,000	3.200		5/14/2026		99,490
Cardinal Health, Inc.			105,000	3.079		6/15/2024		104,461
Catalent Pharma Solutions, Inc. - 144A			15,000	4.875		1/15/2026		15,263
Mylan NV			45,000	3.150		6/15/2021		45,550
Mylan NV			105,000	3.950		6/15/2026		105,066
Owens & Minor, Inc.			30,000	3.875		9/15/2021		30,601
Shire Acquisitions Investments Ireland DAC			75,000	2.400		9/23/2021		74,565
Valeant Pharmaceuticals International, Inc. - 144A			50,000	5.500		3/1/2023		42,125
Valeant Pharmaceuticals International, Inc. - 144A			10,000	6.500		3/15/2022		10,625
Valeant Pharmaceuticals International, Inc. - 144A ^			20,000	7.000		3/15/2024		21,700
Zoetis, Inc.			45,000	3.450		11/13/2020		46,494
								753,080

See accompanying notes to financial statements.

17

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2017

	Variable	Principal		Interest	Maturity
Security	Rate	Amount		Rate %	Date	Value
CORPORATE BONDS & NOTES - 59.7% (Continued)
PIPELINES - 1.7%
Cheniere Corpus Christi Holdings LLC		$	115,000	5.875	3/31/2025	$	124,919
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp.			115,000	5.750	4/1/2025		118,450
Enbridge Energy Partners LP			165,000	5.875	10/15/2025		189,206
Energy Transfer LP			50,000	4.250	3/15/2023		51,001
Energy Transfer LP ^			165,000	4.200	4/15/2027		167,249
Kinder Morgan, Inc.			45,000	7.750	1/15/2032		57,939
Kinder Morgan, Inc.			160,000	4.300	6/1/2025		168,427
MPLX LP			135,000	4.875	12/1/2024		147,035
NuStar Logistics LP			55,000	5.625	4/28/2027		58,163
Sabine Pass Liquefaction LLC ^			100,000	6.250	3/15/2022		112,692
Sabine Pass Liquefaction LLC			30,000	4.200	3/15/2028		30,664
							1,225,745
PRIVATE EQUITY - 0.2%
Apollo Management Holdings LP - 144A			135,000	4.000	5/30/2024		138,440
REITS - 5.0%
Alexandria Real Estate Equities, Inc.			100,000	3.950	1/15/2027		102,645
Brixmor Operating Partnership LP			45,000	3.875	8/15/2022		46,448
Corporate Office Properties LP			366,000	3.600	5/15/2023		369,686
Corporate Office Properties LP			90,000	3.700	6/15/2021		92,374
Digital Realty Trust LP			195,000	5.250	3/15/2021		211,659
Digital Realty Trust LP			70,000	3.950	7/1/2022		73,845
Education Realty Operating Partnership LP			135,000	4.600	12/1/2024		140,822
EPR Properties			220,000	4.750	12/15/2026		229,690
Healthcare Realty Trust, Inc.			90,000	3.875	5/1/2025		90,987
Healthcare Trust of America Holdings LP			60,000	3.375	7/15/2021		61,578
Healthcare Trust of America Holdings LP			150,000	3.750	7/1/2027		150,335
Highwoods Realty LP			185,000	3.625	1/15/2023		187,795
Hospitality Mortgage Trust			100,000	2.418	5/8/2019		100,207
Hospitality Properties Trust			165,000	4.950	2/15/2027		175,070
iStar, Inc.			100,000	5.000	7/1/2019		101,063
iStar, Inc.			35,000	6.000	4/1/2022		36,488
iStar, Inc.			60,000	5.250	9/15/2022		61,650
Kilroy Realty LP			165,000	4.375	10/1/2025		173,595
Kimco Realty Corp			200,000	3.300	2/1/2025		200,718
LifeStorage LP/CA			100,000	3.500	7/1/2026		96,710
MPT Operating Partnership LP / MPT Finance Corp			60,000	5.500	5/1/2024		63,825
MPT Operating Partnership LP / MPT Finance Corp			15,000	6.375	3/1/2024		16,294
MPT Operating Partnership LP / MPT Finance Corp			85,000	5.000	10/15/2027		87,550
National Retail Properties Inc			50,000	4.000	11/15/2025		51,404
Retail Opportunity Investments Partnership LP			105,000	4.000	12/15/2024		102,317
Select Income REIT			170,000	4.500	2/1/2025		174,086
Uniti Group LP / Uniti Fiber Holdings Inc / CSL Capital LLC - 144A			110,000	7.125	12/15/2024		102,025
Welltower Inc			175,000	4.000	6/1/2025		182,223
WP Carey Inc			135,000	4.600	4/1/2024		141,328
							3,624,417
RETAIL - 1.0%
CVS Health Corp.			200,000	2.875	6/1/2026		190,847
PetSmart, Inc. - 144A			100,000	7.125	3/15/2023		76,500
QVC, Inc.			380,000	4.375	3/15/2023		396,341
Tops Holding LLC / Tops Markets II Corp. - 144A			110,000	8.000	6/15/2022		66,550
							730,238
SEMICONDUCTORS - 0.7%
Applied Materials, Inc.			165,000	3.300	4/1/2027		168,951
Broadcom Corp. / Broadcom Cayman Finance Ltd. - 144A			75,000	3.000	1/15/2022		76,113
Broadcom Corp. / Broadcom Cayman Finance Ltd. - 144A			135,000	3.625	1/15/2024		139,621
Broadcom Corp. / Broadcom Cayman Finance Ltd. - 144A			115,000	3.125	1/15/2025		114,225
							498,910
SOFTWARE - 0.7%
First Data Corp. - 144A			130,000	5.000	1/15/2024		135,525
Microsoft Corp.			195,000	3.300	2/6/2027		202,010
Vmware, Inc.			83,000	2.950	8/21/2022		83,228
Vmware, Inc.			88,000	3.900	8/21/2027		88,334
							509,097

See accompanying notes to financial statements.

18

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2017

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
CORPORATE BONDS & NOTES - 59.7% (Continued)
STUDENT LOAN ABS - 0.8%
Navient Private Education Loan Trust 2017-A - 144A		$	160,000	2.880		12/16/2058	$	159,979
SoFi Professional Loan Program 2016-C LLC - 144A			205,000	2.360		12/27/2032		203,851
SoFi Professional Loan Program 2017-E LLC - 144A			215,000	2.720		11/26/2040		214,593
								578,423
TELECOMMUNICATIONS - 1.5%
AT&T, Inc.			385,000	3.875		8/15/2021		405,754
AT&T, Inc.			75,000	3.900		8/14/2027		74,851
Frontier Communications Corp.			95,000	10.500		9/15/2022		83,125
Telefonica Emisiones SAU			265,000	4.570		4/27/2023		288,001
Verizon Communications, Inc.			250,000	4.125		3/16/2027		261,391
								1,113,122
TRUCKING & LEASING - 0.2%
Aviation Capital Group LLC - 144A			100,000	3.500		11/1/2027		98,906
GATX Corp.			25,000	3.250		9/15/2026		24,656
Penske Truck Leasing Co. LP - 144A			55,000	3.375		2/1/2022		56,448
								180,010
WHOLE LOAN COLLATERAL CMO - 1.3%
Banc of America Funding 2005-1 Trust			51,596	5.500		2/25/2035		51,765
Chase Mortgage Trust 2016-2 - 144A			98,545	3.750		12/25/2045		100,195
Citigroup Mortgage Loan Trust Inc.			57,529	6.750		8/25/2034		62,344
JP Morgan Mortgage Trust - 144A			347,987	2.609		12/25/2046		349,390
JP Morgan Mortgage Trust 2017-3 - 144A	3 Month LIBOR + 1.011%		117,387	2.500	+	8/25/2047		117,039
MASTR Alternative Loan Trust 2004-4			67,923	5.500		4/25/2034		70,688
Residential Asset Securitization Trust 2005-A1			89,770	5.500		4/25/2035		92,607
Structured Adjustable Rate Mortgage Loan Trust Series 2004-4	3 Month LIBOR + 1.926%		102,796	3.520	+	4/25/2034		104,313
WaMu Mortgage Pass-Through Certificates Series 2003-S8 Trust			11,740	5.000		9/25/2018		11,784
								960,125
TOTAL CORPORATE BONDS & NOTES (Cost - $42,211,116)								43,097,508
FOREIGN GOVERNMENT BONDS - 1.3%
Argentine Republic Government International Bond			150,000	7.625		4/22/2046		168,375
Argentine Republic Government International Bond			130,000	6.875		1/26/2027		141,895
Abu Dhabi Government International Bond - 144A			200,000	2.500		10/11/2022		198,857
Republic of South Africa Government International Bond ^			200,000	4.300		10/12/2028		185,415
Turkey Government International Bond			200,000	7.375		2/5/2025		229,754
TOTAL FOREIGN GOVERNMENT BONDS - (Cost - $893,040)								924,296
MUNICIPAL BONDS - 3.7%
Port Authority of New York & New Jersey			470,000	5.000		4/15/2057		539,772
Rockdale County Water & Sewerage Authority			305,000	3.060		7/1/2024		306,369
San Diego County Regional Airport Authority			325,000	5.594		7/1/2043		360,995
State of California			765,000	7.600		11/1/2040		1,203,720
State of Texas			245,000	3.011		10/1/2026		247,892
TOTAL MUNICIPAL - (Cost - $2,616,921)								2,658,748
U.S. GOVERNMENT & AGENCY - 26.5%
U.S. GOVERNMENT AGENCY - 12.3%
Fannie Mae Pool			90,451	6.500		5/1/2037		105,521
Fannie Mae Pool			119,541	3.000		3/1/2043		119,962
Fannie Mae Pool			316,665	3.500		8/1/2045		325,853
Fannie Mae Pool			347,126	3.000		8/1/2045		348,404
Fannie Mae Pool			332,313	3.500		8/1/2045		341,955
Fannie Mae Pool			206,579	3.500		12/1/2045		212,573
Fannie Mae Pool			449,656	3.000		12/1/2045		450,305
Fannie Mae Pool			222,560	3.500		1/1/2046		229,017
Fannie Mae Pool			344,810	3.000		4/1/2046		345,308
Fannie Mae Pool			848,081	3.500		1/1/2047		872,688
Fannie Mae Pool			261,286	4.000		9/1/2044		274,489
Fannie Mae Pool			26,566	6.000		11/1/2034		30,249
Fannie Mae Pool			26,848	6.000		3/1/2036		30,517
Fannie Mae Pool			369,733	3.500		6/1/2046		380,461
Fannie Mae Pool			466,855	3.500		12/1/2046		480,401

See accompanying notes to financial statements.

19

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2017

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
U.S. GOVERNMENT AGENCY - 12.3% (Continued)
Fannie Mae Pool		$	42,902	5.500		4/1/2038	$	48,018
Fannie Mae Pool			75,215	6.000		8/1/2038		85,275
Fannie Mae Pool			209,315	5.500		9/1/2036		233,857
Fannie Mae Pool			32,523	5.000		4/1/2038		36,128
Fannie Mae Pool			166,267	5.000		6/1/2039		183,285
Fannie Mae Pool			482,107	3.500		1/1/2046		496,096
Fannie Mae Pool			511,054	4.000		6/1/2047		537,298
Fannie Mae Pool			132,472	3.500		7/1/2047		136,316
Fannie Mae Pool			799,525	4.000		7/1/2047		840,809
Freddie Mac Gold Pool			223,395	5.000		12/1/2035		247,219
Freddie Mac Gold Pool			36,473	5.500		10/1/2039		40,518
Freddie Mac Gold Pool			438,419	4.000		4/1/2046		460,535
Freddie Mac Gold Pool			93,773	3.500		7/1/2047		96,493
Freddie Mac Gold Pool			536,821	4.000		8/1/2047		564,615
Freddie Mac Gold Pool			303,473	3.500		4/1/2046		312,280
								8,866,445
U.S. TREASURY OBLIGATIONS - 14.2%
United States Treasury Bond			1,185,000	3.125		2/15/2043		1,247,003
United States Treasury Bond			1,577,000	2.500		2/15/2046		1,462,728
United States Treasury Bond ^			6,385,000	1.625		2/15/2026		6,051,658
United States Treasury Bond			1,480,000	1.125		2/28/2019		1,472,571
								10,233,960
TOTAL U.S. GOVERNMENT & AGENCY (Cost - $19,236,890)								19,100,405
BANK LOANS - 3.7%
ADVERTISTING - 0.1%
Red Ventures LLC Term Loan	LIBOR + 4.000%		75,000	5.363	+	11/8/2024		74,625
AEROSPACE - 0.1%
Accudyne Industries Initial Term Loan	LIBOR + 3.750%		70,000	5.084	+	8/18/2024		70,656
AGRICULTURE - 0.1%
NVA Holdings, Inc. Term Loan	LIBOR + 7.000%		46,956	8.334	+	9/25/2029		47,386
AUTO MANUFACTURERS - 0.1%
Navistar, Inc. Tranche B Term Loan	LIBOR + 4.000%		84,144	7.250	+	8/7/2020		84,407
CHEMICALS - 0.0%
Ineos US Finance LLC New 2022 Dollar Term Loan Retired	LIBOR + 2.750%		6,826	4.191	+	3/31/2022		6,841
Ineos US Finance LLC New 2024 Dollar Term Loan	LIBOR + 2.200%		10,000	3.392	+	3/31/2024		10,024
Tronox Blocked Borrower Blocked Dollar Term Loan	LIBOR + 3.000%		17,442	4.329	+	9/24/2024		17,604
Tronox Pigments BV Term B-4 Loan	LIBOR + 3.000%		7,558	4.329	+	9/24/2024		7,628
								42,097
COMMERCIAL SERVICES - 0.3%
CHG Healthcare Services, Inc. New Term Loan	LIBOR + 3.250%		65,995	4.672	+	6/8/2023		66,702
CPI Card Group Term Loan	LIBOR + 4.500%		120,000	5.941	+	8/16/2022		87,600
Parexel International Corporation Initial Term Loan	LIBOR + 3.000%		20,000	7.068	+	2/28/2022		20,213
Sedgwick Claims Management Services, Inc. New Loan	LIBOR + 5.750%		85,000	4.381	+	9/28/2024		86,434
								260,949
DISTRIBUTION / WHOLESALE - 0.2%
Beacon Roofing Supply, Inc. Term Loan B	LIBOR + 2.250%		125,000	3.603	+	1/2/2025		125,996
DIVERSIFIED - FINANCIAL SERVICES - 0.0%
Capital Automotive LP Initial Tranche B-2 Term Loan	LIBOR + 2.500%		14,562	3.881	+	3/24/2024		14,620
ELECTRIC - 0.3%
Energy Future Intermediate Term Loan	LIBOR + 3.000%		65,000	4.381	+	6/30/2018		65,488
NRG Energy, Inc. Term Loan	LIBOR + 2.250%		111,856	3.584	+	6/30/2023		112,358
Texas Competitive Electric Holdings Company LLC Initial Term Loan	LIBOR + 2.750%		47,093	4.133	+	8/4/2023		47,306
Texas Competitive Electric Holdings Company LLC Initial Term Loan	LIBOR + 2.750%		10,714	4.142	+	8/4/2023		10,761
								235,913

See accompanying notes to financial statements.

20

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2017

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
BANK LOANS - 3.7% (Continued)
ELECTRONICS - 0.1%
SharkNinja Operating LLC Tranche B Term Loan	LIBOR + 4.000%	$	50,000	5.334	+	9/28/2024	$	50,229
ENTERTAINMENT - 0.2%
Caesars Entertainment Term B Loan	LIBOR + 2.500%		120,000	3.881	+	10/8/2024		120,235
ENVIRONMENTAL CONTROL - 0.0%
Advanced Disposal Services, Inc. Additional Term Loan	LIBOR + 2.750%		11,710	4.142	+	11/10/2023		11,827
FOOD - 0.2%
Albertsons LLC 2017-1 Term B-4 Loan	LIBOR + 2.750%		68,957	4.131	+	8/24/2021		67,001
JBS USA LLC Initial Term Loan	LIBOR + 2.500%		84,575	3.854	+	10/30/2022		82,990
								149,991
HEALTHCARE - 0.1%
Envision Healthcare Corp. Initial Term Loan	LIBOR + 3.000%		14,925	4.381	+	11/30/2023		15,011
Quorum Health Corp. Term Loan	LIBOR + 6.750%		57,776	8.100	+	4/28/2022		58,498
								73,509
INVESTMENT COMPANIES - 0.2%
TKC Holdings, Inc. Initial Term Loan	LIBOR + 4.250%		59,700	5.584	+	1/31/2023		60,434
UFC Holdings LLC Term Loan	LIBOR + 3.250%		67,384	4.624	+	8/18/2023		68,034
								128,468
LODGING - 0.3%
Caesars Entertainment, Inc. Term B Loan	LIBOR + 3.500%		108,590	4.881	+	10/12/2020		108,803
Caesars Growth Partners 2017 Term Loan	LIBOR + 3.000%		54,445	4.381	+	5/8/2021		54,530
Playa Resorts and Hotels Initial Term Loan	LIBOR + 3.000%		14,963	4.380	+	4/28/2024		15,024
Station Casino LLC Term B Facilitiy Loan	LIBOR + 2.500%		55,920	3.867	+	6/8/2023		56,186
								234,543
MACHINERY - DIVERSIFIED - 0.1%
Zodiac Pool Solutions LLC Tranche B-1 Term Loan	LBIOR + 4.000%		79,401	5.334	+	12/20/2023		80,394
MEDIA - 0.3%
UPC Financing Partnership Faciliity AR	LIBOR + 2.500%		40,000	4.055	+	4/15/2025		40,083
Univision Communications 2017 Replacement Repriced First Lien Term Loan	LIBOR + 2.750%		145,000	4.131	+	3/16/2024		144,754
								184,837
MISCELLANEOUS MANUFACTURING - 0.1%
US Farathane LLC Term B-4 Loan	LIBOR + 3.500%		75,403	4.334	+	12/24/2021		76,157
OIL & GAS - 0.1%
Ultra Petroleum Loan	LIBOR + 3.000%		90,000	4.334	+	4/12/2024		90,146
PACKAGING & CONTAINERS - 0.1%
Anchor Glass Container Corp. July 2017 Additional Term Loan	LIBOR + 2.750%		24,813	4.092	+	12/8/2023		25,005
Plastipak Holdings, Inc. Tranche B Term Loan	LIBOR + 2.750%		25,000	4.109	+	10/14/2024		25,222
								50,227
PHARMACEUTICALS - 0.2%
Endo Luxembourg Finance Company Initial Term Loan	LIBOR + 4.250%		94,763	5.631	+	4/28/2024		96,172
HLF Financing US LLC Senior Lien Term Loan	LIBOR + 5.500%		28,875	6.881	+	2/16/2023		29,338
								125,510
REGIONAL- 0.1%
Seminole Indian Tribe of Florida Term B Loan	LIBOR + 2.000%		90,000	3.397	+	7/8/2024		90,535
RETAIL - 0.1%
84 Lumber Initial Term Loan Retired	LIBOR + 5.750%		83,406	7.124	+	10/24/2023		84,423
SOFTWARE - 0.1%
Rackspace Hosting, Inc. 2017 Refinancing Term B Loan	LIBOR + 3.000%		101,678	4.392	+	11/4/2023		101,876
TELECOMMUNICATIONS - 0.2%
Level 3 Financing, Inc. Tranche B 2024 Term Loan	LIBOR + 2.250%		105,000	3.617	+	2/22/2024		105,534
TOTAL BANK LOANS - (Cost - $2,719,014)								2,715,090

See accompanying notes to financial statements.

21

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2017

Security	Shares				Value
EXCHANGE TRADED FUND - 0.6%
iShares iBoxx $ Investment Grade Corporate Bond (Cost - $434,444)		3,590			$	434,893
	Principal		Interest	Maturity
	Amount		Rate %	Date
PREFERRED STOCK - 0.4%
Zions Bancorporation - (Cost - $270,000)	$	10,800	6.950	9/15/2028		322,056
	Shares
SHORT-TERM INVESTMENT -1.9%
MONEY MARKET FUND - 1.9%
Fidelity Institutional Money Market Fund - Government Portfolio (Cost - $1,371,720)		1,371,720	0.920			1,371,720
COLLATERAL FOR SECURITIES LOANED - 9.7%
Mount Vernon Prime Portfolio (Cost - $7,021,360)		7,021,360	1.320			7,021,360
TOTAL INVESTMENTS - 107.5% (Cost - $76,774,505)					$	77,646,076
LIABILITIES IN EXCESS OF OTHER ASSETS - (7.5)%						(5,430,600	)
NET ASSETS - 100.0%					$	72,215,476

LLC - Limited Liability Corporation

ABS - Asset Backed Security

MBS - Mortgage Backed Security

LP - Limited Partnership

REIT - Real Estate Investment Trust

Perpetual - Perpetual bonds are fixed income instruments without defined maturity dates

^ All or a portion of these securities are on loan. Total loaned securities had a value of $6,838,473 at October 31, 2017.

+ Variable rate security. Interest rate is as of October 31, 2017.

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. The 144A securities amounted to $16,046,276 or 22.2% of net assets.

(a) Step-Up Bond; the interest rate shown is the rate in effect as of October 31, 2017.

Portfolio Composition * - (Unaudited)
Corporate Bonds & Notes	55.5	%	Short - Term	1.8	%
U.S. Government & Agencies Notes & Bonds	24.6	%	Foreign Government Bonds	1.2	%
Collateral For Securities Loaned	9.0	%	Exchange Traded Funds	0.6	%
Bank Loans	3.5	%	Preferred Stock	0.4	%
Municipal	3.4	%	Total	100.0	%

^* Based on total value of investments as of October 31, 2017.

Percentage may differ from Schedule of Investments which is based on Fund net assets.

See accompanying notes to financial statements.

22

Dunham Monthly Distribution Fund (Unaudited)

Message from the Sub-Adviser (Perella Weinberg Partners)

The CBOE Volatility Index, commonly known as the fear gauge, has hovered at extremely low levels and even touched the lowest level since December 1993. The low levels of volatility implies a sense of complacency in the markets and may be attributed to stable growth with low yields and low inflation. Despite the record low levels of volatility, there have been relatively short periods that have experienced significant spikes and drops. For example, market volatility, as measured by the CBOE Volatility Index (“VIX”), spiked over 30 percent and as high as 70 percent four different occasions over the fiscal year ended October 31, 2017 before retreating back to acutely low levels. Event-driven strategies, as measured by the Credit Suisse Event Driven Index, and market neutral strategies, as measured by the IQ Hedge Market Neutral Beta Index, increased 6.4 percent and 1.4 percent, respectively. This came on the heels of these same two strategies increasing 1.4 percent and 2.1 percent, respectively in the previous fiscal year. These performances underperformed the broader equity index, as measured by the S&P 500 Index, which increased 23.6 percent over the most recent fiscal year ended October 31, 2017 and 4.5 percent the previous fiscal year.

The Sub-Adviser implements a combination of tactical long/short equity investing and event-driven equity investing within the context of a diversified, low-net portfolio of mid and large cap equites. The Sub-Adviser believes that in the short to medium term the fundamental catalysts of stock returns can often be diluted or even overridden by other influencers of stock prices such as technical, macro/thematic factors and behavioral sentiment. As a result, the Sub-Adviser developed a “multiple lens” approach that takes into account all of these considerations in developing portfolio construction and managing risk. To achieve the Fund’s objective, the Fund invests in both select long and short equity opportunities and event-driven opportunities with a “hard” catalyst. The Fund leverages significant knowledge synergies between the two strategies and maintains a flexible investment mandate across such strategies in order to take advantage of opportunities presented in the market.

For the first half of the fiscal year the previous Sub-Adviser implemented a strategy that was predominately an event-driven strategy. In the second half of the fiscal year, in addition to the event-driven strategy, the current Sub-Adviser implemented a long/short equity strategy. The allocation within the Fund between the event-driven strategy and the long/short strategy began the final six months of the fiscal year at approximately 36 percent allocated to the event-driven strategy and 64 percent allocated to the long/short strategy. By the end of the most recent fiscal year ended October 31, 2017, the event-driven strategy allocation was reduced to 25 percent with the remaining allocation dedicated to the long/short strategy. The reduction in event exposure in no way reflects the Sub-Adviser’s lack of optimism for the space. The Sub-Adviser believes that the latest announced deals have generally been smaller with less attractive spreads. The Sub-Adviser is unwilling to force allocation into lower quality opportunities just to maintain exposure. The Sub-Adviser views this as poor risk management and feel this is what differentiates them from other peers’ strategies in the space, especially those forced to dump cash into unattractive opportunities.

Merger arbitrage strategies, as measured by the Credit Suisse Merger Arbitrage Index, increased 8.7 percent over the most recent fiscal year ended October 31, 2017, most of which is attributable to the 4.9 percent in the initial six months. Despite the spikes in volatility, deals continued to close over the fiscal year. The cash and stock acquisition of B/E Aerospace Inc. (BEAV) (holding percentage**: 0.18 percent) by Rockwell Collins (COL) (holding percentage**: -0.73 percent) also completed in the first six months of the fiscal year. B/E Aerospace Inc. will now operate as a newly formed business segment within Rockwell Collins, called Interior Systems. Rockwell Collins had previously stated that it expects the transaction to be a good synergy. These deals successfully closed despite exhibiting substantial spreads in the weeks and months prior to closing. Significant spreads on deals that ultimately proved to successfully close helps to illustrate how this ongoing volatility significantly influences deal spreads within the event-driven space. In the face of a bit of summer doldrums in the merger space, deals also closed in the final six months of the fiscal year. For example, this included the all stock acquisition of Felcor Lodging Trust Inc. (FCH) (holding percentage**: 0.60 percent) by RJ Lodging Trust (RLJ) (holding percentage**: -0.67 percent). The transaction adds numerous desirable assets in California, Florida, and Boston to RLJ’s portfolio.

Long/Short equity strategies, as measured by the Credit Suisse Long/Short Index, increased 5.1 percent over the final six months of the fiscal year. Mega-capitalization technology stocks have experienced a robust rally in 2016 and to begin 2017. This rally has stretched multiples on the S&P 500, and it has also led to an enormous outperformance of growth stocks over value stocks. In the third fiscal quarter the multiple on the S&P 500 was 18.8 times, and the forward looking 2018 figure was 16.8 times. Companies have released earnings and the result are in line with expectations, however there is a lot of additional expectations built into the forward guidance. As a result of this, the Sub-Adviser mitigated the overweight to growth stocks and increased the technology exposure in the short book. In September, the markets saw a rotation back into cyclicals, financials and value and away from technology and other growth stocks. The Sub-Adviser believes that solid accelerating global growth and optimism regarding potential U.S. tax reform spurred the rotation. A large cap value position that was initiated into the Fund over the fiscal year was Walmart Stores Inc. (WMT) (holding percentage*: 1.34). WMT increased 16.3 percent since its initiation into the Fund in late July. A short position that contributed to Fund performance was the short exposure to AT&T Inc. (T) (holding percentage:*-2.36 percent), as T declined 15.8 percent since it was added in late March.

The Sub-Adviser believes the markets generally continue to be supportive. This belief was initially based on earnings but it strengthens when considering the potential for tax reform and deregulation. Additionally, there are transformational changes afoot which the Sub-Adviser believes will lead to a period of mega mergers as industry challenges are met with corporations redefining themselves for the future. The Sub-Adviser’s concerns revolve around historically low volatility. However, the low volatility is not a function of complacency but instead reflects realized 100 day volatility in the S&P 400 of 6.8 percent. The Sub-Adviser recognizes this will not be the case forever and thus have it on their radar screen, but for now accept it as a reality rather than a fleeting short-term euphoria.

* Holdings percentage(s) as of 10/31/2017

Growth of $100,000 Investment

Total Returns as of October 31, 2017

		Annualized	Annualized	Annualized Since
	One Year	Three Years	Five Years	Inception (8/1/08)*
Class N	6.92%	2.33%	3.54%	3.75%**
Class C	5.82%	1.29%	2.50%	2.30%
Class A with load of 5.75%	0.52%	0.07%	2.08%	2.41%
Class A without load	6.64%	2.07%	3.28%	3.06%
IQ Hedge Market Neutral Beta Index	4.30%	2.18%	2.40%	2.46%
Morningstar Multialternative Category	5.43%	1.03%	1.63%	0.95%

* 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 before any fee waiver, including the cost of underlying funds, are 2.23% for Class N, 3.23% for Class C and 2.48% 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.

23

SCHEDULE OF INVESTMENTS

Dunham Monthly Distribution Fund

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 80.5%
AEROSPACE/DEFENSE - 5.6%
Orbital ATK, Inc.		39,954	$	5,311,085
Rockwell Collins, Inc.		79,157		10,733,689
				16,044,774
AIRLINES - 0.7%
American Airlines Group, Inc. *		101,283		101,283
Delta Air Lines, Inc.		38,890		1,945,667
				2,046,950
AUTO MANUFACTURERS - 0.4%
General Motors Co.		28,860		1,240,403
AUTO PARTS & EQUIPMENT - 0.8%
Delphi Automotive PLC		22,155		2,201,764
BANKS - 3.6%
Bank of America Corp.		213,280		5,841,739
Citigroup, Inc. ^		59,929		4,404,782
Home BancShares, Inc.		1		10
				10,246,531
BEVERAGES - 1.8%
Constellation Brands, Inc.		16,619		3,641,057
PepsiCo, Inc.		13,986		1,541,677
				5,182,734
CHEMICALS - 5.6%
DowDuPont, Inc.		49,673		3,591,855
Huntsman Corp.		122,698		3,928,790
Monsanto Co.		32,495		3,935,144
Sherwin-Williams Co.		11,578		4,575,047
				16,030,836
COMMERCIAL SERVICES - 2.1%
Advisory Board Co. * ^		26,694		1,439,474
PayPal Holdings, Inc. *		14,185		1,029,264
Quanta Services, Inc. *		96,683		3,647,849
				6,116,587
COMPUTERS - 4.8%
Apple, Inc.		22,795		3,853,267
Brocade Communications Systems, Inc.		140,028		1,631,326
Dell Technologies, Inc. *		82,390		6,819,420
International Business Machines Corp.		8,934		1,376,372
				13,680,385
ELECTRIC - 4.0%
Calpine Corp. *		530,243		7,921,830
Dynegy, Inc. *		293,775		3,657,499
				11,579,329
ELECTRICAL COMPONENTS & EQUIPMENT - 0.8%
Emerson Electric Co. ^		34,493		2,223,419
ENERGY-ALTERANTE SOURCES - 0.1%
TerraForm Global, Inc. *		67,312		328,146
FOOD - 0.5%
Mondelez International, Inc.		35,189		1,457,880
HEALTHCARE-PRODUCTS - 5.6%
Advanced Accelerator Applications SA - ADR *		21,596		1,749,276
CR Bard, Inc.		33,828		11,064,124
NxStage Medical, Inc. *		47,613		1,283,170
VWR Corp. *		57,785		1,912,684
				16,009,254

See accompanying notes to financial statements.

24

SCHEDULE OF INVESTMENTS

Dunham Monthly Distribution Fund (Continued)

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 80.5% (Continued)
HEALTHCARE-SERVICES - 2.8%
Aetna, Inc.		11,497	$	1,954,835
Anthem, Inc.		11,425		2,390,224
Humana, Inc.		14,977		3,824,377
				8,169,436
HOLDING COMPANIES-DIVERSIFICATION - 0.1%
CF Corp. * ^		38,037		414,603
HOME BUILDERS - 1.1%
CalAtlantic Group, Inc.		11,779		581,176
Lennar Corp.		44,022		2,450,705
				3,031,881
HOUSEWARES - 0.7%
Newell Brands, Inc.		51,480		2,099,354
INTERNET - 1.8%
Alphabet, Inc. *		2,557		2,641,483
Amazon.com, Inc. *		471		520,587
Facebook, Inc. *		11,862		2,135,872
				5,297,942
LEISURE TIME - 1.2%
Royal Caribbean Cruises Ltd.		27,718		3,430,657
LODGING - 2.7%
Caesars Entertainment Corp. * ^		244,332		3,164,099
Marriott International, Inc.		24,093		2,878,632
MGM Resorts International		52,121		1,633,993
				7,676,724
MACHINERY - CONSTRUCTION & MINING - 0.6%
Caterpillar, Inc.		12,891		1,750,598
MACHINERY - DIVERSIFIED - 0.6%
Cummins, Inc.		9,978		1,764,909
MEDIA - 8.2%
Charter Communications, Inc. *		7,608		2,542,365
Comcast Corp.		39,251		1,414,214
Scripps Networks Interactive, Inc.		90,522		7,538,672
Time Warner, Inc.		88,350		8,683,921
Twenty-First Century Fox, Inc.		65,158		1,703,882
Walt Disney Co. ^		17,964		1,757,059
				23,640,113
OIL & GAS - 5.1%
Anadarko Petroleum Corp.		44,093		2,176,871
Arc Logistics Partners LP		136,008		2,283,574
Rice Energy, Inc. *		271,265		7,690,363
Royal Dutch Shell PLC - ADR		39,539		2,492,143
				14,642,951
PACKAGING & CONTAINERS - 2.9%
Berry Global Group, Inc. *		69,635		4,139,801
WestRock Co.		69,673		4,273,045
				8,412,846
PHARMACEUTICALS - 2.7%
Bristol-Myers Squibb Co.		53,635		3,307,134
Johnson & Johnson		13,287		1,852,341
Zoetis, Inc. ^		42,733		2,727,220
				7,886,695

See accompanying notes to financial statements.

25

SCHEDULE OF INVESTMENTS

Dunham Monthly Distribution Fund (Continued)

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 80.5% (Continued)
PIPELINES - 0.7%
Columbia Pipeline Group, Inc. *		84,102	$	2,144,180
PRIVATE EQUITY - 0.9%
Fortress Investment Group LLC		337,096		2,632,720
REAL ESTATE - 0.1%
Forestar Group, Inc. *		10,595		188,586
REITS - 0.3%
Winthrop Realty Trust		102,617		854,800
RETAIL - 1.4%
Wal-Mart Stores, Inc. ^		45,331		3,957,850
SEMICONDUCTORS - 5.5%
Applied Materials, Inc.		16,993		958,915
Broadcom Ltd.		5,720		1,509,565
Cavium, Inc. * ^		22,039		1,520,470
Marvell Technology Group Ltd.		133,579		2,467,204
Monolithic Power Systems, Inc. ^		16,146		1,964,484
NXP Semiconductors NV *		63,994		7,490,498
				15,911,136
SOFTWARE - 2.8%
Activision Blizzard, Inc.		22,128		1,449,163
BORQS Technologies, Inc. *		116,107		464,429
BroadSoft, Inc. * ^		15,799		866,575
Micro Focus International PLC - ADR *		85,644		2,991,545
Microsoft Corp.		26,775		2,227,144
				7,998,856
TELECOMMUNICATIONS - 0.8%
Verizon Communications, Inc.		49,093		2,350,082
TEXTILES - 1.1%
Mohawk Industries, Inc. *		12,217		3,197,922
TOTAL COMMON STOCKS (Cost - $223,888,577)				231,843,833
EXCHANGE TRADED FUNDS - 5.5%
DEBT EXCHANGE TRADED FUNDS - 3.4%
iShares iBoxx $ Investment Grade Corporate Bond ETF		23,931		2,899,001
iShares US Credit Bond ETF		24,423		2,735,132
PowerShares Senior Loan Portfolio		169,758		3,924,805
				9,558,938
EQUITY EXCHANGE TRADED FUND - 2.1%
SPDR S&P500 ETF Trust		23,715		6,098,312
TOTAL EXCHANGE TRADED FUNDS - (Cost - $15,586,155)				15,657,250
RIGHTS - 0.0%
Nexstar Broadcasting Group, Inc. *		87,600		2,628
Safeway PDC, LLC CVR		90,955		35,836
Safeway Casa Ley CVR. *		90,955		546
TOTAL RIGHTS (Cost - $116,685)				39,010

See accompanying notes to financial statements.

26

SCHEDULE OF INVESTMENTS

Dunham Monthly Distribution Fund (Continued)

October 31, 2017

Security					Shares			Value
WARRANTS - 0.0%
BORQS Technologies, Inc. *						105,552		$	21,111
TOTAL WARRANTS (Cost - $8,254)
CLOSED-END FUND - 5.3%
Altaba, Inc. *						218,302			15,307,336
TOTAL CLOSED-END FUND (Cost - $12,211,959)
	Counterparty	Contracts**	Notional Amount		Exercise Price		Expiration Date		Value
PURCHASED CALL OPTION - 0.0%
Health Care Select Sector SPDR	JP Morgan	2,290	$	18,574,190	$	85.00	12/15/2017	$	43,510
TOTAL PURCHASED CALL OPTION (Cost - $122,135)
PURCHASED PUT OPTIONS - 0.1%
S&P 500 Index SPX	JP Morgan	90		23,177,340		2,565.00	11/17/2017		118,350
S&P 500 Index SPX	JP Morgan	115		29,615,490		2,480.00	12/15/2017		130,525
TOTAL PURCHASED PUT OPTIONS (Cost - $741,543)									248,875
							Interest
					Shares		Rate
SHORT-TERM INVESTMENT - 22.7%
MONEY MARKET FUND - 22.7%
Fidelity Investments Money Market Fund - Class I						65,396,990	0.92%  +		65,396,990
TOTAL SHORT-TERM INVESTMENT (Cost - $65,396,990)
COLLATERAL FOR SECURITIES LOANED - 3.1%
Mount Vernon Prime Portfolio (Cost - $8,948,907)						8,948,907	1.32%  +		8,948,907
TOTAL INVESTMENTS - 117.2% (Cost - $327,021,205)								$	337,506,822
LIABILITIES IN EXCESS OF OTHER ASSETS - (17.2)%									(49,541,614	)
NET ASSETS - 100.0%								$	287,965,208

* Non-Income producing security.

** Each Purchased Option contract allows the option holder to buy/sell 100 shares of the underlying security at the exercise price.

ADR- American Depositary Receipt.

REITS - Real Estate Investment Trusts

+ Variable rate security. Interest rate is as of October 31, 2017.

^ All or a portion of these securities are on loan. Total loaned securities had a value of $8,689,628 at October 31, 2017.

See accompanying notes to financial statements.

27

SCHEDULE OF INVESTMENTS

Dunham Monthly Distribution Fund (Continued)

October 31, 2017

Security	Counterparty	Contracts**	Notional Amount		Exercise Price		Expiration Date	Value
WRITTEN CALL OPTIONS - (0.5)%
Delphi Automotive PLC	JP Morgan	225	$	2,229,300	$	97.50	11/17/2017	$	76,500
Health Care Select Sector SPDR	JP Morgan	2,290		18,574,190		87.00	12/15/2017		11,450
Royal Caribbean Cruises Ltd.	JP Morgan	296		3,663,592		125.00	12/15/2017		130,240
S&P 500 Index SPX	JP Morgan	115		29,615,490		2,480.00	12/15/2017		1,194,275
WRITTEN CALL OPTIONS - (Premiums Received - $902,489)									1,412,465
							Shares
SECURITIES SOLD SHORT * - (25.9)%
AEROSPACE/DEFENSE - (0.6)%
United Technologies Corp.							15,033		1,800,352
AIRLINES - (0.1)%
American Airlines Group, Inc.							5,300		248,146
APPAREL - (0.2)%
NIKE, Inc.							10,159		558,643
AUTO MANUFACTURERS - (0.8)%
Tesla, Inc.							6,566		2,176,826
BUILDING MATERIALS - (0.8)%
Martin Marietta Materials, Inc.							4,354		944,165
Vulcan Materials Co.							12,101		1,473,297
									2,417,462
COSMETICS/PERSONAL CARE - (0.8)%		��
Procter & Gamble Co.							28,193		2,434,184
DISTRIBUTION/WHOLESALE - (0.5)%
WW Grainger, Inc.							7,023		1,388,447
DIVERSIFIED FINANCIAL SERVICES - (0.7)%
BlackRock, Inc.							4,243		1,997,732
ELECTRIC - (0.6)%
Vistra Energy Corp.							94,567		1,838,382
EQUITY EXCHANGE TRADED FUNDS - (10.6)%
Consumer Discretionary Select Sector SPDR Fund							69,366		6,380,978
Consumer Staples Select Sector SPDR Fund							146,949		7,801,522
Industrial Select Sector SPDR Fund							73,218		5,237,284
iShares Russell 2000 ETF							14,615		2,181,435
SPDR S&P Homebuilders ETF							36,621		1,514,645
Utilities Select Sector SPDR Fund							134,145		7,394,072
									30,509,936
ENGINEERING & CONSTRUCTION - (0.8)%
Jacobs Engineering Group, Inc.							39,731		2,312,742
HEALTHCARE-PRODUCTS - (1.3)%
Becton, Dickinson and Co.							17,559		3,664,037
HEALTHCARE-SERVICES - (1.0)%
HCA Healthcare, Inc.							38,939		2,945,735
INSURANCE - (1.0)%
American International Group, Inc.							42,962		2,775,775

See accompanying notes to financial statements.

28

SCHEDULE OF INVESTMENTS

Dunham Monthly Distribution Fund (Continued)

October 31, 2017

Security	Shares		Value
SECURITIES SOLD SHORT* - (25.9)% (Continued)
INTERNET - (5.9)%
Alibabe Group Holding Ltd.		78,740	$	14,558,239
Netflix, Inc.		12,031		2,363,249
				16,921,488
MEDIA - (0.1)%
Discovery Communications, Inc.		9,708		172,899
MISCELLANEOUS MANUFACTURING - (0.9)%
3M Co.		10,816		2,489,735
OIL & GAS - (3.1)%
EQT Corp.		90,141		5,637,418
Exxon Mobil Corp.		38,805		3,234,397
				8,871,815
REITS - (1.4)%
Simon Property Group, Inc.		9,179		1,425,774
SL Green Realty Corp.		27,934		2,672,725
				4,098,499
RETAIL - (1.0)%
Starbucks Corp.		52,045		2,854,148
SOFTWARE - (1.9)%
VMware, Inc.		46,997		5,625,071
TELECOMMUNICATIONS - (2.4)%
AT&T, Inc.		207,070		6,967,905
TOTAL SECURITIES SOLD SHORT - (Proceeds - $100,053,831)				105,069,959

Portfolio Composition * - (Unaudited)
Short-Term Investment	19.4	%	Exchange Traded Funds	4.6	%
Consumer, Non-Cyclical	13.4	%	Closed-end Funds	4.5	%
Technology	11.1	%	Financial	4.1	%
Communications	9.3	%	Utilities	3.4	%
Industrials	8.9	%	Collateral For Securities Loaned	2.7	%
Consumer, Cyclical	8.6	%	Diversified	0.1	%
Energy	5.1	%	Options	0.1	%
Basic Materials	4.7	%	Rights	0.0	%
			Warrants	0.0	%
				100.0	%

* Based on total value of investments as of October 31, 2017

Percentage may differ from Schedule of Investments which are based on Fund net assets.

** Each Written Option contract allows the option holder to buy/sell 100 shares of the underlying security at the exercise price.

REITS - Real Estate Investment Trusts

See accompanying notes to financial statements.

29

Dunham Dynamic Macro Fund (Unaudited)

Message from the Sub-Adviser (Mellon Capital Management Corporation)

Political events throughout the first half of the fiscal year were the main catalysts for market movements and investor sentiment. The Trump and republican victory dominated headlines to begin the fiscal year, which prompted a reflation trend that translated across many different asset classes. Equities reacted positively. The bounce in inflation expectations pushed bond yields up over the first fiscal three-month period, especially in the non-quantitative easing countries such as the United States, Canada, and Australia. The bond yields in countries currently in quantitative easing programs, such as the U.K. and Germany also rose, albeit not as much. Additional optimism was built into equity markets, as investors believed that the newly-elected president could push his policies through the republican-dominated congress, specifically with respect to infrastructure spending, tax cuts, deregulation of the finance industry, and repatriation of profits. Optimism was tempered slightly later in the fiscal year as President Trump experienced some political disappointments, including the failure to successfully bring the healthcare bill to the floor, roadblocks regarding immigration reform, and the perceived slowing in momentum for tax reform. Increasing tensions between the United States and North Korea also weighed on investors. Overseas, Dutch and French elections loomed. As the elections moved against the populist movement, markets rallied.

Despite political concerns and geopolitical tensions, markets built off of the coordinated global economic momentum. The International Monetary Fund (IMF) upgraded their 2017 growth outlook to 3.6 percent in 2017 and 3.7 percent in 2018. The IMF specifically noted that it is a broad based pick up with sizeable increases in global investment, trade, and industrial production. Over the most recent fiscal year, international equities, as measured by the MSCI ACWI ex US Index, increased 23.6 percent, in line with US equities, as measured by the S&P 500 Index, which increased 23.6 percent. Global macro strategies, as measured by the IQ Hedge Global Macro Beta Index, increased 3.0 percent over the most recent fiscal year ended October 31, 2017.

The Sub-Adviser seeks to construct a balanced growth portfolio that aims to deliver equity-like total returns with less risk and improved downside control. It attempts to achieve this goal by utilizing a multi-asset strategy that allocates dynamically across global equities, bonds, and real assets. The current strategy’s exposure is broken down into three different categories: growth assets, which include developed market equities, emerging market equities, high-yield bonds, and emerging market debt; hedging assets, which include developed and emerging market currency, cash, global investment-grade bonds, and global developed and sovereign bonds; and real assets, which include global commodities, global inflation-linked bonds, and inflation-sensitive derivatives.

The hedging asset exposure slightly detracted relatively from Fund performance during the most recent fiscal quarter ended October 31, 2017. U.S. Treasuries got hit early in the fiscal year following the U.S. presidential election. The Sub-Adviser believed the move in yields over that period was overly optimistic and shortly thereafter yields normalized. Since that time U.S. Treasuries have rallied, positively contributing to Fund performance. In contrast, the short position to German Bunds contributed early in the fiscal year but detracted since that time as yields in Germany fell. Another position that contributed to Fund performance was the long position in Canadian bonds. The Sub-Adviser identified a significant divergence in Canadian bond yields relative to the other bonds in the portfolio. That divergence influenced how the Sub-Adviser repositioned the Fund’s exposure over the third fiscal quarter. With the rise in yields, the Sub-Adviser purchased Canadian bonds, increasing the allocation to approximately 18 percent. Canada displayed some macro-economic strength. The Bank of Canada began to tighten monetary policy, which made their yields more attractive. The Sub-Adviser is cognizant that there is a limit to how much those yields can rise due to the current economic environment. The Fund’s addition of Canadian bonds was funded by a sale of Australian government bonds and the short position in German Bunds. Additionally, as equities rallied, the downside option protection within the hedging asset exposure also detracted over the most recent fiscal quarter.

The growth asset strategy exposure contributed positively to Fund performance over the most recent fiscal year. The U.S. equity exposure contributed positively over the most recent fiscal quarter, as the SPDR S&P 500 ETF Trust (SPY) (holding percentage*: 24.17 percent) increased 23.4 percent. The Fund also received positive contributions to performance from overseas. The best performing equity allocation over the most recent fiscal year was the Fund’s allocation to Japan, which represented the Fund’s largest overweight. The iShares Currency Hedged MSCI Japan ETF (HEWJ) (holding percentage*: 8.80 percent) climbed 29.2 percent over the most recent fiscal year. High-yield bonds also contributed to absolute performance over the most recent fiscal quarter. The SPDR Bloomberg Barclays High Yield Bond ETF (JNK) (holding percentage*: 4.78) increased 8.7 percent. Although the exposure to high-yield bonds provided a small positive return in the most recent fiscal quarter, the performance of this holding has provided a coveted risk/return profile over longer time-periods. In the last 12 months, this position provided over 8 percent return with a volatility, as measured by standard deviation, of nearly 2 percent. Based on the risk present in emerging markets, the Sub-Adviser has elected not to allocate to emerging market equities and has not been invested in them since August 2015.

The Sub-Adviser has been completely divested out of real assets since mid-2015, as it believes the current risk/reward characteristics of this strategy do not warrant a place in the Fund at this time. Although the Sub-Adviser believes that positions in commodities do not currently warrant an allocation due to its risks, certain attributes that this strategy generally provides are still desired within the Fund. The Sub-Adviser believes that commodities are currently too expensive; therefore, in order to add a hedge against inflation, the Sub-Adviser added Treasury Inflation-Protected Securities to the portfolio. Over the most recent fiscal year ended October 31, 2017, this allocation detracted on a relative basis from Fund performance. For example, the iShares TIPS ETF (TIP) (holding percentage*: 4.76 percent) declined 0.3 percent over the fiscal year. Due to the Fund’s dynamic nature, the Sub-Adviser’s view on real assets can change quickly.

The Sub-Adviser is optimistic for the coming fiscal quarter and the upcoming fiscal year. The Sub-Adviser believes that this volatility-targeted strategy may provide investors with more consistent returns than traditional asset classes. It believes that through the flexibility of the strategy and the use of alternative investments, the Fund may provide what may be considered to be attractive returns with lower beta and less correlation than traditional equity investments.

* Holdings percentage(s) as of 10/31/2017.

Growth of $100,000 Investment

Total Returns as of October 31, 2017
		Annualized		Annualized Since
	One	Three	Annualized	Inception
	Year	Years	Five Years	(4/30/2010)
Class N	6.49%	1.80%	1.60%	1.75%
Class C	5.41%	0.76%	0.56%	0.74%
Class A with load of 5.75%	0.10%	(0.49)%	0.11%	0.67%
Class A without load	6.19%	1.49%	1.31%	1.47%
IQ Hedge Global Macro Beta Index	1.27%	0.04%	(0.36)%	1.50%
Morningstar Multialternative Category	5.43%	1.03%	1.63%	1.62%

The IQ Hedge Global Macro Beta Index seeks to replicate the risk-adjusted return characteristics of the collective hedge funds using a global macro 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 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 underlying funds, are 1.78% for Class N, 2.78% for Class C and 2.03% 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.

30

SCHEDULE OF INVESTMENTS

Dunham Dynamic Macro Fund

October 31, 2017

Security							Shares	Value
EXCHANGE TRADED FUNDS - 48.4%
DEBT EXCHANGE TRADED FUNDS - 9.6%
iShares TIPS Bond ETF ^							18,558	$	2,111,900
SPDR Bloomberg Barclays High Yield Bond ETF ^							56,864		2,117,615
									4,229,515
EQUITY EXCHANGE TRADED FUNDS - 38.8%
iShares Currency Hedged MSCI Germany ETF							87,865		2,589,382
iShares Currency Hedged MSCI Japan ETF							118,751		3,895,033
SPDR S&P 500 ETF Trust							41,679		10,717,755
									17,202,170
TOTAL EXCHANGE TRADED FUNDS (Cost - $16,807,480)									21,431,685
	Counter Party	Contacts +	Notional		Expiration		Price
OPTIONS * - 5.4%
CALL OPTION ON FUTURES PURCHASED - 5.3%
Swiss Market Index	Goldman Sachs	50		1,410,495	12/18/2017		CHF 9,012		14,150
Swiss Market Index	Goldman Sachs	50		1,385,150	12/18/2017		CHF 9,018		13,896
Swiss Market Index	Goldman Sachs	10		145,512	12/18/2017		CHF 9,195		1,460
Swiss Market Index	Goldman Sachs	60		687,354	12/18/2017		CHF 9,245		6,896
US 10 Year Future	Goldman Sachs	234		232,549	11/27/2017		US $115		2,325,375
									2,361,777
PUT OPTIONS ON FUTURES PURCHASED - 0.1%
Euro-Bund Option (a)	Goldman Sachs	30		36,750	3/19/2018		EUR $175		(9,436	)
S&P 500 E-Mini Option	Goldman Sachs	61		27,145	6/16/2018		US $1,950		13,573
S&P 500 E-Mini Option	Goldman Sachs	61		75,488	11/27/2017		US $1,975		37,744
									41,881
TOTAL OPTIONS (Cost - $2,867,821)									2,403,658
		Principal			Discount
		Amount ($)			Rate		Maturity
SHORT-TERM INVESTMENTS - 46.0%
U.S. GOVERNMENT SECURITIES - 32.2%
US Treasury Bill ++		1,765,000			0.0994%		12/7/2017		1,763,123
US Treasury Bill		12,513,000			0.1155%		12/14/2017		12,498,353
									14,261,476
MONEY MARKET - 13.8%		Shares			Interest Rate
Morgan Stanley Institutional Liquidity Fund		6,130,387			0.4000%	^^			6,130,387
TOTAL SHORT-TERM INVESTMENTS - (Cost - $20,391,863)									20,391,863
COLLATERAL FOR SECURITIES LOANED - 7.2%
Mount Vernon Prime Portfolio (Cost - $3,202,272)		3,202,272							3,202,272
TOTAL INVESTMENTS - 107.0% (Cost - $43,269,436)								$	47,429,478
LIABILITIES IN EXCESS OF OTHER ASSETS - (7.0)%									(3,132,538	)
NET ASSETS - 100.0%								$	44,296,940
								Unrealized
								Appreciation
Open Futures Contracts	Counter Party	Contracts	Notional		Expiration			(Depreciation)
LONG FUTURES CONTRACTS ** -0.8%
Amsterdam Index Future	Goldman Sachs	4		514,550	12/15/2017			$	2,794
AUST 10 YR Bond Future	Goldman Sachs	106	$	10,314,860	12/15/2017				(4,025	)
CAC 40 10 Euro Future	Goldman Sachs	17		935,225	11/17/2017				22,376
CAN 10 YR Bond Future	Goldman Sachs	62		8,520,660	12/18/2017				(18,064	)
FTSE 100 Index Future	Goldman Sachs	51		3,808,425	12/15/2018				46,077

See accompanying notes to financial statements.

31

SCHEDULE OF INVESTMENTS

Dunham Dynamic Macro Fund (Continued)

October 31, 2017

							Unrealized Appreciation
Open Futures Contracts	Counter Party	Contracts +	Notional		Expiration		(Depreciation)
LONG FUTURES CONTRACTS ** - 0.8% (Continued)
FTSE 100 Index Future	Goldman Sachs	6	$	683,200	12/15/2017		$	23,198
Hang Seng Index Future	Goldman Sachs	2		2,820,000	11/29/2017			(398	)
IBEX - 35 Index Future	Goldman Sachs	17		1,792,718	11/17/2017			80,994
S&P/TSX 60 IX Future	Goldman Sachs	2		378,240	12/14/2017			19,489
TOPIX Index Future	Goldman Sachs	13		229,190,000	12/7/2017			193,142
10- Year US Treasury Note Future	Goldman Sachs	4		499,750	12/19/2017			1,115
TOTAL FUTURES CONTRACTS PURCHASED								366,698
SHORT FUTURES CONTRACTS ** - (0.3)%
Amsterdam index Future	Goldman Sachs	(4)		441,320	11/17/2017			(8,470	)
Dax Index Future	Goldman Sachs	(1)		330,550	12/15/2017			(20,730	)
Euro-Bond Future	Goldman Sachs	(40)		6,510,000	12/7/2017			(29,761	)
Long Gilt Future	Goldman Sachs	(64)		7,957,120	12/27/2017			207,535
SPI 200 Future	Goldman Sachs	(4)		588,800	12/21/2017			(1,291	)
TOTAL FUTURES CONTRACTS SOLD								147,283
WRITTEN PUT FUTURE OPTIONS *- 0.0%						Exercise Price		Value
Swiss Market Index	Goldman Sachs	(50)		299,395	12/16/2017	CHF 9,012		3,004
Swiss Market Index	Goldman Sachs	(50)		304,990	12/18/2017	CHF 9,018		3,060
Swiss Market Index	Goldman Sachs	(10)		106,565	12/18/2017	CHF 9,195		1,069
								7,133
WRITTEN CALL FUTURE OPTIONS *- 0.1%
S&P 500 E-Mini Option	Goldman Sachs	(121)		29,343	11/20/2017	USD 2,610		14,671
Swiss Market Index	Goldman Sachs	(60)		756,858	12/18/2017	CHF 9,245		7,593
								22,264
TOTAL WRITTEN FUTURE OPTIONS - (Premium - $44,405)								29,397

CHF - Swiss Franc

ETF - Exchange Traded Fund

* Non income producing security.

+ Each option contract allows holder to purchase/sell 100 shares of the underlying security at the exercise price.

++ All or part of the security was held as collateral for futures outstanding as of October 31, 2017.

^ All or a portion of these securities are on loan. Total loaned securities had a value of $3,136,852.

^^ Variable rate security. Interest rate is as of October 31, 2017.

** The amounts shown are the underlying reference notional amounts to stock exchange indices, debt securities and equities upon which the fair value of the futures contracts held by the Fund are based. Notional values do not represent the current fair value of, and are not necessarily indicative of the future cash flows futures contracts. Further, the underlying price changes in relation to the variables specified by the notional values affects the fair value of these derivative financial instruments. The notional values as set forth within this schedule do not purport to represent economic value at risk to the Fund.

(a) Option has no cost associated with it.

See accompanying notes to financial statements.

32

Dunham High-Yield Bond Fund (Unaudited)

Message from the Sub-Adviser (PineBridge Investments LLC)

High-yield bonds, as measured by the BofA ML US Cash Pay High Yield Index, outperformed investment-grade corporate bonds, as measured by the BofA ML US Corporate Index, and Treasury bonds, as measured by the BofA ML US Treasury Index, during the most recent fiscal quarter. In the three-month period ended October 31, 2017, high-yield bonds rose 1.3 percent, investment-grade corporate bonds increased 1.0 percent, while Treasury bonds increased only 0.1 percent. This outperformance of high-yield bonds extended its gains for the fiscal year to over 9.1 percent versus 3.5 percent for investment-grade corporate bonds and a decline of 0.6 percent for Treasury bonds. Since the start of the fiscal year, the Fed increased the Fed Funds rate three times for a total increase of 0.75 percent, with guidance that more increases would be on the way.

High-yield spreads resumed their tightening trend in the final months of the fiscal year amid a sharp climb in oil prices, a relatively stable backdrop for Treasury rates and another record high in equity markets. However, investor concerns over political discord in Washington, terrorist attacks in Spain, and an emboldened North Korea combined amid dwindling August trading volumes to take Treasury rates lower and spreads wider in most fixed income securities. This trajectory reversed course again in September as high-yield securities generally benefitted from optimism surrounding the release of a plan for U.S. tax reform, a firmer backdrop for oil prices and energy-related bonds, and fresh record highs in the U.S. equity markets. The primary market remained active with gross new issuance totaling $79.8 billion during the third calendar quarter. However, this net new volume lagged the pace that investors experienced this time last year.

The Sub-Adviser’s approach to high-yield is generally focused on single-B and higher-rated debt, and has limited exposure to triple-C rated bonds. High-yield bonds rated double-B and single-B, as measured by the Barclays U.S. Corporate High-Yield Ba/B 2% Issuer Capped Index, experienced a one basis point increase in yields from beginning to end of the most recent fiscal quarter. Yield levels are within 32 basis points of the 5-year low yield of 4.34 percent set in May 2013. During the fiscal year, the yield on these higher-rated high-yield bonds declined 64 basis points. Although meaningful, this decline is less than one-third of the 209 basis point decline in yields experienced within the bonds rated below single-B.

The Fund generally benefitted from security selection while sector selection served as a slight contributor for the period. From a sector selection standpoint, the Fund benefitted from an overweight allocation to energy names and underweight allocations to communications and consumer non-cyclical names. For example, within the energy sector the Fund held DCP Midstream LLC (23311RAH9) (holding percentage*: 0.71 percent), one of the largest natural gas gatherers and transporters in North America. During the most recent fiscal quarter, the DCO Midstream LLC 5.85 percent bond maturing in 2043 experienced a price increase of 2.0 percent. This brought its performance over the fiscal year to 18.7 percent, after combining the 11.8 percent price increase over the 12-month period with the yield of the 5.85 percent coupon.

Although the Fund was underweight the communications sector, some of the Fund’s largest positions were in the communications space. For example, the Fund continued to hold the Sprint Corp. 7.875 percent bond maturing in 2023 (85207UAF2) (holding percentage*: 0.96 percent). Sprint is currently the fourth largest wireless carrier in the United States, and during the final fiscal quarter, the Sprint Corp. bond experienced a price decline of 1.5 percent, which was more than offset by the 7.875 percent coupon. This same bond was held in the Fund during the entire fiscal year, and saw its price appreciate 12.9 percent in addition to its yield, making it one of the Fund’s strongest performing holdings for the 12-month period. The largest bond holding in the Fund at the end of the fiscal year was the SFR Group SA 7.375 percent bond maturing in 2026 (67054KAA7) (holding percentage*: 1.52 percent), a French cable and fiber optic service provider for both businesses and end-consumers. During the final months of the fiscal year, the SFR Group SA bond experienced a price decline of 0.7 percent, but the 7.375 percent coupon offset the decline to make this another positive performer.

The Sub-Adviser believes that the trend in earnings results indicates that fundamentals remain stable-to-improving and is optimistic that it will continue for the remainder of 2017. It also believes that leverage metrics are near longer-term averages with an improving trend, though momentum is slowing. The Sub-Adviser also views option-adjusted spreads as ranging from the tight to midpoint of fair value, but remains concerned about high-yield bonds’ historical higher correlation during equity drawdowns. While current valuations are tight relative to longer-term historical averages, the fundamental backdrop continues to provide encouragement for the Sub-Adviser and it expects the default environment to remain benign.

* Holdings percentage(s) as of 10/31/2017

Growth of $100,000 Investment

Total Returns as of October 31, 2017
		Annualized	Annualized	Annualized	Annualized Since
	One Year	Three Years	Five Years	Ten Years	Inception(7/1/05)
Class N	8.19%	3.90%	4.30%	5.51%	5.39%
Class C	7.45%	3.12%	3.53%	4.73%	4.61%
Class A with load of 4.50%	2.91%	2.06%	3.07%	4.75%	4.46%*
Class A without load	7.82%	3.64%	4.02%	5.23%	4.90%*
BofA ML BB-B U.S. Non-Distressed HY Index	5.87%	4.78%	5.62%	6.35%	6.45%
Barclays U.S. Corporate High-Yield Bond	7.94%	4.93%	5.31%	7.02%	6.91%
Ba/B 2% Issuer Capped Index
Morningstar High-Yield Bond Category	7.84%	4.07%	4.98%	5.73%	5.91%

* Class A commenced operations on January 3, 2007.

BofA ML BB-B 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.

Barclays U.S. Corporate High-Yield Bond Ba/B 2% Issuer Capped Index is an issuer-constrained version of the flagship US Corporate High Yield Index, which measures the USD-denominated, high yield, fixed-rate corporate bond market.

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 1.09% for Class N, 1.84% for Class C and 1.34% 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

33

SCHEDULE OF INVESTMENTS

Dunham High-Yield Bond Fund

October 31, 2017

	Principal		Interest			Maturity
Security	Amount		Rate			Date	Value
BONDS & NOTES - 94.9%
AEROSPACE/DEFENSE - 1.2%
Orbital ATK, Inc.	$	470,000		5.500	%	10/1/2023	$	502,606
Triumph Group, Inc. ^		725,000		4.875		4/1/2021		721,375
UAL 2007-1 Pass Through Trust		266,212		6.636		7/2/2022		290,171
								1,514,152
AUTO MANUFACTURERS - 0.8%
JB Poindexter & Co., Inc. - 144A		885,000		9.000		4/1/2022		928,144
AUTO PARTS & EQUIPMENT - 0.6%
Delphi Technologies PLC - 144A		765,000		5.000		10/1/2025		772,650
BUILDING MATERIALS - 1.1%
Boise Cascade Co. - 144A		825,000		5.625		9/1/2024		862,125
Standard Industries, Inc. - 144A		500,000		5.000		2/15/2027		522,350
								1,384,475
CHEMICALS - 2.3%
Consolidated Energy - 144A		685,000		6.875		6/15/2025		726,100
Hexion, Inc.		650,000		6.625		4/15/2020		581,750
Nova Chemicals Corp. - 144A		900,000		5.000		5/1/2025		918,000
Trinseo - 144A		580,000		5.375		9/1/2025		611,900
								2,837,750
COAL - 0.6%
SunCoke Energy Partners LP - 144A		735,000		7.500		6/15/2025		773,588
COMMERCIAL SERVICES - 3.0%
Cimpress NV - 144A		1,350,000		7.000		4/1/2022		1,412,437
Great Lakes Dredge & Dock Corp.		725,000		8.000		5/15/2022		764,875
Herc Rentals, Inc. - 144A		459,000		7.500		6/1/2022		499,071
Herc Rentals, Inc. - 144A ^		89,000		7.750		6/1/2024		98,123
KAR Auction Services, Inc. - 144A		350,000		5.125		6/1/2025		363,125
United Rentals North America, Inc. ^		610,000		4.875		1/15/2028		614,575
								3,752,206
COMPUTERS - 3.2%
Dell Int LLC/EMC Corp. - 144A		110,000		7.125		6/15/2024		121,459
Dell Int LLC/EMC Corp. - 144A		1,105,000		8.100		7/15/2036		1,405,009
Harland Clarke Holdings Corp. - 144A		800,000		9.250		3/1/2021		818,000
Harland Clarke Holdings Corp. - 144A		650,000		8.375		8/15/2022		684,125
Seagate HDD Cayman		990,000		4.875		6/1/2027		968,141
								3,996,734
COSMETICS/PERSONAL CARE - 0.5%
First Quality Finance Co., Inc. - 144A		600,000		5.000		7/1/2025		618,414
DISTRIBUTION/WHOLESALE - 0.4%
H&E Equipment Services, Inc. - 144A		495,000		5.625		9/1/2025		524,081
DIVERSIFIED FINANCIAL SERVICES - 6.2%
Alliance Data Systems Corp. - 144A		775,000		5.875		11/1/2021		804,063
Ally Financial, Inc. ^		570,000		5.750		11/20/2025		631,275
Credit Acceptance Corp.		487,000		7.375		3/15/2023		513,785
Drawbridge Special Opportunities Fund LP - 144A		975,000		5.000		8/1/2021		1,004,436
Enova International, Inc.		81,000		9.750		6/1/2021		86,670
Enova International, Inc. - 144A		960,000		8.500		9/1/2024		981,600
goeasy Ltd.		399,000		7.875		11/1/2022		410,244
LPL Holdings, Inc. - 144A		775,000		5.750		9/15/2025		807,938
Navient Corp.		700,000		5.625		8/1/2033		607,250
Quicken Loans, Inc. - 144A		875,000		5.750		5/1/2025		931,875
Springleaf Finance Corp. ^		775,000		6.125		5/15/2022		819,562
								7,598,698

See accompanying notes to financial statements.

34

SCHEDULE OF INVESTMENTS

Dunham High-Yield Bond Fund (Continued)

October 31, 2017

	Principal		Interest			Maturity
Security	Amount		Rate			Date	Value
BONDS & NOTES - 94.9% (Continued)
ELECTRIC - 1.1%
Calpine Corp. - 144A	$	500,000		5.250	%	6/1/2026	$	503,125
NextEra Energy Services - 144A		478,000		4.250		9/15/2024		483,975
NextEra Energy Services - 144A		307,000		4.500		9/15/2027		309,686
								1,296,786
ELECTRICAL COMPONENTS & EQUIPMENT - 0.7%
EnerSys - 144A		825,000		5.000		4/30/2023		868,312
ELECTRONICS - 1.1%
Ingram Micro, Inc.		600,000		5.450		12/15/2024		614,188
TTM Technologies, Inc. - 144A		750,000		5.625		10/1/2025		766,875
								1,381,063
ENERGY - 0.8%
Pattern Energy Group, Inc. - 144A		925,000		5.875		2/1/2024		987,438
ENGINEERING & CONSTRUCTION - 1.3%
Tutor Perini Corp. - 144A ^		750,000		6.875		5/1/2025		810,938
Weekley Homes LLC		800,000		6.000		2/1/2023		788,000
								1,598,938
ENTERTAINMENT - 2.4%
GLP Capital LP		450,000		5.375		4/15/2026		488,250
International Game Technology PLC - 144A		455,000		6.500		2/15/2025		513,012
Mohegan Tribal Gaming Authority - 144A ^		575,000		7.875		10/15/2024		614,531
Scientific Games International, Inc.		550,000		10.000		12/1/2022		610,462
Six Flags Entertainment Corp. - 144A		700,000		4.875		7/31/2024		721,875
								2,948,130
ENVIRONMENTAL CONTROL - 0.2%
Wranger Buyer Corp. - 144A		266,000		6.000		10/1/2025		273,315
FOOD - 2.0%
Albertsons Cos. LLC		835,000		5.750		3/15/2025		738,975
C&S Group Enterprises LLC - 144A		445,000		5.375		7/15/2022		433,875
Land O’Lakes Cap Trust - 144A		535,000		7.450		3/15/2028		628,625
Pilgrim’s Pride Corp. - 144A		605,000		5.875		9/30/2027		630,713
								2,432,188
FOREST PRODUCTS & PAPER - 0.8%
Cascades, Inc. - 144A		750,000		5.500		7/15/2022		776,250
Cascades, Inc. - 144A		200,000		5.750		7/15/2023		211,000
								987,250
HEALTHCARE-SERVICES - 3.7%
Centene Escrow Corp.		395,000		6.125		2/15/2024		425,613
CHS/Community Health Systems, Inc.		535,000		5.125		8/1/2021		521,625
CHS/Community Health Systems, Inc.		394,000		6.250		3/31/2023		380,703
DaVita, Inc.		485,000		5.125		7/15/2024		487,122
HCA Corp.		535,000		7.500		11/15/2095		550,354
HCA, Inc. ^		650,000		7.500		2/15/2022		739,375
HCA, Inc.		300,000		5.250		6/15/2026		319,875
Tenet Healthcare Corp.		575,000		6.000		10/1/2020		605,906
Tenet Healthcare Corp. ^		525,000		6.750		6/15/2023		494,812
								4,525,385
HOME BUILDERS - 1.2%
Lennar Corp.		385,000		4.500		4/30/2024		397,512
Mattamy Group Corp. - 144A ^		743,000		6.500		10/1/2025		778,292
Meritage Homes Corp.		300,000		7.000		4/1/2022		343,500
								1,519,304

See accompanying notes to financial statements.

35

SCHEDULE OF INVESTMENTS

Dunham High-Yield Bond Fund (Continued)

October 31, 2017

	Principal		Interest			Maturity
Security	Amount		Rate			Date	Value
BONDS & NOTES - 94.9% (Continued)
INTERNET - 1.5%
Cogent Communications Group, Inc. - 144A ^	$	700,000		5.375	%	3/1/2022	$	742,875
Netflix, Inc. ^		650,000		5.875		2/15/2025		703,365
Zayo Group LLC		375,000		6.375		5/15/2025		405,041
								1,851,281
IRON/STEEL - 0.7%
ArcelorMittal		750,000		6.125		6/1/2025		868,852
LEISURE TIME - 1.2%
Sabre GLBL, Inc. - 144A		675,000		5.375		4/15/2023		711,342
Silversea Cruise Finance Ltd. - 144A		700,000		7.250		2/1/2025		754,250
								1,465,592
LODGING - 1.4%
Caesars Growth Properties Holdings LLC		450,000		9.375		5/1/2022		485,100
Hilton Grand Vacations LLC - 144A		551,000		6.125		12/1/2024		606,789
Wyndham Worldwide Corp.		565,000		4.500		4/1/2027		578,206
								1,670,095
MACHINERY - 0.4%
Terex Corp. - 144A		433,000		5.625		2/1/2025		459,521
MEDIA - 9.4%
Altice Financing SA - 144A		1,200,000		7.500		5/15/2026		1,318,500
Altice Luxembourg SA - 144A		950,000		7.625		2/15/2025		1,034,313
Belo Corp.		626,000		7.750		6/1/2027		715,205
Block Communications, Inc. - 144A ^		695,000		6.875		2/15/2025		754,075
CCO Holdings LLC - 144A ^		940,000		5.000		2/1/2028		937,650
Clear Channel Worldwide Holdings, Inc.		780,000		6.500		11/15/2022		811,200
CSC Holdings LLC - 144A ^		915,000		5.500		4/15/2027		944,738
DISH DBS Corp.		755,000		7.750		7/1/2026		828,612
McGraw-Hill Global Education Holdings LLC - 144A ^		600,000		7.875		5/15/2024		606,000
SFR Group SA - 144A		1,725,000		7.375		5/1/2026		1,860,844
Sirius XM Radio, Inc. - 144A		730,000		5.375		7/15/2026		771,062
UPCB Finance IV Ltd. - 144A		350,000		5.375		1/15/2025		359,625
Ziggo Secured Finance BV - 144A		700,000		5.500		1/15/2027		715,750
								11,657,574
METAL FABRICATE - 1.3%
Grinding Media, Inc. - 144A		750,000		7.375		12/15/2023		817,500
Novelis Corp. - 144A		725,000		5.875		9/30/2026		749,012
								1,566,512
MINING - 2.6%
Coeur Mining, Inc.		710,000		5.875		6/1/2024		712,663
First Quantum Minerals Ltd. - 144A		900,000		7.250		4/1/2023		954,000
FMG Resources (August 2006) Pty Ltd. - 144A ^		800,000		4.750		5/15/2022		819,000
Hudbay Minerals, Inc. - 144A		560,000		7.625		1/15/2025		620,200
Northwest Acquisitions LLC - 144A		94,000		7.125		11/1/2022		97,290
								3,203,153

See accompanying notes to financial statements.

36

SCHEDULE OF INVESTMENTS

Dunham High-Yield Bond Fund (Continued)

October 31, 2017

	Variable	Principal		Interest			Maturity
Security	Rate	Amount		Rate			Date	Value
BONDS & NOTES - 94.9% (Continued)
OIL & GAS - 8.9%
Antero Resources Corp.		$	490,000		5.375	%	11/1/2021	$	504,700
Antero Resources Corp.			240,000		5.125		12/1/2022		247,800
Carrizo Oil & Gas, Inc. ^			600,000		6.250		4/15/2023		613,500
Continental Resources, Inc.			400,000		5.000		9/15/2022		406,000
Continental Resources, Inc.			200,000		4.500		4/15/2023		203,000
Denbury Resources, Inc. - 144A			495,000		9.000		5/15/2021		486,338
EP Energy LLC - 144A ^			755,000		8.000		11/29/2024		773,875
Hilcorp Energy LP - 144A			960,000		5.000		12/1/2024		960,000
MEG Energy Corp. - 144A			1,050,000		6.375		1/30/2023		966,000
MEG Energy Corp. - 144A ^			750,000		6.500		1/15/2025		749,062
Murphy Oil USA, Inc.			129,000		5.625		5/1/2027		137,224
Newfield Exploration Co.			700,000		5.375		1/1/2026		747,250
Oasis Petroleum, Inc. ^			395,000		6.875		3/15/2022		406,850
PBF Holding Co. LLC - 144A			1,075,000		7.250		6/15/2025		1,113,969
QEP Resources, Inc.			600,000		5.375		10/1/2022		598,500
RSP Permian, Inc. - 144A #			600,000		5.250		1/15/2025		613,500
Sanchez Energy Corp. ^			710,000		6.125		1/15/2023		596,400
SM Energy Co.			125,000		5.625		6/1/2025		122,187
Southwestern Energy Co.			225,000		7.500		4/1/2026		233,719
WPX Energy, Inc. ^			520,000		6.000		1/15/2022		544,050
									11,023,924
OIL & GAS SERVICES - 2.1%
Bristow Group, Inc. ^			350,000		6.250		10/15/2022		251,563
Forum Energy Technologies			605,000		6.250		10/1/2021		606,512
KCA Deutag UK Finance PLC - 144A			700,000		9.875		4/1/2022		735,875
Trinidad Drilling Ltd. - 144A			675,000		6.625		2/15/2025		659,812
Weatherford Bermuda Holdings Ltd. ^			275,000		9.875		2/15/2024		295,625
									2,549,387
PACKAGING & CONTAINERS - 1.5%
Crown Cork & Seal Co., Inc.			500,000		7.375		12/15/2026		590,000
Multi-Color Corp. - 144A			600,000		4.875		11/1/2025		607,500
Owens-Brockway Glass Container, Inc. - 144A			550,000		5.375		1/15/2025		589,187
									1,786,687
PHARMACEUTICALS - 1.8%
Endo Finance LLC - 144A			550,000		5.375		1/15/2023		445,500
Endo Finance LLC - 144A			225,000		6.000		2/1/2025		180,000
Valeant Pharmaceuticals International, Inc. - 144A			690,000		5.875		5/15/2023		584,775
Valeant Pharmaceuticals International, Inc. - 144A ^			950,000		7.000		3/15/2024		1,030,750
									2,241,025
PIPELINES - 7.7%
Antero Midstream Partners LP			600,000		5.375		9/15/2024		627,000
Cheniere Corpus Christi Holdings LLC			1,200,000		7.000		6/30/2024		1,375,500
Cheniere Energy Partners - 144A			792,000		5.250		10/1/2025		817,740
DCP Midstream Operating LP - 144A +	LIBOR + 3.850%		915,000		5.850		5/21/2043		874,969
DCP Midstream Operating LP - 144A			570,000		6.450		11/3/2036		605,625
Energy Transfer Equity			620,000		4.250		3/15/2023		632,406
Genesis Energy LP ^			900,000		6.000		5/15/2023		906,750
Holly Energy Partners LP - 144A			760,000		6.000		8/1/2024		799,900
Rose Rock Midstream LP			700,000		5.625		7/15/2022		693,000
SemGroup Energy Partners LP - 144A ^			554,000		7.250		3/15/2026		566,465
Summit Midstream Holdings LLC ^			730,000		5.750		4/15/2025		748,250
Tallgrass Energy Partners LP - 144A			775,000		5.500		9/15/2024		805,031
									9,452,636

See accompanying notes to financial statements.

37

SCHEDULE OF INVESTMENTS

Dunham High-Yield Bond Fund (Continued)

October 31, 2017

	Principal		Interest			Maturity
Security	Amount		Rate			Date	Value
BONDS & NOTES - 94.9% (Continued)
REAL ESTATE - 1.4%
Kennedy-Wilson, Inc.	$	935,000		5.875	%	4/1/2024	$	971,231
Realogy Group LLC - 144A		755,000		4.875		6/1/2023		781,199
								1,752,430
REITS - 4.1%
CTR Partnership LP		775,000		5.250		6/1/2025		798,250
ESH Hospitality, Inc. - 144A		590,000		5.250		5/1/2025		611,388
GEO Group, Inc.		575,000		6.000		4/15/2026		603,750
Iron Mountain, Inc. - 144A ^		505,000		4.875		9/15/2027		513,994
iStar, Inc.		733,000		5.250		9/15/2022		753,157
iStar, Inc.		250,000		6.000		4/1/2022		260,625
MPT Operating Partnership LP		706,000		5.000		10/15/2027		727,180
Starwood Property Trust, Inc. ^		775,000		5.000		12/15/2021		813,750
								5,082,094
RETAIL - 3.4%
Brinker International, Inc. - 144A		850,000		5.000		10/1/2024		852,125
Conn’s, Inc. ^		608,000		7.250		7/15/2022		598,880
FirstCash, Inc. - 144A ^		350,000		5.375		6/1/2024		367,395
Golden Nugget, Inc. - 144A		650,000		8.750		10/1/2025		669,500
Lithia Motors, Inc. - 144A ^		583,000		5.250		8/1/2025		612,879
Staples, Inc. - 144A ^		1,280,000		8.500		9/15/2025		1,132,800
								4,233,579
SEMICONDUCTORS - 0.8%
NXP Funding LLC - 144A		500,000		4.625		6/1/2023		540,000
Sensata Technologies BV - 144A		434,000		4.875		10/15/2023		457,328
								997,328
SOFTWARE - 1.5%
Donnelley Financial Solutions, Inc. ^		1,225,000		8.250		10/15/2024		1,318,406
Nuance Communications, Inc. - 144A		475,000		5.625		12/15/2026		507,063
								1,825,469
TELECOMMUNICATIONS - 8.0%
C&W Senior Financing Designated Activity Co. - 144A		733,000		6.875		9/15/2027		767,818
CenturyLink, Inc.		610,000		5.800		3/15/2022		621,437
Embarq Corp.		600,000		7.995		6/1/2036		608,250
Hughes Satellite Systems		900,000		6.625		8/1/2026		951,750
Intelsat Jackson Holdings SA		800,000		5.500		8/1/2023		684,000
Intelsat Luxembourg SA		735,000		8.125		6/1/2023		449,728
Plantronics, Inc. - 144A		424,000		5.500		5/31/2023		443,080
Sprint Capital Corp. ^		555,000		6.875		11/15/2028		593,503
Sprint Corp.		463,000		7.250		9/15/2021		505,828
Sprint Corp.		1,055,000		7.875		9/15/2023		1,181,600
Sprint Corp. ^		1,130,000		7.125		6/15/2024		1,224,287
Telesat Canada - 144A ^		800,000		8.875		11/15/2024		898,000
US Cellular Corp.		97,000		6.700		12/15/2033		102,820
Viasat, Inc. - 144A		855,000		5.625		9/15/2025		868,894
								9,900,995
TOTAL BONDS & NOTES (Cost - $114,869,819)								117,107,135

See accompanying notes to financial statements.

38

SCHEDULE OF INVESTMENTS

Dunham High-Yield Bond Fund (Continued)

October 31, 2017

		Interest
Security	Shares	Rate			Value
SHORT-TERM INVESTMENT - 4.3%
MONEY MARKET FUND - 4.3%
First American Government Obligations Fund - Class Z, 0.90%	5,373,110		0.90	% +	$	5,373,110
TOTAL SHORT-TERM INVESTMENT (Cost - $5,373,110)
COLLATERAL FOR SECURITIES LOANED - 19.6%
Mount Vernon Prime Portfolio (Cost - $24,186,280)	24,186,280		1.32	% +		24,186,280
TOTAL INVESTMENTS - 118.8% (Cost - $144,429,209)					$	146,666,525
LIABILITIES IN EXCESS OF OTHER ASSETS - (18.8)%						(23,229,714	)
NET ASSETS - 100.0%					$	123,436,811

^ All or a portion of these securities are on loan. Total loaned securities had a value of $23,267,101 at October 31, 2017.

+ Variable rate security. Interest rate is as of October 31, 2017.

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. As of October 31, 2017 the total market value of 144A securities is $69,124,122 or 56.00% of net assets.

# - Exchanged coupon bond

LLC - Limited Liability Corporation

LP - Limited Partnership

REITS - Real Estate Investment Trusts.

Portfolio Composition ** - (Unaudited)
Collateral For Securities Loaned	16.5	%	Ba1	5.5	%
B1	15.4	%	Short-Term Investment	3.7	%
B3	15.0	%	Baa3	2.6	%
Ba3	13.6	%	Caa2	1.3	%
B2	10.1	%	Baa2	0.7	%
Ba2	8.3	%	Other	0.6	%
Caa1	6.4	%	Ca	0.3	%
			Total	100.0	%

** Based on total value of investments as of October 31, 2017. Bond Ratings provided by Moody’s Ratings.

Percentage may differ from Schedule of Investments which is based on Fund net assets.

See accompanying notes to financial statements.

39

Dunham Alternative Dividend Fund (Unaudited)

Message from the Sub-Adviser (Sungarden Fund Management, LLC)

The Sub-Adviser believes U.S stocks have surprisingly detached themselves from the theme that dividend stocks move in concert with broad market returns over the twelve-month period ending October 31, 2017. The Sub-Adviser points out that there is only two other times that the equity markets have acted in a similar manner, which were 1999 and 2007. Those two years preceded large downturns in the market. In addition, the Sub-Adviser continues to believe that the bond bull market appears to be finally ending, with interest rates poised to move higher in December and throughout 2018. According to the Sub-Adviser, the use of algorithms and ETFs has created an environment where markets backstop any 5 percent pullbacks. Those backstops keep market momentum moving forward and therefore the appeal of dividend stocks, which typically have more value in down markets, is not as strong overall. The Sub-Adviser believes in the next 4 to 16 months there may be greater volatility in the overall market, which may help investors see the value once again in dividend stocks. Conservative strategies, as measured by the Dow Jones Moderately Conservative Portfolio Index, gained 8.3 percent over the fiscal period ended October 31, 2017.

One of the goals of the Fund is downside protection. This goal can lower returns when the equity market is marching forward. The Fund also is an income and yield oriented portfolio which is achieved through equity dividends. Another goal of the Fund is to produce long-term growth. The Sub-Adviser’s investment process consists of investing in large capitalization common stocks and American Depositary Receipts (ADRs) that offer above-average dividend yields. The portfolio’s hedging portion is achieved using securities such as inverse exchange traded funds (ETFs), which aim to deliver performance opposite a major stock index (e.g., S&P 500); put options on indexes, ETFs, and individual securities; and cash.

The Sub-Adviser notes that the Fund was negatively impacted by the return of a large conglomerate company and one of its core telecommunications companies. General Electric Co. (GE) (holding percentage*: 3.35 percent), a worldwide infrastructure and technology company, had a 12-month dividend yield of 5.3 percent and experienced a 28.4 percent decline over the fiscal period. One of the Fund’s core telecommunications holding, AT&T (T) (holding percentage*: 3.72 percent) declined 3.9 percent over the fiscal period and paid out a 5.8 percent 12-month dividend yield. GE and Telecoms are a core holding for many dividend-oriented managers, and while the Fund’s allocation to these sectors was moderate during the period, they did detract from performance.

Holdings that contributed strongly to the upside included a pharmaceutical company and an automotive manufacturer. AbbVie Inc. (ABBV) (holding percentage*: 3.51 percent), the spinoff company of Abbott Laboratories that discovers, develops, manufactures, and sells pharmaceutical products worldwide, had a 12-month dividend yield of 2.7 percent and returned 67.8 percent for the fiscal year. General Motors Co. (GM) (holding percentage*: 1.95 percent) is an American multinational corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts worldwide. The company is being recognized for its potential market dominance in autonomous driving vehicles, contributing to its 41.9 percent return in the fiscal year while maintaining its 3.6 percent dividend yield.

The Sub-Adviser reduced positions on some of its core holdings throughout the year so that no more than 4 percent was allocated to one holding–the Sub-Adviser believes this will minimize volatility for the future. Core holdings are the stocks that the Fund expects to hold for the longest period of time, hopefully for years. They are businesses the Sub-Adviser believes have sustainable competitive advantages and whose financial condition will support their above-average dividend payments well into the future.

In addition to these core holdings, the Sub-Adviser took advantage of a low-volatility market environment to purchase positions in a variety of put and call options. Most of these are “defensive” in nature, such as the purchase of put options, in which the Fund spends a modest amount of capital to try to protect the portfolio from a large decline in the broad equity market, one of its component sectors, or individual stocks. A key theme in this portion of the portfolio is the focus the Sub-Adviser has taken on attempting to benefit from a rise in interest rates. There are many ways to accomplish this, including put purchases on ETFs representing the various segments of the bond market, as well as equity sectors that are considered interest rate sensitive. These include REITs, Utilities, Telecommunications and Energy stocks which also tend to be the sectors that dominate dividend stock investing.

The Sub-Adviser has also made modest use of call options to minimize capital outlay to pursue profits in certain market segments or individual companies. This is a strategy that is employed when the Sub-Adviser believes that reward potential in a specific security is high, but risk is as well. The purchase of a call or put option allows the Sub-Adviser to have more exposure to movements of the stock one way or another at a small fraction of the value of securities that option controls. This is one of many risk-management measures the Sub-Adviser employs.

The bottom-line for investors in the Fund is that the Sub-Adviser believes that current market conditions play right into the hands of flexible, market-agnostic investors. Furthermore, they believe that 2018 will usher in an era in which long-short, dividend-focused investing will be increasingly recognized for its value. The Sub-Adviser believes that there will be a reversion to the mean and low yielding stocks will not continue to outperform dividend yielding equities.

* Holdings percentage(s) as of 10/31/2017.

Growth of $100,000 Investment

Total Returns as of October 31, 2017
		Annualized Since
	One Year	Inception (8/31/2016)
Class N	0.99%	(1.18)%
Class C	(0.05)%	(2.12)%
Class A with load of 5.75%	(5.05)%	(6.21)%
Class A without load	0.78%	(1.35)%
Dow Jones Moderately Conservative Portfolio Index	8.23%	5.73%
Morningstar Long/Short Equity Category	11.14%	8.48%

The Dow Jones Moderately Conservative Portfolio Index is a member of the Relative Risk Index Series and designed to measure a total portfolio of stocks, bonds, and cash, allocated to represent an investor’s desired risk profile. The Dow Jones Moderately Conservative Portfolio Index risk level is set to 40% of the Dow Jones Global Stock CMAC Index’s downside risk (past 36 months).

The Morningstar Long/Short Equity Category is generally representative of long/short portfolios that hold at least 75% of their assets in equity securities that are both long and short positions and their related derivatives.

As disclosed in the Trust’s latest registration statement as supplemented,, the Fund’s total annual operating expenses, including the cost of underlying funds, are 1.72% for Class N, 2.72% for Class C and 1.97% 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.

40

SCHEDULE OF INVESTMENTS

Dunham Alternative Dividend Fund

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 77.0%
AGRICULTURE - 0.7%
Altria Group, Inc.		4,000	$	256,880
APPAREL - 0.7%
VF Corp. ^		3,500		243,775
AUTO MANUFACTURERS - 2.0%
General Motors Co.		17,300		743,554
CHEMICALS - 2.2%
LyondellBasell Industries NV		8,000		828,240
COMPUTERS - 2.1%
International Business Machines Corp.		5,200		801,112
DISTRIBUTION/WHOLESALE - 0.6%
Fastenal Co.		5,000		234,850
DIVERSIFIED FINANCIAL SERVICES - 1.0%
Alliance Data Systems Corp. ^		1,700		380,341
ELECTRIC - 7.6%
Duke Energy Corp.		4,000		353,240
Entergy Corp.		10,600		914,356
PPL Corp.		19,900		747,444
Southern Co.		15,500		809,100
				2,824,140
ELECTRICAL COMPONENTS & EQUIPMENT - 2.2%
Emerson Electric Co. ^		12,900		831,534
ELECTRONICS - 2.2%
Garmin Ltd. ^		14,500		820,845
HEALTHCARE PRODUCTS - 2.0%
Henry Schein, Inc. *		4,500		353,700
Zimmer Biomet Holdings, Inc.		3,100		377,022
				730,722
IRON/STEEL - 1.0%
United States Steel Corp. ^		15,000		379,800
LODGING - 4.0%
Las Vegas Sands Corp. ^		23,500		1,489,430
MINING - 2.0%
Compass Minerals International, Inc. ^		11,500		754,400
MISCELLANEOUS MANUFACTURING - 3.4%
General Electric Co.		63,200		1,274,112
OIL & GAS - 4.5%
BP PLC - ADR		5,000		203,350
Chevron Corp.		6,400		741,696
Schlumberger Ltd.		11,200		716,800
				1,661,846
PHARMACEUTICALS - 7.2%
AbbVie, Inc.		14,800		1,335,700
GlaxoSmithKline PLC - ADR ^		37,000		1,347,910
				2,683,610

See accompanying notes to financial statements.

41

SCHEDULE OF INVESTMENTS

Dunham Alternative Dividend Fund (Continued)

October 31, 2017

Security								Shares		Value
COMMON STOCKS - 77.0% (Continued)
REITS - 12.4%
EPR Properties ^									10,400	$	719,472
Host Hotels & Resorts, Inc. ^									85,000		1,662,600
Public Storage ^									3,700		766,825
Ventas, Inc.									23,700		1,487,175
											4,636,072
RETAIL - 4.0%
Dollar General Corp.									5,000		404,200
Kohl’s Corp.									16,700		697,392
L Brands, Inc. ^									8,700		374,448
											1,476,040
SEMICONDUCTORS - 4.4%
Intel Corp.									19,000		864,310
QUALCOMM, Inc.									15,000		765,150
											1,629,460
SOFTWARE - 1.0%
Veeva Systems, Inc. *									6,200		377,828
TELECOMMUNICATIONS - 9.8%
AT&T, Inc.									42,100		1,416,665
Cisco Systems, Inc.									22,000		751,300
Verizon Communications, Inc.									31,300		1,498,331
											3,666,296
TOTAL COMMON STOCKS (Cost - $28,328,436)											28,724,887
EXCHANGE TRADED FUNDS - 18.1%
DEBT EXCHANGE TRADED FUNDS - 2.8%
iShares 0-5 Year High Yield Corporate Bond ETF									11,000		524,810
SPDR Bloomberg Barclays Convertible Securities									10,000		517,900
TOTAL DEBT EXCHANGE TRADED FUNDS											1,042,710
EQUITY EXCHANGE TRADED FUNDS - 15.3%
Global SuperDividend US ETF									92,832		2,339,367
iShares China Large-Cap ETF ^									16,000		734,880
iShares International Select Dividend ETF									56,000		1,875,440
iShares Select Dividend ETF									8,000		758,000
TOTAL EQUITY EXCHANGE TRADED FUNDS											5,707,687
TOTAL EXCHANGE TRADED FUNDS (Cost - $6,616,744)											6,750,397
	Counterparty	Contracts**		Notional Amount		Exercise Price			Expiration Date	Value
PURCHASED OPTIONS * - 1.2%
PURCHASED PUT OPTIONS * - 1.1%
AbbVie, Inc.	Pershing		75	$	676,875	$	90.00		1/22/2018		28,875
AT&T, Inc.	Pershing		100		336,500		33.00		1/22/2018		9,900
Garmin Ltd.	Pershing		70		396,270		55.00		1/22/2018		11,480
General Electric Co.	Pershing		450		907,200		22.00		12/18/2017		93,600
General Motors Co.	Pershing		100		429,800		44.00		1/22/2018		25,000
iShares 20+ Year Treasury Bond	Pershing		50		622,300		123.00		12/18/2017		6,200
iShares 20+ Year Treasury Bond	Pershing		25		311,150		120.00		1/22/2018		2,225
iShares 20+ Year Treasury Bond	Pershing		25		311,150		117.00		3/19/2018		2,475

See accompanying notes to financial statements.

42

SCHEDULE OF INVESTMENTS

Dunham Alternative Dividend Fund (Continued)

October 31, 2017

Security	Counterparty	Contracts**	Notional Amount		Exercise Price		Expiration Date	Value
PURCHASED PUT OPTIONS * - 1.1% (Continued)
iShares iBoxx $ High Yield Corporate Bond	Pershing	50	$	442,350	$	83.00	12/18/2017	$	625
PowerShares DB US Dollar Index	Pershing	200		491,600		22.00	1/22/2018		200
PowerShares DB US Dollar Index	Pershing	200		491,600		23.00	1/22/2018		400
PowerShares DB US Dollar Index	Pershing	200		491,600		22.00	3/19/2018		700
PowerShares DB US Dollar Index	Pershing	200		491,600		23.00	3/19/2018		500
PowerShares QQQ Trust Series 1	Pershing	50		760,750		142.00	1/22/2018		6,600
PowerShares QQQ Trust Series 1	Pershing	100		1,521,500		142.00	3/19/2018		24,800
PowerShares QQQ Trust Series 1	Pershing	50		760,750		135.00	1/22/2019		26,750
S&P 500 Index SPX	Pershing	30		7,725,780		2,475.00	3/19/2018		114,150
S&P 500 Index SPX	Pershing	30		7,725,780		2,475.00	12/18/2017		32,550
Verizon Communications, Inc.	Pershing	200		957,400		47.00	1/22/2018		24,800
TOTAL PURCHASED PUT OPTIONS (Cost - $599,122)									411,830
PURCHASED CALL OPTIONS * - 0.1%
Cameco Corp.	Pershing	100		81,400		10.00	12/18/2017		2,000
Cameco Corp.	Pershing	200		162,800		9.00	1/22/2018		500
Technology Select Sector SPDR	Pershing	100		629,500		63.00	1/22/2018		15,300
Technology Select Sector SPDR	Pershing	100		629,500		65.00	1/22/2018		6,100
TOTAL PURCHASED CALL OPTIONS (Cost - $39,715)									23,900
TOTAL PURCHASED OPTIONS (Cost - $638,837)									435,730

			Interest
Security	Shares		Rate			Value
SHORT-TERM INVESTMENT - 5.8%
MONEY MARKET FUND - 5.8%
Invesco Short-Term Investments Trust Treasury Portfolio - Institutional Class		2,174,148		0.94	% +		2,174,148
TOTAL SHORT-TERM INVESTMENT (Cost - $2,174,148)
COLLATERAL FOR SECURITIES LOANED - 22.1%
Mount Vernon Prime Portfolio, 1.32% + (Cost - $8,225,547)		8,225,547		1.32	% +		8,225,547
TOTAL INVESTMENTS - 124.2% (Cost - $45,983,712)						$	46,310,709
LIABILITIES IN EXCESS OF OTHER ASSETS - (24.2)%							(9,021,315	)
NET ASSETS - 100.0%						$	37,289,394

* Non-Income producing security.

** Each Purchased Put Option and Call Option contract allows the Fund to sell/buy 100 shares of the underlying security at the exercise price.

+ Variable rate security. Interest rate is as of October 31, 2017

^ All of a portion of these securities are on loan. Total loaned securities had a value of $8,003,525 at October 31, 2017.

ADR- American Depositary Receipt.

PLC - Public Limited Company

REITS - Real Estate Investment Trusts

ETF - Exchange Traded Fund

Portfolio Composition * - (Unaudited)
Collateral for Securities Loaned	17.8	%	Technology	6.1	%
Exchange Traded Funds	14.5	%	Utilities	6.1	%
Financial	10.9	%	Short-Term Investment	4.7	%
Consumer, Cyclical	9.0	%	Basic Materials	4.2	%
Consumer, Non-cyclical	8.0	%	Energy	3.5	%
Communications	7.9	%	Purchased Options	0.9	%
Industrial	6.4	%	Total	100.0	%

^* Based on total value of investments as of October 31, 2017.

Percentage may differ from Schedule of Investments which is based on Fund net assets.

See accompanying notes to financial statements.

43

Dunham International Opportunity Bond Fund (Unaudited)

Message from the Sub-Adviser (Allianz Global Investors)

International bonds continued to see U.S. dollar movements relative to foreign currencies cause volatility in foreign bond markets. During the most recent fiscal quarter, international bonds, as measured by the Barclays Global Aggregate Ex-U.S. Bond Index, declined 1.0 percent after increasing 4.8 percent the previous fiscal quarter, and decreasing 2.5 percent over the first half of the fiscal year. Over the entire fiscal year, international bonds returned 1.3 percent. The most recent fiscal quarter’s loss was somewhat attributed to the movement of the U.S. dollar, as it appreciated 1.8 percent against a basket of major world currencies. Conversely, the previous fiscal quarter’s gain was primarily attributed to a substantial decline in the U.S. dollar. Global growth trends continued to gain momentum, with investors eyeing decisions from President Trump and the European Central Bank policies as potential risks to growth. Similar to the prior fiscal year, this fiscal year saw much of the performance and volatility in the foreign bond market explained by currency movements and changes in spreads, particularly affected by economic releases and central bank actions in the United States and emerging market countries.

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, risk management, bottom-up analysis, and implementation. Finally, the five return components are: country, currency, yield curve, duration, and spread/sector. The Sub-Adviser seeks to identify healthy countries by measuring the sustainability of public borrowing in the private sector as well as the effectiveness and credibility of that nation’s authorities.

During the first three fiscal quarters, the Sub-Adviser’s country selection detracted from Fund performance. While country selection underperformed, a core theme of the Sub-Adviser’s view on countries benefited the Fund through its relative exposure to Japan during the first fiscal quarter. The Sub-Adviser’s stance on Japan debt continued during the second fiscal quarter as the Fund held an underweight, which benefited performance. During the third fiscal quarter, the Sub-Adviser’s country selection detracted from Fund performance. A core theme of the Sub-Adviser’s view on countries that hindered the Fund was a steepening of the U.K. bonds yield curve. During the fourth fiscal quarter, the Sub-Adviser’s country selection, once again, benefited Fund performance. A core theme of the Sub-Adviser’s view on countries that aided the Fund was a steepening of the Japan yield curve. Having said that, a Japan bond that detracted from the Fund’s performance over the fourth fiscal quarter was a Japan Government Bond 20 Year Issue 1.70% 9/20/2033 (BF10LG6) (holding percentage*: 2.99 percent). The bond declined 0.3 percent in local currency terms during the fiscal year, from November 23, 2016, when the Sub-Adviser bought the bond, through the end of the fiscal year. Converting to U.S. dollars, the bond was down approximately 1.4 percent, as the yen’s value depreciated relative to the U.S. dollar over the fiscal year.

The Sub-Adviser’s active spread allocation contributed positively over the entire fiscal year. Over the first half of the fiscal year and through the third fiscal quarter, the Fund held an underweight to long-dated credit. In the fourth fiscal quarter, the Fund held an overweight to credit beta, sector and currency positioning, and a meaningful allocation to high-yield, which all had a positive effect on Fund performance. Also in the fourth fiscal quarter, the Fund’s duration positioning slightly detracted from Fund performance.

Throughout the fiscal year, while the Sub-Adviser believed that emerging markets countries were still working through their deleveraging cycle that was brought on during the financial crisis, it overweighted emerging markets currencies. During the first half of the year, that overweight benefited the Fund’s performance from gains in the Russian ruble and Brazilian real. The second half of the fiscal year saw a hinderance to the Fund’s performance from the overweight to emerging markets currencies in the form of a decline in the Mexican peso. The Mexican peso depreciated relative to the U.S. dollar over the entire fiscal year, a Mexico bond’s performance that was held within the Fund was hurt. The Mex Bonos Desarr Fix RT 5.75% 3/5/2026 (BYNMJL4) (holding percentage*: 0.43 percent) sovereign bond gained 0.4 percent in pesos, but lost 1.1 percent when converted to U.S. dollars.

The Sub-Adviser sees above-trend global growth, despite some signs of fading cyclical momentum, with G4 economies at close to full employment. It anticipates improvement in emerging markets fundamentals, and benign global inflationary pressures, even as spare capacity is eroded. Long-term inflation expectations remain subdued. The Sub-Adviser expects a gradualist Fed hiking cycle and less pressure on other G4 central banks to maintain a highly accommodative policy stance, with general central bank balance sheet tapering on the policy agenda. It is constructive on investment-grade bonds, given the supportive macro backdrop and stable-to-improving credit fundamentals. The Sub-Adviser believes that valuations look fair overall and expects returns to be driven mostly by the carry trade. It believes that financial companies have significantly de-risked their business models compared to the pre-crisis period and offer an attractive carry proposition compared to industrials, particularly core quality European tier 2, and holding company debt. The Sub-Adviser is cautious on industrials, as event risk remains elevated and valuations are less attractive. It believes that high-yield remains an attractive carry proposition, as fundamentals appear sound and it expects default rates to remain low. The Sub-Adviser remains cognizant of key risks, which it believes include the uncertainty around the ability of President Trump to implement new fiscal policy; protectionism, both in the U.S. and around the globe; and geopolitics. Other concerns surround less accommodative global monetary policies and the resulting tightening of financial conditions, raising downside global growth risks. Finally, the Sub-Adviser is watchful of bouts of volatility in global credit markets, given less policy accommodation, among other exogenous factors.

* Holdings percentage(s) as of 10/31/2017.

Growth of $100,000 Investment

Total Returns as of October 31, 2017
		Annualized	Annualized Since
	One Year	Three Year	Inception (11/1/13)
Class N	0.67%	(0.71)%	(1.29)%
Class C	(0.08)%	(1.47)%	(2.04)%
Class A with load of 4.50%	(4.07)%	(2.44)%	(2.64)%
Class A without load	0.46%	(0.94)%	(1.52)%
Barclays Global ex-US Aggregate Bond Index Unhedged	1.26%	0.18%	(0.31)%
Morningstar World Bond Category	3.10%	1.32%	1.63%

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 funds that invest at least 40% of bonds in foreign markets.

As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.28% for Class N, 2.03% for Class C and 1.53% 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.

44

SCHEDULE OF INVESTMENTS

Dunham International Opportunity Bond Fund

October 31, 2017

	Principal		Interest
Security	Amount		Rate %	Maturity Date	Value
CORPORATE BONDS & NOTES - 43.9%
AGRICULTURE - 1.3%
BAT International Finance PLC	200,000	EUR	0.8750	10/13/2023	$	237,076
Imperial Brands Finance PLC	200,000	EUR	2.2500	2/26/2021		248,641
						485,717
AUTO MANUFACTURERS - 2.6%
BMW Finance NV	400,000	EUR	0.7500	4/15/2024		476,431
FCE Bank PLC	200,000	EUR	1.8750	6/24/2021		246,775
Volkswagen International Finance NV	200,000	EUR	1.1250	10/2/2023		238,511
						961,717
BANKS - 16.2%
ABN AMRO Bank NV	200,000	EUR	6.3750	4/27/2021		280,839
Banco de Sabadell SA	300,000	EUR	0.6250	11/3/2020		356,919
BNP Paribas SA	250,000	EUR	2.8750	9/26/2023		332,289
BPCE SA	200,000	EUR	4.6250	7/18/2023		280,297
CaixaBank SA	400,000	EUR	0.6250	11/12/2020		476,255
Commonwealth Bank of Australia	200,000	EUR	2.0000	4/22/2027		240,725
Credit Agricole SA/London	200,000	EUR	1.8750	12/20/2026		245,739
Credit Suisse Group Funding Guernsey Ltd	200,000	EUR	1.2500	4/14/2022		241,017
Danske Bank A/S	350,000	EUR	0.5000	5/6/2021		414,819
HSBC Holdings PLC	200,000	EUR	6.0000	6/10/2019		255,665
ING Bank NV	100,000	EUR	3.6250	2/25/2026		128,310
Intesa Sanpaolo SpA	200,000	EUR	4.3750	10/15/2019		253,028
KBC Group NV	200,000	EUR	2.3750	11/25/2024		242,830
Lloyds Bank PLC	200,000	EUR	6.5000	3/24/2020		268,349
National Australia Bank Ltd.	150,000	GBP	5.1250	12/9/2021		229,177
Nordea Bank AB	200,000	EUR	1.0000	9/7/2026		236,200
Santander UK PLC	100,000	EUR	2.0000	1/14/2019		119,600
Skandinaviska Enskilda Banken AB	200,000	EUR	1.3750	10/31/2028		236,151
Societe Generale SA	100,000	EUR	0.7500	5/26/2023		118,874
UBS Group Funding Switzerland AG	200,000	EUR	1.2500	9/1/2026		235,276
Westpac Banking Corp	650,000	EUR	0.3750	3/5/2023		754,401
						5,946,760
BEVERAGES - 1.7%
Anheuser-Busch InBev SA/NV	300,000	USD	0.8750	3/17/2022		361,693
Pernod Richard SA	200,000	EUR	1.5000	5/18/2026		244,089
						605,782
BUILDING MATERIALS - 0.5%
HeidelbergCement AG	150,000	EUR	2.2500	6/3/2024		190,818
CHEMICALS - 2.1%
Air Liquide Finance SA	500,000	EUR	0.7500	6/13/2024		596,115
Linde Finance BV	150,000	EUR	3.1250	12/12/2018		181,395
						777,510
DIVERSIFIED FINANCIAL SERVICES - 0.7%
Cabot Financial Luxembourg SA	100,000	GBP	6.5000	4/1/2021		137,610
Intrum Justitia AB	100,000	EUR	3.1250	7/15/2024		119,721
						257,331
ELECTRIC - 4.8%
Cadent Finance PLC	500,000	EUR	0.6250	9/22/2024		573,162
Enel Finance International NV	200,000	EUR	1.9660	1/27/2025		252,056
Engie SA	300,000	EUR	2.3750	5/19/2026		393,363
Iberdrola Finanzas SAU	200,000	EUR	1.0000	3/7/2025		236,653
innogy Finance BV	250,000	EUR	1.0000	4/13/2025		297,575
						1,752,809
ENGINEERING & CONSTRUCTION - 2.0%
ABB Finance BV	450,000	EUR	2.6250	3/26/2019		544,954
Heathrow Funding Ltd	100,000	GBP	7.1250	2/14/2024		168,347
						713,301
FOOD - 0.7%
Danone SA	200,000	EUR	0.7090	11/3/2024		235,447

See accompanying notes to financial statements.

45

SCHEDULE OF INVESTMENTS

Dunham International Opportunity Bond Fund (Continued)

October 31, 2017

	Principal		Interest
Security	Amount		Rate %	Maturity Date	Value
CORPORATE BONDS & NOTES - 43.9% (Continued)
HEALTHCARE PRODUCTS - 0.3%
Limacorporate SpA	100,000	EUR	3.7500	8/15/2023	$	119,626
INSURANCE - 2.2%
Great-West Lifeco, Inc.	300,000	EUR	2.5000	4/18/2023		386,982
Willow No 2 Ireland PLC for Zurich Insurance Co. Ltd.	300,000	EUR	3.3750	6/27/2022		400,109
						787,091
IRON / STEEL - 0.3%
BlueScope Steel Finance Ltd. / BlueScope Steel Finance USA LLC - 144A	100,000	USD	6.5000	5/15/2021		104,750
MEDIA - 0.3%
Altice Financing SA	100,000	EUR	6.5000	1/15/2022		121,388
MINING - 1.0%
Anglo American Capital PLC	200,000	EUR	3.2500	4/3/2023		261,046
Glencore Finance Europe SA	100,000	EUR	1.6250	1/18/2022		121,872
						382,918
OIL & GAS - 3.3%
BG Energy Capital PLC	350,000	EUR	1.2500	11/21/2022		427,929
BP Capital Markets PLC	350,000	EUR	0.8300	9/19/2024		412,929
Petrobras Global Finance BV	100,000	EUR	5.8750	3/7/2022		135,431
Petroleos Mexicanos	200,000	EUR	2.5000	8/21/2021		244,414
						1,220,703
PACKAGING & CONTAINERS - 0.3%
Ardagh Packaging Finance PLC / Ardagh Holdings USA, Inc.	100,000	EUR	2.7500	3/15/2024		120,314
PHARMACEUTICALS - 0.3%
Grifols SA - 144A	100,000	EUR	3.2000	5/1/2025		118,545
REAL ESTATE - 0.3%	100,000	EUR	2.8750	7/15/2022		119,828
DEMIRE Deutsche Mittelstand Real Estate AG
SAVINGS & LOANS - 1.5%
Nationwide Building Society	350,000	EUR	1.6250	4/3/2019		418,303
Nationwide Building Society	100,000	GBP	5.6250	9/9/2019		144,174
						562,477
TELECOMMUNICATIONS - 1.5%
Deutsche Telekom International Finance BV	250,000	EUR	0.6250	4/3/2023		297,402
Telecom Italia SpA/Milano	50,000	GBP	6.3750	6/24/2019		71,877
Telecom Italia SpA/Milano	150,000	EUR	2.5000	7/19/2023		188,935
						558,214
TOTAL CORPORATE BONDS & NOTES (Cost - $15,611,707)						16,143,046
FOREIGN GOVERNMENT BONDS - 52.1%
Argentine Republic Government International Bond	100,000	EUR	3.8750	1/15/2022		120,849
Bundesrepublik Deutschland	80,000	EUR	4.7500	7/4/2034		150,843
Bundesrepublik Deutschland	60,000	EUR	2.5000	7/4/2044		91,850
Bundesrepublik Deutschland	1,370,000	EUR	0.2500	2/15/2027		1,590,856
Canadian Government Bond	160,000	CAD	5.0000	6/1/2037		177,632
Canadian Government Bond	280,000	CAD	3.5000	12/1/2045		269,270
Denmark Government Bond	2,420,000	DKK	3.0000	11/15/2021		430,751
French Republic Government Bond OAT	70,000	EUR	4.7500	4/25/2035		127,465
French Republic Government Bond OAT	190,000	EUR	4.5000	4/25/2041		355,544
Indonesia Government International Bond - 144A	300,000	EUR	2.1500	7/18/2024		361,936
Ireland Government Bond	130,000	EUR	5.4000	3/13/2025		206,994
Italy Buoni Poliennali Del Tesoro	180,000	EUR	4.2500	9/1/2019		226,914
Italy Buoni Poliennali Del Tesoro	270,000	EUR	5.0000	9/1/2040		427,794
Italy Buoni Poliennali Del Tesoro	120,000	EUR	5.5000	11/1/2022		172,985
Italy Buoni Poliennali Del Tesoro	410,000	EUR	4.5000	3/1/2024		577,917
Italy Buoni Poliennali Del Tesoro	480,000	EUR	3.7500	9/1/2024		652,016

See accompanying notes to financial statements.

46

SCHEDULE OF INVESTMENTS

Dunham International Opportunity Bond Fund (Continued)

October 31, 2017

	Principal		Interest
Security	Amount		Rate %	Maturity Date	Value
FOREIGN GOVERNMENT BONDS - 52.1% (Continued)
Japan Government Ten Year Bond	67,950,000	JPY	0.8000	9/20/2022	$	623,875
Japan Government Thirty Year Bond	65,150,000	JPY	2.5000	6/20/2036		774,003
Japan Government Twenty Year Bond	224,150,000	JPY	1.9000	9/20/2023		2,201,047
Japan Government Twenty Year Bond	163,350,000	JPY	2.1000	12/20/2027		1,730,389
Japan Government Twenty Year Bond	102,900,000	JPY	1.7000	9/20/2033		1,089,965
Kazakhstan Government International Bond	450,000	USD	5.1250	7/21/2025		501,162
Kingdom of Belgium Government Bond - 144A	130,000	EUR	5.0000	3/28/2035		243,964
Kingdom of Belgium Government Bond	130,000	EUR	4.2500	9/28/2022		185,358
Malaysia Government Bond	480,000	MYR	3.9000	11/30/2026		111,764
Mexican Bonos	3,270,000	MXN	5.7500	3/5/2026		155,396
Province of Ontario Canada	280,000	CAD	2.4000	6/2/2026		215,092
Republic of Austria Government Bond - 144A	270,000	EUR	1.2000	10/20/2025		337,636
Republic of Poland Government Bond	360,000	PLN	5.7500	9/23/2022		112,813
Republic of Poland Government International Bond	250,000	EUR	0.8750	5/10/2027		285,650
Republic of South Africa Government Bond	1,880,000	ZAR	10.5000	12/21/2026		144,154
Romanian Government International Bond	100,000	EUR	2.8750	10/28/2024		128,282
Russian Foreign Bond - Eurobond - 144A	200,000	USD	4.2500	6/23/2027		204,178
Spain Government Bond - 144A	160,000	EUR	4.2000	1/31/2037		241,964
Spain Government Bond - 144A	420,000	EUR	4.1000	7/30/2018		505,584
Spain Government Bond - 144A	300,000	EUR	4.4000	10/31/2023		428,471
Spain Government Bond - 144A	100,000	EUR	5.4000	1/31/2023		146,758
Spain Government Bond - 144A	210,000	EUR	1.9500	4/30/2026		259,986
Spain Government Bond - 144A	300,000	EUR	3.8000	4/30/2024		417,942
Sweden Government Bond	770,000	SEK	4.2500	3/12/2019		98,338
Swiss Confederation Government Bond	480,000	CHF	4.0000	2/11/2023		597,713
United Kingdom Gilt	190,000	GBP	4.2500	6/7/2032		336,553
United Kingdom Gilt	185,000	GBP	4.5000	12/7/2042		371,703
United Kingdom Gilt	20,000	GBP	4.0000	1/22/2060		44,608
United Kingdom Gilt	70,000	GBP	4.2500	12/7/2055		156,914
United Kingdom Gilt	330,000	GBP	3.2500	1/22/2044		555,619
TOTAL FOREIGN GOVERNMENT BONDS (Cost - $19,133,022)						19,148,497
	Shares
SHORT - TERM INVESTMENT - 1.6%
MONEY MARKET FUND - 1.6%
Fidelity Institutional Money Market Fund - Government Portfolio	576,593		0.9200			576,593
TOTAL SHORT-TERM INVESTMENT (Cost - $576,593)
	Principal
	Amount
MORTGAGE BACKED SECURITIES - 0.1%
Sunrise SPV 9	34,581	EUR	5.2700	5/27/2035		40,421
TOTAL MORTGAGE BACKED SECURITIES (Cost - $38,665)
WHOLE LOAN COLLATERAL - 0.6%
Bankinter 10 FTA	105,763	EUR	0.0000	6/21/2043		121,818
Fondo de Titulizacion de Activos Santander Hipotecario 2	48,072	EUR	0.0000	1/18/2049		55,080
Silverstone Master Issuer PLC - 144A	30,001	GBP	0.7698	1/21/2070		39,887
TOTAL WHOLE LOAN COLLATERAL (Cost - $208,671)						216,785
TOTAL INVESTMENTS - 98.3% (Cost - $35,568,658)					$	36,125,342
OTHER ASSETS LESS LIABILITIES - 1.7%						613,683
NET ASSETS - 100.0%					$	36,739,025

CAD - Canadian Dollar	EUR - Euro	MXN - Mexican Peso	SEK - Swedish Krona
CHF - Swiss Franc	GBP - United Kingdom Pound	MYR - Malaysian Ringgit	USD - US Dollar
DKK - Danish Krone	JPY - Japanese Yen	PLN - Polish Zloty	ZAR - South African Rand

+ Variable rate security. Interest rate is as of October 31, 2017.

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. The 144A securities amounted to $3,411,601 or 9.3% of net assets.

See accompanying notes to financial statements.

47

SCHEDULE OF INVESTMENTS

Dunham International Opportunity Bond Fund (Continued)

October 31, 2017

					Unrealized
					Appreciation
Futures Contracts	Contracts	Expiration	Notional		(Depreciation)
FUTURES CONTRACTS PURCHASED - 0.0% *
Australian 10Y BOND Future	6	12/15/2017	$	622,192	$	(2,850	)
Canadian 10Y Bond Future	5	12/18/2017		545,532		501
EURO BUXL 30Y Bond Future	5	12/7/2017		978,131		5,815
EURO-SCHATZ Future	18	12/7/2017		2,398,764		1,671
Japanese 10Y Bond Future	2	12/13/2017		2,742,061		(7,127	)
Long Gilt Future	7	12/27/2017		1,175,616		755
NET UNREALIZED LOSS FROM FUTURES CONTRACTS PURCHASED						(1,235	)
FUTURES CONTRACTS SOLD - 0.1% *
EURO-BOBL Future	(25)	12/7/2017		3,884,590		(8,770	)
EURO-BOND Future	(16)	12/7/2017		3,079,170		(17,104	)
NET UNREALIZED LOSS FROM FUTURES CONTRACTS SOLD						(25,874	)
NET UNREALIZED LOSS FROM FUTURES CONTRACTS					$	(27,109	)

* Face amounts are the underlying reference notional amounts to stock exchange indices and bonds 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. Instrument is non-income producing.

Portfolio Composition ** - (Unaudited)
Japan	17.8	%	Germany	5.9	%
Britain	14.2	%	Australia	3.7	%
Spain	9.3	%	Belgium	2.9	%
France	8.1	%	Denmark	2.3	%
Netherlands	7.8	%	Other Countries	20.4	%
Italy	7.6	%	Total	100.00	%

** Based on total value of investments as of October 31, 2017.

Percentage may differ from Schedule of Investments which are based on Fund net assets.

See accompanying notes to financial statements.

48

SCHEDULE OF INVESTMENTS

Dunham International Opportunity Bond Fund (Continued)

October 31, 2017

As of October 31, 2017 the following Forward Currency Exchange contracts were open:

Forward Currency Contracts
																Unrealized
		Settlement		Local Currency						U.S. Dollar						Appreciation
Foreign Currency		Date	Counterparty	Amount Purchased						Market Value						(Depreciation)
To Sell USD and To Buy:
Australian Dollar		1/17/2018	Barclays		1,103,728					$	845,684					$	(15,645	)
Australian Dollar		1/17/2018	Citigroup		75,626						57,945						(1,068	)
Canadian Dollar		1/17/2018	Barclays		1,007,163						781,945						(15,877	)
Canadian Dollar		1/17/2018	Citigroup		289,007						224,380						(4,600	)
British Pound		1/17/2018	Barclays		249,235						331,824						2,837
British Pound		1/17/2018	Citigroup		584,610						778,332						6,697
Japanese Yen		1/17/2018	Citigroup		139,601,552						1,233,707						(16,703	)
Japanese Yen		1/17/2018	Barclays		90,065,961						795,944						1,749
Japanese Yen		1/17/2018	Citigroup		269,363,482						2,380,458						4,228
Norwegian Krone		1/17/2018	Citigroup		493,001						60,382						(1,410	)
New Zealand Dollar		1/17/2018	Barclays		107,497						73,540						(1,197	)
Swedish Krona		1/17/2018	Barclays		1,467,561						176,197						(3,465	)
Brazilian Real		1/23/2018	Barclays		1,196,000						361,632						(6,481	)
Indonesian Rupiah		1/23/2018	Barclays		1,646,342,000						120,440						69
Indonesian Rupiah		1/23/2018	Barclays		8,301,143,000						607,278						26
Israeli Shekel		1/23/2018	Citigroup		270,000						76,927						(620	)
South Korean Won		1/23/2018	Barclays		126,963,000						113,389						2,325
South Korean Won		1/23/2018	Citigroup		768,700,000						686,517						6,949
Mexican Peso		1/23/2018	Barclays		823,528						42,404						(835	)
Malaysian Ringgit		1/23/2018	Barclays		250,000						58,894						(159	)
Russian Ruble		1/23/2018	Barclays		1,066,000						18,017						56
Russian Ruble		1/23/2018	Citigroup		3,972,000						67,134						(470	)
Singapore Dollar		1/23/2018	Barclays		165,000						121,220						(675	)
																$	(44,269	)
																Unrealized
		Settlement		Local Currency						U.S. Dollar						Appreciation
Foreign Currency		Date	Counterparty	Amount Sold						Market Value						(Depreciation)
To Buy USD and To Sell:
Danish Krone		1/17/2018	Barclays		(1,288,759	)				$	(202,776	)				$	1,530
Danish Krone		1/17/2018	Citigroup		(181,698	)					(28,589	)					219
Euro		1/17/2018	Citigroup		(635,746	)					(744,118	)					7,825
Euro		1/17/2018	Barclays		(1,758,261	)					(2,057,983	)					16,069
Euro		1/17/2018	Citigroup		(3,736,995	)					(4,374,021	)					34,179
Swiss Franc		1/17/2018	Barclays		(40,420	)					(40,783	)					372
Swiss Franc		1/17/2018	Citigroup		(161,879	)					(163,331	)					1,627
South African Rand		1/23/2018	Barclays		(250,047	)					(17,429	)					733
																$	62,554
				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:
Swedish Krona	Euro	1/17/2018	Barclay	$	3,031,000		$	(311,287	)	$	363,906		$	(364,350	)	$	(445	)
Czech Koruna	Euro	1/23/2018	Barclay		1,121,861			(43,401	)		51,207			(50,817	)		390
Hungary Forint	Euro	1/23/2018	Barclay		12,166,000			(39,235	)		45,706			(45,940	)		(234	)
Polish Zloty	Euro	1/23/2018	Citigroup		150,000			(34,849	)		41,245			(40,804	)		441
																$	152
Net Unrealized Gain on Forward Currency Contracts																$	18,437

See accompanying notes to financial statements.

49

Dunham Appreciation & Income Fund (Unaudited)

Message from the Sub-Adviser (PENN Capital Management Company, Inc.)

Although simple in principle, convertibles securities can be complex investments. The dual nature of convertibles, derived from their movement based upon both stocks and bonds, is part of what makes them so difficult to analyze. The investment evaluation process must take both parts into consideration. However, their dual nature is also what makes them so attractive as an investment for managers who understand the space, have experience with the asset type, and have the research department and methodology to handle all the work before a purchase his made. Part of the reason that a strong research team and philosophy is needed in that non-rated issues make up a significant percentage of the convertible market. Often, companies forego having their securities rated at the outset, avoiding a lengthy and expensive process.

Due to the non-rated nature of much of the issuance in the space, convertible securities are more closely related to the movements in small cap and mid cap stocks. U.S. large cap stocks, as measured by the Russell 1000 Index, rose 4.8 percent last quarter to bring the return for U.S. large cap stocks to 23.6 percent for the fiscal year. U.S. small cap stocks, as measured by the Russell 2000 Index, surged 5.8 percent in the last fiscal quarter to close out the fiscal year with a strong 27.8 percent return. During the most recent fiscal quarter, convertible securities, as measured by the Bank of America/Merrill Lynch All Convertibles Index, rose 3.4 percent, which trailed both large cap and small cap quarterly returns for the three-month period. This increase followed a similar return the prior two quarters. Convertible securities trailed both large caps and small caps for the fiscal year, but still returned a solid 28.1 percent over the time period.

As previously mentioned, most convertible securities are considered to be “equity-sensitive,” meaning significant amounts of a convertible security’s price movements are related to the movements of the underlying common stock rather than the bond itself. However, the bond component may still play a meaningful role in the pricing of the convertible security. Bonds in general, as measured by the Barclays Aggregate Bond Index, increased 0.5 percent during the most recent fiscal quarter, after increasing 1.1 percent and 1.4 percent the previous two fiscal quarters. Bond performance over the fiscal year was relatively flat with a modest 0.9 percent gain.

The Sub-Adviser has consistently focused on small cap and mid cap companies, and primarily on convertible securities that were considered to be trading based upon both the value of their fixed income features (i.e., coupon rate, default risk, etc.) and the price changes of the underlying common stock. This is in contrast to convertible securities that trade primarily on either the underlying stock movements or on the underlying bond characteristics. The Sub-Adviser believes that by focusing on this area of the convertible securities spectrum, it can reduce the volatility experienced from the common stocks while benefitting from the support offered by the bond features.

During the fiscal year, positive results were dominated by the technology sector. The best performing sector in the benchmark index during the fiscal year was also technology, and it was also the best performing sector during the most recent fiscal quarter. One of the top performing securities in the fiscal year was the convertible bond of NVIDIA Corporation (67066GAC8) (holding percentage**: 3.81 percent), a company that operates as a visual computing company worldwide. During the fiscal year, the common stock of NVIDIA Corporation (NVDA) (holding percentage*: not held) sky rocketed 135.4 percent and the convertible bond gained 104.4 percent. Another strong performer in technology was the convertible bond of Micron Technology Inc. (595112AY9) (holding percentage*: 3.90 percent), a company that provides semiconductor systems worldwide. During the fiscal year, the common stock of Micron Technology Inc. (MU) (holding percentage*: not held) surged 152.9 percent and the convertible bond rose 56.9 percent. Another positive contribution came from Teradyne, Inc. (880770AF9) (holding percentage*: 3.09 percent), designs, develops, manufactures, sells, and supports automatic test equipment worldwide. During the fiscal year, the common stock of Teradyne Inc. (TER) (holding percentage*: not held) rose 82.1 percent and the convertible bond gained 56.8 percent. Rounding out the top four contributors was Square, Inc. (852234AA1) (holding percentage*: 2.30 percent), a company that is a commerce ecosystem that combines software with hardware to enable sellers to turn mobile devices and computing devices into payments and point-of-sale solutions. During the fiscal year, the common stock of Square Inc. (SQ) (holding percentage*: not held) jumped 271.4 percent and the convertible bond gained 69.5 percent.

Healthcare continued to be a significant sector weighting in the Fund, but was one of the worst performing sectors during the fiscal year. Within the healthcare sector, Depomed, Inc. (249908AA2) (holding percentage**: 3.10 percent), a developer of oral drug delivery technologies was the top detractor for the fiscal year. During the time period, the common stock of Depomed Inc. (DEPO) (holding percentage*: not held) fell 67.6 percent and the convertible bond decreased 22.5 percent. Another healthcare sector company Allergan PLC (EP0481507), (holding percentage*: 2.50 percent), a global pharmaceutical developer and distributor, was also a top detractors. The Allergan PLC convertible preferred stock decreased 9.6 percent during the fiscal year while the common stock of Allergan PLC (holding percentage*: not held) lost 11.4 percent during that same time.

The Sub-Adviser remains optimistic that its fairly concentrated and selective approach to the convertible securities market will identify attractive risk-adjusted opportunities for the Fund. The large dispersion across sector performance, as well as significant dislocations of convertible bonds within the sectors has provided opportunities for the Sub-Adviser to consider within its disciplined selection process.

* Holdings percentage(s) as of 10/31/2017

Growth of $100,000 Investment

Total Returns as of October 31, 2017

		Annualized	Annualized	Annualized	Annualized Since
	One Year	Three Years	Five Years	Ten Years	Inception (12/10/04)
Class N	11.08%	1.97%	6.22%	3.49%	5.35%
Class C	9.95%	0.97%	5.14%	2.45%	4.31%
Class A with load of 5.75%	4.42%	(0.25)%	4.70%	2.62%	4.18%*
Class A without load	10.79%	1.73%	5.95%	3.23%	4.74%*
BofA Merrill Lynch All Convertibles All Qualities Index	18.13%	6.87%	11.41%	6.80%	7.26%
Morningstar Convertibles Category	15.46%	5.06%	9.00%	5.26%	6.54%

* Class A commenced operations on January 3, 2007.

The BofA Merrill Lynch All Convertibles All Qualities Index is a widely used index that measures convertible securities’ performance. It measures the performance of U.S. dollar-denominated convertible securities not currently in bankruptcy with a total market value greater than $50 million at issuance.

The Morningstar Convertibles Category is generally representative of convertible bond portfolios that are designed to offer some of the capital-appreciation of stock portfolios, while also supplying some of the safety and yield of bond portfolios.

As disclosed in the Trust’s latest registration statement as supplemented,, the Fund’s total annual operating expenses, including the cost of underlying funds, are 1.38% for Class N, 2.38% for Class C and 1.63% 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.

50

SCHEDULE OF INVESTMENTS

Dunham Appreciation & Income Fund

October 31, 2017

	Principal		Interest		Maturity
Security	Amount		Rate		Date	Value
CONVERTIBLE BONDS - 75.2%
BUILDING MATERIALS - 2.4%
Cemex SAB de CV	$	420,000	3.7500	%	3/15/2018	$	447,038
COMMERCIAL SERVICES - 8.0%
LendingTree, Inc. - 144A		310,000	0.6250		6/1/2022		440,200
Live Nation Entertainment, Inc.		485,000	2.5000		5/15/2019		643,534
Square, Inc. - 144A		250,000	0.3750		3/1/2022		424,063
							1,507,797
DIVERSIFIED FINANCIAL SERVICES - 2.3%
Blackhawk Network Holdings, Inc.		425,000	1.5000		1/15/2022		426,859
ENERGY - 2.1%
Nextera Energy Partners - 144A		400,000	1.5000		9/15/2020		390,250
ENGINEERING & CONSTRUCTION - 2.2%
Dycom Industries, Inc.		355,000	0.7500		9/15/2021		414,019
ENTERTAINMENT - 1.4%
Marriott Vacations Worldwide Corp. - 144A		250,000	1.5000		9/15/2022		270,781
HEALTHCARE-PRODUCTS - 5.0%
NuVasive, Inc.		385,000	2.2500		3/15/2021		447,563
Wright Medical Group, Inc.		462,000	2.0000		2/15/2020		502,425
							949,988
HOME BUILDERS - 3.1%
CalAtlantic Group, Inc.		368,000	1.6250		5/15/2018		580,520
INSURANCE - 3.8%
AmTrust Financial Services, Inc. ^		480,000	2.7500		12/15/2044		358,800
Fidelity National Financial, Inc.		120,000	4.2500		8/15/2018		348,149
							706,949
INTERNET - 10.6%
FireEye, Inc.		368,000	1.6250		6/1/2035		344,310
IAC FinanceCo, Inc. - 144A		250,000	0.8750		10/1/2022		270,469
Pandora Media, Inc.		435,000	1.7500		12/1/2020		408,356
Priceline Group, Inc.		320,000	0.3500		6/15/2020		476,800
VeriSign, Inc.		157,000	4.7000		8/15/2037		494,059
							1,993,994
MEDIA - 3.6%
World Wrestling Entertainment, Inc. - 144A		550,000	3.3750		12/15/2023		678,562
OIL & GAS - 2.1%
Ensco Jersey Finance Ltd. - 144A		460,000	3.0000		1/31/2024		389,850
PHARMACEUTICALS - 5.2%
Herbalife Ltd.		330,000	2.0000		8/15/2019		341,963
Ironwood Pharmaceuticals, Inc.		270,000	2.2500		6/15/2022		317,925
Pacira Pharmaceuticals, Inc. - 144A		345,000	2.3750		4/1/2022		321,066
							980,954
SEMICONDUCTORS - 17.2%
Micron Technology, Inc.		475,000	3.0000		11/15/2043		738,625
ON Semiconductor Corp.		385,000	1.0000		12/1/2020		498,334
Rambus, Inc.		324,000	1.1250		8/15/2018		407,227
Silicon Laboratories, Inc. - 144A		405,000	1.3750		3/1/2022		487,519
Teradyne, Inc. - 144A		500,000	1.2500		12/15/2023		722,812
Veeco Instruments, Inc.		415,000	2.7000		1/15/2023		381,281
							3,235,798

See accompanying notes to financial statements.

51

SCHEDULE OF INVESTMENTS

Dunham Appreciation & Income Fund (Continued)

October 31, 2017

	Principal		Interest		Maturity
Security	Amount		Rate		Date		Value
CONVERTIBLE BONDS - 75.2% (Continued)
SOFTWARE - 3.1%
Nice Systems, Inc. - 144A	$	500,000	1.2500	%	1/15/2024		$	577,813
TELECOMMUNICATIONS - 1.7%
Gogo, Inc.		350,000	3.7500		3/1/2020			312,375
TRANSPORTATION - 1.4%
Air Transport Services Group, Inc. - 144A		250,000	1.1250		10/15/2024			262,031
TOTAL CONVERTIBLE BONDS (Cost - $12,991,129)								14,125,578
PREFERRED STOCKS - 16.4%
DIVERSIFIED FINANCIAL SERVICES - 2.9%
AMG Capital Trust II		8,900	5.1500		10/15/2037			540,675
HAND/MACHINE TOOLS - 2.4%
Stanley Black & Decker, Inc.		3,800	5.3750		5/15/2020			449,426
HEALTCARE SERVICES - 3.2%
Anthem, Inc.		11,200	5.2500		5/1/2018			596,736
METAL FABRICATION/HARDWARE - 2.8%
Rexnord, Corp.		9,200	5.7500		11/15/2019			531,852
PHARMACEUTICALS - 2.5%
Allergan PLC		735	5.5000		3/1/2018			473,112
TELECOMUNICATIONS - 2.6%
T-Mobile US, Inc.		5,150	5.5000		12/15/2017			498,520
TOTAL PREFERRED STOCKS (Cost - $3,088,762)								3,090,321
					Interest
			Shares		Rate
SHORT-TERM INVESTMENT - 8.0%
MONEY MARKET FUND - 8.0%
First American Government Obligations Fund - Class Z			1,500,074		0.90%	+		1,500,074
TOTAL SHORT-TERM INVESTMENT (Cost - $1,500,074)
COLLATERAL FOR SECURITIES LOANED - 1.7%
Mount Vernon Prime Portfolio (Cost - $322,400)			322,400		1.32%	+		322,400
TOTAL INVESTMENTS - 101.3% (Cost - $17,902,365)							$	19,038,373
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.3)%								(251,845	)
TOTAL NET ASSETS - 100.0%							$	18,786,528

^ All or a portion of these securities are on loan. Total loaned securities had a value of $310,960 at October 31, 2017.

+ Variable rate security. Interest rate is as of October 31, 2017.

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. The 144A securities amount to $5,235,416 or 27.9% of net assets.

Portfolio Composition * - (Unaudited)
Convertible Bonds	74.2	%
Preferred Stock	16.2	%
Short-Term Investment	7.9	%
Collateral for Securities Loaned	1.7	%
Total	100.0	%

* Based on total value of investments as of October 31, 2017.

Percentage may differ from Schedule of Investments which are based on Fund net assets.

See accompanying notes to financial statements.

52

Dunham Large Cap Value Fund (Unaudited)

Message from the Sub-Adviser (Rothschild Asset Management, Inc.)

The past three fiscal quarters saw large cap value stocks, as measured by the Russell 1000 Value Index, rise modestly. After increasing 2.3 percent and 2.9 percent in the second and third fiscal quarters, respectively, large cap value stocks rose 2.5 percent in the most recent fiscal quarter. This performance raised the return for the fiscal year to 17.8 percent. The dispersion across sector performance was dramatic for both the fiscal year and the most recent fiscal quarter. The dispersion from the best performing sector, financial services, and the worst performing sector, telecommunication services, was almost 39 percent for the fiscal year. The most recent fiscal quarter only contributed to that chasm between sector performance, as the financial services sector rose 6.3 percent while the telecommunication services sector fell 9.1 percent, ending the fiscal year as the only sector with a negative return over the 12-month period.

While the financial services sector was both the strongest performing and largest sector in the large value space during the fiscal year, the Fund’s slight underweight to the sector generally detracted from relative performance. However, security selection helped to offset this effect. Within the financial services sector, the Fund held SunTrust Banks, Inc. (STI) (holding percentage*: 1.87 percent), a regional banks holding company that, through its subsidiaries, operates close to 1,400 branches across a dozen southeastern and mid-Atlantic states. STI slightly lagged versus its sector peers in the fourth fiscal quarter, after significantly lagging in the previous fiscal quarter. However, STI finished the fiscal year, up 36 percent and in-line with the financial services sector. This performance was dwarfed by the performance of other Fund financial services holdings, such as Ameriprise Financial Inc. (AMP) (holding percentage*: 1.41 percent), a global provider of various financial products and services to individual and institutional clients, and E*Trade Financial Corp. (ETFC) (holding percentage*: 0.88 percent), a provider of online brokerage and related products and services, primarily to individual retail investors. After increasing 14.1 percent and 18.7 percent, respectively, during the previous fiscal quarter, AMP and ETFC rose 8.7 percent and 6.3 percent, respectively, in the fourth fiscal quarter. This placed the fiscal year performance for these two stocks at 81.9 percent and 54.8 percent, respectively.

The consumer-based sectors, consumer staples and consumer discretionary, were two of only four negatively performing sectors in the most recent fiscal quarter. The “Amazon-effect” and less-than-desired levels of food price inflation continued to weigh on some of the Fund’s holdings in these spaces. For example, The Kroger Co. (KR) (holding percentage**: 0.58 percent), the U.S.’s largest traditional grocer, with close to 3,900 stores across the country, plummeted 15 percent in the most recent fiscal quarter, after declining 17.0 percent during the previous fiscal quarter. The Sub-Adviser exited the Fund’s position in KR at the beginning of September, effectively dodging approximately 9.1 percent of the stock’s decline through the end of the fiscal year. However, The Home Depot Inc. (HD) (holding percentage*: 1.01 percent), a home improvement retailer that sells building materials and home improvement products and services, surged 11.5 percent during the m ost recent fiscal quarter, after its decline of 3.6 percent in the previous fiscal quarter. During the fiscal year, KR showed an overall decline of 32.1 percent, while HD experienced a strong gain of 39.1 percent. The Sub-Adviser believes that these themes have burdened, in many cases unfairly, consumer-focused companies with uncertainty. Therefore, it believes that remaining focused on the fundamentals may be rewarded.

As energy was the worst performing sector during the previous fiscal quarter, it showed above average performance during the most recent fiscal quarter. The Fund’s underweight to the sector generally detracted from relative performance, while security selection was beneficial during the most recent fiscal quarter and the fiscal year. Holdings such as Marathon Petroleum Corp. (MPC) (holding percentage*: 0.78 percent), an oil and gas exploration company and a producer and supplier of petroleum products, Chevron Corp. (CVX) (holding percentage*: 2.28 percent), a global integrated energy company, and EOG Resources, Inc. (EOG) (holding percentage*: 1.64 percent), a company that explores, develops, produces, and markets natural gas and crude oil, meaningfully outpaced their sector peers during the most recent fiscal quarter. During the fiscal quarter, MPC, CVX, and EOG rose 7.5 percent, 7.2 percent, and 5.2 percent, respectively. However, some energy holdings cut against the relative performance gains, as Halliburton Co. (HAL) (holding percentage*: 0.77 percent), one of the largest oilfield services companies in the world, rose only 1.2 percent, failing to prevail against the 3.6 percent return of the sector as a whole. During the fiscal year, HAL ended down 5.7 percent, while MPC, CVX, and EOG rose 41.2 percent, 15.1 percent, and 11.2 percent, respectively.

The Sub-Adviser continues to stress the importance of remaining focused on fundamental valuations and to attempt to tune out the noise surrounding uncertainties, such as the timing of interest rate increases and the potential tailwinds that may be experienced from tax reform. The Sub-Adviser continues to remain a bottom-up investor, focused on identifying companies with attractive valuations relative to peers and the potential to exceed expectations.

* Holdings percentage(s) as of 10/31/2017.

Growth of $100,000 Investment

Total Returns as of October 31, 2017

		Annualized
	One	Three	Annualized	Annualized	Annualized Since Inception
	Year	Years	Five Years	Ten Years	(12/10/04)
Class N	17.84%	6.73%	11.40%	4.87%	6.44%
Class C	16.72%	5.65%	10.29%	3.82%	5.39%
Class A with load of 5.75%	10.84%	4.36%	9.79%	3.98%	4.51%*
Class A without load	17.58%	6.45%	11.11%	4.60%	5.08%*
Russell 1000 Value Index	17.78%	7.99%	13.48%	5.99%	7.52%
Morningstar Large Cap Value Category	19.48%	7.47%	12.32%	5.23%	6.65%

* Class A commenced operations on January 3, 2007.

The Russell 1000 Value 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 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

The Morningstar Large Cap Value Category is generally representative of mutual funds that primarily invest in big (large capitalization) U.S. companies that are less expensive or growing more slowly than other large-cap stocks.

As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 0.93% for Class N, 1.93% for Class C and 1.18% 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.

53

SCHEDULE OF INVESTMENTS

Dunham Large Cap Value Fund

October 31, 2017

Security	Shares		Value
COMMON STOCKS -98.2%
AEROSPACE/DEFENSE - 3.1%
Northrop Grumman Corp.		4,091	$	1,209,013
Raytheon Co.		5,157		929,292
				2,138,305
AIRLINES - 1.5%
Delta Air Lines, Inc.		21,175		1,059,385
AUTO PARTS & EQUIPMENT - 1.3%
BorgWarner, Inc. ^		17,022		897,400
BANKS - 15.3%
Bank of America Corp.		92,062		2,521,578
Huntington Bancshares, Inc. ^		68,804		949,495
JPMorgan Chase & Co.		29,023		2,920,004
Morgan Stanley		14,647		732,350
State Street Corp.		13,203		1,214,676
SunTrust Banks, Inc.		21,788		1,311,856
Wells Fargo & Co.		18,567		1,042,351
				10,692,310
BEVERAGES - 1.4%
PepsiCo, Inc.		9,162		1,009,927
BIOTECHNOLOGY - 3.7%
Amgen, Inc.		3,303		578,752
Biogen, Inc. *		1,850		576,571
Celgene Corp. *		5,561		561,494
Gilead Sciences, Inc.		11,709		877,707
				2,594,524
CHEMICALS - 1.9%
DowDuPont, Inc.		18,335		1,325,804
COMMERCIAL SERVICES - 1.1%
Quanta Services, Inc. *		19,628		740,564
COSMETICS / PERSONAL CARE - 1.3%
Procter & Gamble Co.		10,812		933,508
DIVERSIFIED FINANCIAL SERVICES - 4.9%
American Express Co.		8,945		854,426
Ameriprise Financial, Inc.		6,331		991,055
Discover Financial Services		14,034		933,682
E*TRADE Financial Corp *		14,237		620,591
				3,399,754
ELECTRIC - 6.8%
American Electric Power Co., Inc.		11,476		853,929
DTE Energy Co.		6,216		686,619
Edison International		13,319		1,064,854
Public Service Enterprise Group, Inc.		20,043		986,116
Xcel Energy, Inc.		23,134		1,145,596
				4,737,114
ELECTRONICS - 1.0%
Honeywell International, Inc.		4,941		712,295
ENVIRONMENTAL CONTROL - 1.6%
Waste Management, Inc.		13,448		1,105,022
FOOD - 2.2%
Hershey Co.		6,823		724,466
Tyson Foods, Inc.		11,555		842,475
				1,566,941
HAND / MACHINE TOOLS - 1.5%
Stanley Black & Decker, Inc.		6,688		1,080,446

Security	Shares		Value
HEALTHCARE-PRODUCTS - 3.5%
Danaher Corp.		7,235	$	667,573
Hill-Rom Holdings, Inc.		5,049		407,505
Medtronic PLC		8,191		659,539
Thermo Fisher Scientific, Inc.		3,620		701,665
				2,436,282
HEALTHCARE-SERVICES - 1.4%
UnitedHealth Group, Inc.		4,818		1,012,840
INSURANCE - 5.5%
Allstate Corp.		11,834		1,110,739
Berkshire Hathaway, Inc. *		2,482		463,985
Chubb Ltd.^		9,853		1,486,030
eBay, Inc.*		20,049		754,644
				3,815,398
IRON / STEEL - 0.6%
Nucor Corp.		7,105		410,882
MACHINERY- DIVERSIFIED - 1.1%
Cummins, Inc.		4,205		743,780
MEDIA - 2.9%
CBS Corp. ^		12,203		684,833
Comcast Corp. - Class A		25,277		910,730
Walt Disney Co. ^		4,443		434,570
				2,030,133
MISCELLANEOUS MANUFACTURING -1.9%
Parker-Hannifin Corp.		7,371		1,346,018
OIL & GAS - 8.5%
Chevron Corp.		13,856		1,605,772
ConocoPhillips		16,902		864,537
Energen Corp. * ^		10,339		534,526
EOG Resources, Inc.		11,554		1,153,898
Exxon Mobil Corp. ^		14,978		1,248,417
Marathon Petroleum Corp.		9,139		545,964
				5,953,114
OIL & GAS SERVICES - 0.8%
Halliburton Co.		12,695		542,584
PACKAGING & CONTAINERS - 1.2%
WestRock Co.		13,376		820,350
PHARMACEUTICALS - 6.9%
AbbVie, Inc.		9,784		883,006
Allergan PLC		4,015		711,579
Eli Lilly & Co.		5,761		472,056
Johnson & Johnson		10,505		1,464,502
Pfizer, Inc.		36,804		1,290,348
				4,821,491
REITS - 3.0%
Equity LifeStyle Properties, Inc.		7,895		698,550
Highwoods Properties Inc		9,583		489,212
Prologis, Inc.		14,456		933,568
				2,121,330
RETAIL - 1.9%
Home Depot, Inc.		4,300		712,854
PVH Corp.		4,620		585,862
				1,298,716
SEMICONDUCTORS -3.2%
Broadcom Ltd		2,467		651,066
ON Semiconductor Corp. ^ *		39,104		833,697
Qualcomm, Inc.		14,893		759,692
				2,244,455

See accompanying notes to financial statements.

54

SCHEDULE OF INVESTMENTS (Continued)

Dunham Large Cap Value Fund

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 98.2% (Continued)
SOFTWARE - 3.6%
Microsoft Corp.		10,464	$	870,396
Oracle Corp.		33,069		1,683,212
				2,553,608
TELECOMMUNICATIONS - 3.6%
AT&T, Inc.		50,868		1,711,709
Cisco Systems, Inc.		24,368		832,167
				2,543,876
TOTAL COMMON STOCKS (Cost - $54,755,474)				68,688,156
SHORT - TERM INVESTMENT - 2.3%
MONEY MARKET FUND - 2.3%
STIT-STIC Prime Portfolio - 1.15% +		1,619,645		1,619,645
(Cost - $1,619,645)
COLLATERAL FOR SECURITIES LOANED - 8.0%
Mount Vernon Prime Portfolio 1.32% +		5,635,713		5,635,713
(Cost - $5,635,713)

	Value
TOTAL INVESTMENTS - 108.5% (Cost - $62,010,832)	$	75,943,514
LIABILITIES IN EXCESS OF OTHER ASSETS - (8.5)%		(5,974,881	)
NET ASSETS - 100.0%	$	69,968,633

REIT - Real Estate Investment Trust

* Non-income producing security.

^ All or a portion of these securities are on loan. Total loaned securities had a value of $5,507,125 at October 31, 2017.

+ Variable rate security. Interest rate is as of October 31, 2017.

Portfolio Composition * - (Unaudited)
Financial	25.4	%	Consumer Discretionary	6.7	%
Biotechnology	14.3	%	Utilities	6.2	%
Industrial	8.9	%	Communications	4.9	%
Energy	8.6	%	Consumer Staples	4.6	%
Collateral for Securities Loaned	7.4	%	Others	5.5	%
Technology	7.4	%	Total	100.0	%

* Based on total value of investments as of October 31, 2017.

Percentage may differ from Schedule of Investments which are based on Fund net assets.

See accompanying notes to financial statements.

55

Dunham Focused Large Cap Growth Fund (Unaudited)

Message from the Sub-Adviser (The Ithaka Group, LLC)

Over the most recent fiscal year, the backdrop for the financial markets was highlighted by the different implications of President Trump’s fiscal policies, interest rate hikes by the Federal Reserve, and growth of corporate earnings especially in the technology sector. During the second half of 2017, as investor confidence over U.S. economic and fiscal policies coming to fruition waned, investors focused more on corporate earnings releases. The Sub-Adviser believes the markets are punishing companies that do not meet earnings more than they are rewarding companies that beat earnings even if they beat it by a wide margin. Large cap growth stocks, as measured by the Russell 1000 Growth Index, had a stellar fiscal year with a return of 30.7 percent. This performance outperformed other broader equity indexes, such as the S&P 500 Index, which returned 24.5 percent.

The Sub-Adviser strives to own companies with robust business models and balance sheets that it believes are built to withstand difficult economic environments. With few exceptions, each of the Fund’s current holdings historically exhibited strong fundamentals during the 2008/2009 downturn. Those few that did not have significantly strengthened their balance sheets since then.

A weak performer in the Fund was Celgene Co. (CELG) (holding percentage*: 2.85), the world’s 10th largest independent biotechnology company that develops medicines for cancer and inflammatory disorders. The Sub-Adviser thinks most of the underperformance can be attributed to the fourth fiscal quarter, after CELG revised its guidance to a lower target and also failed a late-stage trial for its Crohn’s disease drug. Over the fiscal year CELG declined 1.2 percent. Another weak performer in the Fund was Palo Alto Networks (PANW) (Holding Percentage*: 2.30 percent), which declined by 4.3 percent over the fiscal year. PANW is a network and enterprise security company. The Sub-Adviser attributed PANW’s poor performance during the fiscal year to the company’s sales numbers not matching expected stock valuations by the market as investors may have expected more sales due to the plethora of security breaches such as the Equifax breach.

A large detractor from the Fund was Alexion Pharmaceuticals (ALXN) (holding percentage*: 2.30 percent), a large biopharmaceutical company focused on developing drugs to combat rare diseases, such as it is well known for developing the drug Soliris. The Sub-Adviser believes the biotech sector in general is filled with innovative companies with good growth prospective; however, the market keeps punishing these companies if any changes happen in forward guidance. Over the fiscal year, ALXN decreased 8.3 percent.

A large contributor to the Fund was Facebook, Inc. (FB) (holding percentage*: 7.71 percent), which operates a social networking website. FB gained 37.5 percent during the fiscal year. The Sub-Adviser believes that FB’s strong performance came from doubling its user base in under four years, increasing its average revenue per user through ad monetization as more marketers shift from traditional advertising platforms to online advertising, and future projections of messenger monetization rolling out in 2017. The Sub-Adviser thinks FB still has a large amount of room to grow for the coming years and feels well positioned to take advantage of this growth.

During the fiscal year, a strong holding within the Fund was Amazon.com Inc. (AMZN) (holding percentage*: 6.36 percent), which is the largest ecommerce company in the U.S. with a growing cloud computing segment. The Sub-Adviser saw the company’s dedication to investments in the business during the fiscal year as evidence of potential long-term growth. The Sub-Adviser also believes in continued growth for the company because of the leadership and the overall business plan they have established; in addition, they face more growth as they expand into other industries to gain market share such as seen with their entry to the grocery business with the acquisition of Whole Foods. Over the fiscal year, AMZN rose 39.9 percent. Another strong holding was Paypal Holdings Inc. (PYPL) (holding percentage*: 3.20 percent), which operates as a technology platform company that enables digital and mobile payments on behalf of customers and merchants worldwide. The Sub-Adviser is optimistic that this financial technology holding is positioned to grow as more payments are shifting to digital transactions and there is still little total saturation. Over the fiscal year, PYPL increased 74.7 percent.

The Sub-Adviser claims no expertise in economic or market predictions, and top-down analysis plays no part in their approach to investing. The Sub-Adviser does not try to “guess” where the market is heading in the next quarter or year and therefore chooses to stay fully invested at all times in what it believes are high-quality growth companies. The Sub-Adviser uses a fundamentals-driven, bottom-up process to identify and own companies that may outperform over the long-term. The Sub-Adviser continues to believe that all of the companies in the Fund are well-positioned to outperform over the economic cycle due to the strength of the long-term secular trends underpinning them, coupled with the Sub-Adviser’s unique abilities to take advantage of these trends.

* Holdings percentage(s) as of 10/31/2017.

Growth of $100,000 Investment

Total Returns as of October 31, 2017

		Annualized	Annualized	Annualized Since
	One	Three	Five	Inception
	Year	Year	Years	(12/8/11)
Class N	21.67%	9.07%	13.63%	12.22%
Class C	20.44%	7.99%	12.51%	11.12%
Class A with load of 5.75%	14.32%	6.64%	12.03%	10.82%
Class A without load	21.30%	8.77%	13.35%	11.94%
Russell 1000 Growth Index	29.71%	13.15%	16.83%	16.75%
Morningstar Large Cap Growth Category	26.62%	10.48%	14.86%	14.76%

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 the cost of underlying funds, are 1.20% for Class N, 2.20% for Class C and 1.45% 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 websitewww.dunham.com

56

SCHEDULE OF INVESTMENTS

Dunham Focused Large Cap Growth Fund

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 99.1%
BIOTECHNOLOGY - 13.8%
Alexion Pharmaceuticals, Inc. *		11,605	$	1,388,654
BioMarin Pharmaceutical, Inc. *		8,581		704,414
Celgene Corp. *		21,480		2,168,836
Illumina, Inc. *		9,836		2,018,249
Incyte Corp. *		11,925		1,350,506
Regeneron Pharmaceuticals, Inc. *		5,466		2,200,721
Vertex Pharmaceuticals, Inc. *		4,640		678,507
				10,509,887
COMMERCIAL SERVICES - 4.6%
PayPal Holdings, Inc. *		33,659		2,442,297
TransUnion *		20,188		1,059,668
				3,501,965
DIVERSIFIED FINANCIAL SERVICES - 14.2%
Charles Schwab Corp.		43,363		1,944,397
Mastercard, Inc.		27,015		4,019,021
Visa, Inc. ^		43,850		4,822,623
				10,786,041
HEALTHCARE PRODUCTS - 4.5%
Align Technology, Inc. *		6,763		1,616,222
Edwards Lifesciences Corp. *		17,449		1,783,811
				3,400,033
INTERNET - 30.8%
Alibaba Group Holding Ltd. - ADR * ^		13,404		2,478,266
Alphabet, Inc. *		4,925		5,006,952
Amazon.com, Inc. *		4,385		4,846,653
Facebook, Inc. *		32,642		5,877,518
Palo Alto Networks, Inc. *		11,908		1,752,858
Priceline Group, Inc. * ^		1,843		3,523,742
				23,485,989
RETAIL - 7.8%
Domino’s Pizza, Inc.		5,625		1,029,375
Home Depot, Inc.		9,031		1,497,159
TJX Companies, Inc. ^		19,874		1,387,205
Ulta Beauty, Inc. *		10,049		2,027,788
				5,941,527

Security	Shares		Value
SEMICONDUCTORS - 2.4%
NVIDIA Corp.		8,861		1,832,543
SOFTWARE - 21.0%
Adobe Systems, Inc. *		22,441		3,930,766
Autodesk, Inc. *		9,866		1,232,855
Salesforce.com, Inc. *		44,132		4,516,469
ServiceNow, Inc. *		13,338		1,685,523
Splunk, Inc. *		19,516		1,313,427
Veeva Systems, Inc. *		31,222		1,902,669
Workday, Inc. * ^		12,901		1,431,882
				16,013,591
TOTAL COMMON STOCKS (Cost - $49,392,697)				75,471,576
SHORT-TERM INVESTMENT - 1.0%
MONEY MARKET FUND - 1.0%
First American Institutional Prime Obligations Fund - Institutional Class 1.14% + (Cost - $752,009)		752,009		752,009
COLLATERAL FOR SECURITIES LOANED - 15.0%
Mount Vernon Prime Portfolio, 1.32% +# (Cost - $11,449,510)		11,449,510		11,449,510
TOTAL INVESTMENTS - 115.1%  (Cost - $61,594,216)			$	87,673,095
LIABILITIES IN EXCESS OF OTHER ASSETS - (15.1)%				(11,499,656	)
NET ASSETS - 100.0%			$	76,173,439

^ All or a portion of these securities are on loan. Total loaned securities had a value of $11,342,904 at October 31, 2017.

* Non-Income producing security.

ADR - American Depositary Receipt.

+ Variable rate security. Interest rate is as of October 31, 2017.

# The Trust’s securities lending policies and procedures require that the borrower: (i) deliver cash or U.S. Government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and (ii) at all times thereafter mark-to-market the collateral on a daily basis so that the market value of such collateral is at least 100% of the value of securities loaned. From time to time the collateral may not be 102% due to end of day market movement. The next business day additional collateral is obtained/received from the borrower to replenish/reestablish 102%.

Portfolio Composition * - (Unaudited)
Communications	26.8	%	Financial	12.3	%
Technology	20.3	%	Consumer, Cyclical	6.8	%
Consumer, Non-Cyclical	19.9	%	Short-Term Investments	0.8	%
Collateral for Securities Loaned	13.1	%	Total	100.0	%

^* Based on total value of investments as of October 31, 2017.

Percentage may differ from Schedule of Investments which is based on Fund net assets

See accompanying notes to financial statements.

57

Dunham International Stock Fund (Unaudited)

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”), added 23.64 percent during the year ending October 31, 2017 (the “fiscal year”).

The best performing developed market countries as measured by the Index during the fiscal year were Austria, up 56.27 percent, and Italy, up 41.19 percent. The worst performing developed market countries were Israel, down 9.35 percent, and New Zealand, down 2.56 percent. The best performing emerging market countries during the fiscal year as measured by the Index were Poland, up 51.08 percent and China, up 41.06 percent. The worst performing emerging market countries were Egypt, down 25.11 percent, and Qatar, down 14.81 percent.

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 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 returns relative to the Index during the fiscal year were: France, primarily due to overweights to the information technology and financials sectors; and South Korea, primarily due to underweights to the information technology sector. Countries contributing most to underperformance relative to the Index included: China, primarily due to underweights to the information technology and financials sectors as well as overweights to the energy sector; and Spain, primarily due to underweights to the financials sector as well as overweights to the telecommunication services and utilities sectors.

Sectors contributing most to returns relative to the Index during the fiscal year included: the information technology sector, primarily due to overweights in Japan, South Korea, and France; the materials sector, primarily due to overweights in Canada and Japan; and the health care sector, primarily due to underweights in Switzerland and Israel. The sectors contributing the most to underperformance relative to the Index was the energy sector, primarily due to overweights in China, Brazil, and Russia; and the utilities sector, primarily due to overweights in Brazil and Spain.

The stocks contributing most to returns relative to the Index during the fiscal year included: Stmicroelectronics Nv (holding percentage*: 1.07 percent), a French information technology company; Samsung Electronics Co., Ltd. (holding percentage*: 3.88 percent), a Korean information technology company; and Actelion (holding percentage**: 0.52 percent), a Swiss health care company. Stocks contributing most to underperformance relative to the Index included: Tencent Holdings Ltd. (holding percentage**: 0.20 percent), a Chinese information technology company; Wpp Plc (holding percentage*: 0.48 percent), a United Kingdom consumer discretionary company; and Cnooc Limited (holding percentage**: 0.37 percent), a Chinese energy company.

The foregoing Sub-Adviser Background and Insights from the Sub-Adviser are provided by Arrowstreet as of October 31, 2017 for informational purposes only and solely with respect to the portfolio of assets in 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

* Holdings percentage(s) as of 10/31/2017.

Growth of $100,000 Investment

Total Returns as of October 31, 2017

		Annualized	Annualized	Annualized	Annualized Since Inception
	One Year	Three Years	Five Years	Ten Years	(12/10/04)
Class N	23.17%	5.73%	8.95%	2.32%	5.69%
Class C	21.99%	4.68%	7.86%	1.30%	4.65%
Class A with load of 5.75%	15.81%	3.41%	7.41%	1.46%	2.41%*
Class A without load	22.92%	5.48%	8.68%	2.06%	2.97%*
MSCI All Country World ex US Index (net)	23.64%	5.71%	7.29%	0.92%	6.00%
Morningstar Foreign Large Cap Blend Category	22.51%	5.73%	7.76%	0.58%	5.19%

* Class A commenced operations on January 3, 2007.

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 dominate.

As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.63% for Class N, 2.63% for Class C and 1.88% 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

58

SCHEDULE OF INVESTMENTS

Dunham International Stock Fund

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 96.8%
ADVERTISING - 1.1%
Hakuhood Dy Holdings, Inc.		46,900	$	649,196
WPP PLC		30,513		539,365
				1,188,561
AEROSPACE / DEFENSE - 0.8%
BAE Systems PLC - ADR		5,194		166,727
ELBIT Systems Ltd.		3,199		474,880
Rolls-Royce Holdings PLC - ADR		17,948		231,780
				873,388
AGRICULTURE - 0.2%
Imperial Brands PLC		6,138		250,218
AIRLINES - 0.5%
Deutsche Lufthansa AG		11,011		353,791
International Consolidated Airlines Group SA		25,909		218,791
Turk Hava Yollari *		1		3
				572,585
APPAREL - 0.6%
Adidas AG		3,064		682,054
AUTO MANUFACTURERS - 1.8%
Ferrari NV		7,067		846,261
Fiat Chrysler Automobile NV *		5,012		86,647
Hyundai Motor Co. - GDR		2,288		105,248
Mazda Motor Corp.		20,400		294,683
Suzuki Motor Corp.		10,300		564,537
Tofas Turk Otomobil Fabrikasi AS		20,360		165,947
				2,063,323
AUTO PARTS & EQUIPMENT - 1.6%
Cie Generale Des Establissements - ADR		3,500		101,360
Cie Generale Des Establissements		1,588		229,877
Continental AG		1,281		326,035
Koito Manufacturing Co Ltd.		6,700		449,560
Linamar Corp.		1,007		61,150
Sumitomo Electric Industries Ltd.		25,000		425,915
Toyoda Gosei Co. Ltd.		6,100		149,256
				1,743,153
BANKS - 6.6%
Agricultural Bank of China Ltd.		411,000		193,568
Banco Bradesco SA - ADR		45,870		484,847
Banco Bradesco SA		6,600		66,215
Banco do Brasil SA - ADR		19,000		202,540
Banco do Brasil SA		19,000		200,841
Banco Santander Brasil SA		31,000		271,967
Banco Santander SA		57,308		388,543
Bancolombia SA - ADR		5,200		196,300
Bank Hapoalim BM		22,496		159,310
Bank Leumi Le-Israel BM		54,789		302,925
Bank Negara Indonesia Persero Tbk PT		184,500		103,425
Bank of China Ltd.		386,000		192,899
Bank of Communications Co. Ltd.		384,000		289,880
China Construction Bank Corp.		451,000		403,045
Concordia Financial Group Ltd.		23,100		122,420
Eurobank Ergasias SA *		53,391		43,615
Grupo Financiero Banorte SAB de CV - ADR		2,100		62,097
Itau Unibanco Holding SA		16,280		188,312
Mediobanca SpA		34,651		379,612
Raiffeisen Bank International AG *		5,980		207,979
Societe Generale SA		10,348		575,963

Security	Shares		Value
BANKS (Continued) - 6.6%
Sperbank of Russia PJSC		27,805	$	399,002
Sumitomo Mitsui Financial Group Inc		8,500		340,758
Turkiye Garanti Bankasi AS		94,550		260,289
Turkiye Halk Bankasi AS		22,435		65,487
Turkiye Is Bankasi		81,167		153,071
Turkiye Vakiflar Bankasi TAO		393,315		657,384
UniCredit SpA		15,114		288,863
Yapi ve Kredi Bankasi AS *		129,421		157,284
				7,358,441
BEVERAGES - 0.7%
Coca-Cola HBC AG		6,346		214,457
Diageo PLC - ADR		3,192		437,336
Suntory Beverage & Food Ltd.		2,900		132,456
				784,249
BIOTECHNOLOGY - 0.4%
CSL Limited		322		34,301
Genmab A/S		2,047		413,399
				447,700
BUILDING MATERIALS - 1.5%
Asahi Glass Co. Ltd.		11,000		431,377
Cie de Saint-Gobain		4,573		268,152
Geberit AG		829		375,653
Sika AG		74		548,176
Titan Cement Co SA		4,082		98,665
				1,722,023
CHEMICALS - 3.9%
Air Water, Inc.		12,300		236,212
Covestro AG		7,604		731,033
Croda International PLC		826		45,898
Daicel Corp.		7,900		98,701
FUCHS PETROLUB SE		5,581		277,953
Hitachi Chemical Co Ltd		5,400		154,087
Johnson Matthey PLC		1,793		80,486
Kuraray Co Ltd		6,600		130,070
Mitsubishi Chemical Holdings Corp		43,300		452,581
Nissan Chemical Industries Ltd		20,100		750,214
Nitto Dekno Corporation		800		74,439
Petkim Petrokimya Holding AS		87,669		153,593
Shin-Etsu Chemical Co Ltd		3,500		369,358
Sinopec Shanghai Petrochemical Co Ltd - ADR		2,100		127,050
Sumitomo Chemical Co Ltd		14,000		98,455
Taiyo Nippon Sanso Corp		36,400		437,349
Toray Industries Inc		17,000		172,182
				4,389,661
COAL - 0.5%
China Shenhua Energy Co Ltd		129,000		308,587
Jastrzebska Spolka Weglowa SA *		7,940		213,595
				522,182
COMMERCIAL SERVICES - 4.6%
Abertis Infraestructuras SA		27,233		589,069
Adecco Group AG		1,898		150,711
AerCap Holdings NV *		8,364		440,281
Ashtead Group PLC		11,360		292,584
Edenred		6,784		195,591
Experian PLC		39,527		832,642
Randstad Holding NV		9,954		612,496
Recruit Holdings Co Ltd		26,100		640,333
RELX NV		42,562		960,997
RELX PLC - ADR		11,900		278,341
RELX PLC		8,912		205,042
				5,198,087

See accompanying notes to financial statements.

59

SCHEDULE OF INVESTMENTS

Dunham International Stock Fund (Continued)

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 96.8% (Continued)
COMPUTERS - 2.0%
Check Point Software Technologies Ltd. * ^		5,374	$	632,574
Chicony Electronics Co Ltd		43,215		108,237
Compal Electronics, Inc.		375,000		276,101
Computershare Ltd		25,961		310,920
Fujitsu Ltd		62,000		483,454
Innolux Corp		254,000		111,330
TDK Corp		3,500		269,115
				2,191,731
COSMETICS / PERSONAL CARE - 2.3%
Kao Corp.		10,900		659,178
Kose Corp.		2,500		304,233
Lion Corp.		2,300		44,287
L’Oreal SA		2,925		651,055
Pola Orbis Holdings, Inc.		4,400		140,340
Shiseido Co Ltd.		2,300		94,932
Unicharm Corp.		20,900		475,909
Unilever PLC		4,648		263,381
				2,633,315
DISTRIBUTION / WHOLESALE - 0.2%
Ferguson PLC - ADR		27,250		191,568
DIVERSIFIED FINANANCIAL SERVICES - 4.5%
Aeon Financial Service Co. Ltd.		10,500		224,267
ASX Ltd.		3,993		165,513
BM&FBovespa SA - Bolsa de Valores Mercadorias e Futuros		28,000		205,591
CITIC Securities Co. Ltd.		156,000		346,598
Deutsche Boerse AG		4,786		495,704
DGB Financial Group, Inc.		9,195		85,763
Hana Financial Group, Inc.		11,900		509,306
Huatai Securities Co. Ltd.		32,400		69,980
IGM Financial, Inc.		10,500		370,363
Korea Investment Holdings Co Ltd.		1,166		66,005
Nomura Holdings, Inc. - ADR		47,743		269,271
Nomura Holdings, Inc.		18,200		104,223
ORIX Corp. - ADR		3,039		260,807
ORIX Corp.		13,800		237,429
Partners Group Holding AG		1,055		710,185
Schroders PLC NV		5,394		180,354
Shinhan Financial Group Co Ltd.		6,210		278,942
Worldpay Group PLC		43,295		233,352
Yuanta Financial Holding Co. Ltd.		498,000		221,479
				5,035,132
ELECTRIC - 2.3%
CEZ AS		4,959		108,747
Cia Paranaense de Energia		5,600		36,787
E.ON SE		32,283		382,407
Enel SpA		161,968		1,004,559
Iberdrola SA		95,028		767,989
Kyushu Electric Power Co., Inc.		15,200		173,487
RWE AG		3,507		88,187
				2,562,163
ELECTRICAL COMPONENTS & EQUIPMENT - 1.0%
Brother Industries Ltd.		10,100		245,927
LG Electronics, Inc.		2,499		203,435
Schneider Electric SE		7,618		669,385
				1,118,747
ELECTRONICS - 5.1%
AU Optronics Corp.		1,197,000		490,492
Hon Hai Precision Industry Co Ltd. - GDR		11,146		83,484
Hoya Corp.		9,700		527,356
Keyence Corp.		1,800		1,000,065
Koninklijke Philips NV		40,488		1,650,148

Security	Shares		Value
ELECTRONICS - 5.1% (Continued)
Kyocera Corp. - ADR		700	$	46,760
Kyocera Corporation		1,200		80,318
LG Display Co Ltd.		8,546		223,568
Minebea Mitsumi, Inc.		14,200		260,502
Nippon Electric Glass Co Ltd.		8,600		351,358
Pegatron Corp.		40,000		103,650
Synnex Technology International Corp.		187,050		237,109
Yokogawa Electric Corp.		33,300		632,991
				5,687,801
ENERGY - ALTERNATE SOURCE - 0.1%
Vestas Wind Systems A/S - ADR		3,100		91,264
ENGINEERING & CONSTRUCTION - 0.1%
Auckland International Airport Ltd.		17,380		74,158
Enka Insaat ve Sanayi AS		14,746		22,371
				96,529
ENTERTAINMENT - 0.4%
Aristocrat Leisure Ltd.		25,172		455,899
FOOD - 1.1%
Ajinomoto Co., Inc.		12,200		245,584
CHR Handsen Holding A/S - ADR		2,900		127,745
Tesco PLC - ADR *		4,179		30,473
WH Group Ltd.		380,000		385,065
Wm Morrison Supermarkets PLC		29,595		88,098
Yakult Honsha Co Ltd.		4,400		364,024
				1,240,989
FOOD SERVICE - 0.2%
Compass Group PLC - ADR		10,587		236,831
FOREST PRODUCTS & PAPER - 1.8%
Mondi PLC		5,864		141,795
Nine Dragons Paper Holdings Ltd.		200,000		367,581
Oji Holdings Corp.		125,000		733,109
Stora Enso OYJ		20,293		317,171
UPM-Kymmene OYJ		14,043		421,780
				1,981,436
GAS - 0.9%
Gas Natural SDG SA		16,566		354,502
National Grid PLC - ADR ^		3,000		183,150
Tokyo Gas Co Ltd.		16,600		414,371
				952,023
HAND / MACHINE TOOLS - 0.9%
Fuji Electric Co Ltd.		31,000		224,747
Sandvik AB		23,292		425,153
THK Co Ltd.		8,400		306,602
				956,502
HEALTHCARE - PRODUCTS - 1.1%
Smith & Nephew PLC - ADR ^		8,738		334,316
Smith & Nephew PLC		27,710		522,576
Sonova Holding AG		1,574		284,400
Terumo Corp,		2,200		91,735
				1,233,027
HOLDING COMPANIES-DIVERSIFIED - 0.4%
Haci Omer Sabanci Holdings AS		1		2
Industrivarden AB - A shares		11,953		324,211
Wharf Holdings Ltd.		17,000		154,831
				479,044
HOME BUILDERS - 0.7%
Persimmon PLC		15,531		577,909
Sekisui Chemical Co Ltd.		12,400		250,451
				828,360

See accompanying notes to financial statements.

60

SCHEDULE OF INVESTMENTS

Dunham International Stock Fund (Continued)

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 96.8% (Continued)
HOME FURNISHINGS - 0.4%
Arcelik AS		1	$	5
Panasonic Corp. - ADR		2,700		41,769
Panasonic Corp.		30,200		451,950
				493,724
HOUSEHOLD PRODUCTS - 0.3%
Reckitt Benckiser Group PLC		3,781		338,223
INSURANCE - 5.8%
Aegon NV		19,379		114,421
Assicurazioni Generali SpA		30,414		553,573
AXA SA		30,706		927,046
China Life Insurance Co. Ltd.		24,000		79,563
China Life Insurance Co. Ltd. / Taiwan		102,460		96,871
CNP Assurances		1,647		38,317
Dai-ichi Life Holdings Inc		9,800		187,283
MS&AD Insurance Group Holdings Inc		20,500		696,892
Muenchener Rueckversicherungs-Gesellschaft AG in		4,886		1,097,013
PICC Property & Casualty Co Ltd		404,000		801,693
SCOR SE		1,886		78,301
Shin Kong Financial Holding Co Ltd		633,000		202,543
Sompo Holdings Inc		6,000		241,331
Swiss Re AG		4,592		432,523
Tokio Marine Holdings Inc		4,500		194,111
Zurich Insurance Group AG		2,601		794,411
				6,535,892
INTERNET - 0.9%
Mixi Inc		5,400		263,434
SBI Holdings Inc/Japan		11,700		184,768
Start Today Co Ltd		9,600		263,114
Trend Micro Inc/Japan		5,400		289,759
				1,001,075
INVESTMENT COMPANIES - 1.6%
Investor AB - A shares		17,576		850,849
Investor AB - B shares		2,150		106,523
Kinnevik AB - B Shares		14,368		471,289
Melker Schorling AB		206		14,220
Pargesa Holding SA		3,627		303,990
				1,746,871
IRON / STEEL - 1.7%
Fortescue Metals Group Ltd.		57,925		206,335
POSCO		1,122		327,047
Vale SA - ADR		76,208		746,076
Vale SA		57,500		567,205
Voestalpine AG		1,429		78,571
				1,925,234
LEISURE TIME - 1.6%
Carnival PLC - ADR		3,100		206,894
TUI AG		65,105		1,178,772
Yamaha Motor Co. Ltd.		12,700		381,412
				1,767,078
LODGING - 0.6%
Crown Resorts Ltd.		17,942		159,835
Galaxy Entertainment Group Ltd.		50,000		340,951
Melco Resorts and Entertainment Ltd. - ADR		7,600		192,128
				692,914
MACHINERY CONSTRUCTION & MINING - 2.8%
ABB Ltd.		42,279		1,105,059
Atlas Copco AB - A shares ^		9,312		408,338
Atlas Copco AB - B shares ^		3,574		141,879
Hitachi Ltd. - ADR		2,293		182,408
Hitachi Ltd.		106,000		844,672
Mitsubishi Electric Corp.		26,800		458,945
				3,141,301

Security	Shares		Value
MACHINERY - DIVERSIFIED - 0.8%
ANDRITZ AG		3,458	$	195,553
Hyundai Robotics Co., Ltd. *		109		43,986
Kone OYJ		11,441		619,287
				858,826
MEDIA - 0.2%
Telenet Group Holding NV *		346		23,931
Wolters Kluwer NV		4,038		197,930
				221,861
METAL FABRICATE / HARDWARE - 0.1%
Catcher Technology Co., Ltd.		6,000		63,858
Misumi Group, Inc.		3,100		84,988
				148,846
MINING - 2.9%
Anglo American PLC		9,860		185,929
BHP Billiton Ltd.		42,447		875,532
BHP Billiton PLC - ADR		1,992		72,349
BHP Billiton PLC		10,980		198,770
Glencore PLC		143,952		694,205
Norsk Hydro ASA		41,869		323,447
Rio Tinto PLC - ADR ^		14,883		713,342
Southern Copper Corp.		3,514		150,926
				3,214,500
MISCELLANEOUS MANUFACTURING - 1.1%
FUJIFILM Holdings Corp.		6,200		253,796
Konica Minolta, Inc.		30,500		267,745
Largan Precision Co Ltd.		1,000		189,560
Nikon Corp.		20,600		391,472
				1,102,573
OFFICE / BUSINESS - 0.5%
Ricoh Co. Ltd.		22,300		207,077
Seiko Epson Corp. - ADR		6,371		75,910
Seiko Epson Corp.		10,500		250,730
				533,717
OIL & GAS - 3.7%
China Petroleum & Chemical Corp.		1,264,000		928,131
Formosa Petrochemical Corp.		15,000		52,509
Lukoil PJSC - ADR		15,187		806,430
PetroChina Co. Ltd. - ADR		8,450		553,475
Polski koncern naftowy orlen SA		6,490		229,618
Polskie Gornictwo Naftowe i Gazownictwo SA		48,396		88,963
PTT Exploration & Production PCL		96,300		250,335
Royal Dutch Shell PLC - A Shares		21,829		687,406
SK Innovation Co Ltd		2,918		535,280
				4,132,147
PHARMACEUTICALS - 3.6%
Astellas Pharma, Inc.		30,000		399,529
Bayer AG		3,796		493,822
Daiichi Sankyo Co Ltd		11,700		268,911
Kyowa hakko kirin Co. Ltd.		16,000		295,539
Novo Nordisk A/S - ADR		24,000		1,194,960
Orion Oyj		1,661		68,082
Roche Holding AG		4,061		939,424
Shionogi & Co Ltd		8,000		430,981
				4,091,248
PIPELINES - 0.1%
APA Group		24,340		160,028
PRIVATE EQUITY - 0.9%
3i Group PLC		51,117		652,264
Eurazeo SA		4,338		403,332
				1,055,596

See accompanying notes to financial statements.

61

SCHEDULE OF INVESTMENTS

Dunham International Stock Fund (Continued)

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 96.8% (Continued)
REAL ESTATE - 1.6%
CK assets holdings Ltd.		61,500	$	506,109
Country Garden Holdings Co Ltd		129,000		204,482
L E lundbergforetagen A B		634		49,487
Swire Properties Limited		272,600		921,129
Wheelock & Co. Ltd.		14,000		97,525
				1,778,732
REIT - 0.3%
Link REIT		38,000		319,272
RETAIL - 0.7%
Cie Financiere Richemont SA - ADR		18,300		168,122
Dollarama Inc		2,000		222,807
Nitori Holdings Co Ltd		3,000		436,282
				827,211
SEMICONDUCTORS - 9.3%
Macronix International Co., Ltd.		204,000		373,042
MediaTek Inc		43,000		489,319
Nanya Technology Corp		194,000		527,395
Rohm Co Ltd		2,400		223,557
Samsung Electronics Co. Ltd.- GDR		375		378,750
Samsung Electronics Co Ltd		1,464		3,608,916
SK Hynix Inc		12,215		900,645
STMicroelectronics NV		50,900		1,198,358
Taiwan Semiconductor Manufacturing Co Ltd. - ADR ^		40,584		1,717,921
Taiwan Semiconductor Manufacturing Co Ltd		35,000		282,951
Tokyo Electron Ltd - ADR		2,200		104,281
Tokyo Electron Ltd		3,800		669,545
				10,474,680
SOFTWARE - 1.6%
Amadeus IT Holding SA		10,559		716,479
Constellation Software, Inc.		300		170,812
Konami Holdings Corp.		5,800		282,677
Nexon Co., Ltd. *		13,900		374,145
Sage Group PLC		6,798		67,281
TravelSky Technology, Ltd.		68,000		176,239
				1,787,633
TELECOMMUNICATIONS - 0.8%
KDDI Corp.		17,700		471,886
KT Corp. - ADR		5,497		79,102
Nippon Telegraph & Telephone Corp. - ADR		6,827		329,949
				880,937
TOYS / GAMES - 0.7%
Bandai Namco Holdings Inc		11,300		387,484
Nintendo Co Ltd		1,000		388,218
				775,702
TRANSPORTATION - 2.6%
Canadian National Railway Co		19,557		1,574,907
DSV A/S - ADR		1,900		73,872
East Japan Railway Co		5,500		533,740
Hankyu Hanshin Holdings Inc		6,800		265,289
Kamigumi Co., Ltd.		14,500		347,344

Security		Shares		Value
TRANSPORTATION - 2.6% (Continued)
Sinotrans Ltd		341,000		$	163,911
					2,959,063
TOTAL COMMON STOCK (Cost - $92,288,810)					108,732,870
EXCHANGE TRADED FUND - 0.5%
EQUITY FUND - 0.5%
iShares MSCI Emerging Markets ETF ^		8,000			557,040
TOTAL EXCHANGE TRADED FUND (Cost - $541,785)
		Principal	Maturity
	Interest Rate	Amount	Date	Value
PREFERRED STOCKS - 2.1%
AUTO MANUFACTURER - 0.7%
Porsche Automobil Holding SE	1.620%	11,273	3/20/2018	$	818,285
AUTO PARTS & EQUIPMENT - 0.1%
Schaeffler AG	3.650	8,042	3/7/2018		128,233
BANKS - 0.5%
Itausa - Investimentos Itau SA	0.570	158,300	3/13/2018		510,512
ELECTRIC - 0.3%
RWE AG - NV	0.800	16,035	2/9/2018		304,110
FOOD - 0.1%
CJ CheilJedang Corp	1.570	362	2/8/2018		52,519
FOREST PRODUCTIONS & PAPER - 0.1%
Suzano Papel e Celulose SA	1.730	16,000	2/14/2018		99,091
MISCELLANEOUS MANUFACTURING - 0.1%
Doosan Corp.	6.500	1,070	2/19/2018		77,709
SEMICONDUCTORS - 0.3%
Samsung Electronics Co., Ltd.	1.250	171	1/8/2018		342,486
TOTAL PREFERRED STOCKS (Cost - $1,940,945)					2,332,945
		Shares
COLLATERAL FOR SECURITIES LOANED - 2.5%
Mount Vernon Prime Portfolio 1.32% + (Cost - $2,837,042)		2,837,042			2,837,042
TOTAL INVESTMENTS - 101.9% (Cost - $97,608,582)				$	114,459,897
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.9)%					(2,108,528	)
NET ASSETS - 100.0%				$	112,351,369

^ All or a portion of these securities are on loan. Total loaned securities had a value of $2,780,116 at October 31, 2017.

* Non-income producing security.

ADR - American Depositary Receipt.	CDI - CHESS Depositary Interest
GDR - Global Depositary Receipt.	NV - Non-Voting

REIT - Real Estate Investment Trust.

+ Variable rate security. Interest rate is as of October 31, 2017.

Portfolio Composition * - (Unaudited)
Japan	25.4	%	China	3.7	%
Britain	8.1	%	France	3.6	%
Switzerland	7.1	%	Brazil	3.1	%
South Korea	6.8	%	Hong Kong	2.9	%
Germany	6.4	%	Other Countries	28.0	%
Taiwan	4.9	%	Total	100.0	%

^* Based on total value of investments as of October 31, 2017.

Percentage may differ from Schedule of Investments which are based on Fund net assets.

See accompanying notes to financial statements.

62

Dunham Real Estate Stock Fund (Unaudited)

Message from the Sub-Adviser (Barings Real Estate Advisers LLC)

The real estate investment trust (REIT) market had a positive fiscal year ended October 31, 2017, however a slightly negative final three months shaved off some of the gains. Although the Sub-Adviser believes that historical data shows evidence that REIT fundamentals have not historically been driven by interest rates shifts, the increase in rates over the most recent fiscal year may have pushed investors to dump REITs. Since 1996, REITs have been up in more rising rate periods than down. Over the fiscal year, the 10-year Treasury rose from 1.83 percent at the beginning of the fiscal year to 2.38 percent at the end of the fiscal year, fluctuating within an 85 basis point range throughout. REITs, as measured by the FTSE NAREIT All REIT Index, increased 2.3 percent, 3.2 percent, and 3.1 percent over the first three fiscal quarters, respectively, while dipping 0.1 percent in the fourth fiscal quarter. For the year, REITs increased 8.8 percent while other broad equity indexes, such as the S&P 500 Index, surged 23.6 percent. In contrast to the previous fiscal year when the S&P 500 Index underperformed REITs by 3.6 percent.

The Sub-Adviser believes that the intrinsic value of a listed real estate company is a function of the quality of its real estate portfolio, management team, and capital plan. Achieving a thorough understanding of the real estate assets owned by an investment candidate is the foundation of establishing the value of that enterprise. Evaluating management’s ability to drive earnings and add value to underlying real estate assets is vital to the Sub-Adviser developing an understanding of the potential sustainable future success of the company. Assessing a firm’s financial structure within the context of the prevailing financial environment provides the Sub-Adviser with a framework to understand the risk and long-term potential of a firm’s business strategy. Industrial and self storage REITs, among others, contributed positively over the entire fiscal year, while specialty REITs contributed positively to Fund performance over the first half of the fiscal year but detracted over the second half of the fiscal year. Infrastructure and data center REITs, among others, detracted from Fund performance over the entire fiscal year.

The Fund’s large overweight to the industrial REIT sector contributed to Fund performance over the fiscal year ended October 31, 2017. The contribution to performance was primarily attributed to the Fund’s allocation to this sector, although security selection was positive as well. The Sub-Adviser believes that ecommerce companies attempting to take market share from brick and mortar stores have been driving this sector’s performance. In order to accomplish this, it believes ecommerce companies must develop additional fulfillment centers. One of the largest active overweights within the Fund was the position in Prologis, Inc. (PLD) (holding percentage*: 7.61 percent). PLD is the largest public and private operator of industrial properties in the world. Over the fiscal year ended October 31, 2017, Prologis, Inc. increased 27.8 percent. Another holding that contributed to the Fund’s performance was Duke Realty Corporation (DRE) (holding percentage*: 3.93 percent). DRE is a leading industrial REIT offering ecommerce and supply chain companies a crucial edge, with expertise in development, leasing, property management, and construction. Duke Realty’s stock rose 12.1 percent over the fiscal year. The Sub-Adviser believes that the demand within the industrial REIT sector will remain strong through the end of 2017 and into 2018.

The slight underweight to self storage REITs led to a negative allocation effect within the sector, but security selection was strong enough to render the sector a positive contributor to the Fund’s performance over the fiscal year. A holding in the self storage space that performed well over the fiscal year was Extra Space Storage, Inc. (EXR) (holding percentage*: 1.17 percent). EXR is a fully integrated, self-administered, and self-managed REIT that owns, operates, acquires, develops, and redevelops professionally managed self-storage properties. The holding rose 19.4 percent from the time the Sub-Adviser bought the stock on November 1, 2016 through the end of the fiscal year on October 31, 2017. Another holding in the self storage space that contributed to the Fund’s performance over the fiscal year was CubeSmart (CUBE) (holding percentage*: 2.14 percent). CUBE is very similar to EXR in what it owns and how it operates in the self storage space. The Sub-Adviser bought the stock on March 6, 2017. From that point until the end of the fiscal year, the stock returned 3.2 percent.

The significant relative underweight over the entire fiscal year was the driver of relative underperformance of the infrastructure REIT sector. In fact, the Fund did not own any stocks within the sector until the third fiscal quarter. Examples of property types in the infrastructure REIT sector are cell towers, renewable energy real estate, and electricity infrastructure. The Sub-Adviser held a relative underweight due to the pending merger between two companies in the wireless telecommunications space, Sprint and T-Mobile. The merger would eliminate one of the four players in the space, the other two being AT&T and Verizon, which was expected to negatively impact the pricing power of cell tower companies. The Sub-Adviser entered the sector, albeit at a significantly lower allocation than what the benchmark held to the space, with two companies, both in the cell tower space. The companies were American Tower Corp. (AMT) (holding percentage*: 2.04 percent) and Crown Castle International Corp. (CCI) (holding percentage*: 1.62 percent). Both companies own, operate, develop, and lease wireless communication infrastructure. AMT operates domestically, while CCI operates in the U.S. and Australia. The Sub-Adviser bought CCI on July 25, 2017 and AMT on August 21, 2017. From their respective purchase dates until the end of the fiscal year, CCI and AMT returned 8.6 percent and 2.2 percent, respectively. Despite the positive performance of each of the holdings, the significant underweight detracted from Fund performance relative to the benchmark.

Going forward, the Sub-Adviser is optimistic about REIT performance through the end of 2017 and into 2018, as it sees compelling evidence for the valuation of and growth in REITs, specifically the reacceleration of earnings growth. The Sub-Adviser believes that due to the lagging performance of REITs relative to general equities and real assets over the past year while earnings have been positive, as investors come to see value in the REIT space, REITs are expected to perform better on a relative basis. It also anticipates that volatility in equity markets is likely to increase, as uncertainty remains for the Trump administration’s ability to carry out policy initiatives, the U.S. Federal Reserve continues to hike interest rates a few more times between now and the end of 2018, and the resulting impact on U.S. dollar strength. The Sub-Adviser sees opportunities in the evolving lifestyle of millennials and the continued growth of e-commerce, and is positioned to potentially benefit from the positive impacts of both on the REIT space.

* Holdings percentage(s) as of 10/31/2017.

Growth of $100,000 Investment

Total Returns as of October 31 2017

	One	Annualized	Annualized	Annualized	Annualized Since Inception
	Year	Three Years	Five Years	Ten Years	(12/10/04)
Class N	3.57%	4.84%	8.92%	5.21%	6.73%
Class C	2.55%	3.80%	7.83%	4.16%	5.67%
Class A with load of 5.75%	(2.56)%	2.56%	7.38%	4.33%	3.49%*
Class A without load	3.39%	4.61%	8.66%	4.94%	4.06%*
FTSE NAREIT All REITs Index	8.79%	7.20%	9.89%	6.02%	7.18%
Morningstar Real Estate Category	5.68%	5.24%	8.57%	4.40%	6.75%

* 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 on the NYSE 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 1.21% for Class N, 2.21% for Class C and 1.46% 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

63

SCHEDULE OF INVESTMENTS

Dunham Real Estate Stock Fund

October 31, 2017

Security	Shares		Value
COMMON STOCK - 2.1%
LODGING - 2.1%
Hilton Worldwide Holdings, Inc.		12,456	$	900,320
TOTAL COMMON STOCK (Cost - $704,385)
REITS - 96.1%
APARTMENTS - 14.3%
Camden Property Trust		16,550		1,510,022
Essex Property Trust		7,260		1,905,242
Invitation Homes, Inc. ^		29,110		657,013
Mid-America Apartment Communities, Inc. ^		8,440		863,834
Starwood Waypoint Homes		31,760		1,153,205
				6,089,316
DIVERSIFIED - 25.3%
American Tower Corp.		6,100		876,387
Cousins Properties, Inc. ^		88,610		799,262
Crown Castle International Corp		6,490		694,949
Digital Realty Trust, Inc. ^		17,970		2,128,367
Duke Realty Corp.		59,250		1,687,440
Equinix, Inc.		4,870		2,257,245
Gaming and Leisure Properties, Inc.		20,890		763,321
GEO Group, Inc.		27,630		716,998
Weyerhaeuser Co.		24,750		888,772
				10,812,741
HEALTHCARE - 11.5%
Healthcare Realty Trust, Inc.		15,000		483,600
Medical Properties Trust, Inc. ^		35,740		472,840
National Health Investors, Inc.		6,630		505,140
Physicians Realty Trust		56,000		973,280
Ventas, Inc.		10,620		666,405
Welltower, Inc.		26,990		1,807,250
				4,908,515
HOTELS - 3.1%
Chesapeake Lodging Trust ^		17,250		481,275
Park Hotels & Resorts, Inc.		8,152		234,696
Sunstone Hotel Investors, Inc. ^		37,430		610,858
				1,326,829
OFFICE - 11.4%
Boston Properties, Inc.		14,250		1,726,815
Brandywine Realty Trust		31,690		554,258
Hudson Pacific Properties, Inc.		20,580		696,016
Kilroy Realty Corp.		18,073		1,287,340
Paramount Group, Inc.		37,590		598,433
				4,862,862

Security	Shares		Value
REGIONAL MALLS - 6.4%
Macerich Co.		7,750	$	423,150
Simon Property Group, Inc.		14,791		2,297,486
				2,720,636
SHOPPING CENTERS - 8.4%
Acadia Realty Trust ^		34,078		959,296
Kimco Realty Corp.		33,470		607,815
Regency Centers Corp.		23,574		1,450,980
Retail Properties of America, Inc.		45,120		551,366
				3,569,457
SINGLE FAMILY - 4.8%
Agree Realty Corp.		14,300		676,247
Realty Income Corp.		16,340		876,968
STORE Capital Corp. ^		21,060		519,971
				2,073,186
SELF STORAGE - 3.3%
CubeSmart		33,720		917,858
Extra Space Storage, Inc. ^		6,140		500,963
				1,418,821
WAREHOUSE/INDUSTRIAL - 7.6%
Prologis, Inc. ^		50,610		3,268,394
TOTAL REITS (Cost - $36,424,555)				41,050,757
SHORT-TERM INVESTMENT - 2.3%
MONEY MARKET FUND - 2.3%
Fidelity Investments Money Market - Class I, 0.92% +		971,882		971,882
TOTAL SHORT-TERM INVESTMENT (Cost - $971,882)
COLLATERAL FOR SECURITIES LOANED - 10.9%
Mount Vernon Prime Portfolio, 1.32% + (Cost - $4,641,609		4,641,609		4,641,609
TOTAL INVESTMENTS - 111.4% (Cost - $42,742,431)			$	47,564,568
LIABILITIES IN EXCESS OF OTHER ASSETS - (11.4)%				(4,858,410	)
TOTAL NET ASSETS - 100.00%			$	42,706,158

^ All or a portion of these securities are on loan. Total loaned securities had a value of $4,546,471 at October 31, 2017.

REITS - Real Estate Investment Trusts.

+ Variable rate security. Interest rate is as of October 31, 2017.

Portfolio Composition * - (Unaudited)
Diversified	22.7	%	Regional Malls	5.7	%
Apartments	12.8	%	Single Family	4.4	%
Healthcare	10.3	%	Self Storage	3.0	%
Office	10.2	%	Hotels	2.8	%
Collateral for Securities Loaned	9.8	%	Short-Term Investment	2.0	%
Shopping Centers	7.5	%	Lodging	1.9	%
Warehouse/Industrial	6.9	%		100.0	%

* Based on total value of investments as of October 31, 2017.

Percentage may differ from Schedule of Investments which are based on Fund net assets.

See accompanying notes to financial statements.

64

Dunham Small Cap Value Fund (Unaudited)

Message from the Sub-Adviser (Piermont Capital Management LLC)

Small cap value stocks, as measured by the Russell 2000 Value Index, rose 4.6 percent during the most recent fiscal quarter, after anemic returns in the two previous fiscal quarters. Therefore, the fiscal year’s 24.8 percent gain was primarily realized in the first fiscal quarter. The dispersion in sector performance during the fiscal year was fairly high, as the best performing sector in the fourth fiscal quarter, health care, outpaced the worst performing sector, telecommunication services, by close to 13 percent. As the Sub-Adviser’s proprietary process seeks sector neutrality versus the benchmark index, the stock selection within each sector was the primary driver of relative performance.

The Sub-Adviser’s stock selection is quantitatively derived, using a combination of five to nine factor groups for each sector model, which measure both fundamental and technical metrics. In general, the fundamental metrics have a heavier weighting, and in turn a greater representation, via the holdings of the Fund. In contrast to the previous fiscal quarter, many of the highest weighted factors were either favored during the most recent fiscal quarter or neither helped nor detracted. For example, within the best performing sector, health care, holdings such as Spectrum Pharmaceuticals Inc. (SPPI) (holding percentage*: 1.36 percent), a biotechnology firm primarily focused on anti-cancer therapies, surged 162.6 percent after declining 2.0 percent in the previous fiscal quarter. This large gain was primarily attributable to the success of early testing of its premier cancer drugs. SPPI was also one of the strongest performers over the fiscal year, as it more than quadrupled in size. The Fund benefitted from most of this increase as the Sub-Adviser trimmed the position, rather than exit, during the fiscal year. The strongest performing holding in the healthcare sector in the previous fiscal quarter was Anika Therapeutics Inc. (ANIK) (holding percentage*: 0.99 percent), an integrated orthopedic medicines company focused on therapeutic pain management solutions. During the previous fiscal quarter, ANIK increased 10.9 percent, as the company reported profits and sales that beat estimates. In the most recent fiscal quarter, ANIK advanced 6.8 percent, significantly lagging the 11.8 percent return for the healthcare sector as a whole. The healthcare sector was also the strongest performing sector for the fiscal year, increasing close to 41.6 percent. ANIK’s 23.2 percent return for the same time period meaningfully lagged.

As the largest single sector in the small cap value space, the 30.4 percent return boasted by the financial services sector had a meaningful impact on overall performance during the fiscal year. One of the Fund’s strongest performers during each of the previous fiscal quarters in that sector was LendingTree Inc. (TREE) (holding percentage*: 1.58 percent), an originator and processor of real estate and business loans. This most recent fiscal quarter was no different, as TREE sprouted another 21.5 percent, ending the 12-month period up 235.7 percent. The massive increases were primarily attributed to beating earnings estimates and providing positive guidance. TREE was an anomaly within the financial services sector in previous fiscal quarter, as nearly half of the Fund’s holdings in the sector ended the previous fiscal quarter in negative territory. For example, Enterprise Financial Services Corp. (EFSC) (holding percentage*: 1.08 percent), a regional bank that targets closely-held businesses and their owners, and UMB Financial Corp. (UMBF) (holding percentage*: 0.92 percent), a multi-bank holding company that offers complete banking and asset management services, dropped 6.2 percent and 3.6 percent, respectively, during the previous fiscal quarter. However, in the most recent fiscal quarter, EFSC and UMBF rose 10.6 percent and 6.0 percent, respectively. This placed their performance over the fiscal year at 33.1 percent and 20.2 percent, respectively. This was slightly ahead of the sector’s 12-month performance for EFSC, but significantly behind the sector in the case of UMBF.

Although it only comprises approximately 10 percent of the small cap value space, the information technology sector proved to have a material impact on the performance of the Fund versus the benchmark index. Some of the Fund’s largest positions continued to be Insight Enterprises, Inc. (NSIT) (holding percentage*: 1.63 percent), a company that distributes computer hardware and software and provides IT services for businesses, schools, and government agencies, and Cree Inc. (CREE) (holding percentage*: 1.17 percent), a developer of light-emitting diode, lighting, and semiconductor products for power and radio-frequency applications. While the information technology sector experienced a modest 2.3 percent return during the most recent fiscal quarter, NSIT and CREE boosted 11.2 percent and 37.8 percent, respectively. This significant outperformance during the fiscal quarter solidified their gains over the sector when considering the entire fiscal year. The information technology sector gained 31.3 percent during the 12-month period, while NSIT and CREE celebrated returns of 56.5 percent and 60.1 percent, respectively. However, the Fund’s exposure to Amkor Technology Inc. (AMKR) (holding percentage*: 1.24 percent), a contractor in chip assembly and testing services for semiconductor manufacturers may have helped during the most recent fiscal quarter, but it proved to be a detractor over the fiscal year. During the most recent fiscal quarter, AMKR increased 11.6 percent, but its return for the fiscal year fell short of the sector’s return by nearly 6.5 percent.

The Sub-Adviser is optimistic that its highest-weighted factors will benefit from a continued outperformance of stocks with what it views as strong fundamentals. During the fiscal year, sector leadership appeared to shift dramatically, but the Sub-Adviser’s sector-neutral approach continued to seek to outperform based upon stock selection, avoiding some of the whipsawing effect from the massive dispersion in sector returns. The Sub-Adviser is optimistic that its sector-, beta-, and market-capitalization-neutral bottom-up stock picking strategy will continue to benefit from what many view as an improving economic backdrop.

* Holdings percentage(s) as of 10/31/2017.

Growth of $100,000 Investment

Total Returns as of October 31, 2017

					Annualized Since
		Annualized	Annualized	Annualized	Inception
	One Year	Three Years	Five Years	Ten Years	(12/10/04)
Class N	25.62%	8.94%	13.32%	6.10%	6.44%
Class C	24.29%	7.83%	12.18%	5.04%	5.39%
Class A with load of 5.75%	18.07%	6.53%	11.70%	5.23%	5.26%*
Class A without load	25.26%	8.66%	13.03%	5.85%	5.83%*
Russell 2000 Value Index	24.81%	9.67%	13.58%	7.04%	7.64%
Morningstar Small Cap Value Category	23.04%	8.10%	12.84%	7.03%	7.62%

* 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 2000 Index with lower price-to-book ratios and lower forecasted growth rates. Investors cannot invest directly in an index or benchmark.

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.

As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.48% for Class N, 2.48% for Class C and 1.73% 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.

65

SCHEDULE OF INVESTMENTS

Dunham Small Cap Value Fund

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 99.9%
AEROSPACE / DEFENSE - 1.3%
Moog, Inc. *		4,350	$	381,756
APPAREL - 1.4%
Columbia Sportswear Co.		2,490		155,326
Deckers Outdoor Corp.*		3,800		259,312
				414,638
AUTO PARTS & EQUIPMENT - 1.1%
Cooper-Standard Holdings, Inc. *		3,000		334,440
BANKS - 19.6%
BancFirst Corp.		3,360		183,624
BancorpSouth, Inc.		8,210		259,436
BankUnited, Inc.		9,202		320,690
Banner Corp.		6,140		351,945
Cathay General Bancorp ^		7,180		300,124
Customers Bancorp, Inc.*		5,020		137,247
Enterprise Financial Services Corp.		7,424		323,686
FCB Financial Holdings, Inc. *		6,623		309,294
First Citizens BancShares, Inc.		970		392,850
First Financial Corp.		1,408		66,880
Franklin Financial Network, Inc. *^		4,360		149,548
Heartland Financial USA, Inc.		4,110		202,417
IBERIABANK Corp.		4,023		296,696
International Bancshares Corp.		6,700		272,020
Old National Bancorp		17,000		309,400
Peoples Bancorp, Inc.		3,650		120,888
QCR Holdings, Inc.		2,300		109,825
Simmons First National Corp.		4,800		276,960
State Bank Financial Corp.		2,792		80,717
TriCo Bancshares ^		4,333		179,473
Trustmark Corp.		8,125		267,637
UMB Financial Corp. ^		3,730		274,267
United Community Banks, Inc.		12,599		345,465
Wintrust Financial Corp.		4,130		335,728
				5,866,817
BIOTECHNOLOGY -1.4%
Spectrum Pharmaceuticals, Inc. * ^		20,712		405,748
BUILDING MATERIALS - 2.5%
Cree, Inc. *		9,840		351,288
Gibraltar Industries, Inc. *		11,700		389,025
				740,313
CHEMICALS - 2.2%
Cabot Corp.		5,461		332,903
Minerals Technologies, Inc. ^		1,490		107,131
OMNOVA Solutions, Inc. *		20,780		229,619
				669,653
COMMERCIAL SERVICES - 7.1%
CRA International, Inc.		4,765		201,369
Ennis, Inc.		8,190		165,029
Green Dot Corp. *		6,210		351,610
K12, Inc. *		13,400		217,348
LendingTree, Inc. * ^		1,760		471,768
Quad Graphics, Inc.		10,542		240,252
ViadCorp.		4,800		278,640
Weight Watchers International, Inc. * ^		4,010		180,129
				2,106,145
COMPUTERS - 2.6%
DST Systems, Inc.		4,740		277,859
Insight Enterprises, Inc. * ^		10,830		487,892
				765,751

Security	Shares		Value
COSMETICS - 0.8%
Inter Parfums, Inc.		5,000	$	231,500
DIVERSIFIED FINANCIAL SERVICES - 1.2%
LPL Financial Holdings, Inc.		7,300		362,153
ELECTRIC - 3.8%
ALLETE, Inc.		3,670		287,545
El Paso Electric Co.		5,600		322,000
NorthWestern Corp.		3,770		223,485
Portland General Electric Co.		6,530		311,742
				1,144,772
ELECTRICAL COMPONENTS & EQUIPMENT - 1.2%
EnerSys		5,110		354,481
ELECTRONICS - 0.9%
Knowles Corp.*		15,400		255,024
ENGINEERING & CONSTRUCTION - 1.0%
Tutor Perini Corp. * ^		10,170		286,794
ENTERTAINMENT - 1.1%
International Speedway Corp.		8,674		336,985
FOOD - 2.6%
Dean Foods Co. ^		27,500		268,125
Flowers Foods, Inc. ^		14,400		274,032
Sanderson Farms, Inc. ^		1,500		224,355
				766,512
FOREST PRODUCTS & PAPER- 0.6%
Clearwater Paper Corp. *		3,670		169,371
GAS - 2.4%
Northwest Natural Gas Co. ^		5,080		337,058
Spire, Inc. ^		4,775		376,986
				714,044
HAND / MACHINE TOOLS - 1.0%
Regal Beloit Corp.		3,860		313,239
HEALTHCARE - PRODUCTS - 2.1%
Haemonetics Corp. *		6,850		325,786
Halyard Health, Inc.*		7,000		295,050
				620,836
HEALTHCARE - SERVICES - 0.6%
LifePoint Health, Inc. * ^		3,730		179,600
HOME BUILDERS- 2.0%
Beazer Homes USA, Inc.*		18,000		377,640
Taylor Morrison Home Corp. *		8,910		215,177
				592,817
HOUSEHOLD PRODUCTS / WARES - 0.7%
ACCO Brands Corp. * ^		16,869		220,140
INSURANCE - 4.0%
American Equity Investment Life Holding Co.		11,476		338,657
Aspen Insurance Holdings Ltd.		4,840		207,636
Selective Insurance Group, Inc.		6,737		401,525
Stewart Information Services Corp. ^		6,350		240,919
				1,188,737
IRON / STEEL - 1.1%
Schnitzer Steel Industries, Inc.		11,267		331,813

See accompanying notes to financial statements.

66

SCHEDULE OF INVESTMENTS

Dunham Small Cap Value Fund (Continued)

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 99.9% (Continued)
LODGING - 0.6%
La Quinta Holdings, Inc. *		10,770	$	189,767
MEDIA - 0.7%
Scholastic Corp. ^		5,890		217,577
METAL FABRICATE / HARDWARE - 0.9%
Rexnord Corp.*		10,700		273,064
MISCELLANEOUS MANUFACTURING - 2.4%
ITT, Inc		7,650		356,796
Lydall, Inc. *		6,010		347,378
				704,174
OIL & GAS - 2.7%
Laredo Petroleum, Inc. *^		23,850		284,292
Oasis Petroleum, Inc.*		29,000		274,050
Unit Corp. * ^		13,738		257,175
				815,517
OIL & GAS SERVICES - 2.2%
Gulf Island Fabrication, Inc. ^		9,720		127,818
Newpark Resources, Inc. * ^		33,807		295,811
Oceaneering International, Inc. ^		11,630		235,158
				658,787
PHARMACEUTICALS - 1.7%
Anika Therapeutics, Inc. * ^		5,433		296,805
Sucampo Pharmaceuticals, Inc. * ^		22,400		224,000
				520,805
REITS - 12.0%
Chimera Investment Corp. ^		14,750		269,925
Franklin Street Properties Corp. ^		29,000		290,000
Gladstone Commercial Corp.		13,200		285,912
Hersha Hospitality Trust		18,671		330,290
Invesco Mortgage Capital, Inc.		17,450		300,489
LaSalle Hotel Properties ^		11,540		325,543
National Storage Affiliates Trust		10,500		260,295
Outfront Media, Inc. ^		13,200		309,540
Preferred Apartment Communities, Inc.		15,800		313,630
PS Business Parks, Inc. ^		2,100		277,893
Ramco-Gershenson Properties Trust		12,860		162,422
STAG Industrial, Inc.		9,800		267,540
Tier REIT, Inc.		10,500		205,485
				3,598,964
RETAIL - 0.5%
La-Z Boy, Inc.		5,980		161,161
SAVINGS & LOANS - 2.1%
Flagstar Bancorp, Inc. * ^		8,612		321,830
Northwest Bancshares, Inc. ^		17,738		299,240
				621,070

Security	Shares		Value
SEMICONDUCTORS - 2.8%
Amkor Technology, Inc. * ^		32,000	$	370,240
Nanometrics, Inc. *		8,412		237,807
Photronics, Inc. * ^		22,000		213,400
				821,447
SOFTWARE - 1.8%
MicroStrategy, Inc. *		1,560		206,326
Progress Software Corp.		8,151		345,032
				551,358
TELECOMMUNICATIONS - 1.0%
Cincinnati Bell, Inc. * ^		8,290		158,339
Spok Holdings, Inc.		8,460		143,397
				301,736
TRANSPORTATION - 1.0%
Hub Group, Inc. *		7,110		307,863
TRUCKING & LEASING - 1.2%
Greenbrier Cos, Inc. ^		6,900		360,180
TOTAL COMMON STOCKS - (Cost - $25,452,786)				29,857,549
SHORT-TERM INVESTMENT - 0.2%
MONEY MARKET FUND - 0.2%
Invesco STIT-Treasury Portfolio Institutional Class - 0.98% + (Cost - $50,064)		50,064		50,064
COLLATERAL FOR SECURITIES LOANED - 25.1%
Mount Vernon Prime Portfolio 1.32% + (Cost - $7,504,373)		7,504,373		7,504,373
TOTAL INVESTMENTS - 125.2% (Cost - $33,007,223)			$	37,411,986
LIABILITIES IN EXCESS OF OTHER ASSETS - (25.2)%				(7,522,542	)
NET ASSETS - 100.0%			$	29,889,444

REIT - Real Estate Investment Trust

^ All or a portion of these securities are on loan. Total loaned securities had a value of $7,366,753 at October 31, 2017.

* Non Income producing security.

+ Variable rate security - interest rate is as of October 31, 2017.

Portfolio Composition * - (Unaudited)
Financial	33.3	%	Energy	4.9	%
Collateral for Securities Loaned	20.1	%	Biotechnology	4.6	%
Consumer Discretionary	10.8	%	Basic Materials	3.6	%
Industrial	8.1	%	Consumer Staples	3.1	%
Technology	5.1	%	Other	1.4	%
Utilities	5.0	%	Total	100.0	%

See accompanying notes to financial statements.

67

Dunham Emerging Markets Stock Fund (Unaudited)

Message from the Sub-Adviser (Bailard, Inc.)

Emerging markets stocks continued their strong performance in the most recent fiscal quarter ended October 31, 2017 and capped off the fiscal year experiencing their strongest performance since the 2009 fiscal year. The Sub-Adviser believes this strong performance is attributed to three elements. The first element is the level and quality of earnings coming from emerging markets stocks. Many emerging markets companies are seeing similar or better sales growth as companies from developed markets, and the sales are being translated into much better earnings growth. The Sub-Adviser is also seeing dramatically different forward earnings expectations as emerging markets are posting twice as much compared to developed markets. The second element is relatively attractive valuations that emerging markets stocks exhibited over the fiscal year. The average price-to-book ratio for emerging markets stocks is approximately 1.7 compared to 3.2 for developed equites, the approximate average price-to-earnings for emerging markets stocks was at a 34 percent discount to developed markets stocks, and the dividend yield was 0.3 percent higher. The final element is a currency tailwind, and over the last twelve months the U.S. Dollar declined 2.3 percent, according to the Bloomberg U.S. Dollar Spot Index. These elements were present prior to this year, however the market was slow to recognize the potential value. The strong performance in emerging markets also occurred despite geopolitical concerns across the globe.

The Sub-Adviser believes that across the landscape of investible countries, the great differences in culture, government policies, fiscal and monetary policy, politics and local trading create persistent mispricing opportunities that significantly affect the price of securities. The Sub-Adviser suggests that countries are a powerful contributing factor to stock returns, offer consistent dispersion and set the stage for an investor to profit by emphasizing a country selection strategy. The Sub-Adviser focuses on individual countries and bottom-up stock selection within those countries, with overweights or underweights to economic sectors being largely incidental. Emerging markets stocks, as measured by the MSCI Emerging Markets Index, continued the previous fiscal year’s positive trend by increasing 26.5 percent in the fiscal year ended October 31, 2017, after a 9.3 percent increase in the previous fiscal year. The index outperformed its U.S. counterpart, as measured by the S&P 500 Index, which increased 23.6 percent over the same time period.

The Sub-Adviser’s country selection process is responsive to the current market environment and it results in a ranking of the Sub-Adviser’s most and least favorite countries. An underweight in the portfolio was the allocation to China. The Sub-Adviser is cognizant of the many changes in China, and aware of the potential ramifications of the MSCI Emerging Markets Index’s small inclusion of Chinese mainland stocks. Despite this potential, the Sub-Adviser maintained the underweight. This country allocation detracted relatively from Fund performance over both the previous fiscal year and the most recent fiscal year, as China rallied. The Mexican peso has been one of the biggest losers in the post-election Trump era. The Fund’s underweight position in Mexico positively contributed to the Fund’s relative performance over the fiscal year. The top performing country allocation within the Fund was the overweight to Argentina. President Mauricio Macri encountered some challenges over the year, but it has been a significant change from the previous regime. President Macri is seeking sweeping reforms influencing tax, education, and labor. Over the fiscal year Argentina, as measured by the MSCI Argentina Index, increased 51.1 percent.

The Sub-Adviser’s security selection process selects from among the model’s highest ranked stocks, while preserving the country characteristics that the country model seeks. Despite the Fund’s country allocation to China detracting from performance, stock selection within China contributed positively to Fund performance. A Chinese holding that had a positive impact on Fund performance was Geely Automobile Holdings LTD (175 HK) (holding percentage*: 3.97 percent), a popular car company in China. Geely Automobile Holdings LTD’s had a strong fiscal quarter, increasing 202.2 percent. The Sub-Adviser believes that this fiscal quarter’s performance is attributed to strong sales and attractive margins, especially with their focus on high value sport utility vehicles. Additionally, Geely Automobile Holdings LTD acquisition of Volvo cars appears to be paying off. Another Chinese holding that positively contributed to Fund performance was BYD Electronics (285 HK) (holding percentage*: 1.69 percent). BYD Electronics is an information technology company that constructs handset equipment. Over the fiscal year, this position increased 244.5 percent, benefitting from strong Samsung Galaxy sales. A holding that detracted from relative Fund performance was Lite-On Technology Corp (2301 TT) (holding percentage*: 0.90 percent). Lite-On Technology Corp. is a maker of computer peripherals and electronic components who reported results that showed weakness in a couple of key business lines. Specifically, the company was hurt by price competition among power supply manufacturers and an unexpected slowdown in its sales of smartphone camera modules (with Chinese rivals taking market share). Analysts downgraded the stock sharply after the late-July announcement, and the negative revisions caused the Sub-Adviser’s overall ranking of the stock to deteriorate.

The Sub-Adviser believes geopolitical risk is also present in Asia, Western Europe, the Middle East and the United States. These political risks around the world will need to be monitored closely, as they could potentially contribute to the volatility of many emerging markets countries. However, the Sub-Adviser expects that markets will continue to filter out political noise and maintain focus on rising corporate profits. Central bank tightening is motivated in part by a healthier global economy, which the Sub-Adviser anticipates should also afford companies greater scope for top and bottom line growth. Although expectations of emerging markets’ strong growth to persist every quarter would be overly optimistic, the Sub-Adviser believes the convergence of improved earnings, attractive valuations, and stable currencies point to prospects for a continuation of the strong run that started in 2016.

* Holdings percentage(s) as of 10/31/2017.

Growth of $100,000 Investment

Total Returns as of October 31, 2017

		Annualized	Annualized	Annualized	Annualized Since Inception
	One Year	Three Years	Five Years	Ten Years	(12/10/04)
Class N	27.69%	3.99%	3.73%	(1.34)%	6.42%
Class C	26.40%	2.97%	2.70%	(2.33)%	5.37%
Class A with load of 5.75%	20.03%	1.72%	2.27%	(2.17)%	0.95%*
Class A without load	27.36%	3.74%	3.49%	(1.59)%	1.50%*
MSCI Emerging Markets Index (net)	26.45%	5.70%	4.83%	0.60%	8.97%
Morningstar Diversified Emerging Markets Category	23.25%	4.40%	4.32%	(0.42)%	7.77%

* 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 1.30% for Class N, 2.30% for Class C and 1.55% 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.

68

SCHEDULE OF INVESTMENTS

Dunham Emerging Markets Stock Fund

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 95.4%
AGRICULTURE - 0.7%
Adecoagro SA *		40,000	$	406,400
AIRLINES - 1.0%
AirAsia Bhd		850,000		670,764
APPAREL - 0.6%
LF Corp.		15,000		345,715
AUTO MANUFACTURERS - 3.9%
Geely Automobile Holdings Ltd.		800,000		2,480,571
AUTO PARTS & EQUIPMENT 2.0%
Weichai Power Co. Ltd.		1,000,000		1,245,162
BANKS - 20.1%
Agricultural Bank of China Ltd.		1,000,000		470,969
Banco Macro SA -ADR ^		9,000		1,133,280
Bank Pekao SA		15,000		490,287
Banco Santander Brasil SA - ADR		70,000		608,300
China Construction Bank Corp.		1,250,000		1,117,087
China Merchants Bank Co. Ltd.		212,000		809,514
Commercial International Bank Egypt SAE - GDR		274,999		1,255,370
Credicorp Ltd.		5,000		1,047,200
EuroBank Ergasias SA *		300,000		245,070
Hong Leong Bank Bhd		200,000		752,982
Industrial & Commercial Bank of China Ltd		800,000		636,500
Itau Unibanco Holding SA - ADR		40,000		512,400
National Bank of Greece SA *		750,000		248,084
OTP Bank PLC		9,769		393,764
Powszechna Kasa Oszczednosci Bank Polski SA *		55,000		585,559
Sberbank of Russia PJSC - ADR		60,000		861,000
Turkiye Halk Bankasi AS		170,000		496,224
Turkiye Is Bankasi		300,000		565,765
Woori Bank		30,000		439,026
				12,668,383
BUILDING MATERIALS - 0.4%
Titan Cement Co SA		10,000		241,708
CHEMICALS - 4.9%
Formosa Chemicals & Fibre Corp.		180,000		546,843
Kingboard Chemical Holdings Ltd.		225,000		1,335,095
Kingboard Laminates Holdings Limited		450,000		756,194
Petronas Chemicals Group Bhd *		260,000		452,624
				3,090,756
COAL - 1.3%
China Shenhua Energy Company		350,000		837,251
COMMERCIAL SERVICES - 1.6%
Estacio Participacoes SA		45,000		404,970
Qualicorp SA		58,000		620,184
				1,025,154
COMPUTERS - 1.6%
Innolux Corp.		1,000,000		438,306
Lite-On Technology Corp.		400,000		564,873
				1,003,179
DISTRIBUTION / WHOLESALE - 1.0%
Hanwha Corp.		16,000		638,423

Security	Shares		Value
DIVERSIFIED FINANCIAL SERVICES - 2.4%
Fubon Financial Holding Co. Ltd.		350,000	$	557,799
Hana Financial Group, Inc.		22,500		962,974
				1,520,773
ELECTRIC - 1.1%
Enea SA		100,000		382,781
Engie Brasil Energia SA		25,000		275,498
				658,279
ELECTRICAL COMPONENTS & EQUIPMENT -2.4%
LG Electronics, Inc.		12,000		976,877
Walsin Lihwa Corp.		1,000,000		511,132
				1,488,009
ELECTRONICS - 5.2%
Hannstar Display Corporation		1,500,000		582,580
Hon Hai Precision Industry Co. Ltd		462,000		1,717,228
TPK Holdings Co Ltd		300,000		991,042
				3,290,850
ENGINEERING & CONSTRUCTION - 2.3%
China Communications Services Corp.		700,000		424,795
Daewoo Engineering & Construction Co.		55,000		361,391
Ecorodovias Infraestructura e Logistica SA		87,000		324,719
Serba Dinamik Holdings Berhad		490,867		305,108
				1,416,013
ENTERTAINMENT - 0.5%
OPAP SA		30,000		336,159
FOOD -1.4%
Cia Brasileira de Distribuicao - ADR		20,000		464,600
Lien Hwa Industrial Corp		420,000		445,679
				910,279
FOREST PRODUCTS & PAPER - 1.3%
Nine Dragons Paper Holdings Ltd.		450,000		827,057
HOLDING COMPANIES - DIVERSIFIED - 1.0%
Tekfen Holding AS		200,000		676,075
HOME FURNISHINGS - 0.6%
Arcelik AS		70,000		382,706
INSURANCE - 1.7%
Cathay Financial Holding Co Ltd.		200,000		330,484
China Life Insurance Co. Ltd.		298,660		282,370
Powszechny Zaklad Ubezpieczen SA		35,000		451,834
				1,064,688
INTERNET- 5.7%
Alibaba Group Holding Ltd - ADR *		4,000		739,560
MercadoLibre, Inc. *		2,000		480,620
SINA Corp/China * ^		7,500		807,375
Tencent Holdings Ltd		35,000		1,572,998
				3,600,553
IRON / STEEL- 3.4%
Eregli Demir ve Celik Fabrikalari TAS		300,000		704,483
POSCO		2,500		728,714
Severstal PJSC - GDR		25,000		381,250
Vale SA - ADR		30,000		293,700
				2,108,147
MACHINERY - 0.9%
SFA Engineering Corp.		15,000		546,094
MINING - 1.5%
KGHM Polska Miedz SA		17,000		574,789
Southern Copper Corp		9,000		386,550
				961,339

See accompanying notes to financial statements.

69

SCHEDULE OF INVESTMENTS

Dunham Emerging Markets Stock Fund (Continued)

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 95.4% (Continued)
OIL & GAS - 5.3%
Grupa Lotos SA		20,000	$	362,798
Lukoil PJSC - ADR		20,000		1,062,000
Mol Hungarian Oil and Gas PLC		18,361		219,827
Petroleo Brasileiro SA - ADR		50,000		532,500
Polskie Gornictwo Naftowe i Gazownictwo SA		300,000		551,468
SK Innovation Co Ltd		3,500		642,043
				3,370,636
PHARMACEUTICALS - 0.3%
Richter Gedeon Nyrt		6,670		165,900
REAL ESTATE - 4.0%
Agile Group Holdings Limited		400,000		583,553
Country Garden Holdings Co. Ltd.		950,000		1,505,872
Emlak Konut Gayrimenkul Yatirim Ortakligi AS *		400,000		278,939
Highwealth Construction Corp.		132,966		177,886
				2,546,250
RETAIL - 1.6%
JUMBO SA		12,680		203,847
Sun Art Retail Group Ltd.		400,000		404,009
Zhongsheng Group Holdings Ltd.		200,000		411,067
				1,018,923
SEMICONDUCTORS - 9.6%
Dongbu HiTek Co. Ltd. *		37,500		480,065
Powertech Technology, Inc.		180,000		563,692
Samsung Electronics Co. Ltd.		1,350		3,327,894
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR ^		40,000		1,693,200
				6,064,851
SOFTWARE - 1.3%
IGG Inc.		600,000		805,515
TELECOMMUNICATIONS - 2.9%
BYD Electronic International Co. Ltd.		390,000		1,057,495
Hellenic Telecommunications Organization SA		28,000		332,767
SK Telecom Co Ltd.		1,700		401,336
				1,791,598
TOTAL COMMON STOCKS (Cost - $46,932,909)				60,204,159

			Principal
Security	Maturity Date	Interest Rate (%)	Amount	Value
PREFERRED STOCKS - 2.4%
BANKS - 1.1%
Banco do Estado do Rio Grande do Sul SA	Perpetual	0.2700	75,000	$	346,416
Itau Unibanco Holding SA	Perpetual	0.4300	29,500		380,636
					727,052
CHEMICALS - 1. 3%
Braskem SA	Perpetual	2.4200	50,000		794,779
TOTAL PREFERRED STOCKS (Cost - $1,198,503)					1,521,831
			Shares
SHORT- TERM INVESTMENT MONEY MARKET - 1.3%
First American Government Obligations Fund 0.33% + (Cost - $789,908)			789,908		789,908
COLLATERAL FOR SECURITIES LOANED - 1.8%
Mount Vernon Prime Portfolio 1.32% +# (Cost - $1,149,855)			1,149,855		1,149,855
TOTAL INVESTMENTS - 100.9% (Cost - $50,071,175)				$	63,665,753
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.9)%					(591,584	)
NET ASSETS - 100.0%				$	63,074,169

ADR - American Depositary Receipt	ETF - Exchange Traded Fund
GDR - Global Depositary Receipt	NVDR - Non-Voting Depositary Receipt

* Non-income producing security.

^ All or a portion of these securities are on loan. Total loaned securities had a value of $1,151,135 at October 31, 2017.

+ Variable rate security. Interest rate is as of October 31, 2017.

# The Trust’s securities lending policies and procedures require that the borrower: (i) deliver cash or U.S. Government securities as collateral with respect to each new loan of U.S. securities, equal to at least 105% of the value of the portfolio securities loaned, and (ii) at all times thereafter mark-to-market the collateral on a daily basis so that the market value of such collateral is at least 100% of the value of securities loaned. From time to time the collateral may not be 105% due to end of day market movement. The next business day additional collateral is obtained/received from the borrower to replenish/reestablish 105%.

Portfolio Composition * - (Unaudited)
China	23.1	%	Hong Kong	5.2	%
South Korea	15.5	%	Turkey	4.9	%
Taiwan	14.8	%	Poland	4.6	%
Brazil	8.2	%	Other Countries	23.7	%
			Total	100.0	%

^* Based on total value of investments as of October 31, 2017.

Percentage may differ from Schedule of Investments which is based on Fund net assets.

See accompanying notes to financial statements.

70

Dunham Small Cap Growth Fund (Unaudited)

Message from the Sub-Adviser (Pier Capital, LLC)

Small cap growth stocks, as measured by the Russell 2000 Growth Index, increased 7.0 percent in the most recent fiscal quarter, bringing performance for the fiscal year up to 31.0 percent. During the fiscal year, the best and worst performing sectors combined comprised only slightly more than two percent of the small cap growth space. With a weighting below one percent, the telecommunication services sector surged 64.1 percent during the fiscal year while the energy sector plummeted 17.7 percent and only made up 1.2 percent of the small cap growth universe. Conversely, the three largest small cap growth sectors, information technology, healthcare, and industrials, increased between 32.5 percent and 37.4 percent. These three sectors combined constitute more than 64 percent of the small cap growth universe. Therefore, as the dispersion may be a massive 82 percent when considering all small cap growth sectors, when considering the largest sectors the dispersion is much tighter. This generally implies that sector weights, at least across the primary sectors in the space, had a lesser impact on returns than stock selection within those sectors.

The technology sector was consistently one of the largest overweights for the Fund during the fiscal year. As the sector’s return over the fiscal year was only 1.5 percent ahead of the overall return for small cap growth stocks, the significant overweight to the sector only provided a marginal benefit. However, this sector proved to be one of the strongest relative contributors to performance due to the Sub-Adviser’s stock selection. For example, The Trade Desk Inc. (TTD) (holding percentage*: 1.03 percent), an online advertising platform, and Wix.com Ltd. (WIX) (holding percentage*: 0.97 percent), a company that offers a low-cost web development platform for small business owners and entrepreneurs to create professional-quality websites, not only outpaced the sector during the fourth fiscal quarter, but were two of the strongest performers during the fiscal year. After WIX was one of the largest detractors in the technology sector in the previous fiscal quarter, falling 25.2 percent, WIX rose 13.1 percent in the most recent fiscal quarter, ending the fiscal year up 74.5 percent. TTD boasted a 23.7 percent return for the most recent fiscal quarter to finish the fiscal year up 161.8 percent.

Within the information technology sector, there were also some detractors, which the Sub-Adviser generally trimmed or eliminated during the fourth fiscal quarter. For example, Pegasystems Inc. (PEGA) (holding percentage**: 0.94 percent), a business process management software provider, was added to the Fund in mid-June. PEGA declined 13.4 percent before it was removed from the Fund in mid-August. Some relatively recent additions to the Fund helped to offset some of the adverse effects of holdings such as PEGA. Silicon Laboratories Inc. (SLAB) (holding percentage*: 0.95 percent), a developer of mixed signal integrated circuits that translates analog signals into digital signals, was added to the Fund in mid-May. From its addition through the end of the fiscal year, SLAB increased 28.9 percent.

The Sub-Adviser maintained a sizeable underweight to the healthcare sector. While this slightly helped during the most recent fiscal quarter, it was a larger detractor during the fiscal year. The Sub-Adviser’s stock selection within the sector helped to offset the negative relative effects of the underweight. For example, Ignyta, Inc. (RXDX) (holding percentage*: 0.76 percent), a drug developer focused on cancers and tumors with specific molecular alterations, rose 48.8 percent from mid-June when it was added to the Fund through the end of the fiscal year. Some healthcare holdings detracted during the most recent fiscal quarter but contributed significantly when measured over the entire fiscal year. This would include Merit Medical Systems, Inc. (MMSI) (holding percentage*: 0.82 percent), a provider of disposable medical products used during interventional and diagnostic procedures. MMSI declined 7.2 percent during the most recent fiscal quarter, but returned a sizeable 73.4 percent over the fiscal year. Conversely, West Pharmaceutical Services Inc. (WST) (holding percentage*: 0.99 percent), a designer and manufacturer of packaging components for drug delivery systems and laboratory services, contributed a 14.5 percent return during the most recent fiscal quarter, but lagged the sector as a whole by 3.2 percent when measured over the fiscal year.

The industrials sector was the second largest allocation in the Fund as of the end of the fiscal year. The industrials sector rose 9.8 percent during the most recent fiscal quarter, to end the fiscal year up 33.3 percent. Holdings such as Saia Inc. (SAIA) (holding percentage*: 0.97 percent), a freight carrier that specializes in less-than-truckload consolidation, and Mercury Systems Inc. (MRCY) (holding percentage*: 1.41 percent), a manufacturer of real-time digital signal processing computer systems, were able to clear the high return hurdle set by the sector as a whole. However, WageWorks Inc. (WAGE) (holding percentage**: 0.45 percent), a provider of tax-advantaged spending account management programs, and Raven Industries Inc. (RAVN) (holding percentage*: 0.46 percent), a company that manufactures devices from high-altitude balloons to reinforced plastic sheeting failed to exceed the bar during the final fiscal quarter and the fiscal year. SAIA and MRCY rose 19.2 percent and 14.9 percent, respectively, while WAGE declined 11.5 percent through mid-September when it was sold and RAVN fell 2.2 percent during the fourth fiscal quarter. This most recent fiscal quarter’s performance resulted in SAIA and MRCY boasting returns of 81.8 percent and 81.7 percent for the fiscal year. Conversely, WAGE and RAVN substantially underperformed, as WAGE decreased 2.1 percent from the beginning of the fiscal year until it was sold in mid-September and RAVN only increased 2.4 percent from when it was purchased at the end of June through the end of the fiscal year.

In general, the Sub-Adviser’s approach benefits from investors favoring earnings growth over macro trends. The tighter relative performance between the most sizeable small cap growth sectors generally helped to orient return differentials toward individual stock performance instead of primarily on sector weightings. In addition, as the U.S. economic recovery progresses, some of the innovators within each sector may begin to experience increased attention from investors seeking the growth stories of the future.

* Holdings percentage(s) as of 10/31/2017.

** Holdings percentage(s) as of the date prior to the sale of the security.

Growth of $100,000 Investment

Total Returns as of October 31, 2017

		Annualized	Annualized	Annualized	Annualized Since Inception
	One Year	Three Years	Five Years	Ten Years	(12/10/04)
Class N	32.40%	11.03%	14.75%	7.61%	8.81%
Class C	31.04%	9.92%	13.60%	6.53%	7.73%
Class A with load of 5.75%	24.43%	8.58%	13.10%	6.70%	8.01%*
Class A without load	32.05%	10.76%	14.46%	7.34%	8.60%*
Russell 2000 Growth Index	31.00%	10.51%	15.36%	8.16%	9.06%
Morningstar Small Cap Growth Category	28.85%	9.49%	13.70%	6.46%	7.83%

* Class A commenced operations on January 3, 2007.

The Russell 2000 Growth Index measures the performance of the 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 1.24% for Class N, 2.24% for Class C and 1.49% 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

71

SCHEDULE OF INVESTMENTS

Dunham Small Cap Growth Fund

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 96.9%
AEROSPACE & DEFENSE - 1.3%
Aerojet Rocketdyne Holdings, Inc. * ^		4,617	$	145,805
Aerovironment, Inc. *		5,740		293,658
				439,463
APPAREL - 0.9%
Canada Goose Holdings, Inc. *		14,271		306,541
BANKS - 2.9%
FCB Financial Holdings, Inc. *		5,233		244,381
Home BancShares, Inc.		15,960		358,781
Pinnacle Financial Partners, Inc.		6,075		402,165
				1,005,327
BIOTECHNOLOGY - 2.0%
Exact Sciences Corp. *		4,072		223,919
Foundation Medicine, Inc. * ^		3,867		174,015
Juno Therapeutics, Inc. * ^		6,540		293,711
				691,645
COMMERICAL SERVICES - 2.3%
Care.com, Inc. *		10,407		159,956
HealthEquity, Inc. * ^		6,179		310,309
Quanta Services, Inc. *		8,238		310,820
				781,085
COMPUTERS - 7.2%
Kornit Digital Ltd. * ^		20,156		313,426
Lumentum Holdings, Inc. * ^		6,199		391,467
Mercury Systems, Inc. * ^		9,476		478,254
Nutanix, Inc. * ^		11,243		320,425
Pure Storage, Inc. *		17,949		294,902
Vocera Communications, Inc. *		10,346		291,964
WNS Holdings Ltd. - ADR *		10,007		379,465
				2,469,903
DISTRIBUTION/WHOLESALE - 0.9%
SiteOne Landscape Supply, Inc. * ^		4,823		306,309
DIVERSIFIED FINANCIAL SERVICES - 1.9%
Evercore, Inc.		3,592		287,719
Moelis & Co.		8,548		365,427
				653,146
ELECTRICAL COMPONENTS & EQUIPMENT - 1.5%
Littelfuse, Inc.		1,515		316,635
Universal Display Corp.		1,249		182,979
				499,614
ELECTRONICS - 3.2%
ESCO Technologies, Inc. ^		5,140		297,863
FARO Technologies, Inc. *		2,308		119,554
FLIR Systems, Inc.		7,426		347,685
Rogers Corp. *		2,052		312,068
				1,077,170
ENGINEERING & CONSTRUCTION - 6.3%
Dycom Industries, Inc. *		3,355		294,670
Granite Construction, Inc.		6,574		418,698
MasTec, Inc. *		8,316		362,162
NV5 Global, Inc. * ^		6,430		373,583
Primoris Services Corp.		10,729		303,309
TopBuild Corp. *		5,868		387,229
				2,139,651
ENTERTAINMENT - 1.9%
Red Rock Resorts, Inc.		11,145		274,501
Vail Resorts, Inc.		1,686		386,128
				660,629

Security	Shares		Value
FOOD - 0.9%
Bob Evans Farms, Inc.		3,857	$	297,722
HEALTHCARE-PRODUCTS - 7.3%
Integra LifeSciences Holdings Corp. * ^		5,663		264,915
iRhythm Technologies, Inc. *		7,455		379,832
Merit Medical Systems, Inc. * ^		7,286		277,232
Novocure Ltd. * ^		16,558		357,653
OraSure Technologies, Inc. *		13,241		261,510
Repligen Corp. * ^		8,646		321,631
Tactile Systems Technology, Inc. * ^		10,385		297,946
West Pharmaceutical Services, Inc.		3,321		336,749
				2,497,468
HEALTHCARE-SERVICES - 1.1%
Tivity Health, Inc. *		7,889		364,866
HOME BUILDERS - 2.5%
Cavco Industries, Inc. *		1,015		159,254
Installed Building Products, Inc. * ^		4876		339,857
TRI Pointe Group, Inc. *		19,870		351,500
				850,611
HOME FURNISHINGS - 0.9%
Roku, Inc. * ^		15,550		316,909
INTERNET - 4.4%
CarGurus, Inc. * ^		5,314		173,236
Chegg, Inc. * ^		19,454		301,732
Shopify, Inc. *		3,414		339,659
Trade Desk, Inc. * ^		5,285		348,387
Wix.com Ltd. *		4,687		327,153
				1,490,167
LEISURE TIME - 2.1%
Camping World Holdings, Inc.		9,384		394,316
Planet Fitness, Inc. ^		12,859		342,564
				736,880
LODGING - 0.9%
Boyd Gaming Corp.		10,749		314,193
MACHINERY-CONSTRUCTION/MINING - 1.5%
BWX Technologies, Inc.		8,637		517,529
MACHINERY-DIVERSIFIED - 2.8%
Ichor Holdings Ltd. *		9,029		281,615
Kadant, Inc.		3,182		361,475
Welbilt, Inc. *		13,602		300,060
				943,150
MISCELLANEOUS MANUFACTURING - 1.3%
John Bean Technologies Corp. ^		2,864		306,162
Raven Industries, Inc.		4,634		155,934
				462,096
OIL & GAS - 1.0%
Matador Resources Co. * ^		12,413		329,565
PHARMACEUTICALS - 2.1%
Catalent, Inc. *		7,330		312,185
Dova Pharmaceuticals, Inc. * ^		5,912		148,155
Ignyta, Inc. *		16,749		257,934
				718,274
REAL ESTATE - 0.8%
Redfin Corp. * ^		10,880		256,115

See accompanying notes to financial statements.

72

SCHEDULE OF INVESTMENTS

Dunham Small Cap Growth Fund (Continued)

October 31, 2017

Security	Shares		Value
COMMON STOCKS - 96.9% (Continued)
RETAIL - 3.4%
BMC Stock Holdings, Inc. *		15,390	$	330,116
Ollie’s Bargain Outlet Holdings, Inc. * ^		6,017		268,659
PetIQ, Inc. * ^		11,028		265,334
Wingstop, Inc. ^		8,319		281,765
				1,145,874
SAVINGS & LOANS - 0.9%
Sterling Bancorp.		11,875		297,469
SEMICONDUCTORS - 6.1%
Advanced Micro Devices, Inc. * ^		24,241		266,287
MaxLinear, Inc. * ^		6,643		162,554
Monolithic Power Systems, Inc.		2,843		345,908
Power Integrations, Inc. ^		4,049		325,337
Semtech Corp. * ^		7,758		318,466
Silicon Laboratories, Inc. *		3,407		323,324
Tower Semiconductor Ltd. * ^		10,905		360,519
				2,102,395
SOFTWARE - 16.4%
Alteryx, Inc. *		13,477		304,445
Blackline, Inc. * ^		8,174		290,341
Box, Inc. * ^		14,899		327,033
BroadSoft, Inc. * ^		6,209		340,564
Callidus Software, Inc. *		11,157		282,830
Everbridge, Inc. * ^		10,685		284,648
Instructure, Inc. *		4,493		156,356
LivePerson, Inc. * ^		20,981		294,783
MuleSoft, Inc. * ^		12,657		296,047
New Relic, Inc. *		6,020		309,007
Omnicell, Inc. *		5,519		274,846
Red Hat, Inc. *		3,098		374,331
ServiceNow, Inc. *		3,360		424,603
Splunk, Inc. *		5,297		356,488
Tabula Rasa HealthCare, Inc. *		8,588		248,022
Take-Two Interactive Software, Inc. *		4,275		473,029
Talend SA - ADR		6,970		288,628
Twilio, Inc. * ^		9,081		290,138
				5,616,139

Security	Shares		Value
TELECOMMUNICATIONS - 2.0%
ORBCOMM, Inc. * ^		20,038	$	226,630
Silicom Ltd. ^		2,432		173,377
Vonage Holdings Corp. *		36,757		298,834
				698,841
TRANSPORTATION - 6.2%
Air Transport Services Group, Inc. *		11,943		289,021
Atlas Air Worldwide Holdings, Inc. * ^		4,257		261,167
Marten Transport Ltd. ^		18,124		356,137
Old Dominion Freight Line, Inc.		4,672		565,919
Saia, Inc. * ^		5,098		330,351
Schneider National, Inc.		12,725		333,268
				2,135,863
TOTAL COMMON STOCKS  (Cost - $26,260,000)				33,122,609
SHORT-TERM INVESTMENT - 2.2%
MONEY MARKET FUND - 2.2%
Fidelity Investment Money Market Fund - Class I 0.92% +		763,492		763,492
TOTAL SHORT-TERM INVESTMENT (Cost - $763,492)
COLLATERAL FOR SECURITIES LOANED - 29.1%
Mount Vernon Prime Portfolio, 1.32% + (Cost - $9,970,545)		9,970,545		9,970,545
TOTAL INVESTMENTS - 128.2% (Cost - $36,994,037)			$	43,856,646
LIABILITIES IN EXCESS OF OTHER ASSETS - (28.2)%				(9,646,122	)
NET ASSETS - 100.0%			$	34,210,524

^ All or a portion of these securities are on loan. Total loaned securities had a value of $9,791,085 at October 31, 2017. Securities loaned with a value of $39,546 have been sold and are pending settlement on November 1, 2017.

* Non-Income producing security.

+ Variable rate security. Interest rate is as of October 31, 2017.

ADR- American Depositary Receipt.

Portfolio Composition * - (Unaudited)
Technology	23.3	%	Financial	5.0	%
Collateral For Securities Loaned	22.8	%	Communication	5.0	%
Industrial	18.7	%	Short-Term Investment	1.7	%
Consumer, Non-Cyclical	12.2	%	Field Energy	0.7	%
Consumer, Cyclical	10.6	%	Basic Materials	0.0	%
			Total	100.0	%

* Based on total value of investments as of October 31, 2017.

Percentage may differ from Schedule of Investments which is based on Fund net assets.

See accompanying notes to financial statements.

73

STATEMENTS OF ASSETS AND LIABILITIES

October 31, 2017

				Dunham			Dunham												Dunham
	Dunham			Corporate /			Monthly			Dunham			Dunham			Dunham			International
	Floating Rate			Government			Distribution			Dynamic Macro			High-Yield			Alternative			Opportunity
	Bond Fund			Bond Fund			Fund			Fund			Bond Fund			Dividend Fund			Bond Fund
Assets:
Investments in securities, at cost	$	199,546,934		$	76,774,505		$	327,021,205		$	43,269,436		$	144,429,209		$	45,983,712		$	35,568,658
Investments in securities, at value	$	199,816,855		$	77,646,076		$	337,506,822		$	47,429,478		$	146,666,525		$	46,310,709		$	36,125,342
Cash		—			—			10,764,574			41,432			—			—			—
Foreign currency, at value (cost $2,199,916, $811 and $154,706, respectively)		—			—			2,246,532			811			—			—			153,453
Deposits with brokers		—			—			60,011,457			—			—			—			183,378
Unrealized appreciation on forward foreign currency exchange contracts		—			—			—			—			—			—			88,321
Unrealized appreciation on futures		—			—			—			596,720			—			—			8,742
Receivable for securities sold		269,621			647,963			12,064,186			—			397,350			563,789			—
Interest and dividends receivable		997,977			533,065			197,745			5,362			1,859,505			63,486			315,897
Receivable for Fund shares sold		14,129			1,013,009			98,231			22,270			8,426			—			13,758
Receivable from Administrator		—			—			—			—			—			49,969			—
Prepaid expenses and other assets		28,681			24,360			118,461			32,217			24,193			6,868			30,372
Total Assets		201,127,263			79,864,473			423,008,008			48,128,290			148,955,999			46,994,821			36,919,263
Liabilities:
Option contracts written (premiums received $902,489 and $44,405, respectively)		—			—			1,412,465			29,397			—			—			—
Payable upon return of securities loaned		2,147,100			7,021,360			8,948,907			3,202,272			24,186,280			8,225,547			—
Securities sold short (proceeds $100,053,831)		—			—			105,069,959			—			—			—			—
Unrealized depreciation on forward foreign currency exchange contracts		—			—			—			—			—			—			69,884
Unrealized depreciation on futures		—			—			—			82,739			—			—			35,851
Payable for dividends on short sales		—			—			114,553			—			—			—			—
Payable to broker for futures		—			—			113,568			416,016			—			—			—
Payable for securities purchased		18,841,109			517,956			18,422,971			—			1,092,372			1,418,086			—
Payable for Fund shares redeemed		42,144			8,008			144,216			4,353			58,623			—			3,777
Distributions payable		1,498			843			59,275			—			11,795			—			—
Payable to adviser		88,947			29,701			156,150			24,020			61,597			19,833			18,289
Payable to sub-adviser		28,898			21,701			447,747			35,767			54,995			7,532			10,163
Payable for distribution fees		4,722			5,235			40,921			3,794			18,427			1,242			1,477
Payable for administration fees		11,202			8,832			15,462			3,083			6,704			—			3,087
Payable for fund accounting fees		3,200			1,294			9,391			1,141			2,147			—			1,163
Payable for transfer agent fees		1,249			2,697			2,332			2,453			1,232			—			1,642
Payable for custody fees		7,001			6,380			19,078			3,523			2,300			5,938			—
Payable for non 12b-1 shareholder servicing fees		319			1,247			18,666			704			865			1,350			—
Accrued expenses and other liabilities		20,846			23,743			47,139			22,088			21,851			25,899			34,905
Total Liabilities		21,198,235			7,648,997			135,042,800			3,831,350			25,519,188			9,705,427			180,238
Net Assets	$	179,929,028		$	72,215,476		$	287,965,208		$	44,296,940		$	123,436,811		$	37,289,394		$	36,739,025
Net Assets:
Paid in capital	$	182,032,456		$	73,217,275		$	293,991,466		$	42,439,732		$	126,472,606		$	39,744,753		$	36,271,670
Accumulated net investment income (loss)		167,566			(843	)		(2,251,859	)		(202,369	)		(6,091	)		—			(136,606	)
Accumulated net realized gain (loss) on investments, options, securities sold short, futures, swap contracts, and foreign currency transactions		(2,540,915	)		(1,872,527	)		(8,780,528	)		(2,629,444	)		(5,267,020	)		(2,782,356	)		40,490
Net unrealized appreciation on investments, options, securities sold short, futures, and foreign currency translations		269,921			871,571			5,006,129			4,689,021			2,237,316			326,997			563,471
Net Assets	$	179,929,028		$	72,215,476		$	287,965,208		$	44,296,940		$	123,436,811		$	37,289,394		$	36,739,025
Net Asset Value Per Share
Class N Shares:
Net Assets	$	157,484,671		$	62,756,934		$	212,177,657		$	36,104,062		$	103,566,541		$	35,285,477		$	32,441,031
Shares of beneficial interest outstanding (no par value; unlimited shares authorized)		16,184,906			4,540,970			5,779,627			3,548,103			11,232,544			3,130,059			3,479,534
Net asset value, offering and redemption price per share	$	9.73		$	13.82		$	36.71		$	10.18		$	9.22		$	11.27		$	9.32
Class A Shares:
Net Assets	$	16,229,025		$	6,259,773		$	41,186,358		$	6,223,703		$	12,085,016		$	728,678		$	2,967,796
Shares of beneficial interest outstanding (no par value; unlimited shares authorized)		1,669,227			453,466			1,152,593			614,708			1,300,447			64,673			320,464
Net asset value and redemption price per share *	$	9.72		$	13.80		$	35.73		$	10.12		$	9.29		$	11.27		$	9.26
Front-end sales charge factor		0.9550			0.9550			0.9425			0.9425			0.9550			0.9425			0.9550
Offering price per share (Net asset value per share / front-end sales charge factor)	$	10.18		$	14.45		$	37.91		$	10.74		$	9.73		$	11.96		$	9.70
Class C Shares:
Net Assets	$	6,215,332		$	3,198,769		$	34,601,193		$	1,969,175		$	7,785,254		$	1,275,239		$	1,330,198
Shares of beneficial interest outstanding (no par value; unlimited shares authorized)		638,954			233,302			1,187,047			202,238			849,004			113,417			146,131
Net asset value, offering and redemption price per share	$	9.73		$	13.71		$	29.15		$	9.74		$	9.17		$	11.24		$	9.10

* 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.

74

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

October 31, 2017

						Dunham										Dunham
	Dunham			Dunham		Focused			Dunham		Dunham			Dunham		Emerging			Dunham
	Appreciation &			Large Cap		Large Cap			International		Real Estate			Small Cap		Markets			Small Cap
	Income Fund			Value Fund		Growth Fund			Stock Fund		Stock Fund			Value Fund		Stock Fund			Growth Fund
Assets:
Investments in securities, at cost	$	17,902,365		$	62,010,832	$	61,594,216		$	97,608,582	$	42,742,431		$	33,007,223	$	50,071,175		$	36,994,037
Investments in securities, at value	$	19,038,373		$	75,943,514	$	87,673,095		$	114,459,897	$	47,564,568		$	37,411,986	$	63,665,753		$	43,856,646
Foreign currency, at value (cost $142,270)		—			—		—			141,479		—			—		—			—
Receivable for securities sold		—			—		—			749,024		—			—		2,526,594			659,601
Interest and dividends receivable		86,848			51,242		8,228			445,077		16,318			12,586		111,885			7,664
Receivable for Fund shares sold		6,367			26,569		13,035			32,034		24,091			14,413		9,243			3,862
Receivable from Administrator		—			—		3,277			—		—			—		—			—
Prepaid expenses and other assets		22,231			26,875		26,321			26,211		23,055			24,641		26,893			26,980
Total Assets		19,153,819			76,048,200		87,723,956			115,853,722		47,628,032			37,463,626		66,340,368			44,554,753
Liabilities:
Payable upon return of securities loaned		322,400			5,635,713		11,449,510			2,837,042		4,641,609			7,504,373		1,149,855			9,970,545
Payable to custodian for cash overdraft		—			—		13,129			34		—			—		—			—
Payable for securities purchased		—			334,403		—			421,449		226,865			—		1,975,885			289,185
Payable for Fund shares redeemed		1,686			7,126		7,060			11,694		3,861			2,616		9,491			10,179
Payable to adviser		10,291			42,484		41,444			59,816		23,393			16,615		35,095			19,437
Payable to sub-adviser		4,933			19,837		13,242			53,009		3,258			14,921		39,579			24,116
Payable for distribution fees		7,329			7,124		7,928			17,708		—			3,825		7,135			9,136
Payable for administration fees		1,251			—		—			3,930		1,848			2,570		3,001			—
Payable for fund accounting fees		383			—		—			2,432		802			1,469		851			—
Payable for transfer agent fees		1,250			2,158		—			3,306		1,253			2,294		2,789			903
Payable for custody fees		1,499			6,438		1,798			46,394		668			2,671		23,428			2,819
Payable for non 12b-1 shareholder servicing fees		277			895		746			940		549			1,513		891			405
Line of credit outstanding		—			—		—			26,000		—			—		—			—
Accrued expenses and other liabilities		15,992			23,389		15,660			18,599		17,768			21,315		18,199			17,504
Total Liabilities		367,291			6,079,567		11,550,517			3,502,353		4,921,874			7,574,182		3,266,199			10,344,229
Net Assets	$	18,786,528		$	69,968,633	$	76,173,439		$	112,351,369	$	42,706,158		$	29,889,444	$	63,074,169		$	34,210,524
Net Assets:
Paid in capital	$	19,692,761		$	55,380,412	$	50,430,733		$	91,315,889	$	37,944,357		$	22,333,932	$	51,775,528		$	22,468,871
Accumulated net investment income (loss)		195,912			424,909		(577,046	)		1,043,638		95,638			49,727		221,092			25,856
Accumulated net realized gain (loss) on investments and foreign currency transactions		(2,238,153	)		230,630		240,873			3,141,821		(155,974	)		3,101,022		(2,518,792	)		4,853,188
Net unrealized appreciation on investments and foreign currency translations		1,136,008			13,932,682		26,078,879			16,850,021		4,822,137			4,404,763		13,596,341			6,862,609
Net Assets	$	18,786,528		$	69,968,633	$	76,173,439		$	112,351,369	$	42,706,158		$	29,889,444	$	63,074,169		$	34,210,524
Net Asset Value Per Share
Class N Shares:
Net Assets	$	12,953,208		$	55,155,206	$	56,471,953		$	90,257,178	$	34,255,821		$	22,709,754	$	51,364,848		$	24,640,909
Shares of beneficial interest outstanding (no par value; unlimited shares authorized)		1,492,321			3,894,616		2,915,506			5,144,659		2,187,058			1,299,695		3,222,906			1,213,118
Net asset value, offering and redemption price per share	$	8.68		$	14.16	$	19.37		$	17.54	$	15.66		$	17.47	$	15.94		$	20.31
Class A Shares:
Net Assets	$	3,125,284		$	10,173,616	$	12,943,956		$	15,524,166	$	6,002,428		$	4,568,575	$	8,242,362		$	6,925,460
Shares of beneficial interest outstanding (no par value; unlimited shares authorized)		361,011			721,787		678,291			890,926		380,412			264,000		529,025			353,054
Net asset value, and redemption price per share *	$	8.66		$	14.10	$	19.08		$	17.42	$	15.78		$	17.31	$	15.58		$	19.62
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)	$	9.19		$	14.96	$	20.24		$	18.48	$	16.74		$	18.37	$	16.53		$	20.82
Class C Shares:
Net Assets	$	2,708,036		$	4,639,811	$	6,757,530		$	6,570,025	$	2,447,909		$	2,611,115	$	3,466,959		$	2,644,155
Shares of beneficial interest outstanding (no par value; unlimited shares authorized)		320,221			344,374		369,892			396,090		164,508			166,631		235,129			157,710
Net asset value, offering and redemption price per share	$	8.46		$	13.47	$	18.27		$	16.59	$	14.88		$	15.67	$	14.74		$	16.77

* 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.

75

STATEMENTS OF OPERATIONS

For the Year Ended October 31, 2017

				Dunham			Dunham												Dunham
	Dunham			Corporate /			Monthly			Dunham			Dunham			Dunham			International
	Floating Rate			Government			Distribution			Dynamic Macro			High-Yield			Alternative			Opportunity
	Bond Fund			Bond Fund			Fund			Fund			Bond Fund			Dividend Fund			Bond Fund
Investment Income:
Interest income	$	6,079,767		$	2,023,887		$	611,878		$	109,430		$	5,773,171		$	18,258		$	342,384
Dividend income		67,595			26,289			3,641,100			430,361			9,237			2,142,385			135
Securities lending income		5,019			14,742			21,006			30,801			89,852			7,196			—
Less: Foreign withholding taxes		—			—			(31,390	)		—			—			(11,760	)		—
Total Investment Income		6,152,381			2,064,918			4,242,594			570,592			5,872,260			2,156,079			342,519
Operating Expenses:
Investment advisory fees		795,781			285,373			1,588,261			246,769			605,611			228,062			175,236
Sub-advisory fees		427,093			171,224			1,686,292			284,734			375,032			217,229			131,427
Sub-advisory performance fees		(207,938	)		57,264			(75,625	)		4,584			(45,030	)		(109,244	)		(38,909	)
Fund accounting fees		36,530			15,923			69,475			10,466			25,171			10,496			6,965
Distribution fees- Class C Shares		42,595			24,699			362,261			18,688			58,448			9,781			9,528
Distribution fees- Class A Shares		33,520			13,286			104,919			11,963			26,986			449			6,236
Administration fees		142,347			100,154			144,373			24,463			94,732			23,074			49,126
Registration fees		32,764			44,409			58,837			48,710			43,324			12,001			30,833
Transfer agent fees		30,352			21,747			46,603			21,008			26,826			19,330			19,418
Custodian fees		33,733			20,118			30,713			9,417			8,218			15,696			44,221
Professional fees		22,049			17,938			28,916			17,371			22,332			16,801			17,878
Chief Compliance Officer fees		19,642			10,508			37,365			6,114			14,790			4,650			3,641
Printing and postage expense		20,230			15,746			96,219			10,296			17,709			7,220			7,258
Trustees’ fees		9,398			5,264			21,220			2,813			7,270			2,547			1,891
Insurance expense		2,595			365			—			429			2,042			620			582
Non 12b-1 shareholder servicing fees		1,057			575			41,811			410			3,039			6,426			—
Dividend expense on short sales		—			—			1,875,706			—			—			—			—
Security borrowing fees		—			—			947,094			—			—			—			—
Miscellaneous expenses		7,924			4,014			7,353			6,143			5,278			4,872			2,618
Total Operating Expenses		1,449,672			808,607			7,071,793			724,378			1,291,778			470,010			467,949
Less: Fees paid indirectly		—			—			—			—			—			(55,520	)		—
Less: Sub-advisory fees waived		—			—			(62,399	)		—			—			—			—
Net Operating Expenses		1,449,672			808,607			7,009,394			724,378			1,291,778			414,490			467,949
Net Investment Income (Loss)		4,702,709			1,256,311			(2,766,800	)		(153,786	)		4,580,482			1,741,589			(125,430	)
Realized and Unrealized Gain (Loss) on Investments, Futures, Options Purchased, Securities Sold Short, Written Options, Swap Contracts, Foreign Currency Transactions, and Foreign Currency Exchange Contracts:
Exchange Contracts:
Net realized gain (loss) from:
Investments		(258,247	)		3,026			26,609,196			68,335			4,040,878			(939,538	)		(398,291	)
Futures		—			—			—			751,694			—			—			(86,675	)
Options purchased		—			—			(7,100,491	)		(1,411,691	)		—			(1,749,566	)		—
Securities sold short		—			—			(16,139,207	)		—			—			—			—
Written options		—			—			3,473,870			72,803			—			—			—
Swap contracts		—			—			3,330,087			—			—			—			—
Foreign currency transactions		—			—			(11,746	)		(34,414	)		—			—			(99,019	)
Foreign currency exchange contracts		—			—			174,944			26,265			—			—			(162,969	)
Net change in unrealized appreciation (depreciation) on:
Investments		536,363			(303,218	)		7,688,859			3,082,443			(865,697	)		852,584			1,119,123
Futures		—			—			—			328,737			—			—			8,414
Options purchased		—			—			250,695			(206,630	)		—			(157,770	)		—
Securities sold short		—			—			807,072			—			—			—			—
Written options		—			—			(180,318	)		23,637			—			—			—
Swap contracts		—			—			(422,216	)		—			—			—			—
Foreign currency translations		—			—			31,514			(11,097	)		—			—			17,108
Foreign currency exchange contracts		—			—			(17,509	)		—			—			—			(5,918	)
Net Realized and Unrealized Gain (Loss)		278,116			(300,192	)		18,494,750			2,690,082			3,175,181			(1,994,290	)		391,773
Net Increase (Decrease) in Net Assets Resulting From Operations	$	4,980,825		$	956,119		$	15,727,950		$	2,536,296		$	7,755,663		$	(252,701	)	$	266,343

See accompanying notes to financial statements.

76

STATEMENTS OF OPERATIONS (Continued)

For the Year Ended October 31, 2017

							Dunham												Dunham
	Dunham			Dunham			Focused			Dunham			Dunham			Dunham			Emerging			Dunham
	Appreciation &			Large Cap			Large Cap			International			Real Estate			Small Cap			Markets			Small Cap
	Income Fund			Value Fund			Growth Fund			Stock Fund			Stock Fund			Value Fund			Stock Fund			Growth Fund
Investment Income:
Interest income	$	439,771		$	8,505		$	4,816		$	7,287		$	4,163		$	2,663		$	5,023		$	5,351
Dividend income		214,508			1,380,637			201,860			3,172,495			669,722			490,703			1,948,637			110,585
Securities lending income		9,562			21,266			45,951			51,365			16,772			16,395			3,804			60,244
Less: Foreign withholding taxes		—			(268	)		—			(333,633	)		—			—			(250,493	)		(178	)
Total Investment Income		663,841			1,410,140			252,627			2,897,514			690,657			509,761			1,706,971			176,002
Operating Expenses:
Investment advisory fees		130,301			410,956			452,280			650,960			227,159			186,802			374,825			229,370
Sub-advisory fees		80,130			189,672			243,535			652,581			139,790			129,325			288,327			176,439
Sub-advisory performance fees		(45,903	)		(89,648	)		(95,603	)		(141,509	)		(111,396	)		(76,554	)		96,145			(73,357	)
Fund accounting fees		5,029			18,377			20,478			28,454			9,984			8,565			18,182			9,927
Distribution fees- Class C Shares		29,984			49,100			58,680			61,672			28,493			25,502			31,749			25,366
Distribution fees- Class A Shares		7,657			19,870			28,445			30,783			11,599			10,461			17,627			15,655
Administration fees		16,769			38,707			43,030			88,504			22,662			21,038			44,352			23,814
Registration fees		41,379			46,232			45,365			47,134			47,004			44,956			44,850			42,066
Transfer agent fees		16,792			23,313			24,010			28,014			19,590			18,879			22,688			19,107
Custodian fees		4,608			18,182			9,183			139,493			11,123			8,542			71,611			12,176
Professional fees		14,946			19,588			18,839			21,414			17,598			17,153			17,692			17,702
Chief Compliance Officer fees		2,190			9,974			10,358			16,426			5,093			4,708			9,219			5,728
Printing and postage expense		8,854			10,890			16,619			16,946			10,048			8,758			10,835			8,228
Trustees’ fees		1,491			4,687			5,122			7,237			2,508			2,259			2,282			2,691
Insurance expense		564			397			1,380			189			667			334			100			668
Non 12b-1 shareholder servicing fees		1,629			1,981			5,039			8,052			2,771			1,975			2,375			3,084
Miscellaneous expenses		2,856			5,572			5,349			7,747			3,441			3,611			5,347			3,810
Total Operating Expenses		319,276			777,850			892,109			1,664,097			448,134			416,314			1,058,206			522,474
Less: Fees paid indirectly		—			(7,126	)		(9,528	)		(4,701	)		—			—			—			(2,536	)
Net Operating Expenses		319,276			770,724			882,581			1,659,396			448,134			416,314			1,058,206			519,938
Net Investment Income (Loss)		344,565			639,416			(629,954	)		1,238,118			242,523			93,447			648,765			(343,936	)
Realized and Unrealized Gain (Loss) on Investments, and Foreign Currency Transactions:
Net realized gain (loss) from:
Investments		(1,884	)		2,043,312			2,115,633			8,620,563			280,576			3,149,348			5,332,938			5,792,317
Foreign currency transactions		—			—			—			(27,808	)		—			—			42,081			—
Foreign currency exchange contracts		—			—			—			(3,386	)		—			—			(113,633	)		—
Withholding tax on capital gains		—			—			—			—			—			—			(18,751	)		—
Net change in unrealized appreciation (depreciation) on:
Investments		1,752,437			7,413,521			12,624,348			11,066,951			334,973			3,607,860			8,204,018			4,393,500
Foreign currency translations		—			—			—			12,109			—			—			(848	)		—
Foreign currency exchange contracts		—			—			—			(277	)		—			—			—			—
Net Realized and Unrealized Gain		1,750,553			9,456,833			14,739,981			19,668,152			615,549			6,757,208			13,445,805			10,185,817
Net Increase in Net Assets Resulting From Operations	$	2,095,118		$	10,096,249		$	14,110,027		$	20,906,270		$	858,072		$	6,850,655		$	14,094,570		$	9,841,881

See accompanying notes to financial statements.

77

STATEMENTS OF CHANGES IN NET ASSETS

	Dunham						Dunham						Dunham						Dunham						Dunham
	Floating Rate						Corporate/Government						Monthly Distribution						Dynamic Macro						High-Yield
	Bond Fund						Bond Fund						Fund						Fund						Bond Fund
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Oct. 31, 2017			Oct. 31, 2016			Oct. 31, 2017			Oct. 31, 2016			Oct. 31, 2017			Oct. 31, 2016			Oct. 31, 2017			Oct. 31, 2016			Oct. 31, 2017			Oct. 31, 2016
Operations:
Net investment income (loss)	$	4,702,709		$	3,109,603		$	1,256,311		$	1,347,329		$	(2,766,800	)	$	617,646		$	(153,786	)	$	(39,696	)	$	4,580,482		$	4,740,490
Net realized gain (loss) from investments, futures, options purchased, securities sold short, written options, swap contracts, foreign currency transactions and foreign currency exchange contracts		(258,247	)		(1,050,725	)		3,026			(391,669	)		10,336,653			(14,494,286	)		(527,008	)		(1,307,984	)		4,040,878			(4,616,046	)
Capital gain distributions from regulated investment		—			—			—			—			—			—			—			16,065			—			—
Net change in unrealized appreciation (depreciation) on investments, futures, options purchased, securities sold short, written options, foreign currency translations, and foreign currency exchange contracts		536,363			2,127,148			(303,218	)		1,137,437			8,158,097			17,075,950			3,217,090			326,835			(865,697	)		4,880,003
Net Increase (Decrease) in Net Assets Resulting From Operations		4,980,825			4,186,026			956,119			2,093,097			15,727,950			3,199,310			2,536,296			(1,004,780	)		7,755,663			5,004,447
Distributions to Shareholders From:
Net Investment Income:
Class N		(4,087,383	)		(2,713,303	)		(1,177,753	)		(1,222,601	)		—			(2,340,282	)		—			—			(3,958,870	)		(3,843,760	)
Class A		(450,028	)		(304,360	)		(116,078	)		(133,317	)		—			(932,730	)		—			—			(488,305	)		(486,798	)
Class C		(159,331	)		(106,752	)		(55,479	)		(75,263	)		—			(825,662	)		—			—			(307,199	)		(351,832	)
Distributions From Paid In Capital:
Class N		—			—			—			—			(6,703,484	)		(2,992,066	)		—			—			—			—
Class A		—			—			—			—			(1,701,133	)		(1,107,072	)		—			—			—			—
Class C		—			—			—			—			(1,786,595	)		(1,018,406	)		—			—			—			—
Total Distributions to Shareholders		(4,696,742	)		(3,124,415	)		(1,349,310	)		(1,431,181	)		(10,191,212	)		(9,216,218	)		—			—			(4,754,374	)		(4,682,390	)
Share Transactions of Beneficial Interest:
Net proceeds from shares sold
Class N		77,972,512			31,114,732			25,388,027			12,243,447			82,767,969			33,193,976			10,665,191			9,668,935			38,703,285			11,238,721
Class A		8,312,809			4,944,773			2,833,269			2,890,580			15,005,391			10,795,276			3,051,464			2,600,999			4,622,910			2,527,980
Class C		3,653,981			1,700,297			681,527			925,221			6,277,406			6,193,711			377,738			1,008,278			1,397,307			1,389,655
Reinvestment of distributions
Class N		4,085,839			2,712,469			1,175,746			1,221,719			6,558,471			5,121,998			—			—			3,902,710			3,778,722
Class A		431,412			282,009			110,804			120,244			1,450,591			1,739,112			—			—			421,056			405,699
Class C		158,870			105,282			53,749			71,622			1,501,052			1,495,861			—			—			275,969			302,390
Cost of shares redeemed
Class N		(19,048,326	)		(13,814,046	)		(11,484,873	)		(7,944,853	)		(34,414,087	)		(46,252,134	)		(5,319,852	)		(8,718,724	)		(19,670,050	)		(15,743,954	)
Class A		(3,455,776	)		(3,023,031	)		(1,491,488	)		(3,065,377	)		(21,873,892	)		(39,725,577	)		(1,051,547	)		(1,876,087	)		(3,762,035	)		(2,742,308	)
Class C		(2,152,564	)		(884,861	)		(879,241	)		(1,378,310	)		(12,598,772	)		(17,096,041	)		(640,528	)		(752,842	)		(1,813,997	)		(3,228,961	)
Net Increase (Decrease) in Net Assets From Share Transactions of Beneficial Interest		69,958,757			23,137,624			16,387,520			5,084,293			44,674,129			(44,533,818	)		7,082,466			1,930,559			24,077,155			(2,072,056	)
Total Increase (Decrease) in Net Assets		70,242,840			24,199,235			15,994,329			5,746,209			50,210,867			(50,550,726	)		9,618,762			925,779			27,078,444			(1,749,999	)
Net Assets:
Beginning of Year		109,686,188			85,486,953			56,221,147			50,474,938			237,754,341			288,305,067			34,678,178			33,752,399			96,358,367			98,108,366
End of Year *	$	179,929,028		$	109,686,188		$	72,215,476		$	56,221,147		$	287,965,208		$	237,754,341		$	44,296,940		$	34,678,178		$	123,436,811		$	96,358,367
*  Includes accumulated net investment income (loss) at end of year	$	167,566		$	12,588		$	(843	)	$	3,392		$	(2,251,859	)	$	(1,211,967	)	$	(202,369	)	$	(9,192	)	$	(6,091	)	$	167,801

See accompanying notes to financial statements.

78

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

	Dunham						Dunham						Dunham						Dunham						Dunham
	Alternative						International Opportunity						Appreciation &						Large Cap						Focused Large Cap
	Dividend Fund						Bond Fund						Income Fund						Value Fund						Growth Fund
	Year Ended			Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Oct. 31, 2017			Oct. 31, 2016^			Oct. 31, 2017			Oct. 31, 2016			Oct. 31, 2017			Oct. 31, 2016			Oct. 31, 2017			Oct. 31, 2016			Oct. 31, 2017			Oct. 31, 2016
Operations:
Net investment income (loss)	$	1,741,589		$	27,264		$	(125,430	)	$	111,654		$	344,565		$	687,222		$	639,416		$	929,784		$	(629,954	)	$	(491,313	)
Net realized gain (loss) from investments and foreign currency transactions		(2,689,104	)		(150,017	)		(746,954	)		(745,497	)		(1,884	)		(2,201,104	)		2,043,312			(1,062,540	)		2,115,633			(1,355,084	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		694,814			(367,817	)		1,138,727			2,249,812			1,752,437			851,564			7,413,521			1,012,440			12,624,348			(1,728,147	)
Net Increase (Decrease) in Net Assets Resulting From Operations		(252,701	)		(490,570	)		266,343			1,615,969			2,095,118			(662,318	)		10,096,249			879,684			14,110,027			(3,574,544	)
Distributions to Shareholders From:
Net Realized Gains:
Class N		—			—			(247,203	)		—			—			(403,190	)		—			(11,078,720	)		—			(291,262	)
Class A		—			—			(22,172	)		—			—			(86,592	)		—			(1,618,488	)		—			(56,919	)
Class C		—			—			(12,501	)		—			—			(104,911	)		—			(1,560,943	)		—			(33,681	)
Net Investment Income:
Class N		(1,692,781	)		—			—			(26,161	)		(520,043	)		(786,055	)		(801,099	)		(494,656	)		—			—
Class A		(12,525	)		—			—			(1,468	)		(99,320	)		(158,001	)		(105,682	)		(56,644	)		—			—
Class C		(43,706	)		—			—			(112	)		(70,590	)		(157,682	)		(46,819	)		(12,668	)		—			—
Total Distributions to Shareholders		(1,749,012	)		—			(281,876	)		(27,741	)		(689,953	)		(1,696,431	)		(953,600	)		(14,822,119	)		—			(381,862	)
Share Transactions of Beneficial Interest:
Net proceeds from shares sold
Class N		19,627,663			24,751,166			13,229,531			5,357,077			2,772,894			2,852,756			12,569,002			7,574,814			16,482,149			12,060,706
Class A		803,596			12			1,418,934			929,673			856,598			754,836			4,524,434			1,925,829			4,903,324			4,522,263
Class C		993,582			424,059			466,744			349,149			202,013			993,090			698,220			739,554			1,968,280			1,855,230
Reinvestment of distributions
Class N		1,418,244			—			247,134			26,161			508,555			1,183,251			781,846			11,569,073			—			289,776
Class A		10,966			—			21,649			1,390			83,738			190,060			103,998			1,655,337			—			55,382
Class C		42,589			—			12,501			111			64,382			230,784			46,630			1,571,854			—			30,681
Cost of shares redeemed
Class N		(7,796,129	)		(333,069	)		(5,738,527	)		(13,978,227	)		(8,223,181	)		(5,730,350	)		(10,523,214	)		(7,907,047	)		(21,941,733	)		(9,460,088	)
Class A		(55,373	)		—			(608,331	)		(2,163,714	)		(1,678,879	)		(1,189,036	)		(2,145,911	)		(2,032,040	)		(3,875,109	)		(3,121,382	)
Class C		(105,568	)		(61	)		(344,684	)		(840,513	)		(952,836	)		(2,555,588	)		(1,648,591	)		(1,737,158	)		(1,323,535	)		(1,722,420	)
Net Increase (Decrease) in Net Assets From Share Transactions of Beneficial Interest		14,939,570			24,842,107			8,704,951			(10,318,893	)		(6,366,716	)		(3,270,197	)		4,406,414			13,360,216			(3,786,624	)		4,510,148
Total Increase (Decrease) in Net Assets		12,937,857			24,351,537			8,689,418			(8,730,665	)		(4,961,551	)		(5,628,946	)		13,549,063			(582,219	)		10,323,403			553,742
Net Assets:
Beginning of Period		24,351,537			—			28,049,607			36,780,272			23,748,079			29,377,025			56,419,570			57,001,789			65,850,036			65,296,294
End of Period *	$	37,289,394		$	24,351,537		$	36,739,025		$	28,049,607		$	18,786,528		$	23,748,079		$	69,968,633		$	56,419,570		$	76,173,439		$	65,850,036
*  Includes accumulated net investment income (loss) at end of period	$	—		$	30,441		$	(136,606	)	$	(24,355	)	$	195,912		$	466,372		$	424,909		$	739,093		$	(577,046	)	$	(402,872	)

^ Dunham Alternative Dividend Fund commenced operations on August 31, 2016.

See accompanying notes to financial statements.

79

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

	Dunham						Dunham						Dunham						Dunham						Dunham
	International						Real Estate						Small Cap						Emerging Markets						Small Cap
	Stock Fund						Stock Fund						Value Fund						Stock Fund						Growth Fund
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Oct. 31, 2017			Oct. 31, 2016			Oct. 31, 2017			Oct. 31, 2016			Oct. 31, 2017			Oct. 31, 2016			Oct. 31, 2017			Oct. 31, 2016			Oct. 31, 2017			Oct. 31, 2016
Operations:
Net investment income (loss)	$	1,238,118		$	951,682		$	242,523		$	678,696		$	93,447		$	142,836		$	648,765		$	850,585		$	(343,936	)	$	(182,879	)
Net realized gain (loss) from investments and foreign currency transactions		8,589,369			(5,590,409	)		280,576			5,144,472			3,149,348			1,004,619			5,242,635			(3,164,352	)		5,792,317			(256,335	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		11,078,783			4,553,684			334,973			(2,930,583	)		3,607,860			114,680			8,203,170			6,286,989			4,393,500			383,831
Net Increase (Decrease) in Net Assets Resulting From Operations		20,906,270			(85,043	)		858,072			2,892,585			6,850,655			1,262,135			14,094,570			3,973,222			9,841,881			(55,383	)
Distributions to Shareholders From:												��
Net Realized Gains:
Class N		—			—			(3,870,471	)		(2,998,341	)		(742,732	)		(721,628	)		—			—			—			(1,889,987	)
Class A		—			—			(626,758	)		(955,297	)		(158,717	)		(123,232	)		—			—			—			(500,800	)
Class C		—			—			(485,899	)		(377,983	)		(81,547	)		(87,966	)		—			—			—			(305,357	)
Net Investment Income:
Class N		—			(43,319	)		(494,155	)		(353,676	)		(150,908	)		(13,002	)		(796,221	)		(286,567	)		—			—
Class A		—			—			(57,154	)		(86,476	)		(22,646	)		—			(95,754	)		(20,580	)		—			—
Class C		—			—			(35,575	)		(4,842	)		—			—			(39,475	)		—			—			—
Distributions From Paid In Capital:
Class N		—			—			—			—			—			—			—			—			—			(54,926	)
Class A		—			—			—			—			—			—			—			—			—			(14,554	)
Class C		—			—			—			—			—			—			—			—			—			(8,874	)
Total Distributions to Shareholders		—			(43,319	)		(5,570,012	)		(4,776,615	)		(1,156,550	)		(945,828	)		(931,450	)		(307,147	)		—			(2,774,498	)
Share Transactions of Beneficial Interest:
Net proceeds from shares sold
Class N		13,755,855			11,593,024			13,777,569			4,921,239			5,035,616			3,216,505			8,199,481			10,467,796			6,717,239			8,676,971
Class A		5,992,736			3,460,232			3,331,102			1,598,423			3,001,246			946,333			3,608,237			2,816,620			4,193,814			1,105,692
Class C		977,201			1,189,320			451,668			836,149			649,431			367,054			1,595,953			929,078			593,576			438,741
Reinvestment of distributions
Class N		—			43,140			4,259,930			3,276,127			871,348			734,047			775,603			286,387			—			1,940,454
Class A		—			—			657,161			1,027,941			177,734			119,701			93,730			20,108			—			363,529
Class C		—			—			464,142			351,559			81,120			87,856			39,226						—			313,976
Cost of shares redeemed
Class N		(19,238,731	)		(9,905,060	)		(5,811,499	)		(14,843,844	)		(9,930,878	)		(4,020,261	)		(14,975,059	)		(10,120,339	)		(15,497,578	)		(5,872,142	)
Class A		(3,367,797	)		(2,206,684	)		(6,548,328	)		(3,203,589	)		(3,176,674	)		(1,114,590	)		(3,408,343	)		(1,487,050	)		(4,560,250	)		(1,667,965	)
Class C		(2,102,276	)		(1,909,025	)		(1,229,216	)		(1,626,251	)		(811,262	)		(606,898	)		(2,226,817	)		(1,010,559	)		(782,773	)		(1,405,211	)
Net Increase (Decrease) in Net Assets From Share Transactions of Beneficial Interest		(3,983,012	)		2,264,947			9,352,529			(7,662,246	)		(4,102,319	)		(270,253	)		(6,297,989	)		1,902,041			(9,335,972	)		3,894,045
Total Increase (Decrease) in Net Assets		16,923,258			2,136,585			4,640,589			(9,546,276	)		1,591,786			46,054			6,865,131			5,568,116			505,909			1,064,164
Net Assets:
Beginning of Year		95,428,111			93,291,526			38,065,569			47,611,845			28,297,658			28,251,604			56,209,038			50,640,922			33,704,615			32,640,451
End of Year*	$	112,351,369		$	95,428,111		$	42,706,158		$	38,065,569		$	29,889,444		$	28,297,658		$	63,074,169		$	56,209,038		$	34,210,524		$	33,704,615
*  Includes accumulated net investment income (loss) at end of year	$	1,043,638		$	(161,564	)	$	95,638		$	440,040		$	49,727		$	129,834		$	221,092		$	528,087		$	25,856		$	(123,870	)

See accompanying notes to financial statements.

80

FINANCIAL HIGHLIGHTS

Dunham Floating Rate Bond Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each Period.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014*
Net asset value, beginning of period	$	9.70		$	9.60		$	9.87		$	10.00
Net investment income**		0.35			0.33			0.32			0.29
Net realized and unrealized gain (loss)		0.03			0.10			(0.27	)		(0.15	)
Total income from investment operations		0.38			0.43			0.05			0.14
Less distributions:
Distributions from net investment income		(0.35	)		(0.33	)		(0.32	)		(0.27	)
Total distributions		(0.35	)		(0.33	)		(0.32	)		(0.27	)
Net asset value, end of period	$	9.73		$	9.70		$	9.60		$	9.87
Total return +		4.01	%		4.63	%		0.51	%		1.43	%
Ratios/Supplemental Data:
Net assets, end of period (in 000s)	$	157,485		$	94,219		$	73,316		$	63,120
Ratios of expenses to average net assets:		1.03	%		1.34	%		1.27	%		1.27	%
Ratios of net investment income to average net assets:		3.60	%		3.24	%		3.24	%		2.87	%
Portfolio turnover rate		91	%		62	%		51	%		50	%
	Class A												Class C
	Year Ended October 31,												Year Ended October 31,
	2017			2016			2015			2014*			2017			2016			2015			2014*
Net asset value, beginning of period	$	9.70		$	9.59		$	9.87		$	10.00		$	9.69		$	9.59		$	9.86		$	10.00
Income (loss) from investment operations:
Net investment income**		0.32			0.31			0.30			0.28			0.28			0.26			0.24			0.22
Net realized and unrealized gain (loss)		0.03			0.11			(0.28	)		(0.16	)		0.04			0.10			(0.26	)		(0.16	)
Total income (loss) from investment operations		0.35			0.42			0.02			0.12			0.32			0.36			(0.02	)		0.06
Less distributions:
Distributions from net investment income		(0.33	)		(0.31	)		(0.30	)		(0.25	)		(0.28	)		(0.26	)		(0.25	)		(0.20	)
Total distributions		(0.33	)		(0.31	)		(0.30	)		(0.25	)		(0.28	)		(0.26	)		(0.25	)		(0.20	)
Net asset value, end of period	$	9.72		$	9.70		$	9.59		$	9.87		$	9.73		$	9.69		$	9.59		$	9.86
Total return +		3.64	%		4.49	%		0.16	%		1.20	%		3.31	% #		3.87	%		(0.23	)%		0.63	%
Ratios/Supplemental Data:
Net assets, end of period (in 000s)	$	16,229		$	10,923		$	8,598		$	13,664		$	6,215		$	4,545		$	3,573		$	3,888
Ratios of expenses to average net assets:		1.28	%		1.59	%		1.52	%		1.52	%		1.78	%		2.10	%		2.02	%		2.02	%
Ratios of net investment income to average net assets:		3.33	%		3.49	%		2.99	%		2.84	%		2.89	%		2.74	%		2.49	%		2.24	%
Portfolio turnover rate		91	%		62	%		51	%		50	%		91	%		62	%		51	%		50	%

* The Fund commenced operations on November 1, 2013.

** 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 and does not reflect the impact of any sales charge.

# 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.

81

FINANCIAL HIGHLIGHTS

Dunham Corporate/Government Bond Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each year.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	13.92		$	13.75		$	14.14		$	14.07		$	14.74
Income from investment operations:
Net investment income*		0.31			0.36			0.42			0.38			0.37
Net realized and unrealized gain (loss)		(0.08	)		0.19			(0.37	)		0.16			(0.36	)
Total income from investment operations		0.23			0.55			0.05			0.54			0.01
Less distributions:
Distributions from net investment income		(0.33	)		(0.38	)		(0.44	)		(0.42	)		(0.41	)
Distributions from net realized gains		—			—			—			(0.05	)		(0.27	)
Total distributions		(0.33	)		(0.38	)		(0.44	)		(0.47	)		(0.68	)
Net asset value, end of year	$	13.82		$	13.92		$	13.75		$	14.14		$	14.07
Total return +		1.72	%		4.09	%		0.36	%		3.85	% #		0.09	% #
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	62,757		$	48,025		$	41,989		$	43,888		$	81,201
Ratios of expenses to average net assets:		1.35	%		1.13	%		1.06	%		1.37	%		1.21	%
Ratios of net investment income to average net assets:		2.27	%		2.61	%		3.00	%		2.69	%		2.56	%
Portfolio turnover rate		61	%		58	%		54	%		60	%		173	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2017			2016			2015			2014			2013			2017			2016			2015			2014			2013
Net asset value, beginning of year	$	13.90		$	13.73		$	14.13		$	14.06		$	14.73		$	13.81		$	13.65		$	14.05		$	13.98		$	14.64
Income (loss) from investment operations:
Net investment income*		0.28			0.33			0.38			0.35			0.34			0.21			0.26			0.31			0.27			0.26
Net realized and unrealized gain (loss)		(0.08	)		0.19			(0.37	)		0.15			(0.36	)		(0.08	)		0.18			(0.37	)		0.16			(0.35	)
Total income (loss) from investment operations		0.20			0.52			0.01			0.50			(0.02	)		0.13			0.44			(0.06	)		0.43			(0.09	)
Less distributions:
Distributions from net investment income		(0.30	)		(0.35	)		(0.41	)		(0.38	)		(0.38	)		(0.23	)		(0.28	)		(0.34	)		(0.31	)		(0.30	)
Distributions from net realized gains		—			—			—			(0.05	)		(0.27	)		—			—			—			(0.05	)		(0.27	)
Total distributions		(0.30	)		(0.35	)		(0.41	)		(0.43	)		(0.65	)		(0.23	)		(0.28	)		(0.34	)		(0.36	)		(0.57	)
Net asset value, end of year	$	13.80		$	13.90		$	13.73		$	14.13		$	14.06		$	13.71		$	13.81		$	13.65		$	14.05		$	13.98
Total return +		1.47	%		3.86	%		0.04	%		3.59	%		(0.15	)%		0.98	%		3.27	%		(0.45	)%		3.08	%		(0.59	)%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	6,260		$	4,832		$	4,788		$	3,684		$	6,888		$	3,199		$	3,364		$	3,698		$	3,690		$	7,733
Ratios of expenses to average net assets:		1.60	%		1.38	%		1.31	%		1.62	%		1.46	%		2.10	%		1.88	%		1.81	%		2.12	%		1.96	%
Ratios of net investment income to average net assets:		2.01	%		2.40	%		2.74	%		2.44	%		2.37	%		1.52	%		1.89	%		2.27	%		1.94	%		1.80	%
Portfolio turnover rate		61	%		58	%		54	%		60	%		173	%		61	%		58	%		54	%		60	%		173	%

* The net investment income per share data was determined using the average shares outstanding throughout each year.

+ Assumes reinvestment of all dividends and distributions, if any. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not

# 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.

82

FINANCIAL HIGHLIGHTS

Dunham Monthly Distribution Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each year.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	35.74		$	36.36		$	38.16		$	38.47		$	37.22
Income (loss) from investment operations:
Net investment income (loss)*		(0.36	)		0.14			(0.18	)		0.17			0.36
Net realized and unrealized gain (loss)		2.79			0.49			(0.39	)		1.35			2.13
Total income (loss) from investment operations		2.43			0.63			(0.57	)		1.52			2.49
Less distributions:
Distributions from net investment income		—			(0.55	)		—			—			(0.41	)
Distributions from net realized gains		—			—			(0.80	)		(1.59	)		(0.83	)
Tax return of capital		(1.46	)		(0.70	)		(0.43	)		(0.24	)		0.00
Total distributions		(1.46	)		(1.25	)		(1.23	)		(1.83	)		(1.24	)
Net asset value, end of year	$	36.71		$	35.74		$	36.36		$	38.16		$	38.47
Total return + #		6.92	%		1.79	%		(1.53	)%		4.01	%		6.75	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	212,178		$	153,084		$	163,843		$	156,964		$	161,347
Ratios of expenses to average net assets:
After waivers		2.73	%		1.85	%		2.09	%		2.53	%		2.23	%
Dividends/borrowings on short sales		1.17	%		0.61	%		0.47	%		0.59	%		0.24	%
Excluding dividends/borrowings on short sales:
Before fee waivers		1.59	%		1.26	%		2.17	%		2.11	%		2.10	%
After fee waivers		1.56	%		1.24	%		1.62	%		1.94	%		1.99	%
Ratios of net investment income (loss) to average net assets:
Before fee waivers		(1.06	)%		0.39	%		(0.56	)%		0.26	%		0.84	%
After fee waivers		(1.03	)%		0.40	%		(0.48	)%		0.43	%		0.95	%
Portfolio turnover rate		382	%		208	%		155	%		229	%		227	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2017			2016			2015			2014			2013			2017			2016			2015			2014			2013
Net asset value, beginning of year	$	34.90		$	35.63		$	37.52		$	37.95		$	36.82		$	28.94		$	29.99		$	32.01		$	32.87		$	32.29
Income (loss) from investment operations:
Net investment income (loss)*		(0.40	)		0.13			(0.27	)		0.07			0.24			(0.55	)		(0.14	)		(0.46	)		(0.20	)		(0.07	)
Net realized and unrealized gain (loss)		2.69			0.39			(0.39	)		1.33			2.13			2.22			0.34			(0.33	)		1.17			1.89
Total income (loss) from investment operations		2.29			0.52			(0.66	)		1.40			2.37			1.67			0.20			(0.79	)		0.97			1.82
Less distributions:
Distributions from net investment income		—			(0.55	)		—			—			(0.41	)		—			(0.55	)		—			—			(0.41	)
Distributions from net realized gains		—			—			(0.80	)		(1.59	)		(0.83	)		—			—			(0.80	)		(1.59	)		(0.83	)
Tax return of capital		(1.46	)		(0.70	)		(0.43	)		(0.24	)		0.00			(1.46	)		(0.70	)		(0.43	)		(0.24	)		0.00
Total distributions		(1.46	)		(1.25	)		(1.23	)		(1.83	)		(1.24	)		(1.46	)		(1.25	)		(1.23	)		(1.83	)		(1.24	)
Net asset value, end of year	$	35.73		$	34.90		$	35.63		$	37.52		$	37.95		$	29.15		$	28.94		$	29.99		$	32.01		$	32.87
Total return + #		6.64	%		1.54	%		(1.80	)%		3.74	%		6.50	%		5.82	%		0.75	%		(2.53	)%		2.99	%		5.71	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	41,186		$	45,552		$	74,247		$	79,132		$	68,427		$	34,601		$	39,118		$	50,215		$	48,193		$	37,577
Ratios of expenses to average net assets:
After waivers		2.93	%		2.06	%		2.33	%		2.78	%		2.48	%		3.68	%		2.83	%		3.09	%		3.53	%		3.23	%
Dividends/borrowings on short sales		1.12	%		0.59	%		0.47	%		0.59	%		0.24	%		1.12	%		0.60	%		0.47	%		0.59	%		0.24	%
Excluding dividends/borrowings on short sales:
Before fee waivers		1.83	%		1.49	%		2.42	%		2.36	%		2.34	%		2.58	%		2.24	%		3.16	%		3.11	%		3.10	%
After fee waivers		1.81	%		1.48	%		1.86	%		2.19	%		2.24	%		2.56	%		2.23	%		2.62	%		2.94	%		2.99	%
Ratios of net investment income (loss) to average net assets:
Before fee waivers		(1.14	)%		0.36	%		(0.79	)%		0.01	%		0.52	%		(1.89	)%		(0.50	)%		(1.54	)%		(0.74	)%		(0.32	)%
After fee waivers		(1.11	)%		0.37	%		(0.71	)%		0.18	%		0.63	%		(1.86	)%		(0.48	)%		(1.46	)%		(0.57	)%		(0.21	)%
Portfolio turnover rate		382	%		208	%		155	%		229	%		227	%		382	%		208	%		155	%		229	%		227	%

* The net investment income (loss) per share data was determined using the average shares outstanding throughout each year.

+ Assumes reinvestment of all dividends and distributions, if any. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not reflect the impact of any sales charge.

# 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.

83

FINANCIAL HIGHLIGHTS

Dunham Dynamic Macro Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each year.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	9.55		$	9.81		$	9.65		$	9.67		$	9.95
Income (loss) from investment operations:
Net investment income (loss) *		(0.03	)		(0.00	)		(0.14	)		0.19			0.33
Net realized and unrealized gain (loss) **		0.66			(0.26	)		0.30			(0.02	)		(0.25	)
Total income (loss) from investment operations		0.63			(0.26	)		0.16			0.17			0.08
Less distributions:
Distributions from net investment income		—			—			—			(0.19	)		(0.33	)
Tax return of capital		—			—			—			—			(0.03	)
Total distributions		—			—			—			(0.19	)		(0.36	)
Net asset value, end of year	$	10.18		$	9.55		$	9.81		$	9.65		$	9.67
Total return + #		6.60	%		(2.68	)%		1.66	%		1.80	%		0.80	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	36,104		$	28,650		$	28,518		$	11,758		$	7,185
Ratios of expenses to average net assets:		1.83	%		1.63	%		2.15	%		1.90	%		1.67	%
Ratios of net investment income (loss) to average net assets:		(0.32	)%		(0.03	)%		(1.37	)%		1.96	%		3.35	%
Portfolio turnover rate		7	%		54	%		70	%		238	%		292	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2017			2016			2015			2014			2013			2017			2016			2015			2014			2013
Net asset value, beginning of year	$	9.52		$	9.81		$	9.68		$	9.70		$	9.98		$	9.23		$	9.58		$	9.52		$	9.56		$	9.86
Income (loss) from investment operations:
Net investment income (loss) *		(0.06	)		(0.02	)		(0.14	)		0.18			0.31			(0.12	)		(0.09	)		(0.26	)		0.11			0.23
Net realized and unrealized gain (loss) **		0.66			(0.27	)		0.27			(0.04	)		(0.25	)		0.63			(0.26	)		0.32			(0.04	)		(0.26	)
Total income (loss) from investment operations		0.60			(0.29	)		0.13			0.14			0.06			0.51			(0.35	)		0.06			0.07			(0.03	)
Less distributions:
Distributions from net investment income		—			—			—			(0.16	)		(0.31	)		—			—			—			(0.11	)		(0.24	)
Tax return of capital		—			—			—			—			(0.03	)		—			—			—			—			(0.03	)
Total distributions		—			—			—			(0.16	)		(0.34	)		—			—			—			(0.11	)		(0.27	)
Net asset value, end of year	$	10.12		$	9.52		$	9.81		$	9.68		$	9.70		$	9.74		$	9.23		$	9.58		$	9.52		$	9.56
Total return + #		6.30	%		(2.95	)%		1.34	%		1.52	%		0.55	%		5.53	%		(3.66	)%		0.63	%		0.78	%		(0.29	)%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	6,224		$	3,897		$	3,296		$	1,729		$	1,782		$	1,969		$	2,131		$	1,938		$	1,712		$	2,053
Ratios of expenses to average net assets		2.08	%		1.88	%		2.40	%		2.15	%		1.92	%		2.83	%		2.63	%		3.15	%		2.90	%		2.67	%
Ratios of net investment income (loss) to average net assets:		(0.58	)%		(0.26	)%		(1.63	)%		1.92	%		3.13	%		(1.34	)%		(1.02	)%		(2.35	)%		1.19	%		2.38	%
Portfolio turnover rate		7	%		54	%		70	%		238	%		292	%		7	%		54	%		70	%		238	%		292	%

* The net investment income (loss) per share data was determined using the average shares outstanding throughout each year.

** The amount of net realized and unrealized gain (loss) on investment per share for the years ended October 31, 2015 and 2014 does not accord with the amounts in the Statements of Operations due to the timing of purchases and sales of Fund shares in relation to fluctuating market values.

+ Assumes reinvestment of all dividends and distributions, if any. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not reflect the impact of any sales charges.

# 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.

84

FINANCIAL HIGHLIGHTS

Dunham High-Yield Bond Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each year.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	8.94		$	8.92		$	9.51		$	9.61		$	9.52
Income (loss) from investment operations:
Net investment income*		0.42			0.44			0.44			0.46			0.47
Net realized and unrealized gain (loss)		0.30			0.02			(0.59	)		(0.10	)		0.09
Total income (loss) from investment operations		0.72			0.46			(0.15	)		0.36			0.56
Less distributions:
Distributions from net investment income		(0.44	)		(0.44	)		(0.44	)		(0.46	)		(0.47	)
Total distributions		(0.44	)		(0.44	)		(0.44	)		(0.46	)		(0.47	)
Net asset value, end of year	$	9.22		$	8.94		$	8.92		$	9.51		$	9.61
Total return +		8.19	%		5.39	%		(1.63	)%		3.77	%		6.05	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	103,567		$	78,194		$	78,654		$	102,412		$	134,487
Ratios of expenses to average net assets:		1.19	%		1.08	%		1.02	%		1.09	%		1.11	%
Ratios of net investment income to average net assets:		4.62	%		5.09	%		4.77	%		4.72	%		4.89	%
Portfolio turnover rate		142	%		62	%		51	%		62	%		94	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2017			2016			2015			2014			2013			2017			2016			2015			2014			2013
Net asset value, beginning of year	$	9.02		$	8.99		$	9.58		$	9.68		$	9.59		$	8.88		$	8.86		$	9.46		$	9.55		$	9.47
Income (loss) from investment operations:
Net investment income*		0.40			0.42			0.41			0.44			0.45			0.35			0.37			0.37			0.38			0.40
Net realized and unrealized gain (loss)		0.28			0.03			(0.59	)		(0.10	)		0.09			0.30			0.02			(0.60	)		(0.08	)		0.08
Total income (loss) from investment operations		0.68			0.45			(0.18	)		0.34			0.54			0.65			0.39			(0.23	)		0.30			0.48
Less distributions:
Distributions from net investment income		(0.41	)		(0.42	)		(0.41	)		(0.44	)		(0.45	)		(0.36	)		(0.37	)		(0.37	)		(0.39	)		(0.40	)
Total distributions		(0.41	)		(0.42	)		(0.41	)		(0.44	)		(0.45	)		(0.36	)		(0.37	)		(0.37	)		(0.39	)		(0.40	)
Net asset value, end of year	$	9.29		$	9.02		$	8.99		$	9.58		$	9.68		$	9.17		$	8.88		$	8.86		$	9.46		$	9.55
Total return + #		7.70	%		5.21	%		(1.88	)%		3.49	%		5.74	%		7.45	%		4.65	%		(2.47	)%		3.13	%		5.17	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	12,085		$	10,478		$	10,224		$	22,022		$	19,888		$	7,785		$	7,687		$	9,231		$	11,652		$	13,741
Ratios of expenses to average net assets:		1.44	%		1.33	%		1.27	%		1.34	%		1.36	%		1.94	%		1.83	%		1.77	%		1.84	%		1.86	%
Ratios of net investment income to average net assets:		4.38	%		4.84	%		4.52	%		4.47	%		4.64	%		3.88	%		4.34	%		4.02	%		3.97	%		4.15	%
Portfolio turnover rate		142	%		62	%		51	%		62	%		94	%		142	%		62	%		51	%		62	%		94	%

* The net investment income per share data was determined using the average shares outstanding throughout each year.

+ Assumes reinvestment of all dividends and distributions, if any. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does

# 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.

85

FINANCIAL HIGHLIGHTS

Dunham Alternative Dividend Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each period.

	Class N						Class A						Class C
	Year Ended			Period Ended			Year Ended			Period Ended			Year Ended			Period Ended
	October 31,			October 31,			October 31,			October 31,			October 31,			October 31,
	2017			2016*			2017			2016*			2017			2016*
Net asset value, beginning of period	$	11.72		$	12.00		$	11.72		$	12.00		$	11.71		$	12.00
Income (loss) from investment operations:
Net investment income**		0.59			0.02			0.51			0.08			0.46			0.01
Net realized and unrealized loss		(0.47	)		(0.30	)		(0.40	)		(0.36	)		(0.46	)		(0.30	)
Total income (loss) from investment operations		0.12			(0.28	)		0.11			(0.28	)		0.00			(0.29	)
Less distributions:
Distributions from net investment income		(0.57	)		—			(0.56	)		—			(0.47	)		—
Total distributions		(0.57	)		—			(0.56	)		—			(0.47	)		—
Net asset value, end of period	$	11.27		$	11.72		$	11.27		$	11.72		$	11.24		$	11.71
Total return +		0.90	% #		(2.33	)%		0.78	%		(2.33	)%		(0.14	)% #		(2.42	)%
Ratios/Supplemental Data:
Net assets, end of period (in 000s)	$	35,285		$	23,934		$	729		$	12		$	1,275		$	418
Ratios of expenses to average net assets:
Before fees paid indirectly		1.31	%		1.88	% ^		1.56	%		2.61	% ^		2.31	%		2.74	% ^
After fees paid indirectly		1.16	%		1.88	% ^		1.41	%		2.61	% ^		2.16	%		2.74	% ^
Ratios of net investment income to average net assets:
Before fees pain indirectly		4.83	%		0.86	% ^		4.34	%		4.18	% ^		3.80	%		0.44	% ^
After fees paid indirectly		4.99	%		0.86	% ^		4.37	%		4.18	% ^		3.95	%		0.44	% ^
Portfolio turnover rate		514	%		41	% (1)		514	%		41	% (1)		514	%		41	% (1)

* The Fund commenced operations on August 31, 2016.

** The net investment income per share data was determined using the average shares outstanding throughout 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 and does not reflect the impact of any sales charge.

(1) Not annualized.

^ Annualized for periods less than one year.

# 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.

86

FINANCIAL HIGHLIGHTS

Dunham International Opportunity Bond Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each period.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014*
Net asset value, beginning of period	$	9.37		$	8.92		$	9.64		$	10.00
Income (loss) from investment operations:
Net investment income (loss)**		(0.03	)		0.04			0.05			0.07
Net realized and unrealized gain (loss)		0.07			0.42			(0.77	)		(0.37	)
Total income (loss) from investment operations		0.04			0.46			(0.72	)		(0.30	)
Less distributions:
Distributions from net investment income		—			(0.01	)		—			—
Distributions from net realized gains		(0.09	)		—			—			—
Tax return of capital		—			—			—			(0.06	)
Total distributions		(0.09	)		(0.01	)		—			(0.06	)
Net asset value, end of period	$	9.32		$	9.37		$	8.92		$	9.64
Total return + #		0.57	%		5.14	%		(7.42	)%		(2.99	)%
Ratios/Supplemental Data:
Net assets, end of period (in 000s)	$	32,441		$	24,728		$	31,935		$	42,440
Ratios of expenses to average net assets		1.54	%		1.28	%		1.38	%		1.38	%
Ratios of net investment income (loss) to average net assets		(0.37	)%		0.41	%		0.52	%		0.66	%
Portfolio turnover rate (1)		56	%		64	%		52	%		60	%
	Class A												Class C
	Year Ended October 31,												Year Ended October 31,
	2017			2016			2015			2014*			2017			2016			2015			2014*
Net asset value, beginning of period	$	9.32		$	8.90		$	9.64		$	10.00		$	9.22		$	8.84		$	9.62		$	10.00
Income (loss) from investment operations:
Net investment income (loss)**		(0.06	)		0.01			0.02			0.04			(0.10	)		(0.03	)		(0.02	)		(0.01	)
Net realized and unrealized gain (loss)		0.09			0.41			(0.76	)		(0.36	)		0.07			0.41			(0.76	)		(0.36	)
Total income (loss) from investment operations		0.03			0.42			(0.74	)		(0.32	)		(0.03	)		0.38			(0.78	)		(0.37	)
Less distributions:
Distributions from net investment income		—			(0.00	) (a)		—			—			—			(0.00	) (a)		—			—
Distributions from net realized gains		(0.09	)		—			—			—			(0.09	)		—			—			—
Tax return of capital		—			—			—			(0.04	)		—			—			—			(0.01	)
Total distributions		(0.09	)		(0.00	) (a)		—			(0.04	)		(0.09	)		(0.00	) (a)		—			(0.01	)
Net asset value, end of period	$	9.26		$	9.32		$	8.90		$	9.64		$	9.10		$	9.22		$	8.84		$	9.62
Total return + #		0.46	%		4.77	%		(7.65	)%		(3.22	)%		(0.19	)%		4.31	%		(8.11	)%		(3.72	)%
Ratios/Supplemental Data:
Net assets, end of period (in 000s)	$	2,968		$	2,118		$	3,208		$	3,513		$	1,330		$	1,204		$	1,638		$	1,879
Ratios of expenses to average net assets ^		1.79	%		1.53	%		1.63	%		1.63	%		2.29	%		2.03	%		2.13	%		2.13	%
Ratios of net investment income (loss) to average net assets ^		(0.63	)%		0.10	%		0.29	%		0.41	%		(1.11	)%		(0.33	)%		(0.24	)%		(0.09	)%
Portfolio turnover rate (1)		56	%		64	%		52	%		60	%		56	%		64	%		52	%		60	%

* The Fund commenced operations on November 1, 2013.

** The net investment income (loss) per share data was determined using the average shares outstanding throughout the year.

(a) Represents less than $0.01 per share.

+ Assumes reinvestment of all dividends and distributions, if any. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not reflect the impact of any sales charges.

# 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.

(1) Not annualized for period less than one year.

See accompanying notes to financial statements.

87

FINANCIAL HIGHLIGHTS

Dunham Appreciation & Income Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each year.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	8.05		$	8.75		$	10.88		$	10.09		$	8.90
Income (loss) from investment operations:
Net investment income*		0.16			0.23			0.27			0.11			0.16
Net realized and unrealized gain (loss)		0.72			(0.39	)		(0.51	)		0.83			1.28
Total income (loss) from investment operations		0.88			(0.16	)		(0.24	)		0.94			1.44
Less distributions:
Distributions from net investment income		(0.25	)		(0.36	)		(0.17	)		(0.15	)		(0.25	)
Distributions from net realized gains		—			(0.18	)		(1.72	)		—			—
Total distributions		(0.25	)		(0.54	)		(1.89	)		(0.15	)		(0.25	)
Net asset value, end of year	$	8.68		$	8.05		$	8.75		$	10.88		$	10.09
Total return + #		11.20	%		(1.92	)%		(2.67	)%		9.37	%		16.59	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	12,953		$	16,929		$	20,210		$	18,576		$	15,855
Ratios of expenses to average net assets:		1.41	%		1.42	%		1.34	%		1.44	%		1.39	%
Ratios of net investment income to average net assets:		1.90	%		2.83	%		2.83	%		1.07	%		1.70	%
Portfolio turnover rate		106	%		96	%		82	%		129	%		62	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2017			2016			2015			2014			2013			2017			2016			2015			2014			2013
Net asset value, beginning of year	$	8.03		$	8.73		$	10.85		$	10.06		$	8.88		$	7.86		$	8.56		$	10.66		$	9.90		$	8.74
Income (loss) from investment operations:
Net investment income *		0.14			0.20			0.24			0.09			0.13			0.07			0.14			0.18			0.01			0.06
Net realized and unrealized gain (loss)		0.72			(0.39	)		(0.50	)		0.82			1.27			0.71			(0.39	)		(0.50	)		0.80			1.26
Total income (loss) from investment operations		0.86			(0.19	)		(0.26	)		0.91			1.40			0.78			(0.25	)		(0.32	)		0.81			1.32
Less distributions:
Distributions from net investment income		(0.23	)		(0.33	)		(0.14	)		(0.12	)		(0.22	)		(0.18	)		(0.27	)		(0.06	)		(0.05	)		(0.16	)
Distributions from net realized gains		—			(0.18	)		(1.72	)		—			—			—			(0.18	)		(1.72	)		—			—
Total distributions		(0.23	)		(0.51	)		(1.86	)		(0.12	)		(0.22	)		(0.18	)		(0.45	)		(1.78	)		(0.05	)		(0.16	)
Net asset value, end of year	$	8.66		$	8.03		$	8.73		$	10.85		$	10.06		$	8.46		$	7.86		$	8.56		$	10.66		$	9.90
Total return + #		10.92	%		(2.19	)%		(2.84	)%		9.10	%		16.21	%		10.08	%		(2.95	)%		(3.53	)%		8.21	%		15.35	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	3,125		$	3,638		$	4,211		$	4,509		$	4,368		$	2,708		$	3,181		$	4,956		$	4,046		$	3,765
Ratios of expenses to average net assets:		1.66	%		1.67	%		1.59	%		1.69	%		1.64	%		2.41	%		2.44	%		2.34	%		2.44	%		2.39	%
Ratios of net investment income to average net assets:		1.66	%		2.57	%		2.56	%		0.83	%		1.45	%		0.93	%		1.81	%		1.91	%		0.08	%		0.70	%
Portfolio turnover rate		106	%		96	%		82	%		129	%		62	%		106	%		96	%		82	%		129	%		62	%

* The net investment income per share data was determined using the average shares outstanding throughout each year.

+ Assumes reinvestment of all dividends and distributions, if any. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not reflect the impact of any sales charge.

# 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.

88

FINANCIAL HIGHLIGHTS

Dunham Large Cap Value Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each year.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	12.22		$	16.32		$	16.21		$	14.55		$	11.74
Income from investment operations:
Net investment income *		0.15			0.22			0.17			0.13			0.16
Net realized and unrealized gain (loss)		2.01			(0.04	)		0.06			1.70			2.78
Total income from investment operations		2.16			0.18			0.23			1.83			2.94
Less distributions:
Distributions from net investment income		(0.22	)		(0.18	)		(0.12	)		(0.17	)		(0.13	)
Distributions from net realized gains		—			(4.10	)		—			—			—
Total distributions		(0.22	)		(4.28	)		(0.12	)		(0.17	)		(0.13	)
Net asset value, end of year	$	14.16		$	12.22		$	16.32		$	16.21		$	14.55
Total return + #		17.84	%		1.73	%		1.41	%		12.64	%		25.30	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	55,155		$	45,026		$	44,620		$	41,917		$	37,688
Ratios of expenses to average net assets:
After fee waivers ^											1.26	%		1.00	%
Before fees paid indirectly		1.13	%		0.93	%		1.12	%		1.26	%		1.00	%
After fees paid indirectly		1.12	%		0.93	%		1.12	%		1.26	%		1.00	%
Ratios of net investment income to average net assets:
After fee waivers ^											0.82	%		1.25	%
Before fees paid indirectly		1.12	%		1.81	%		1.03	%		0.82	%		1.25	%
After fees paid indirectly		1.13	%		1.81	%		1.03	%		0.82	%		1.25	%
Portfolio turnover rate		61	%		59	%		101	%		22	%		16	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2017			2016			2015			2014			2013			2017			2016			2015			2014			2013
Net asset value, beginning of year	$	12.16		$	16.26		$	16.16		$	14.52		$	11.72		$	11.65		$	15.74		$	15.68		$	14.09		$	11.36
Income from investment operations:
Net investment income (loss)*		0.11			0.19			0.13			0.09			0.13			0.02			0.10			0.00	(a)		(0.03	)		0.03
Net realized and unrealized gain (loss)		2.02			(0.05	)		0.06			1.69			2.77			1.92			(0.06	)		0.06			1.65			2.71
Total income from investment operations		2.13			0.14			0.19			1.78			2.90			1.94			0.04			0.06			1.62			2.74
Less distributions:
Distributions from net investment income		(0.19	)		(0.14	)		(0.09	)		(0.14	)		(0.10	)		(0.12	)		(0.03	)		—			(0.03	)		(0.01	)
Distributions from net realized gains		0.00			(4.10	)		—			—			—			—			(4.10	)		—			—			—
Total distributions		(0.19	)		(4.24	)		(0.09	)		(0.14	)		(0.10	)		(0.12	)		(4.13	)		—			(0.03	)		(0.01	)
Net asset value, end of year	$	14.10		$	12.16		$	16.26		$	16.16		$	14.52		$	13.47		$	11.65		$	15.74		$	15.68		$	14.09
Total return + #		17.66	%		1.43	%		1.15	%		12.31	%		24.99	%		16.72	%		0.66	%		0.38	%		11.49	%		24.09	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	10,174		$	6,544		$	6,577		$	7,685		$	4,980		$	4,640		$	4,850		$	5,805		$	5,639		$	5,029
Ratios of expenses to average net assets:
After fee waivers ^											1.51	%		1.25	%											2.26	%		2.00	%
Before fees paid indirectly		1.38	%		1.18	%		1.37	%		1.51	%		1.25	%		2.13	%		1.93	%		2.12	%		2.26	%		2.00	%
After fees paid indirectly		1.37	%		1.18	%		1.37	%		1.51	%		1.25	%		2.12	%		1.93	%		2.12	%		2.26	%		2.00	%
Ratios of net investment income (loss) to average net assets:
After fee waivers ^											0.57	%		0.99	%											(0.18	)%		0.25	%
Before fees paid indirectly		0.84	%		1.57	%		0.78	%		0.57	%		0.99	%		0.14	%		0.83	%		0.03	%		(0.18	)%		0.25	%
After fees paid indirectly		0.85	%		1.57	%		0.78	%		0.57	%		0.99	%		0.15	%		0.83	%		0.03	%		(0.18	)%		0.25	%
Portfolio turnover rate		61	%		59	%		101	%		22	%		16	%		61	%		59	%		101	%		22	%		16	%

* The net investment income (loss) per share data was determined using the average shares outstanding throughout each year.

+ Assumes reinvestment of all dividends and distributions, if any. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not reflect the impact of any sales charges.

(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.

See accompanying notes to financial statements.

89

FINANCIAL HIGHLIGHTS

Dunham Focused Large Cap Growth Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each year.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	15.92		$	16.97		$	15.01		$	14.02		$	10.42
Income (loss) from investment operations:
Net investment loss*		(0.14	)		(0.10	)		(0.16	)		(0.11	)		(0.10	)
Net realized and unrealized gain (loss)		3.59			(0.86	)		2.12			1.29			3.70
Total income (loss) from investment operations		3.45			(0.96	)		1.96			1.18			3.60
Less distributions:
Distributions from net realized gains		—			(0.09	)		—			(0.19	)		—
Total distributions		—			(0.09	)		—			(0.19	)		—
Net asset value, end of year	$	19.37		$	15.92		$	16.97		$	15.01		$	14.02
Total return +		21.67	%		(5.66	)%		13.06	%		8.48	%		34.55	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	56,472		$	51,242		$	51,312		$	37,106		$	814
Ratios of expenses to average net assets:
Before fee waivers and fees paid indirectly		1.16	%		1.20	%		1.34	%		1.16	%		1.71	%
After fee waivers and fees paid indirectly		1.14	%		1.20	%		1.34	%		1.16	%		1.69	%
Ratios of net investment loss to average net assets:
Before fee waivers and fees paid indirectly		(0.79	)%		(0.64	)%		(1.00	)%		(0.76	)%		(0.70	)%
After fee waivers and fees paid indirectly		(0.77	)%		(0.64	)%		(1.00	)%		(0.76	)%		(0.67	)%
Portfolio turnover rate		38	%		29	%		45	%		29	%		91	%
’	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2017			2016			2015			2014			2013			2017			2016			2015			2014			2013
Net asset value, beginning of year	$	15.73		$	16.80		$	14.91		$	13.96		$	10.39		$	15.17		$	16.33		$	14.59		$	13.76		$	10.33
Income (loss) from investment operations:
Net investment loss*		(0.18	)		(0.14	)		(0.19	)		(0.21	)		(0.11	)		(0.30	)		(0.25	)		(0.31	)		(0.26	)		(0.26	)
Net realized and unrealized gain (loss)		3.53			(0.84	)		2.08			1.35			3.68			3.40			(0.82	)		2.05			1.28			3.69
Total income (loss) from investment operations		3.35			(0.98	)		1.89			1.14			3.57			3.10			(1.07	)		1.74			1.02			3.43
Less distributions:
Distributions from net realized gains		—			(0.09	)		—			(0.19	)		—			—			(0.09	)		—			(0.19	)		—
Total distributions		—			(0.09	)		—			(0.19	)		0.00			—			(0.09	)		—			(0.19	)		—
Net asset value, end of year	$	19.08		$	15.73		$	16.80		$	14.91		$	13.96		$	18.27		$	15.17		$	16.33		$	14.59		$	13.76
Total return +		21.30	%		(5.84	)%		12.68	%		8.23	%		34.36	%		20.44	%		(6.56	)%		11.93	%		7.47	%		33.20	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	12,944		$	9,620		$	8,762		$	19,949		$	11,399		$	6,758		$	4,988		$	5,222		$	4,361		$	510
Ratios of expenses to average net assets:
Before fee waivers and fees paid indirectly		1.41	%		1.45	%		1.59	%		1.41	%		1.96	%		2.16	%		2.20	%		2.34	%		2.16	%		2.71	%
After fee waivers and fees paid indirectly		1.39	%		1.45	%		1.59	%		1.41	%		1.94	%		2.14	%		2.20	%		2.34	%		2.16	%		2.69	%
Ratios of net investment loss to average net assets:
Before fee waivers and fees paid indirectly		(1.05	)%		(0.91	)%		(1.20	)%		(1.48	)%		(0.95	)%		(1.80	)%		(1.67	)%		(2.00	)%		(1.87	)%		(1.70	)%
After fee waivers and fees paid indirectly		(1.03	)%		(0.91	)%		(1.20	)%		(1.48	)%		(0.92	)%		(1.78	)%		(1.67	)%		(2.00	)%		(1.87	)%		(1.67	)%
Portfolio turnover rate		38	%		29	%		45	%		29	%		91	%		38	%		29	%		45	%		29	%		91	%

* 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. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not reflect the impact of any sales charge.

See accompanying notes to financial statements.

90

FINANCIAL HIGHLIGHTS

Dunham International Stock Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each year.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.24		$	14.24		$	15.21		$	15.22		$	12.05
Income (loss) from investment operations:
Net investment income *		0.21			0.16			0.00	(a)		0.15			0.07
Net realized and unrealized gain (loss)		3.09			(0.15	)		(0.61	)		0.10			3.24
Total income (loss) from investment operations		3.30			0.01			(0.61	)		0.25			3.31
Less distributions:
Distributions from net investment income		—			(0.01	)		(0.30	)		(0.26	)		(0.14	)
Distributions from net realized gains		—			—			(0.06	)		—			—
Total distributions		—			(0.01	)		(0.36	)		(0.26	)		(0.14	)
Net asset value, end of year	$	17.54		$	14.24		$	14.24		$	15.21		$	15.22
Total return + #		23.17	%		0.06	%		(4.10	)%		1.66	%		27.64	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	90,257		$	78,640		$	76,992		$	57,359		$	49,815
Ratios of expenses to average net assets:
Before fees paid indirectly		1.56	%		1.63	%		2.04	%		2.04	%		2.11	%
After fees paid indirectly		1.55	%		1.63	%		2.04	%		2.04	%		2.11	%
Ratios of net investment income to average net assets:
Before fees paid indirectly		1.34	%		1.17	%		0.03	%		0.99	%		0.52	%
After fees paid indirectly		1.35	%		1.17	%		0.03	%		0.99	%		0.52	%
Portfolio turnover rate		119	%		143	%		125	%		117	%		131	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2017			2016			2015			2014			2013			2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.17		$	14.21		$	15.16		$	15.19		$	12.03		$	13.60		$	13.73		$	14.68		$	14.70		$	11.64
Income (loss) from investment operations:
Net investment income (loss)*		0.17			0.13			(0.03	)		0.15			0.06			0.04			0.03			(0.14	)		(0.00	) (a)		(0.06	)
Net realized and unrealized gain (loss)		3.08			(0.17	)		(0.60	)		0.06			3.22			2.95			(0.16	)		(0.59	)		0.10			3.13
Total income (loss) from investment operations		3.25			(0.04	)		(0.63	)		0.21			3.28			2.99			(0.13	)		(0.73	)		0.10			3.07
Less distributions:
Distributions from net investment income		—			—			(0.26	)		(0.24	)		(0.12	)		—			—			(0.16	)		(0.12	)		(0.01	)
Distributions from net realized gains		—			—			(0.06	)		—			—			—			—			(0.06	)		—			—
Total distributions		—			—			(0.32	)		(0.24	)		(0.12	)		—			—			(0.22	)		(0.12	)		(0.01	)
Net asset value, end of year	$	17.42		$	14.17		$	14.21		$	15.16		$	15.19		$	16.59		$	13.60		$	13.73		$	14.68		$	14.70
Total return + #		22.94	%		(0.28	)%		(4.26	)%		1.35	%		27.40	%		21.99	%		(0.95	)%		(5.06	)%		0.67	%		26.40	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	15,524		$	10,305		$	9,032		$	7,871		$	4,741		$	6,570		$	6,483		$	7,268		$	6,551		$	5,627
Ratios of expenses to average net assets:
Before fees paid indirectly		1.81	%		1.88	%		2.29	%		2.29	%		2.36	%		2.56	%		2.63	%		3.04	%		3.04	%		3.11	%
After fees paid indirectly		1.80	%		1.88	%		2.29	%		2.29	%		2.36	%		2.55	%		2.63	%		3.04	%		3.04	%		3.11	%
Ratios of net investment income (loss) to average net assets:
Before fees paid indirectly		1.07	%		0.93	%		(0.19	)%		0.97	%		0.41	%		0.30	%		0.20	%		(0.94	)%		(0.02	)%		(0.46	)%
After fees paid indirectly		1.08	%		0.93	%		(0.19	)%		0.97	%		0.41	%		0.31	%		0.20	%		(0.94	)%		(0.02	)%		(0.46	)%
Portfolio turnover rate		119	%		143	%		125	%		117	%		131	%		119	%		143	%		125	%		117	%		131	%

* The net investment income (loss) per share data was determined using the average shares outstanding throughout each year.

+ Assumes reinvestment of all dividends and distributions, if any. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not reflect the impact of any sales charges.

# 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.

(a) Represents less than $0.01 per share.

See accompanying notes to financial statements.

91

FINANCIAL HIGHLIGHTS

Dunham Real Estate Stock Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each year.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	18.31		$	19.23		$	19.27		$	16.53		$	15.79
Income from investment operations:
Net investment income *		0.13			0.32			0.15			0.13			0.23
Net realized and unrealized gain		0.40			0.73			0.85			3.20			1.27
Total income from investment operations		0.53			1.05			1.00			3.33			1.50
Less distributions:
Distributions from net investment income		(0.36	)		(0.21	)		(0.11	)		(0.20	)		(0.23	)
Distributions from net realized gains		(2.82	)		(1.76	)		(0.93	)		(0.39	)		(0.53	)
Total distributions		(3.18	)		(1.97	)		(1.04	)		(0.59	)		(0.76	)
Net asset value, end of year	$	15.66		$	18.31		$	19.23		$	19.27		$	16.53
Total return +		3.63	%		5.77	%		5.13	%		21.09	%		9.85	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	34,256		$	25,479		$	33,379		$	37,143		$	33,545
Ratios of expenses to average net assets:		1.17	%		1.21	%		1.64	%		1.59	%		1.30	%
Ratios of net investment income to average net assets:		0.79	%		1.74	%		0.80	%		0.77	%		1.40	%
Portfolio turnover rate		101	%		110	%		110	%		97	%		163	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2017			2016			2015			2014			2013			2017			2016			2015			2014			2013
Net asset value, beginning of year	$	18.35		$	19.26		$	19.33		$	16.55		$	15.77		$	17.55		$	18.50		$	18.65		$	16.02		$	15.33
Income from investment operations:
Net investment income (loss) *		0.10			0.27			0.10			0.08			0.15			(0.02	)		0.13			(0.04	)		(0.04	)		0.07
Net realized and unrealized gain		0.41			0.74			0.85			3.22			1.31			0.38			0.70			0.82			3.11			1.23
Total income from investment operations		0.51			1.01			0.95			3.30			1.46			0.36			0.83			0.78			3.07			1.30
Less distributions:
Distributions from net investment income		(0.26	)		(0.16	)		(0.09	)		(0.13	)		(0.15	)		(0.21	)		(0.02	)		0.00			(0.05	)		(0.08	)
Distributions from net realized gains		(2.82	)		(1.76	)		(0.93	)		(0.39	)		(0.53	)		(2.82	)		(1.76	)		(0.93	)		(0.39	)		(0.53	)
Total distributions		(3.08	)		(1.92	)		(1.02	)		(0.52	)		(0.68	)		(3.03	)		(1.78	)		(0.93	)		(0.44	)		(0.61	)
Net asset value, end of year	$	15.78		$	18.35		$	19.26		$	19.33		$	16.55		$	14.88		$	17.55		$	18.50		$	18.65		$	16.02
Total return +		3.44	%		5.54	%		4.85	%		20.73	%		9.60	%		2.61	%		4.73	%		4.08	%		19.88	%		8.73	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	6,002		$	9,376		$	10,386		$	3,913		$	2,539		$	2,448		$	3,211		$	3,847		$	4,166		$	2,684
Ratios of expenses to average net assets:		1.42	%		1.45	%		1.89	%		1.84	%		1.55	%		2.17	%		2.21	%		2.64	%		2.59	%		2.30	%
Ratios of net investment income (loss) to average net assets:		0.60	%		1.45	%		0.53	%		0.48	%		1.15	%		(0.11	)%		0.70	%		(0.21	)%		(0.24	)%		0.40	%
Portfolio turnover rate		101	%		110	%		110	%		97	%		163	%		101	%		110	%		110	%		97	%		163	%

* The net investment income (loss) per share data was determined using the average shares outstanding throughout each year.

+ Assumes reinvestment of all dividends and distributions, if any. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not reflect the impact of any sales charge.

See accompanying notes to financial statements.

92

FINANCIAL HIGHLIGHTS

Dunham Small Cap Value Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each year.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.41		$	14.27		$	15.45		$	14.65		$	11.21
Income (loss) from investment operations:
Net investment income (loss) *		0.07			0.09			(0.01	)		0.04			0.07
Net realized and unrealized gain (loss)		3.57			0.54			(0.18	)		1.45			3.40
Total income (loss) from investment operations		3.64			0.63			(0.19	)		1.49			3.47
Less distributions:
Distributions from net investment income		(0.10	)		(0.01	)		(0.04	)		(0.02	)		(0.03	)
Distributions from net realized gains		(0.48	)		(0.48	)		(0.95	)		(0.67	)		—
Total distributions		(0.58	)		(0.49	)		(0.99	)		(0.69	)		(0.03	)
Net asset value, end of year	$	17.47		$	14.41		$	14.27		$	15.45		$	14.65
Total return + #		25.55	%		4.58	%		(1.59	)%		10.30	%		31.05	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	22,710		$	22,254		$	22,068		$	23,783		$	16,640
Ratios of expenses to average net assets:		1.32	%		1.48	%		1.79	%		1.45	%		1.29	%
Ratios of net investment income (loss) to average net assets:		0.45	%		0.64	%		(0.10	)%		0.27	%		0.62	%
Portfolio turnover rate		100	%		129	%		122	%		106	%		147	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2017			2016			2015			2014			2013			2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.29		$	14.18		$	15.36		$	14.59		$	11.16		$	13.02		$	13.06		$	14.32		$	13.74		$	10.59
Income (loss) from investment operations:
Net investment income (loss)*		0.03			0.05			(0.05	)		(0.00	) (a)		0.01			(0.08	)		(0.05	)		(0.15	)		(0.10	)		(0.03	)
Net realized and unrealized gain (loss)		3.54			0.54			(0.18	)		1.44			3.42			3.21			0.49			(0.16	)		1.35			3.18
Total income (loss) from investment operations		3.57			0.59			(0.23	)		1.44			3.43			3.13			0.44			(0.31	)		1.25			3.15
Less distributions:
Distributions from net investment income		(0.07	)		—			—			—			—			—			—			—			—			—
Distributions from net realized gains		(0.48	)		(0.48	)		(0.95	)		(0.67	)		—			(0.48	)		(0.48	)		(0.95	)		(0.67	)		—
Total distributions		(0.55	)		(0.48	)		(0.95	)		(0.67	)		—			(0.48	)		(0.48	)		(0.95	)		(0.67	)		—
Net asset value, end of year	$	17.31		$	14.29		$	14.18		$	15.36		$	14.59		$	15.67		$	13.02		$	13.06		$	14.32		$	13.74
Total return + #		25.26	%		4.33	%		(1.83	)%		10.02	%		30.74	%		24.29	%		3.52	%		(2.56	)%		9.22	%		29.75	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	4,569		$	3,802		$	3,801		$	3,268		$	1,756		$	2,611		$	2,241		$	2,383		$	2,494		$	2,057
Ratios of expenses to average net assets:		1.57	%		1.73	%		2.04	%		1.70	%		1.54	%		2.32	%		2.48	%		2.79	%		2.45	%		2.29	%
Ratios of net investment income (loss) to average net assets:		0.19	%		0.40	%		(0.36	)%		(0.06	)%		0.15	%		(0.57	)%		(0.36	)%		(1.11	)%		(0.70	)%		(0.37	)%
Portfolio turnover rate		100	%		129	%		122	%		106	%		147	%		100	%		129	%		122	%		106	%		147	%

* The net investment income (loss) per share data was determined using the average shares outstanding throughout each year.

+ Assumes reinvestment of all dividends and distributions, if any. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not (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.

See accompanying notes to financial statements.

93

FINANCIAL HIGHLIGHTS

Dunham Emerging Markets Stock Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each year.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	12.73		$	11.97		$	14.75		$	14.66		$	13.82
Income (loss) from investment operations:
Net investment income *		0.17			0.20			0.08			0.20			0.00	(a)
Net realized and unrealized gain (loss) **		3.28			0.64			(2.67	)		(0.11	)		0.84
Total income (loss) from investment operations		3.45			0.84			(2.59	)		0.09			0.84
Less distributions:
Distributions from net investment income		(0.24	)		(0.08	)		(0.19	)		—			—
Total distributions		(0.24	)		(0.08	)		(0.19	)		—			—
Net asset value, end of year	$	15.94		$	12.73		$	11.97		$	14.75		$	14.66
Total return + #		27.69	%		7.13	%		(17.73	)%		0.61	%		6.08	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	51,365		$	46,481		$	42,831		$	35,872		$	24,736
Ratios of expenses to average net assets:		1.75	%		1.27	%		1.76	%		1.29	%		2.00	%
Ratios of net investment income to average net assets:		1.18	%		1.73	%		0.59	%		1.39	%		0.03	%
Portfolio turnover rate		74	%		97	%		137	%		108	%		166	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2017			2016			2015			2014			2013			2017			2016			2015			2014			2013
Net asset value, beginning of year	$	12.45		$	11.71		$	14.44		$	14.39		$	13.59		$	11.82		$	11.14		$	13.76		$	13.82		$	13.16
Income (loss) from investment operations:
Net investment income (loss)*		0.14			0.17			0.05			0.16			(0.07	)		0.02			0.08			(0.06	)		0.04			(0.14	)
Net realized and unrealized gain (loss) **		3.20			0.62			(2.62	)		(0.11	)		0.87			3.04			0.60			(2.49	)		(0.10	)		0.80
Total income (loss) from investment operations		3.34			0.79			(2.57	)		0.05			0.80			3.06			0.68			(2.55	)		(0.06	)		0.66
Less distributions:
Distributions from net investment income		(0.21	)		(0.05	)		(0.16	)		—			—			(0.14	)		—			(0.07	)		—			—
Total distributions		(0.21	)		(0.05	)		(0.16	)		—			—			(0.14	)		—			(0.07	)		—			—
Net asset value, end of year	$	15.58		$	12.45		$	11.71		$	14.44		$	14.39		$	14.74		$	11.82		$	11.14		$	13.76		$	13.82
Total return + #		27.36	%		6.84	%		(17.94	)%		0.35	%		5.89	%		26.31	%		6.10	%		(18.60	)%		(0.43	)%		5.02	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	8,242		$	6,348		$	4,594		$	4,036		$	2,475		$	3,467		$	3,380		$	3,216		$	3,593		$	2,735
Ratios of expenses to average net assets:		2.00	%		1.52	%		2.01	%		1.54	%		2.25	%		2.75	%		2.27	%		2.76	%		2.29	%		3.00	%
Ratios of net investment income (loss) to average net assets:		0.98	%		1.46	%		0.40	%		1.14	%		(0.48	)%		0.10	%		0.77	%		(0.48	)%		0.34	%		(1.03	)%
Portfolio turnover rate		74	%		97	%		137	%		108	%		166	%		74	%		97	%		137	%		108	%		166	%

* The net investment income (loss) per share data was determined using the average shares outstanding throughout each year.

(a) Represents less than $0.01 per share.

** The amount of net realized and unrealized loss on investment per share for the year ended October 31, 2014 does not accord with the amounts in the Statements of Operations due to the timing of purchases and sales of Fund shares in relation to fluctuating market values.

+ Assumes reinvestment of all dividends and distributions, if any. 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.

See accompanying notes to financial statements.

94

FINANCIAL HIGHLIGHTS

Dunham Small Cap Growth Fund

The table sets forth financial data for one share of beneficial interest outstanding throughout each year.

	Class N
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of year	$	15.34		$	17.08		$	17.71		$	20.62		$	15.69
Income from investment operations:
Net investment loss*		(0.15	)		(0.06	)		(0.24	)		(0.29	)		(0.19	)
Net realized and unrealized gain (loss) (a)		5.12			(0.24	)		1.19			1.11			6.10
Total income (loss) from investment operations		4.97			(0.30	)		0.95			0.82			5.91
Less distributions:
Distributions from net realized gains		—			(1.40	)		(1.58	)		(3.73	)		(0.98	)
Tax return of capital		—			(0.04	)		—			—			—
Total distributions		—			(1.44	)		(1.58	)		(3.73	)		(0.98	)
Net asset value, end of year	$	20.31		$	15.34		$	17.08		$	17.71		$	20.62
Total return + #		32.40	%		(1.88	)%		5.36	%		3.64	%		40.28	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	24,641		$	26,010		$	23,152		$	21,153		$	16,146
Ratios of expenses to average net assets:
Before fees paid indirectly		1.36	%		1.23	%		1.58	%		1.84	%		1.35	%
After fees paid indirectly		1.35	%		1.23	%		1.58	%		1.84	%		1.35	%
Ratios of net investment loss to average net assets:
Before fees paid indirectly		(0.86	)%		(0.38	)%		(1.30	)%		(1.61	)%		(1.08	)%
After fees paid indirectly		(0.85	)%		(0.38	)%		(1.30	)%		(1.61	)%		(1.08	)%
Portfolio turnover rate		174	%		181	%		138	%		192	%		231	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2017			2016			2015			2014			2013			2017			2016			2015			2014			2013
Net asset value, beginning of year	$	14.85		$	16.62		$	17.31		$	20.28		$	15.49		$	12.79		$	14.61		$	15.51		$	18.66		$	14.43
Income from investment operations:
Net investment loss*		(0.19	)		(0.10	)		(0.27	)		(0.34	)		(0.24	)		(0.28	)		(0.18	)		(0.36	)		(0.42	)		(0.32	)
Net realized and unrealized gain (loss) (a)		4.96			(0.23	)		1.16			1.10			6.01			4.26			(0.20	)		1.04			1.00			5.53
Total income (loss) from investment operations		4.77			(0.33	)		0.89			0.76			5.77			3.98			(0.38	)		0.68			0.58			5.21
Less distributions:
Distributions from net realized gains		—			(1.40	)		(1.58	)		(3.73	)		(0.98	)		—			(1.40	)		(1.58	)		(3.73	)		(0.98	)
Tax return of capital		—			(0.04	)		—			—			—			—			(0.04	)		—			—			—
Total distributions		—			(1.44	)		(1.58	)		(3.73	)		(0.98	)		—			(1.44	)		(1.58	)		(3.73	)		(0.98	)
Net asset value, end of year	$	19.62		$	14.85		$	16.62		$	17.31		$	20.28		$	16.77		$	12.79		$	14.61		$	15.51		$	18.66
Total return + #		32.12	%		(2.12	)%		5.12	%		3.36	%		39.88	%		31.12	%		(2.82	)%		4.29	%		2.56	%		38.87	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	6,925		$	5,540		$	6,326		$	6,443		$	5,890		$	2,644		$	2,155		$	3,163		$	3,165		$	2,685
Ratios of expenses to average net assets:
Before fees paid indirectly		1.61	%		1.48	%		1.83	%		2.09	%		1.60	%		2.36	%		2.23	%		2.58	%		2.84	%		2.35	%
After fees paid indirectly		1.60	%		1.48	%		1.83	%		2.09	%		1.60	%		2.35	%		2.23	%		2.58	%		2.84	%		2.35	%
Ratios of net investment loss to average net assets:
Before fees paid indirectly		(1.13	)%		(0.69	)%		(1.53	)%		(1.86	)%		(1.33	)%		(1.89	)%		(1.45	)%		(2.29	)%		(2.61	)%		(2.08	)%
After fees paid indirectly		(1.12	)%		(0.69	)%		(1.53	)%		(1.86	)%		(1.33	)%		(1.88	)%		(1.45	)%		(2.29	)%		(2.61	)%		(2.08	)%
Portfolio turnover rate		174	%		181	%		138	%		192	%		231	%		174	%		181	%		138	%		192	%		231	%

* 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. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not reflect the impact of any sales charge.

# 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.

(a) The amount of net realized and unrealized gain (loss) on investment per share for the year ended October 31, 2016 does not accord with the amounts in the Statements of Operations due to the timing of purchases and sales of Fund shares in relation to fluctuating market values.

See accompanying notes to financial statements.

95

NOTES TO FINANCIAL STATEMENTS

October 31, 2017

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 fifteen funds: Dunham Floating Rate Bond Fund; Dunham Corporate/Government Bond Fund; Dunham Monthly Distribution Fund; Dunham Dynamic Macro Fund; Dunham High-Yield Bond Fund; Dunham Alternative Dividend Fund; Dunham International Opportunity Bond Fund; Dunham Appreciation & Income Fund; Dunham Large Cap Value Fund; Dunham Focused Large Cap Growth Fund; Dunham International Stock Fund; Dunham Real Estate Stock Fund; Dunham Small Cap Value Fund; Dunham Emerging Markets Stock Fund; and Dunham Small Cap Growth Fund. With the exception of Dunham Focused Large Cap Growth Fund, Dunham International Opportunity Bond Fund, and Dunham Real Estate Stock Fund, the remaining Funds are diversified funds within the meaning of the 1940 Act.

Fund	Primary Objective
Dunham Floating Rate Bond Fund (“Floating Rate Bond”)	High level of current income
Dunham Corporate/Government Bond Fund (“Corporate/Government Bond”)	Current income and capital appreciation
Dunham Monthly Distribution Fund (“Monthly Distribution”)	Positive returns in rising and falling market environments
Dunham Dynamic Macro Fund (“Dynamic Macro”)	Maximize total return from capital appreciation and dividends
Dunham High-Yield Bond Fund (“High-Yield Bond”)	High level of current income
Dunham Alternative Dividend Fund (“Alternative Dividend”)	Current income while preserving capital during market downturns
Dunham International Opportunity Bond Fund (“International Opportunity Bond”)	High level of current income
Dunham Appreciation & Income Fund (“Appreciation & Income”)	Maximize total return under varying market conditions through both current income and capital appreciation
Dunham Large Cap Value Fund (“Large Cap Value”)	Maximize total return from capital appreciation and dividends
Dunham Focused Large Cap Growth Fund (“Focused Large Cap Growth”)	Maximize capital appreciation
Dunham International Stock Fund (“International Stock”)	Maximize total return from capital appreciation and dividends
Dunham Real Estate Stock Fund (“Real Estate Stock”)	Maximize total return from capital appreciation and dividends
Dunham Small Cap Value Fund (“Small Cap Value”)	Maximize total return from capital appreciation and income
Dunham Emerging Markets Stock Fund (“Emerging Markets Stock”)	Maximize capital appreciation
Dunham Small Cap Growth Fund (“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 service fee, Class C shares are subject to an annual service and distribution fee and Class N shares 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 Class N shares, with the exception of Monthly Distribution, High-Yield Bond, Dynamic Macro, Focused Large Cap Growth, Floating Rate Bond, International Opportunity Bond, and Alternative Dividend 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 Class N shares commenced operations on July 1, 2005. The Class A shares for all Funds except Monthly Distribution, Dynamic Macro, Focused Large Cap Growth, Floating Rate Bond, International Opportunity Bond, and Alternative Dividend commenced operations on January 3, 2007. Monthly Distribution’s Predecessor Fund’s Class A shares and Class C shares commenced operations on December 26, 2000. Monthly Distribution’s Class N shares commenced operations on September 29, 2008. Dynamic Macro commenced operations on April 30, 2010. Focused Large Cap Growth commenced operations on December 8, 2011. Floating Rate Bond and International Opportunity Bond commenced operations on November 1, 2013. Alternative Dividend’s Class A, Class C and Class N shares commenced operations on August 31, 2016.

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 Funds are investment

96

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October 31, 2017 (Continued)

companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services – Investment Companies” including FASB Accounting Standard Update ASU 2013-08.

The following is a summary of significant accounting policies followed by the Funds in preparation of their financial statements.

a. Security Valuation – In determining each Fund’s Net Asset Value (“NAV”) per share, equity securities for which market quotations are readily available are valued at current market value using the last reported sales price. NASDAQ traded securities are valued using the NASDAQ official closing price (“NOCP”). If no sale price is reported, the 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 ask 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 ask 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 ask prices may be used. Short-term debt securities with a remaining maturity of 60 days or less may be 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 ask price.

Futures and future options are valued daily 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 East 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 East 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 the 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.

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 a Fund’s NAV. However, management may determine that such developments are so significant that they will materially affect the value of a 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. Both International Stock and Emerging Markets Stock utilize fair value prices as provided by an independent pricing vendor on a daily basis for those securities traded on a foreign exchange.

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.

Valuation of Fund of Funds - The Funds may invest in portfolios of open-end investment companies. Open-end investment companies are valued at their respective net asset values as reported by such investment companies. Open-end investment companies 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 investment companies.

97

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October 31, 2017 (Continued)

The Funds utilize various methods to measure the fair value of most of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities.

Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

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 October 31, 2017 for the Funds’ assets and liabilities measured at fair value:

Floating Rate Bond

Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	538,403	$	—	$	—	$	538,403
Exchange Traded Funds *		3,593,537		—		—		3,593,537
Bank Loans *		—		149,777,685		—		149,777,685
Bonds & Notes *		—		8,823,617		—		8,823,617
Asset Backed Securities		—		2,956,375		—		2,956,375
Rights		11,201		—		—		11,201
Short-Term Investment		31,968,937		—		—		31,968,937
Collateral for Securities Loaned		2,147,100		—		—		2,147,100
Total	$	38,259,178	$	161,557,677	$	—	$	199,816,855
Corporate/Government Bond
Assets	Level 1		Level 2		Level 3		Total
Corporate Bonds & Notes *	$	—	$	43,097,508	$	—	$	43,097,508
Foreign Government Bonds		—		924,296		—		924,296
Municipal Bonds		—		2,658,748		—		2,658,748
U.S. Government & Agency		—		19,100,405		—		19,100,405
Bank Loans *		—		2,715,090		—		2,715,090
Exchange Traded Fund		434,893		—		—		434,893
Preferred Stock		322,056		—		—		322,056
Short-Term Investment		1,371,720		—		—		1,371,720
Collateral for Securities Loaned		7,021,360		—		—		7,021,360
Total	$	9,150,029	$	68,496,047	$	—	$	77,646,076

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NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

Monthly Distribution

Assets	Level 1		Level 2		Level 3		Total
Common Stocks	$	228,743,570	$	3,100,263	$	—	$	231,843,833
Exchange Traded Funds		15,657,250		—		—		15,657,250
Rights		—		39,010		—		39,010
Warrants		21,111		—		—		21,111
Closed-End Fund		15,307,336		—		—		15,307,336
Purchased Options		—		292,385		—		292,385
Short-Term Investment		65,396,990		—		—		65,396,990
Collateral for Securities Loaned		8,948,907		—		—		8,948,907
Total Assets	$	334,075,164	$	3,431,658	$	—	$	337,506,822
Liabilities
Liabilities-Securities Sold Short	$	105,069,959	$	—	$	—	$	105,069,959
Total Liabilities	$	105,069,959	$	—	$	—	$	105,069,959
Liabilities-Derivatives
Written Options	$	141,690	$	1,270,775	$	—	$	1,412,465
Total Derivatives	$	141,690	$	1,270,775	$	—	$	1,412,465
Dynamic Macro
Assets	Level 1		Level 2		Level 3		Total
Exchange Traded Funds *	$	21,431,685	$	—	$	—	$	21,431,685
Purchased Options		2,367,256		36,402		—		2,403,658
Short-Term Investments		6,130,387		14,261,476		—		20,391,863
Collateral for Securities Loaned		3,202,272		—		—		3,202,272
Total Assets		33,131,600		14,297,878		—		47,429,478
Assets - Derivatives
Futures		596,720		—		—		596,720
Written Future Options		14,671		14,726		—		29,397
Total Derivatives	$	611,391	$	14,726	$	—	$	626,117
Liabilities - Derivatives
Futures	$	82,739	$	—	$	—	$	82,739
High-Yield Bond
Assets	Level 1		Level 2		Level 3		Total
Bonds & Notes *	$	—	$	117,107,135	$	—	$	117,107,135
Short-Term Investment		5,373,110		—		—		5,373,110
Collateral for Securities Loaned		24,186,280		—		—		24,186,280
Total	$	29,559,390	$	117,107,135	$	—	$	146,666,525
Alternative Dividend
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	28,724,887	$	—	$	—	$	28,724,887
Exchange Traded Funds		6,750,397		—		—		6,750,397
Asset - Derivatives
Purchased Options		286,805		148,925		—		435,730
Short-Term Investment		2,174,148		—		—		2,174,148
Collateral for Securities Loaned		8,225,547		—		—		8,225,547
Total	$	46,161,784	$	148,925	$	—	$	46,310,709

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NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

International Opportunity Bond
Assets	Level 1		Level 2		Level 3		Total
Corporate Bonds & Notes *	$	—	$	16,143,046	$	—	$	16,143,046
Foreign Government Bonds *		—		19,148,497		—		19,148,497
Mortgage Backed Securities		—		40,421		—		40,421
Whole Loan Collateral		—		216,785		—		216,785
Short-Term Investment		576,593		—		—		576,593
Total Assets	$	576,593	$	35,548,749	$	—	$	36,125,342
Asset - Derivatives
Futures Contracts	$	8,742	$	—	$	—	$	8,742
Foreign Currency Exchange Contracts		—		88,321		—		88,321
Total Derivatives	$	8,742	$	88,321	$	—	$	97,063
Liabilities-Derivatives
Futures Contracts	$	35,851	$	—	$	—	$	35,851
Foreign Currency Exchange Contracts		—		69,884		—		69,884
Total Derivatives	$	35,851	$	69,884	$	—	$	105,735
Appreciation & Income
Assets	Level 1		Level 2		Level 3		Total
Convertible Bonds *	$	—	$	14,125,578	$	—	$	14,125,578
Preferred Stocks *		2,549,646		540,675		—		3,090,321
Short-Term Investment		1,500,074		—		—		1,500,074
Collateral for Securities Loaned		322,400		—		—		322,400
Total	$	4,372,120	$	14,666,253	$	—	$	19,038,373
Large Cap Value
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	68,688,156	$	—	$	—	$	68,688,156
Short-Term Investment		1,619,645		—		—		1,619,645
Collateral for Securities Loaned		5,635,713		—		—		5,635,713
Total	$	75,943,514	$	—	$	—	$	75,943,514
Focused Large Cap Growth
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	75,471,576	$	—	$	—	$	75,471,576
Short-Term Investment		752,009		—		—		752,009
Collateral for Securities Loaned		11,449,510		—		—		11,449,510
Total	$	87,673,095	$	—	$	—	$	87,673,095
International Stock
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	19,829,782	$	88,903,088	$	—	$	108,732,870
Exchange Traded Fund		557,040		—		—		557,040
Preferred Stocks *		1,505,596		827,349		—		2,332,945
Collateral for Securities Loaned		2,837,042		—		—		2,837,042
Total	$	24,729,460	$	89,730,437	$	—	$	114,459,897

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NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

Real Estate Stock
Assets	Level 1		Level 2		Level 3		Total
Common Stock	$	900,320	$	—	$	—	$	900,320
REITS *		41,050,757		—		—		41,050,757
Short-Term Investment		971,882		—		—		971,882
Collateral for Securities Loaned		4,641,609		—		—		4,641,609
Total	$	47,564,568	$	—	$	—	$	47,564,568
Small Cap Value
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	29,857,549	$	—	$	—	$	29,857,549
Short-Term Investment		50,064		—		—		50,064
Collateral for Securities Loaned		7,504,373		—		—		7,504,373
Total	$	37,411,986	$	—	$	—	$	37,411,986
Emerging Markets Stock
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	15,080,414	$	45,123,745	$	—	$	60,204,159
Preferred Stocks *		1,521,831		—		—		1,521,831
Short-Term Investment		789,908		—		—		789,908
Collateral for Securities Loaned		1,149,855		—		—		1,149,855
Total	$	18,542,008	$	45,123,745	$	—	$	63,665,753
Small Cap Growth
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	33,122,609	$	—	$	—	$	33,122,609
Short-Term Investment		763,492		—		—		763,492
Collateral for Securities Loaned		9,970,545		—		—		9,970,545
Total	$	43,856,646	$	—	$	—	$	43,856,646

* See each Fund’s Schedule of Investments for breakdown by industry.

The Funds did not hold any Level 3 securities during the period.

There were no transfers into or out of Level 1 or Level 2 during the period except for International Stock which had a transfer from Level 2 to Level 1 of $1,270,236 and Emerging Markets had transfers from Level 1 to Level 2 of $1,336,433 and transfers from Level 2 to Level 1 of $165,900. 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 rates 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 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.

d. Options – Monthly Distribution, Dynamic Macro, and Alternative Dividend are subject to stock market risk in the normal course of pursuing their investment objectives 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

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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 realize 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.

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 Statements 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 Statements 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 Statements 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 Statements 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 Statements 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.

f. Futures Contracts – Dynamic Macro and International Opportunity Bond are subject to equity interest rate risk and forward currency exchange rate risk in the normal course of pursuing their investment objectives. The Funds 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 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 Funds recognize 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 Funds were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Funds 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 Funds segregate 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 Statements of Assets and Liabilities. With futures, there is minimal counterparty credit risk to the Funds since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

The notional value of the derivative instruments outstanding as of October 31, 2017 as disclosed in the Schedules of Investments and the amounts realized and changes in unrealized gains and losses on derivative instruments during the year ended within the Statements of Operations serve as indicators of the volume of derivative activity for the Funds.

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.

102

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

h. Impact of Derivatives on the Statements of Assets and Liabilities and Statements of Operations – The following is a summary of the location of derivative investments of each Fund in the Statement of Assets and Liabilities as of October 31, 2017:

Location on the Statements of Assets and Liabilities
Derivatives Investment Type	Asset Derivatives	Liability Derivatives
Equity/Currency/Commodity Interest rate contracts	Investment in securities Unrealized appreciation on futures Receivable for open forward foreign currency contracts	Options contracts written Unrealized depreciation on futures Payable for open forward foreign currency contracts

The following table sets forth the fair value of each Fund’s derivative contracts by primary risk exposure as of October 31, 2017:

Asset Derivatives Investment Value
									Total value at
	Equity		Currency		Commodity		Interest Rate		October 31,
	Contracts		Contracts		Contracts		Contracts		2017
Monthly Distribution
Purchased Options	$	292,385	$	—	$	—	$	—	$	292,385
Dynamic Macro
Futures	$	388,070	$	—	$	—	$	208,650	$	596,720
Purchased Options		87,719		—		—		2,315,939		2,403,658
Alternative Dividend Purchased Options	$	435,730	$	—	$	—	$	—	$	435,730
International Opportunity Bond
Forward Foreign Currency Contracts	$	—	$	88,321	$	—	$	—	$	88,321
Futures		—		—		—		8,742		8,742
Liability Derivatives Investment Value
									Total value at
	Equity		Currency		Commodity		Interest Rate		October 31,
	Contracts		Contracts		Contracts		Contracts		2017
Monthly Distribution
Written Options	$	1,412,465	$	—	$	—	$	—	$	1,412,465
Dynamic Macro
Futures	$	30,889	$	—	$	—	$	51,850	$	82,739
Written Options		29,397		—		—		—		29,397
International Opportunity Bond
Forward Foreign Currency Contracts	$	—	$	69,884	$	—	$	—	$	69,884
Futures		—		—		—		35,851		35,851

The following is a summary of the location of derivative investments of each Fund in the Statements of Operations for the year ended October 31, 2017.

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Currency/Commodity/ Interest rate contracts	Net realized gain (loss) from: Futures, Options purchased, Written options, Swap contracts, Foreign currency exchange contracts Net change in unrealized appreciation (depreciation) on: Futures, Options purchased, Written options, Swap contracts, Foreign currency translations,Foreign currency exchange contracts and foreign currency translations.

103

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

The following is a summary of each Fund’s realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized in the Statements of Operations categorized by primary risk exposure for the year ended October 31, 2017:

Realized gain (loss) on derivatives recognized in the Statements of Operations
												Total value at
	Equity			Currency			Commodity		Interest Rate			October 31,
Derivative Investment type	Contracts			Contracts			Contracts		Contracts			2017
Monthly Distribution
Forward Foreign Currency Contracts	$	—		$	174,944		$	—	$	—		$	174,944
Swaps		3,330,087			—			—		—			3,330,087
Purchased Options		(7,100,491	)		—			—		—			(7,100,491	)
Written Options		3,473,870			—			—		—			3,473,870
Dynamic Macro
Futures	$	1,025,779		$	—		$	—	$	(274,085	)	$	751,694
Forward Foreign Currency Contracts		—			26,265			—		—			26,265
Purchased Options		(690,625	)		—			—		(721,066	)		(1,411,691	)
Written Options		72,803			—			—		—			72,803
Alternative Dividend Purchased Options	$	(1,749,566	)	$	—		$	—	$	—		$	(1,749,566	)
International Opportunity Bond
Forward Foreign Currency Contracts	$	—		$	(162,969	)	$	—	$	—		$	(162,969	)
Futures		—			—			—		(86,675	)		(86,675	)
International Stock Forward Foreign Currency Contracts	$	—		$	(3,386	)	$	—	$	—		$	(3,386	)
Emerging Markets Stock
Forward Foreign Currency Contracts	$	—		$	(113,633	)	$	—	$	—		$	(113,633	)
Changes in unrealized appreciation (depreciation) on derivatives recognized in the Statements of Operations
												Total value at
	Equity			Currency			Commodity		Interest Rate			October 31,
Derivative Investment type	Contracts			Contracts			Contracts		Contracts			2017
Monthly Distribution
Forward Foreign Currency Contracts	$	—		$	(17,509	)	$	—	$	—		$	(17,509	)
Swaps		(422,216	)		—			—		—			(422,216	)
Purchased Options		250,695			—			—		—			250,695
Written Options		(180,318	)		—			—		—			(180,318	)
Dynamic Macro
Futures		315,925			—			—		12,812			328,737
Purchased Options		95,727			—			—		(302,357	)		(206,630	)
Written Options		23,637			—			—		—			23,637
Alternative Dividend
Purchased Options	$	(157,770	)	$	—		$	—	$	—		$	(157,770	)
International Opportunity Bond
Forward Foreign Currency Contracts	$	—		$	(5,918	)	$	—	$	—		$	(5,918	)
Futures		—						—		8,414			8,414
International Stock
Forward Foreign Currency Contracts	$	—		$	(277	)	$	—	$	—		$	(277	)

104

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

i. Offsetting of Financial Assets and Derivative Assets – Monthly Distribution, International Opportunity Bond, Dynamic Macro and International Stock policies are to recognize a gross asset or liability equal to the unrealized on futures contracts, forward foreign currency exchange contracts, swaps and written options. During the year ended October 31, 2017, Monthly Distribution is subject to a master netting arrangement for swaps. The following table shows additional information regarding the offsetting of assets and liabilities at October 31, 2017.

Monthly Distribution
									Gross Amounts Not Offset in the
Assets:									Statement of Assets & Liabilities
				Gross Amounts		Net Amounts of
	Gross Amounts			Offset in the		Assets Presented in
	of Recognized			Statement of Assets		the Statement of			Financial		Cash Collateral
Description	Assets			& Liabilities		Assets & Liabilities			Instruments		Received		Net Amount
Purchased Options	$	292,385		$	—	$	292,385		$	—	$	—	$	292,385
Total	$	292,385		$	—	$	292,385		$	—	$	—	$	292,385
									Gross Amounts Not Offset in the
Liabilities:									Statement of Assets & Liabilities
				Gross Amounts		Net Amounts of
	Gross Amounts			Offset in the		Liabilities Presented
	of Recognized			Statement of Assets		in the Statement of			Financial		Cash Collateral
Description	Liabilities			& Liabilities		Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Written Options	$	(1,412,465	)	$	—	$	(1,412,465	)	$	—	$	1,412,465	$	—
Total	$	(1,412,465	)	$	—	$	(1,412,465	)	$	—	$	1,412,465	$	—

(1) The amount is limited to the derivative liability balance and accordingly, does not include excess collateral pledged.

Dynamic Macro
									Gross Amounts Not Offset in the
Assets:									Statement of Assets & Liabilities
	Gross			Gross Amounts		Net Amounts of
	Amounts of			Offset in the		Assets Presented in
	Recognized			Statement of Assets		the Statement of			Financial			Cash Collateral
Description	Assets			& Liabilities		Assets & Liabilities			Instruments			Pledged		Net Amount
Futures Contracts	$	596,720		$	—	$	596,720		$	(82,739	)	$	—	$	513,981
Purchased Options		2,403,658			—		2,403,658			—			—		2,403,658
Total	$	3,000,378		$	—	$	3,000,378		$	(82,739	)	$	—	$	513,981
									Gross Amounts Not Offset in the
Liabilities:									Statement of Assets & Liabilities
	Gross			Gross Amounts		Net Amounts of
	Amounts of			Offset in the		Liabilities Presented
	Recognized			Statement of Assets		in the Statement of			Financial			Cash Collateral
Description	Liabilities			& Liabilities		Assets & Liabilities			Instruments			Pledged (1)		Net Amount
Futures Contracts	$	(82,739	)	$	—	$	(82,739	)	$	82,739		$	—	$	—
Written Options		(29,397	)		—		(29,397	)		—			29,397		—
Total	$	(112,136	)	$	—	$	(112,136	)	$	82,739		$	29,397	$	—

105

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

Alternative Dividend
							Gross Amounts Not Offset in the
Assets:							Statement of Assets & Liabilities
			Gross Amounts		Net Amounts of
	Gross Amounts		Offset in the		Liabilities Presented				Cash
	of Recognized		Statement of Assets		in the Statement of		Financial		Collateral
Description	Assets		& Liabilities		Assets & Liabilities		Instruments		Pledged (1)		Net Amount
Purchased Options	$	435,730	$	—	$	435,730	$	—	$	—	$	435,730
Total	$	435,730	$	—	$	435,730	$	—	$	—	$	435,730

(1) The amount is limited to the derivative liability balance and accordingly, does not include excess collateral pledged.

International Opportunity Bond
									Gross Amounts Not Offset in
									the Statement of Assets &
Assets:									Liabilities
	Gross			Gross Amounts		Net Amounts of
	Amounts of			Offset in the		Assets Presented in						Cash
	Recognized			Statement of Assets		the Statement of			Financial			Collateral
Description	Assets			& Liabilities		Assets & Liabilities			Instruments			Pledged		Net Amount
Forward Foreign
Currency Contracts	$	88,321		$	—	$	88,321		$	(69,884	)	$	—	$	18,437
Futures Contracts		8,742			—		8,742			(8,742	)		—		—
Total	$	97,063		$	—	$	97,063		$	(78,626	)	$	—	$	18,437
									Gross Amounts Not Offset in
									the Statement of Assets &
Liabilities:									Liabilities
	Gross			Gross Amounts		Net Amounts of
	Amounts of			Offset in the		Liabilities Presented						Cash
	Recognized			Statement of Assets		in the Statement of			Financial			Collateral
Description	Liabilities			& Liabilities		Assets & Liabilities			Instruments			Pledged (1)		Net Amount
Forward Foreign
Currency Contracts	$	(69,884	)	$	—	$	(69,884	)	$	69,884		$	—	$	—
Futures Contracts		(35,851	)		—		(35,851	)		8,742			27,109		—
Total	$	(105,735	)	$	—	$	(105,735	)	$	78,626		$	27,109	$	—

(1) The amount is limited to the derivative liability balance and accordingly, does not include excess collateral pledged.

j. 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. 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.

k. 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 and expense 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 by 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.

106

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

l. Concentration of Risk – Investing in securities of foreign issuers and currency transactions may involve certain considerations and risks not typically associated with investments in the United States. These risks include revaluation of currencies, adverse fluctuations in foreign currency values and possible adverse political, social and economic developments, including those particular to a specific industry, country or region. These conditions could cause the securities and their markets to be less liquid and prices more volatile than those of comparable U.S. companies and U.S. government securities.

Small capitalization (“small cap”) companies may be more vulnerable than larger capitalization companies to adverse business or economic developments. Small cap companies may also have limited product lines, markets or financial resources, and may be dependent on a relatively small management group. Securities of such companies may be less liquid and more volatile than securities of larger capitalization companies or the market averages in general and therefore may involve greater risk than investing in larger capitalization companies.

The ability of issuers of debt securities held by the Funds to meet their obligations may be affected by economic and political developments particular to a specific industry, country, state or region. Investments in lower grade debt securities are subject to special risks, including greater price volatility and a greater risk of loss of principal and interest.

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.

m. 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 2014 to 2016 and expected to be taken in tax year 2017 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 year, the Funds did not incur any interest or penalties. Generally tax authorities can examine tax returns filed for the last three years.

n. 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 Dynamic Macro 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. Monthly Distribution’s distribution policy is to make twelve monthly distributions to shareholders. The level of monthly distributions (including any return of capital) is not fixed but is expected to be at or near the level of the prime interest rate (“Prime Rate”). Additionally, Monthly Distribution’s distribution policy is not designed to generate, and is not expected to result in, distributions that equal a fixed percentage of Monthly Distribution’s current net asset value per share. Shareholders receiving periodic payments from Monthly Distribution may be under the impression that they are receiving net income. However, all or a portion of a distribution may consist of a return of capital. Shareholders should not assume that the source of a distribution from Monthly Distribution is net income.

o. 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.

107

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

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. 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.

		Adviser’s	Sub-Adviser’s
	Management Fee	Portion	Portion
Floating Rate Bond	0.70% – 1.10%	0.60%	0.10% – 0.50%
Corporate/Government Bond	0.65% – 0.95%	0.50%	0.15% – 0.45%
Monthly Distribution **	0.90% – 1.70%	0.65%	0.25% – 1.05%
Dynamic Macro	1.05% – 1.75%	0.65%	0.40% – 1.10%
High-Yield Bond ***	0.82% – 1.02%	0.60%	0.22% – 0.42%
Alternative Dividend	0.95% – 1.55%	0.65%	0.30% - 0.90%
International Opportunity Bond	0.80% – 1.30%	0.60%	0.20% – 0.70%
Appreciation & Income	0.85% – 1.25%	0.65%	0.20% – 0.60%
Large Cap Value	0.75% – 1.15%	0.65%	0.10% – 0.50%
Focused Large Cap Growth	0.85% – 1.15%	0.65%	0.20% – 0.50%
International Stock	0.95% – 1.65%	0.65%	0.30% – 1.00%
Real Estate Stock	0.75% – 1.35%	0.65%	0.10% – 0.70%
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 April 1, 2017 the Sub-Adviser’s Portion for Monthly Distribution was 0.25%-1.25% and the Management Fee was 0.90%-1.90%.

*** Prior to July, 1, 2017 the Sub-Adviser’s Portion for High-Yield Bond was 0.20%-0.60% and the Management Fee was 0.80%-1.20%

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 Funds 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 are calculating Performance Fees on a rolling 12-month basis as of October 31, 2017.

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,

108

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

the monthly total Fulcrum Fee can be positive although the performance fee rate may be 0.00%. In such instances, the Fund will pay the Sub-Adviser the monthly Fulcrum Fee.

The table below lists the current Sub-Advisers along with their Fulcrum Fee arrangements.

				Null	Minimum	Maximum
Fund	Sub-Adviser	Benchmark	Base Fee	Zone	Fee	Fee
Floating Rate Bond *	New fleet Asset Management, LLC	S&P/LSTA Leveraged Loan Index	0.30%	+/- 0.00%	0.10%	0.50%
Corporate/Government Bond	New fleet Asset Management, LLC	Barclays Aggregate Bond Index	0.30%	+/- 0.15%	0.15%	0.45%
Monthly Distribution **	Perella Weinberg Partners Capital Management LP	IQ Hedge Market Neutral Beta Index	0.65%	+/- 0.00%	0.25%	1.05%
Dynamic Macro	Mellon Capital Management Corporation	IQ Hedge Global Macro Beta Index	0.75%	+/- 0.00%	0.40%	1.10%
High-Yield Bond ***	PineBridge Investments LLC	Barclays U.S. Corporate High Yield Ba/B 2% Issuer Capped Index	0.32%	+/- 0.00%	0.22%	0.42%
Alternative Dividend	Sungarden Fund Management, LLC	Dow Jones Moderately Conservative Index	0.60%	+/- 0.00%	0.30%	0.90%
International Opportunity Bond	Allianz Global Investors	Barclays Global ex US Aggregate Bond Index	0.45%	+/- 0.00%	0.20%	0.70%
Appreciation & Income	PENN Capital Management Company, Inc.	Bank of America Merrill Lynch All Convertibles All Qualities Index	0.40%	+/- 0.00%	0.20%	0.60%
Large Cap Value	Rothschild Asset Management, Inc.	Russell 1000 Value Index	0.30%	+/- 0.00%	0.10%	0.50%
Focused Large Cap Growth	The Ithaka Group, LLC	Russell 1000 Growth Index	0.35%	+/- 0.30%	0.20%	0.50%
International Stock	Arrow street Capital L.P.	MSCI All Country World Index ex USA (Net)	0.65%	+/- 0.20%	0.30%	1.00%
Real Estate Stock	Barings Real Estate Advisers, LLC	FTSE NAREIT All REITs Index	0.40%	+/- 0.00%	0.10%	0.70%
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 (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 February 28, 2017, Floating Rate Bond had a Base Fee of 0.40%, a Minimum Fee of 0.20%, and Maximum Fee of 0.50%.

** Effective April 1, 2017, Perella Weinberg Partners Capital Management LP replaced Westchester Capital Management, LLC as sub-adviser to the Monthly Distribution Fund. Prior to February 28, 2017, when the fee structure changed, Westchester Capital Management, LLC contractually agreed to waive a portion of their fee, so that such fees, on an 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. Westchester Capital Management, LLC had a Base Fee of 0.75%, a Minimum Fee of 0.25%, and a Maximum Fee of 1.25%. Westchester Capital Management, LLC waived $62,399 during the year ended October 31, 2017, of which the entire balance is not subject to recapture.

*** Effective July 1, 2017, PineBridge Investments, LLC replaced PENN Capital Management Co., Inc. as sub-adviser to the High-Yield Bond Fund. PENN Capital Management Co., Inc., had a Base fee of 0.40%, a Minimum Fee of 0.20%, and a Maximum Fee of 0.60%.

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 July 1, 2017, for providing administration services, 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; 0.04% on average net assets over $500 million; and 0.02% on average net assets over $1 billion. Prior to that date, the top two tiers were paid at 0.05% and 0.03%, respectively. Such fees are subject to an annual minimum of $400,000 in total for the entire trust. Effective July 1, 2017, for providing fund accounting services, GFS received from the Trust a minimum annual fee of $262,500. Prior to that date, GFS received from each Fund a monthly fee based on the combined average daily net assets at the following annual rates: 0.03% on the first $500 million of average net assets and 0.01% on the average net assets over $500 million, subject to an annual minimum of $300,000 in total for the entire Trust. For providing transfer agent services, GFS receives from the Trust minimum annual fee of $200,000.

Pursuant to the terms of a Custody Administration Agreement, Monthly Distribution pays GFS a monthly fee of $300.

109

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

Blu Giant, LLC, (“Blu Giant”), (formerly “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, Blu Giant receives customary fees from the Funds.

Individuals from GFS serve as officers for the Trust and receive no additional compensation from the Trust for serving in these roles.

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 who is not an interested person of the Trust will receive $6,250 for each Board meeting attended in-person; $1,000 for all telephonic Board meetings; $1,000 for in-person committee meetings and $500 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 for the committee meeting. 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 $150,000 per annum plus an annual discretionary bonus as may be awarded 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. Commission Recapture – During the year ended October 31, 2017, certain Funds had portfolio trades executed with a certain broker pursuant to a commission recapture agreement under which the broker will return a portion of the Fund’s brokerage commissions on the Fund’s behalf. Such amounts, under such commission recapture agreement, are included in fess paid indirectly in the Fund’s Statement of Operations and were paid directly by the broker to the Administrator. For the year ended October 31, 2017, the amounts received by the Administrator on behalf of certain participating Funds under this arrangement were: Alternative Dividend - $55,520, Large Cap Value – $7,126, Focused Large Cap Growth - $9,528, International Stock - $4,701, and Small Cap Growth - $2,536.

4. INVESTMENT TRANSACTIONS

The cost of purchases and the proceeds from sales of investments, other than short-term investments, for the year ended October 31, 2017 were as follows:

	Purchases		Sale Proceeds				Proceeds of
	(excluding U.S.		(excluding U.S.		Purchases of		U.S.
	Government		Government		U.S. Government		Government
Fund	Securities)		Securities)		Securities		Securities
Floating Rate Bond	$	173,017,726	$	117,470,288	$	—	$	—
Corporate/Government Bond		48,503,677		33,599,828		12,543,598		13,323,016
Monthly Distribution		1,058,742,687		938,888,489		—		—
Dynamic Macro		1,408,238		1,792,048		—		—
High-Yield Bond		157,762,669		136,087,882		—		—
Alternative Dividend		177,723,841		161,981,287
International Opportunity Bond		24,462,518		16,276,218		—		—
Appreciation & Income		20,386,589		26,495,276		—		—
Large Cap Value		40,436,943		37,142,324		—		—
Focused Large Cap Growth		26,355,698		30,928,178		—		—
International Stock		117,757,404		119,244,105		—		—
Real Estate Stock		39,333,735		34,800,153		—		—
Small Cap Value		28,030,134		32,904,963		—		—
Emerging Markets Stock		41,823,662		49,537,624		—		—
Small Cap Growth		60,432,261		69,263,647		—		—

110

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

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 October 31, 2017, were as follows:

			Gross		Gross			Net Unrealized
	Tax		Unrealized		Unrealized			Appreciation/
	Cost		Appreciation		Depreciation			(Depreciation)
Floating Rate Bond Fund	$	199,547,652	$	1,548,641	$	(1,279,438	)	$	269,203
Corporate/Government Bond Fund		76,809,900		1,374,676		(538,500	)		836,176
Monthly Distribution Fund		227,947,508		17,167,369		(14,090,479	)		3,076,890
Dynamic Macro Fund		42,775,876		5,170,940		(62,011	)		5,108,929
High-Yield Bond Fund		144,444,747		2,737,591		(515,813	)		2,221,778
Alternative Dividend Fund		46,286,313		1,887,671		(1,863,275	)		24,396
International Opportunity Bond Fund		35,570,267		1,007,627		(452,552	)		555,075
Appreciation & Income Fund		17,947,698		2,349,910		(1,259,235	)		1,090,675
Large Cap Value Fund		62,493,440		14,666,398		(1,216,324	)		13,450,074
Focused Large Cap Growth Fund		62,075,305		26,538,273		(940,483	)		25,597,790
International Stock Fund		98,180,160		17,884,255		(1,604,518	)		16,279,737
Real Estate Stock Fund		43,238,608		5,131,893		(805,933	)		4,325,960
Small Cap Value Fund		33,026,837		5,259,988		(874,839	)		4,385,149
Emerging Markets Stock Fund		50,383,571		15,093,835		(1,811,653	)		13,282,182
Small Cap Growth Fund		37,167,064		7,149,763		(460,181	)		6,689,582

6. SHARES OF BENEFICIAL INTEREST

At October 31, 2017, each Fund had an unlimited number of shares authorized with no par value.

Following is a summary of shareholder transactions for each Fund for the year ended October 31, 2017 and the year/period ended October 31, 2016, respectively:

For the year ended October 31, 2017:

	Class N Shares										Class A Shares
								Net Increase										Net Increase
			Distributions					(Decrease) in					Distributions					(Decrease) in
Fund	Issued		Reinvested		Redeemed			Shares			Issued		Reinvested		Redeemed			Shares
Floating Rate Bond		8,010,681		419,700		(1,955,043	)		6,475,338			853,365		44,355		(355,000	)		542,720
Corporate/Government Bond		1,842,070		85,632		(836,944	)		1,090,758			206,542		8,076		(108,687	)		105,931
Monthly Distribution		2,262,648		179,857		(946,529	)		1,495,976			422,396		40,821		(615,758	)		(152,541	)
Dynamic Macro		1,097,676		—		(550,641	)		547,035			314,313		—		(108,954	)		205,359
High-Yield Bond		4,221,189		428,612		(2,161,863	)		2,487,938			504,948		46,113		(412,563	)		138,498
Alternative Dividend		1,634,819		120,742		(667,246	)		1,088,315			68,558		948		(4,834	)		64,672
International Opportunity Bond		1,445,820		28,837		(635,529	)		839,128			158,038		2,536		(67,277	)		93,297
Appreciation & Income		339,537		63,649		(1,012,783	)		(609,597	)		104,622		10,468		(207,045	)		(91,955	)
Large Cap Value		941,746		60,421		(793,604	)		208,563			338,329		8,048		(162,665	)		183,712
Focused Large Cap Growth		992,721		—		(1,295,302	)		(302,581	)		290,140		—		(223,561	)		66,579
International Stock		882,290		—		(1,261,782	)		(379,492	)		381,106		—		(217,270	)		163,836
Real Estate Stock		878,584		283,995		(367,097	)		795,482			209,176		43,353		(383,096	)		(130,567	)
Small Cap Value		307,514		53,196		(605,265	)		(244,555	)		183,390		10,926		(196,461	)		(2,145	)
Emerging Markets Stock		599,965		64,904		(1,092,983	)		(428,114	)		264,082		8,004		(252,886	)		19,200
Small Cap Growth		391,669		—		(874,125	)		(482,456	)		245,385		—		(265,412	)		(20,027	)

111

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

	Class C Shares
								Net Increase
			Distributions					(Decrease)
Fund	Issued		Reinvested		Redeemed			in Shares
Floating Rate Bond		374,637		16,324		(220,866	)		170,095
Corporate/Government Bond		50,246		3,947		(64,451	)		(10,258	)
Monthly Distribution		214,747		51,393		(430,722	)		(164,582	)
Dynamic Macro		40,482		—		(69,122	)		(28,640	)
High-Yield Bond		153,054		30,290		(199,764	)		(16,420	)
Alternative Dividend		83,205		3,647		(9,122	)		77,730
International Opportunity Bond		52,157		1,484		(38,182	)		15,459
Appreciation & Income		25,217		8,202		(117,977	)		(84,558	)
Large Cap Value		54,566		3,757		(130,182	)		(71,859	)
Focused Large Cap Growth		122,704		—		(81,646	)		41,058
International Stock		64,467		—		(145,232	)		(80,765	)
Real Estate Stock		30,317		32,299		(81,082	)		(18,466	)
Small Cap Value		43,831		5,477		(54,878	)		(5,570	)
Emerging Markets Stock		115,109		3,518		(169,505	)		(50,878	)
Small Cap Growth		41,644		—		(52,454	)		(10,810	)

Year/Period Ended October 31, 2016:

	Class N Shares										Class A Shares
								Net Increase										Net Increase
			Distributions					(Decrease) in					Distributions					(Decrease) in
Fund	Issued		Reinvested		Redeemed			Shares			Issued		Reinvested		Redeemed			Shares
Floating Rate Bond		3,245,963		283,827		(1,457,613	)		2,072,177			518,054		29,530		(317,202	)		230,382
Corporate/Government Bond		889,311		88,721		(581,522	)		396,510			212,107		8,751		(221,945	)		(1,087	)
Monthly Distribution		930,533		143,378		(1,296,398	)		(222,487	)		308,917		49,761		(1,137,113	)		(778,435	)
Dynamic Macro		1,014,094		—		(920,799	)		93,295			272,164		—		(198,785	)		73,379
High-Yield Bond		1,299,855		435,039		(1,812,374	)		(77,480	)		290,157		46,309		(312,037	)		24,429
Alternative Dividend		2,069,758		—		(28,014	)		2,041,744			1		—		—			1
International Opportunity Bond		573,174		2,986		(1,516,131	)		(939,971	)		101,064		159		(234,584	)		(133,361	)
Appreciation & Income		363,748		145,362		(715,847	)		(206,737	)		95,024		23,349		(147,881	)		(29,508	)
Large Cap Value		616,688		968,124		(632,723	)		952,089			155,383		138,870		(160,657	)		133,596
Focused Large Cap Growth		774,330		17,116		(597,687	)		193,759			284,636		3,304		(197,810	)		90,130
International Stock		841,227		3,084		(726,387	)		117,924			251,540		—		(160,223	)		91,317
Real Estate Stock		267,773		184,156		(796,210	)		(344,281	)		85,202		57,555		(170,890	)		(28,133	)
Small Cap Value		235,460		53,816		(291,167	)		(1,891	)		70,193		8,834		(80,919	)		(1,892	)
Emerging Markets Stock		913,954		25,824		(867,084	)		72,694			245,332		1,850		(129,758	)		117,424
Small Cap Growth		602,298		124,708		(387,203	)		339,803			77,497		24,091		(109,242	)		(7,654	)

	Class C Shares
								Net Increase
			Distributions					(Decrease)
Fund	Issued		Reinvested		Redeemed			in Shares
Floating Rate Bond		177,846		11,030		(92,549	)		96,327
Corporate/Government Bond		67,852		5,244		(100,458	)		(27,362	)
Monthly Distribution		211,987		51,254		(585,842	)		(322,601	)
Dynamic Macro		109,872		—		(81,233	)		28,639
High-Yield Bond		160,314		35,061		(371,843	)		(176,468	)
Alternative Dividend		35,692		—		(5	)		35,687
International Opportunity Bond		37,817		12		(92,501	)		(54,672	)
Appreciation & Income		125,002		28,776		(327,962	)		(174,184	)
Large Cap Value		59,330		136,802		(148,707	)		47,425
Focused Large Cap Growth		121,961		1,886		(114,862	)		8,985
International Stock		90,644		—		(143,112	)		(52,468	)
Real Estate Stock		46,146		20,451		(91,576	)		(24,979	)
Small Cap Value		29,540		7,074		(46,933	)		(10,319	)
Emerging Markets Stock		87,692		—		(90,272	)		(2,580	)
Small Cap Growth		124,968		28,776		(327,919	)		(174,175	)

112

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

7. DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL

The tax character of dividends paid during the year or period ended October 31, 2017 and October 31, 2016 was as follows:

	For the year or period ended October 31, 2017										For the year or period ended October 31, 2016
	Ordinary		Long-Term		Return of		Tax - Exempt				Ordinary		Long-Term		Return of
Fund	Income		Capital Gains		Capital		Income		Total		Income		Capital Gains		Capital		Total
Floating Rate Bond	$	4,705,002	$	—	$	—	$	—	$	4,705,002	$	3,114,657	$	—	$	—	$	3,114,657
Corporate/Government Bond		1,264,680		—		24,527		59,502		1,348,709		1,431,865		—		—		1,431,865
Monthly Distribution		—		—		10,191,212		—		10,191,212		4,038,615		—		5,117,544		9,156,159
Dynamic Macro		—		—		—		—		—		—		—		—		—
High-Yield Bond		4,756,447		—		—		—		4,756,447		4,668,522		—		—		4,668,522
Alternative Dividend		1,715,265		—		33,747		—		1,749,012		—		—		—		—
International Opportunity Bond		—		281,876		—		—		281,876		—		27,741		—		27,741
Appreciation & Income		689,953		—		—		—		689,953		1,690,059		6,372		—		1,696,431
Large Cap Value		953,600		—		—		—		953,600		564,042		14,258,077		—		14,822,119
Focused Large Cap Growth		—		—		—		—		—		—		381,862		—		381,862
International Stock		—		—		—		—		—		43,319		—		—		43,319
Real Estate Stock		1,820,717		3,749,295		—		—		5,570,012		2,119,010		2,657,605		—		4,776,615
Small Cap Value		1,012,034		144,516		—		—		1,156,550		98,604		847,224		—		945,828
Emerging Markets Stock		1,153,950		—		—		—		1,153,950		504,601		—		—		504,601
Small Cap Growth		—		—		—		—		—		911,397		1,784,747		78,354		2,774,498

Permanent book and tax differences, primarily attributable to the reclass of net operating losses, short-term capital gains and fund distributions, and adjustments for non-deductible expenses, book/tax treatment of foreign currency exchange gains (losses), section 305(c) deemed dividend distributions, paydown gains (losses), C Corp return of capital, swap gains (losses), passive foreign investment companies, reclassifications of gains on contingent payment debt securities, real estate investment trusts, partnerships, preferred securities, corporation mergers, the expiration of capital loss carry forwards, and the capitalization of in lieu dividend payments made in connection with short sales of stock that have not been held open for more than 45 days resulted in reclassification for the tax year ended October 31, 2017 as follows:

	Paid			Accumulated			Accumulated
	In			Net Investment			Net Realized
Fund	Capital			Income (Loss)			Gains (Loss)
Floating Rate Bond	$	—		$	149,011		$	(149,011	)
Corporate/Government Bond		(24,527	)		88,764			(64,237	)
Monthly Distribution		(1,808,946	)		1,726,908			82,038
Dynamic Macro		(60,063	)		(39,391	)		99,454
High-Yield Bond		(3,403,542	)		—			3,403,542
Alternative Dividend		(33,747	)		(23,018	)		56,765
International Opportunity Bond		(828,303	)		13,179			815,124
Appreciation & Income		—			74,928			(74,928	)
Large Cap Value		—			—			—
Focused Large Cap Growth		(455,780	)		455,780			—
International Stock		—			(32,916	)		32,916
Real Estate Stock		—			(41	)		41
Small Cap Value		—			—			—
Emerging Markets Stock		(3,386,845	)		(24,310	)		3,411,155
Small Cap Growth		—			493,662			(493,662	)

Net assets were unaffected by the above reclassifications.

113

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

As of each of the Fund’s tax year-ended October 31, 2017, the components of distributable earnings on a tax basis were as follows:

	Undistributed		Undistributed		Post October Loss			Capital Loss			Other			Unrealized		Total
	Ordinary		Long-Term		and			Carry			Book/Tax			Appreciation/		Accumulated
Fund	Income		Capital Gains		Late Year Loss			Forwards			Differences			(Depreciation)		Earnings/(Deficits
Floating Rate Bond	$	169,064	$	—	$	—		$	(2,540,197	)	$	(1,498	)	$	269,203	$	(2,103,428	)
Corporate/Government Bond		—		—		—			(1,837,132	)		(843	)		836,176		(1,001,799	)
Monthly Distribution		—		—		(2,278,367	)		(6,616,830	)		(254,567	)		3,123,506		(6,026,258	)
Dynamic Macro		—		—		(202,369	)		(3,049,342	)		—			5,108,919		1,857,208
High-Yield Bond		5,704		—		—			(5,251,482	)		(11,795	)		2,221,778		(3,035,795	)
Alternative Dividend		—		—		—			(2,479,755	)					24,396		(2,455,359	)
International Opportunity Bond		—		42,099		(118,169	)		—			—			543,425		467,355
Appreciation & Income		240,357		—		—			(2,237,265	)		—			1,090,675		(906,233	)
Large Cap Value		424,909		713,238		—			—			—			13,450,074		14,588,221
Focused Large Cap Growth		—		721,962		(577,046	)		—			—			25,597,790		25,742,706
International Stock		1,605,111		3,151,465		—			—			—			16,278,904		21,035,480
Real Estate Stock		95,638		340,203		—			—			—			4,325,960		4,761,801
Small Cap Value		1,586,132		1,584,231		—			—			—			4,385,149		7,555,512
Emerging Markets Stock		521,498		—		—			(2,506,802	)		—			13,283,945		11,298,641
Small Cap Growth		1,809,899		3,242,172		—			—			—			6,689,582		11,741,653

The difference between book basis and tax basis unrealized appreciation (depreciation), undistributed net investment income (loss) and accumulated net realized gain (loss) from security transactions are primarily attributable to the tax deferral of losses on wash sales and straddles, adjustments for gains on contingent convertible debt securities, the mark-to-market treatment of open forward foreign currency contracts, options, futures, dividend payable and swap contracts, and adjustments for section 305(c) deemed dividend distributions, real estate investment trusts, partnerships, preferred securities, passive foreign investment companies, constructive sales of securities held short, straddles and C Corporation return of capital distributions. In addition, the amount listed under other book/tax differences are primarily attributable to the tax deferral of losses on straddles and constructive sales, and tax adjustments for accrued dividend payable.

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 late year losses as follows:

	Late Year
Fund	Losses
Floating Rate Bond	$	—
Corporate/Government Bond		—
Monthly Distribution		2,278,367
Dynamic Macro		202,369
High-Yield Bond		—
Alternative Dividend		—
International Opportunity Bond		118,169
Appreciation & Income		—
Large Cap Value		—
Focused Large Cap Growth		577,046
International Stock		—
Real Estate Stock		—
Small Cap Value		—
Emerging Markets Stock		—
Small Cap Growth		—

114

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

At October 31, 2017, the following Funds had capital loss carryforwards for federal income tax purposes available to offset future capital gains through the indicated expiration date as follows:

			Non-Expiring		Non-Expiring				Capital Loss Carry
Fund	Expiring 2019		Short-Term		Long-Term		Total		Forward Expired
Floating Rate Bond	$	—	$	695,444	$	1,844,753	$	2,540,197	$	—
Corporate/Government Bond		—		518,898		1,318,234		1,837,132		—
Monthly Distribution		—		—		6,616,830		6,616,830		—
Dynamic Macro		152,059		1,709,587		1,187,696		3,049,342		—
High-Yield Bond		—		2,238,943		3,012,539		5,251,482		3,403,542
Alternative Dividend		—		1,597,562		882,193		2,479,755		—
International Opportunity Bond		—		—		—		—		—
Appreciation & Income		—		—		2,237,265		2,237,265		—
Large Cap Value		—		—		—		—		—
Focused Large Cap Growth		—		—		—		—		—
International Stock		—		—		—		—		—
Real Estate Stock		—		—		—		—		—
Small Cap Value		—		—		—		—		—
Emerging Markets Stock		351,019		2,155,783		—		2,506,802		3,386,845
Small Cap Growth		—		—		—		—		—

8. LINE OF CREDIT

Currently, the Funds have a $40,000,000 uncommitted line of credit provided by U.S. Bank National Association (the “Bank”) under an agreement (the “Uncommitted Line”). Any advance under the Uncommitted Line is contemplated primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable on an annualized basis. The Uncommitted Line is not a “committed” line of credit, which is to say that the Bank is not obligated to lend money to a Fund. Accordingly, it is possible that a Fund may wish to borrow money for a temporary or emergency purpose but may not be able to do so. During the year ended October 31, 2017, Monthly Distribution, International Opportunity Bond, Appreciation & Income, Large Cap Value, Focused Large Cap Growth, International Stock, Real Estate Stock, Small Cap Value, Emerging Markets and Small Cap Growth accessed the line of credit based only on the days borrowed and the average amount of borrowings outstanding were $7,775,000, $65,333, $135,400, $227,000, $3,359,667, $946,333, $347,400, $395,318, $1,820,500, $430,333, respectively. The interest expense for all of the Funds listed above is immaterial. As of October 31, 2017, all of the Funds listed above had no outstanding borrowings under the Credit Agreement, except for International Stock, which had $26,000 of outstanding borrowings

9. SECURITIES LENDING

The Funds have entered into a Securities Lending Agreement (“Agreement”) with the Bank. Each participating Fund can lend their securities to brokers, dealers and other financial institutions approved by the Board to earn additional income. Loans are collateralized at a value at least equal to 105% of the then current Market Value of any loaned security that are foreign, or 102% of the then current market value of any other loaned security. All interest and dividend payments received on securities which are held on loan, provided that there is no material default, will be paid to the respective Fund. A portion of the income generated by the investment in the collateral, net of any rebates paid by the Bank to the borrowers is remitted to the Bank as lending agent and the remainder is paid to the Fund(s).

Securities lending income, if any, is disclosed in the Fund’s Statement of Operations. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the Borrower fails to return them. Should the borrower of the securities fail financially, each Fund has the right to repurchase the securities using the collateral in the open market.

115

NOTES TO FINANCIAL STATEMENTS

October 31, 2017 (Continued)

The following table presents financial instruments that are subject to enforceable netting arrangements as of October 31, 2017.

Gross Amounts of Assets Presented in the Statements of Assets and Liabilities
	Market Value of		Market Value of		Percentage of Total
Fund	Loaned Securities		Collateral (1)		Investment Income
Floating Rate Bond	$	2,113,114	$	2,113,114		0.00	%
Corporate/Government Bond		6,838,473		6,838,473		0.03	%
Monthly Distribution		8,689,628		8,689,628		0.01	%
Dynamic Macro		3,136,852		3,136,852		0.08	%
High-Yield Bond		23,367,101		23,367,101		0.09	%
Alternative Dividend		8,003,525		8,003,525		0.02	%
International Opportunity Bond		—		—		0.00	%
Appreciation & Income		310,960		310,960		0.05	%
Large Cap Value		5,507,125		5,507,125		0.03	%
Focused Large Cap Growth		11,342,904		11,342,904		0.07	%
International Stock		2,780,116		2,780,116		0.05	%
Real Estate Stock		4,546,471		4,546,471		0.05	%
Small Cap Value		7,366,753		7,366,753		0.06	%
Emerging Markets Stock		1,151,135		1,149,855		0.01	%
Small Cap Growth (2)		9,791,085		9,791,085		0.17	%

(1) The amount is limited to the loaned securities and accordingly, does not include excess collateral pledged

(2) Securities loaned with a value of $39,546 have been sold and are pending settlement on November 1, 2017.

10. SUBSEQUENT EVENTS

Subsequent events after the date of the Statements 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.

116

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and the Shareholders of the Dunham Funds

We have audited the accompanying statements of assets and liabilities of Dunham Floating Rate Bond Fund, Dunham Corporate/Government Bond Fund, Dunham Monthly Distribution Fund, Dunham Dynamic Macro Fund, Dunham High-Yield Bond Fund, Dunham Alternative Dividend Fund, Dunham International Opportunity Bond Fund, Dunham Appreciation & Income Fund, Dunham Large Cap Value Fund, Dunham Focused Large Cap Growth Fund, Dunham International Stock Fund, Dunham Real Estate Stock Fund, Dunham Small Cap Value Fund, Dunham Emerging Markets Stock Fund, and Dunham Small Cap Growth Fund, each a series of shares of beneficial interest in Dunham Funds (the “Funds”), including the schedules of investments, as of October 31, 2017, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended and the financial highlights for each of the years or periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2017 by correspondence with the custodian, agent banks, and brokers and by other appropriate auditing procedures where responses from agent banks and brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of October 31, 2017, and the results of their operations for the year then ended, the changes in their net assets for each of the years or periods in the two-year period then ended and their financial highlights for each of the years or periods presented, in conformity with accounting principles generally accepted in the United States of America.

BBD, LLP

Philadelphia, Pennsylvania

December 29, 2017

117

TRUSTEES & OFFICERS (Unaudited)

Trustees and Officers of the Trust, together with information as to their principal business occupations during the last five years, are shown below. Each Trustee who is considered an “interested person” of the Trust (as defined in Section 2(a)(19) of the 1940 Act) is indicated by an asterisk next to his name. Unless otherwise noted, the address of each Trustee and Officer is 10251 Vista Sorrento Parkway, Suite 200, San Diego, CA 92121.

Name, Age and Address	Position(s) Held with Trust	Term of Office and Length of Time Served ^	Principal Occupation(s) During the Past 5 Years and Current Directorships	Number of Funds in the Trust Overseen by Trustee	Other Directorships
Non-Interested Trustees
Timothy M. Considine Age: 77	Trustee	Since January 2008	Retired; Accountant, Considine & Considine (certified public accountant), 1960-2016.	15	HomeFed Corp., 1992-present
Henry R. Goldstein Age: 86	Trustee	Since January 2008	Self-employed consultant/mediator (financial services), 2009-present; Independent Contractor, RBC Daniels (financial services company for telecom industry), 2007-2009.	15	None
Paul A. Rosinack Age: 70	Trustee	Since January 2008	Retired; President/ Chief Executive Officer / Director, Qualigen, Inc., (manufacturer of medical products and equipment) 2004-2017.	15	None
Interested Trustees and Officers
Jeffrey A. Dunham* Age: 56	Trustee, Chairman of Board, President & Principal Executive Officer	Since January 2008	Chief Executive Officer, Dunham & Associates Investment Counsel, Inc. (registered investment adviser, broker-dealer and distributor for mutual funds), 1985-present; Chief Executive Officer, Dunham & Associates Holdings, Inc. (holding company), 1999-present; Chief Executive Officer, Dunham & Associates Securities, Inc. (general partner for various limited partnerships), 1986-present; Chief Executive Officer, Asset Managers, Inc. (general partner for various limited partnerships), 1985-present; Chairman and Chief Executive Officer, Dunham Trust Company, 1999-present.	15	None
Denise S. Iverson Age: 58	Treasurer & Principal Financial Officer	Since January 2008	Chief Financial Officer, Dunham & Associates Investment Counsel, Inc. (registered investment adviser, broker-dealer and distributor for mutual funds), 1999-present; Chief Financial Officer, Dunham & Associates Holdings, Inc. (holding company), 1999-present; Chief Financial Officer, Dunham & Associates Securities, Inc. (general partner for various limited partnerships), 1999-present; Chief Financial Officer, Asset Managers, Inc. (general partner for various limited partnerships), 1999-present; Chief Financial Officer and Director, Dunham Trust Company, 1999-present.	N/A	N/A
Joseph P. Kelly II Age: 42	Chief Compliance Officer	Since January 2014	General Counsel and Chief Compliance Officer, Dunham & Associates, Investment Counsel, Inc. (registered investment adviser, broker-dealer and distributor for mutual funds), November 2013-present; Senior Associate, Dechert LLP (law firm), 2005-October 2013.	N/A	N/A
Tamara Beth Wendoll Age: 46	Secretary and AML Officer	Since October 2015 – Secretary (December 2008 - Assistant Secretary); Since September 2010 – AML Officer	Chief Operating Officer, Dunham & Associates Investment Counsel, Inc. (registered investment adviser, broker-dealer and distributor for mutual funds), 2008-present.	N/A	N/A
Ryan Dykmans Age: 35	Assistant Secretary	Since October 2015	Director of Research, June 2013-present; Senior Investment Analyst from 2009-2013, Dunham & Associates Investment Counsel, Inc. (registered investment adviser, broker-dealer and distributor for mutual funds).	N/A	N/A
James Colantino Age: 48	Assistant Treasurer	Since January 2008	Senior Vice President-Fund Administration, 2012-present; Vice President, 2004-2012; Senior Fund Administrator, 1999-2004, Gemini Fund Services, LLC.	N/A	N/A

^ Each Trustee will serve an indefinite term until his successor, if any, is duly elected and qualified. Officers of the Trust are elected annually.

The Trust’s Statement of Additional Information includes additional information about the Trustees and is available free of charge, upon request, by calling toll-free at 1-888-3DUNHAM (338-6426).

118

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 June 27, 2017

At a regular meeting (the “Meeting”) of the Board of Trustees (the “Board”) held on June 27, 2017 (the “Meeting’), the Board, including a majority of the Independent Trustees, considered the approval of a new sub-investment advisory agreement among the Trust, Dunham & Associates Investment Counsel, Inc. (the “Adviser”) and PineBridge Investments LLC (“PineBridge” or the “Sub-Adviser”) (the “New Sub-Advisory Agreement”) on behalf of High-Yield Bond (the “Fund”).

In connection with its review and approval of the New Sub-Advisory Agreement at the Meeting, the Independent Trustees considered materials furnished by PineBridge, including information about, but not limited to, PineBridge’s personnel and operations and financial condition. At the Meeting, a representatives from the Adviser and PineBridge presented to the Board information regarding PineBridge and the Fund and responded to questions from the Trustees. The Board also reviewed the terms of the New Sub-Advisory Agreement and compared its terms to those of the prior sub-advisory agreement. The Trustees discussed the terms of the New Sub-Advisory Agreement and the performance goals and fulcrum fee arrangements set forth in the New Sub-Advisory Agreement.

Matters considered by the Board, including the Independent Trustees, in connection with its approval of the New Sub-Advisory Agreement included the following:

Performance. With respect to performance, the Board reviewed comparative performance information of other accounts managed by PineBridge with a strategy similar to the Fund’s strategy over various time periods as compared to that of an applicable benchmark index and discussed the same with representatives from the Adviser. They noted that over all time periods presented, such accounts managed by PineBridge either outperformed or performed in-line with the applicable benchmark index. The Trustees noted that PineBridge’s performance was strong and concluded that it was reasonable to expect PineBridge to obtain an acceptable level of investment return for the Fund’s shareholders.

Nature, Extent and Quality of Services. The Trustees considered the information provided by the Adviser with respect to the rigorous sub-advisory search and vetting process it conducted prior to presenting PineBridge to the Board. The Trustees discussed the nature of PineBridge’s operations and the experience of its key professional personnel in managing a high-yield strategy. The Board also reviewed PineBridge’s methodology, research and analysis for selecting investments. The Trustees noted in particular that risk management was at the core of PineBridge’s investment process and discussed the various methods utilized by PineBridge to try to generate returns with low volatility. The Trustees considered the opinion of the Fund’s CCO that PineBridge had allocated appropriate resources to compliance and internal control, has thorough compliance policies and procedures and a comprehensive compliance program. The Independent Trustees concluded that the Adviser had identified a quality sub-adviser and that PineBridge had the experience and resources necessary for managing the Fund in a manner acceptable to the Board.

Cost of Services and Profitability. The Trustees noted that the Adviser negotiated a lower fulcrum fee rate than was currently in place for the Fund, which is comprised of a base fee of 0.32% annually and a performance fee component at a rate that will vary by +/- 0.10% of the Fund’s average daily net asset value depending upon the performance of the Fund’s Class N shares as compared to the benchmark index for a range of 0.22% to 0.42%. The Board also noted that the performance fee rate will increase or decrease by one basis point (0.01%) for each 0.25% of outperformance/underperformance of the benchmark index and they discussed with the Adviser how the performance increments were developed and negotiated. The Board, including the Independent Trustees, took into account that the minimum fee rate of 0.22% was lower than fees charged to other accounts managed by PineBridge and that the proposed fee, at the maximum level the sub-adviser would earn if the Fund performed very well, was only moderately higher than the fees charged to other accounts managed by PineBridge. The Independent Trustees concluded that the Adviser negotiated a favorable fee rate for shareholders of the Fund, which they found appropriate to reward or penalize outperformance or underperformance, respectively. In addition, the Trustees found the index and performance

119

ADDITIONAL INFORMATION (Unaudited) (Continued)

adjustments were appropriate and result from meaningful performance differentials. The Independent Trustees also took into account that the Fund pays the Adviser a fixed fee of 0.60% of daily net assets and discussed that the various duties of the Adviser and the Sub-Adviser were not duplicative. The Independent Trustees next considered the anticipated profits to be realized by PineBridge in relation to the operation of the Fund. They reviewed an analysis of profitability provided by PineBridge and noted that PineBridge’s projected net profitability was not excessive.

Economies of Scale. As to economies of scale, it was the consensus of the Independent Trustees that the Fund had not yet reached an asset level where any material economies of scale could be realized and, consequently, the absence of breakpoints was acceptable at this time.

Conclusion. During the Board’s deliberations, it was noted that the Board did not identify any single piece of information that was all important or controlling with respect to the proposed sub-advisory agreement. 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 sub-advisory agreement, and as assisted by the advice of counsel, the Board, including all of the Independent Trustees present, unanimously concluded that the terms of the proposed sub-advisory agreement were fair and reasonable.

120

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.

					Hypothetical
			Actual		(5% return before expenses)
	Fund’s	Beginning	Ending	Expenses	Ending	Expenses
	Annualized	Account Value	Account Value	Paid During	Account Value	Paid During
	Expense Ratio	5/1/17	10/31/17	Period*	10/31/17	Period*
Class N:
Floating Rate Bond Fund	1.10%	$1,000.00	$1,014.10	$  5.49	$1,019.66	$  5.60
Corporate/Government Bond Fund	1.40%	$1,000.00	$1,000.20	$  7.06	$1,018.15	$  7.12
Monthly Distribution Fund	2.27%	$1,000.00	$1,015.50	$11.62	$1,013.76	$11.52
Dynamic Macro Fund	1.54%	$1,000.00	$1,018.80	$  7.84	$1,017.44	$  7.83
High-Yield Bond Fund	1.15%	$1,000.00	$1,028.40	$  5.88	$1,019.41	$  5.85
Alternative Dividend Fund	1.12%	$1,000.00	$976.30	$  5.49	$1,019.24	$  5.61
International Opportunity Bond Fund	1.58%	$1,000.00	$1,034.41	$  8.10	$1,017.24	$  8.03
Appreciation & Income Fund	1.47%	$1,000.00	$1,063.80	$  7.66	$1,017.80	$  7.48
Large Cap Value Fund	1.20%	$1,000.00	$1,107.90	$  6.38	$1,019.16	$  6.11
Focused Large Cap Growth Fund	1.14%	$1,000.00	$1,099.30	$  6.03	$1,019.46	$  5.80
International Stock Fund	1.60%	$1,000.00	$1,099.70	$  8.47	$1,017.14	$  8.13
Real Estate Stock Fund	1.17%	$1,000.00	$1,097.00	$  6.18	$1,019.31	$  5.96
Small Cap Value Fund	1.38%	$1,000.00	$1,059.40	$  7.16	$1,018.25	$  7.02
Emerging Markets Stock Fund	1.52%	$1,000.00	$1,279.30	$  8.73	$1,017.54	$  7.73
Small Cap Growth Fund	1.37%	$1,000.00	$1,148.10	$  7.36	$1,018.35	$  6.92
Class A:
Floating Rate Bond Fund	1.35%	$1,000.00	$1,012.80	$  6.74	$1,018.40	$  6.87
Corporate/Government Bond Fund	1.69%	$1,000.00	$999.70	$  8.52	$1,016.69	$  8.59
Monthly Distribution Fund	2.56%	$1,000.00	$1,029.50	$13.10	$1,012.30	$12.98
Dynamic Macro Fund	1.95%	$1,000.00	$1,018.20	$  9.92	$1,015.38	$  9.91
High-Yield Bond Fund	1.40%	$1,000.00	$1,027.30	$  7.15	$1,018.15	$  7.12
Alternative Dividend Fund	1.37%	$1,000.00	$974.80	$  6.71	$1,018.00	$  6.85
International Opportunity Bond Fund	1.83%	$1,000.00	$1,032.33	$  9.37	$1,015.98	$  9.30
Appreciation & Income Fund	1.71%	$1,000.00	$1,062.70	$  8.89	$1,016.59	$  8.69
Large Cap Value Fund	1.56%	$1,000.00	$1,106.90	$  8.28	$1,017.34	$  7.93
Focused Large Cap Growth Fund	1.39%	$1,000.00	$1,097.80	$  7.35	$1,018.20	$  7.07
International Stock Fund	1.96%	$1,000.00	$1,098.70	$10.37	$1,015.32	$  9.96
Real Estate Stock Fund	1.41%	$1,000.00	$1,090.00	$  7.43	$1,018.10	$  7.17
Small Cap Value Fund	1.68%	$1,000.00	$1,058.10	$  8.72	$1,016.74	$  8.54
Emerging Markets Stock Fund	1.89%	$1,000.00	$1,276.00	$10.84	$1,015.68	$  9.60
Small Cap Growth Fund	1.63%	$1,000.00	$1,146.80	$  8.82	$1,016.99	$  8.29

121

DUNHAM FUNDS’ EXPENSES (Unaudited) (Continued)

					Hypothetical
			Actual		(5% return before expenses)
	Fund’s	Beginning	Ending	Expenses	Ending	Expenses
	Annualized	Account Value	Account Value	Paid During	Account Value	Paid During
	Expense Ratio	5/1/17	10/31/17	Period*	10/31/17	Period*
Class C:
Floating Rate Bond Fund	1.85%	$1,000.00	$1,009.30	$  9.22	$1,015.88	$  9.40
Corporate/Government Bond Fund	2.08%	$1,000.00	$996.60	$10.47	$1,014.72	$10.56
Monthly Distribution Fund	3.31%	$1,000.00	$1,025.60	$16.90	$1,008.52	$16.76
Dynamic Macro Fund	2.45%	$1,000.00	$1,014.00	$12.44	$1,012.82	$12.43
High-Yield Bond Fund	1.90%	$1,000.00	$1,025.20	$  9.70	$1,015.63	$  9.65
Alternative Dividend Fund	2.12%	$1,000.00	$971.10	$10.36	$1,014.28	$10.59
International Opportunity Bond Fund	2.33%	$1,000.00	$1,030.50	$11.86	$1,013.39	$11.76
Appreciation & Income Fund	2.46%	$1,000.00	$1,058.90	$12.77	$1,012.80	$12.48
Large Cap Value Fund	2.12%	$1,000.00	$1,102.40	$11.23	$1,014.25	$10.76
Focused Large Cap Growth Fund	2.14%	$1,000.00	$1,093.40	$11.29	$1,014.42	$10.87
International Stock Fund	2.50%	$1,000.00	$1,094.10	$13.20	$1,012.60	$12.68
Real Estate Stock Fund	2.17%	$1,000.00	$1,047.00	$11.20	$1,014.27	$11.02
Small Cap Value Fund	2.52%	$1,000.00	$1,053.80	$12.83	$1,012.50	$12.78
Emerging Markets Stock Fund	2.42%	$1,000.00	$1,265.70	$13.82	$1,013.01	$12.28
Small Cap Growth Fund	2.38%	$1,000.00	$1,142.50	$12.85	$1,013.21	$12.08

* Expenses Paid During Period are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 days and divided by 365 (to reflect the number of days in the six month period ending October 31, 2017).

122

Privacy Notice

FACTS	WHAT DO THE DUNHAM FUNDS DO WITH YOUR PERSONAL INFORMATION?
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.
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.
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

123

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 Dunham & Associates Investment Counsel, Inc.
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

124

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 1^st and 3^rd 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).

THIS PAGE INTENTIONALLY LEFT BLANK

P.O. Box 910309
San Diego, California 92191

(800) 442-4358

Distributed by Dunham & Associates Investment Counsel, Inc. Member FINRA/SIPC.

THIS REPORT AND FINANCIAL STATEMENTS CONTAINED HEREIN ARE NOT INTENDED TO BE A FORECAST OF FUTURE EVENTS, A GUARANTEE OF FUTURE RESULTS, OR INVESTMENT ADVICE. FURTHER, THERE IS NO ASSURANCE THAT CERTAIN SECURITIES WILL REMAIN IN OR OUT OF EACH FUND’S PORTFOLIO.

THE FIGURES IN THIS REPORT REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS. THE PRINCIPAL VALUE OF AN INVESTMENT AND INVESTMENT RETURN WILL FLUCTUATE SO THAT AN INVESTOR’S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.

Item 2. Code of Ethics.

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

(b)        For purposes of this item, “code of ethics” means written standards that are reasonably designed to deter wrongdoing and to promote:

(1) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

(2) Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant;

(3)        Compliance with applicable governmental laws, rules, and regulations;

(4) The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and

(5)        Accountability for adherence to the code.

(c)        Amendments:

During the period covered by the report, there have not been any amendments to the provisions of the code of ethics.

(d)        Waivers:

During the period covered by the report, the registrant has not granted any express or implicit waivers from the provisions of the code of ethics.

Item 3. Audit Committee Financial Expert.

(a)       The Board has determined, based on questionnaires completed by the Audit Committee members, that Timothy M. Considine is an audit committee financial expert. Mr. Considine is independent for purposes of this Item 3.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees

FY 2017 $ 189,750

FY 2016 $ 181,600

(b) Audit-Related Fees

FY 2017 $ 0

FY 2016 $ 0

Nature of the fees:

(c) Tax Fees

FY 2017 $ 30,000

FY 2016 $ 30,000

Nature of the fees: Preparation of federal and state tax returns and review of annual dividend calculations.

(d) All Other Fees

Registrant Adviser

FY 2017 $ 0 $ 0

FY 2016 $ 0 $ 0

Nature of the fees:

(e) (1) Audit Committee’s Pre-Approval Policies

The registrant’s Audit Committee is required to pre-approve all audit services and, when appropriate, any non-audit services (including audit-related, tax and all other services) to the registrant. The registrant’s Audit Committee is also required to pre-approve, when appropriate, any non-audit services (including audit-related, tax and all other services) to its adviser, or any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant to the extent that the services are determined to have a direct impact on the operations or financial reporting of the registrant. Services are reviewed on an engagement by engagement basis by the audit committee.

(2) Percentages of 2017 Services Approved by the Audit Committee

Registrant Adviser

Audit-Related Fees: 0 % 0 %

Tax Fees: 0 % 0%

All Other Fees: 0 % 0%

(f)        During audit of registrant's financial statements for the most recent fiscal year, less than 50 percent of the hours expended on the principal accountant's engagement were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.

(g)        The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant:

Registrant Adviser

FY 2017 $30,000 $ None

FY 2016 $30,000 $ None

(h)        Not applicable. All non-audit services to the registrant were pre-approved by the Audit Committee.

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) Code of Ethics filed herewith.

(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 2/6/18

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 2/6/18

By (Signature and Title)

/s/Denise Iverson

Denise Iverson, Treasurer

Date 2/6/18