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

united states
securities and exchange commission
washington, d.c. 20549

form n-csr

certified shareholder report of registered management
investment companies

Investment Company Act file number 811-22153

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: 10/31/18

Item 1. Reports to Stockholders.

BEGINNING ON JANUARY 1, 2021, AS PERMITTED BY REGULATIONS ADOPTED BY THE SECURITIES AND EXCHANGE COMMISSION, PAPER COPIES OF THE DUNHAM FUNDS’ SHAREHOLDER REPORTS LIKE THIS ONE WILL NO LONGER BE SENT BY MAIL, UNLESS YOU SPECIFICALLY REQUEST PAPER COPIES OF THE REPORTS FROM THE DUNHAM FUNDS OR FROM YOUR FINANCIAL INTERMEDIARY, SUCH AS A BROKER-DEALER OR BANK. INSTEAD, THE REPORTS WILL BE MADE AVAILABLE ON A WEBSITE, AND YOU WILL BE NOTIFIED BY MAIL EACH TIME A REPORT IS POSTED AND PROVIDED WITH A WEBSITE LINK TO ACCESS THE REPORT.

IF YOU ALREADY ELECTED TO RECEIVE SHAREHOLDER REPORTS ELECTRONICALLY, YOU WILL NOT BE AFFECTED BY THIS CHANGE AND YOU NEED NOT TAKE ANY ACTION. YOU MAY ELECT TO RECEIVE SHAREHOLDER REPORTS AND OTHER COMMUNICATIONS FROM THE DUNHAM FUNDS ELECTRONICALLY BY CALLING (888)-3DUNHAM (338-6426) OR CONTACTING YOUR FINANCIAL INTERMEDIARY.

YOU MAY ELECT TO RECEIVE ALL FUTURE REPORTS IN PAPER FREE OF CHARGE. YOU CAN INFORM THE DUNHAM FUNDS OR YOUR FINANCIAL INTERMEDIARY THAT YOU WISH TO CONTINUE RECEIVING PAPER COPIES OF YOUR SHAREHOLDER REPORTS BY CALLING (888)-3DUNHAM (338-6426) OR CONTACTING YOUR FINANCIAL INTERMEDIARY. YOUR ELECTION TO RECEIVE REPORTS IN PAPER WILL APPLY TO ALL DUNHAM FUNDS HELD BY YOU OR THROUGH YOUR FINANCIAL INTERMEDIARY.

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 HERE OF THAT MAY BEAR UPON FORWARD-LOOKING STATEMENTS. IN ADDITION, PROSPECTIVE PURCHASERS OF THE FUNDS SHOULD CONSIDER CAREFULLY THE INFORMATION SET FORTH HERIN 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,

When a 30-year bull market for bonds likely finds itself in its twilight hours before its next bear market, it is not surprising that some spikes in volatility arise across the fixed income and equity markets. Similar to Paul Revere, many economists and institutional managers have been alerting and alarming that interest rates will rise from their historical lows and this will be to the detriment of the most interest rate sensitive bonds. The reason that the markets have responded as if in surprise is likely because these warnings that rates are rising have been prevalent for years, as global uncertainty resulted in higher demand for U.S. Treasury bonds – placing downward pressure on interest rates.

This prolonged compression in interest rates has contributed to the economic growth in the United States, which in turn increased the pressure on the Federal Reserve to raise the Fed Funds rate. As the rhetoric provided by the Federal Reserve was followed by corresponding actions, the Fed Funds rate was ratcheted up four times over the fiscal year, leading intermediate-term and long-term Treasuries into negative return territory for the 12-month period. Although equity markets broadly finished with positive returns at the end of the first six months of the fiscal year, foreign markets slid deeply negative in the latter half of the fiscal year, leaving only a few bastions of positive-performing asset classes. One of those strongholds was the United States, which at first may appear counterintuitive given that the vast majority of negative headlines during the latest six-month period surrounded the sustainability of the U.S.’s more recent increases in GDP growth rates. After peeling back the curtain to unveil what drove the positive performance, it clarified that the increase was primarily attributable to just a few sizeable sectors, notably technology and health care.

When the peril of the United States’ growth rate was not front-and-center, China’s relationship with the U.S. was generally the broadcast du jour. As fears of a trade war with China were exacerbated during the late summer months, it reached a crescendo at the same time as some mega-cap earnings reports missed expectations while the Federal Reserve reiterated its determination to continue its rate increases. These events coalesced into a broad sell-off to complete the fiscal year. Very few asset classes were spared in the last month’s carnage. Traditional bonds, U.S. equities, and foreign equities were all caught in the turmoil. Some of the Dunham Funds mitigated most of those losses, particularly the funds that implement strategies meant to behave differently from traditional investments. As we are vigilant to provide investment solutions that may benefit in our evolving marketplace, the Dunham Appreciation & Income Fund’s principal investment strategy was changed to a long / short credit strategy at the beginning of July. This strategy prevailed during October’s sell-off, finishing the month nearly flat amidst the sea of sizeable losses.

While we continue to navigate through this turbulence, we are optimistic that the Dunham Funds are positioned to capitalize on the opportunities that are generally uncovered in market environments like the one we are currently in. Sifting through the noise for the pertinent facts is crucial and we believe this diligence will reward our investors.

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

October 31, 2018

1

Dunham Floating Rate Bond Fund (Unaudited)

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

The bank loan market reached a milestone this fiscal year by totaling over $1 trillion in market size and constituting over 1,000 distinct borrowers. The bank loan market has doubled since 2010 and is now similar in size to the $1.1 trillion high-yield market. Secondary market trading activity and liquidity have steadily improved, driven by the increased number of market participants seeking yield, deeper and broader secondary markets, and technological advancements. The loan market fared well through the relatively larger bouts of volatility over the fiscal year experienced in February and October.

Over the fiscal year ended October 31, 2018, U.S. stocks, as measured by the S&P 500, increased 7.3 percent. Over the fiscal year, interest rates on the 10-year U.S. Treasury fluctuated within a 76 basis point range, hitting a low of 2.32 percent a few times in late November, then marching higher to 3.23 percent in late October, before settling at 3.14 percent to end the fiscal year. Over the same time period, the Federal Reserve raised the Fed Funds Rate four times over the fiscal year, to 2.25 percent. Bond prices generally fall when interest rates rise. U.S. investment-grade bonds, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, fell 2.1 percent over the fiscal year ended October 31, 2018. The movement in rates aided the performance of bank loans, as measured by the S&P/ LSTA Leveraged Loan Index, which gained 4.5 percent over the three-month period. The London Interbank Offered Rate (“LIBOR”) continued its upward trend during the fiscal period. Three-month LIBOR began the fiscal year at 1.38 percent, its lowest point of the period, before beginning a steady climb to its high of 2.56 percent at the end of the fiscal period.

The Sub-Adviser looks for potential total return and income by investing in higher quality, non-investment grade bank loans. The Sub-Adviser uses extensive credit and company analysis and monitoring. The Sub-Adviser looks for securities with strong income potential while maintaining an emphasis on managing risk. The Sub-Adviser remains optimistic about the asset class’ potential as interest rates rise and investors continue to focus on income producing assets.

The yields on bank loans, as measured by the S&P / LSTA Leveraged Loan 100 Index, trended upward over the fiscal year, but trailed the pace of rise in Treasury yields. Bank loans, in general, as measured by the S&P / LSTA Leveraged Loan 100 Index, ended the most recent period with a yield-to-maturity of 5.5 percent. The changes in yield increased the spread to 1.4 percent when compared to their high-yield bond counterparts, as measured by the BofA Merrill Lynch High-Yield Bond Cash Pay Index, which ended the period with a 6.9 percent yield to maturity.

A strong contributor for the most recent fiscal quarter as well as the fiscal year was Neiman Marcus Group Ltd LLC (BL1250440) (holding weight*: 0.59 percent), a luxury retailer conducting integrated store and online operations. Neiman Marcus’ bank loan had a price increase from $79.81 at the beginning of the fiscal year to $91.38 at the end of the period, for a price return of 14.5 percent. This holding benefited from strong quarterly earnings that reflected a continued stabilization in the retail business. Another top performer was Seadrill Operating LP (BL1232042) (holding weight*: 0.55 percent), a company that owns and operates drilling rigs. The company came out of a bankruptcy restructuring and the Fund benefited from price appreciation of the bank loan. Seadrill’s bank loan had a price increase from $75.81 at the beginning of the fiscal year to $93.77 at the end of the period, for a price return of 23.7 percent. A position that contributed to performance over the most recent fiscal quarter ended October 31, 2018 but detracted from performance over the full fiscal year was CPI Card Group (BL1785619) (holding weight*: 0.52 percent), a company that engages in design, production, data personalization, packaging, and fulfillment of financial payment cards. The company has been troubled with a longer renewable cycle of credit cards at four years instead of three years. In addition, the company has faced challenges of larger banks and credit unions competing over market share. Despite these concerns, the loan traded higher in the final fiscal quarter following the release of strong earnings. Additionally, card volumes in the quarter improved both sequentially and year over year.

On the opposite end of the return spectrum, Fort Dearborn Holding Co (BL2249904) (holding weight*:0.20 percent) detracted from Fund performance over the most recent fiscal quarter and year. Fort Dearborn has managed to keep the top line relatively stable amid operational issues however, leverage continued to creep up. Increased costs, lower overall output, a fire at one of their facilities, and peak working capital causing them to draw on the revolver, all contributed to the negative performance. The Sub-Adviser believes that the credit is currently over-levered and lenders have started to lose patience with management. Also detracting from Fund performance over the fiscal quarter and year was Univision Communications, Inc. (BL2380501) (holding weight*: 1.46 percent), an American media company primarily serving Hispanic and Latino Americans. The bank loan had a price decrease from $99.63 at the beginning of the period to $97.06 at the end of the period, for a price loss of 2.7 percent. Klöckner Pentaplast Group (BL2450726) (holding weight*: 0.44 percent), a company that is among the world’s largest suppliers of films for pharmaceutical, medical devices, food, electronics, and general packaging, also had a difficult fiscal quarter and year. The bank loan had a price decrease from $100.98 at the beginning of the period to $97.06 at the end of the period, for a price loss of 4.0 percent.

The Sub-Adviser continues to find the loan market a compelling investment, especially in light of the impact that this year’s interest rate volatility has had on fixed-rate asset classes. The Sub-Adviser expects the coupon “carry” to continue for the remainder of the year, all else equal, and prove to be attractive on a risk-adjusted relative basis to fixed income alternatives. The Sub-Adviser also believes the constructive backdrop for credit spread assets is being met with continued spread tightening across the credit quality curve and transactions are becoming increasingly more aggressive on many levels. The Sub-Adviser feels that the fundamental backdrop for loans seems to be in good shape with low default rates, strong technicals, and strong investor demand. The Sub-Adviser is beginning to reassess risk positions from a credit quality and industry perspective with an eye towards slightly decreasing the overall risk in the Fund after having added risk since the summer of 2016 at broadly better valuations. The Sub-Adviser feels that the loan market is exhibiting late-cycle behavior, with the rise of single B-rated issuance, loosening loan terms and conditions, and a number of credit metrics exceeding pre-crisis levels. However, demand from retail and institutional investors remained at an above-average pace as rising rates and corresponding higher current yields relative to most other fixed income options has increased broad investor interest. With all of these factors, the Sub-Adviser does not currently view this current credit cycle as coming to end in the short-term, and the Sub-Adviser is contemplating how it might upgrade the credit quality of the Fund’s holdings, especially at current valuations.

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

Growth of $100,000 Investment

Total Returns as of October 31, 2018
		Annualized
	One	Since Inception
	Year	(11/1/13)
Class N	3.02%	2.71%
Class C	2.26%	1.94%
Class A with load of 4.50%	(1.87)%	1.51%
Class A without load	2.77%	2.44%
S&P/LSTA Leveraged Loan 100 Index	4.54%	3.59%
Morningstar Bank Loan Category	3.42%	3.12%

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 1.05% for Class N, 1.80% for Class C and 1.30% 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, 2018

	Variable	Principal		Interest	Maturity
Security	Rate	Amount		Rate %	Date	Value
BANK LOANS - 91.6%
BASIC MATERIALS - 3.1%
Alpha 3 BV, Initial Term B-1 Loan +	LIBOR + 3.000%	$	219,880	5.398	2/1/2024	$	220,258
Covia Holdings Corp., Initial Term Loan +	LIBOR + 3.750%		568,575	6.270	5/31/2025		479,203
Graftech International Ltd., Initial Term Loan +	LIBOR + 3.500%		799,875	6.058	2/12/2025		801,875
HB Fuller Co., Commitment Loan +	LIBOR + 2.000%		725,320	4.487	10/20/2024		723,655
Ineos US Finance LLC, New 2024 Dollar Term Loan +	LIBOR + 2.000%		1,905,600	4.558	3/31/2024		1,905,305
Kraton Polymers LLC, Dollar Replacement Term Loan (2018) +	LIBOR + 2.500%		281,710	5.058	3/8/2025		281,621
Macdermind, Inc., Tranche B-7 Term Loan +	LIBOR + 2.500%		418,073	5.058	6/8/2020		418,932
New Arclin Us Holding Corp., Replacement Term Loan (First Lien) +	LIBOR + 3.500%		267,438	5.898	2/14/2024		267,103
Omnova Solutions, Inc., Term B-2 Loan +	LIBOR + 3.250%		501,249	5.808	8/24/2023		502,502
Venator Finance Sarl, Initial Term Loan +	LIBOR + 3.000%		509,850	5.558	8/8/2024		509,213
							6,109,667
COMMUNICATIONS - 15.5%
Advantage Sales & Marketing LLC, Initial Term Loan (First Lien) +	LIBOR + 3.250%		390,319	5.808	7/24/2021		356,654
Advantage Sales & Marketing LLC, Term B-2 Loan (First Lien) +	LIBOR + 3.250%		316,174	5.808	7/24/2021		288,246
Altice France SA, USD TLB-13 Term Loan +	LIBOR + 4.000%		235,000	6.449	8/14/2026		230,790
Altice US Financing Corp, March 2017 Refinancing Term Loan +	LIBOR + 2.250%		330,625	4.808	7/28/2025		330,523
Centurylink, Inc., Initial Term B Loan +	LIBOR + 2.750%		1,366,058	5.308	2/1/2025		1,353,251
Charter Communications Operating LLC, Term B Loan +	LIBOR + 2.000%		2,267,863	4.558	4/30/2025		2,270,561
Csc Holdings, LLC, March 2017 Refinancing Term Loan +	LIBOR + 2.250%		1,765,260	4.699	7/16/2025		1,763,689
Csc Holdings, LLC, October 2018 Incremental Term Loan +	LIBOR + 2.250%		380,000	4.670	1/16/2026		379,823
Csc Holdings, LLC, January 2018 Incremental Term Loan +	LIBOR + 2.500%		129,350	4.949	1/24/2026		129,451
Digicel International Finance Ltd., Initial Term B Loan (First Lien) +	LIBOR + 3.250%		212,850	5.571	5/28/2024		204,602
Frontier Communications Corporation, Term B-1 Loan +	LIBOR + 3.750%		1,146,066	6.308	6/16/2024		1,112,830
Global Tel*link Corp., Term Loan (First Lien) +	LIBOR + 4.000%		596,106	6.398	5/24/2020		597,596
Go Daddy Operating Co. LLC, Tranche B-1 Term Loan +	LIBOR + 2.250%		380,516	4.808	2/16/2024		381,374
Hoya Midco, LLC., Initial Term Loan (First Lien) +	LIBOR + 3.500%		596,091	6.058	6/30/2024		594,350
Iheart Communications, Inc., Tranche D Term Loan +	LIBOR + 6.750%		1,510,000	9.148	1/30/2019		1,096,011
Level 3 Financing, Inc., Tranche B 2024 Term Loan +	LIBOR + 2.250%		1,825,000	4.737	2/22/2024		1,828,568
Mcc Iowa LLC, Tranche M Term Loan +	LIBOR + 2.000%		787,163	4.520	1/16/2025		787,655
Mcgraw-Hill Global Education Holdings LLC, Term B Loan (First Lien) +	LIBOR + 4.000%		974,597	6.558	5/4/2022		937,445
Mediacom LLC, Tranche N Term Loan +	LIBOR + 1.750%		650,020	4.270	2/16/2024		649,617
Meredith Corporation, Tranche B-1 Term Loan +	LIBOR + 3.000%		797,750	5.308	2/1/2025		797,626
Numericable U.S LLC, USD TLB-11 Term Loan +	LIBOR + 2.750%		640,250	5.308	8/1/2025		619,392
Numericable U.S LLC, USD TLB-12 Term Loan +	LIBOR + 3.688%		324,859	6.136	2/1/2026		317,889
Radiate Holdco LLC, Closing Date Term Loan +	LIBOR + 3.000%		858,964	5.558	1/31/2024		853,596
Red Ventures LLC, Term Loan (First Lien) +	LIBOR + 3.750%		441,450	6.558	11/8/2024		444,209
Red Ventures LLC, Term B-1 Loan (First Lien) +	LIBOR + 3.000%		380,000	5.449	11/8/2024		382,375
Rodan & Fields, LLC, Closing Date Term Loan +	LIBOR + 4.000%		643,388	6.449	6/16/2025		647,811
Sba Senior Finance II LLC, Initial Term Loan +	LIBOR + 2.000%		1,156,636	4.558	4/12/2025		1,155,653
Securus Technologies Holdings, Inc., Initial Term Loan (First Lien) +	LIBOR + 4.500%		373,205	7.058	10/31/2024		374,761
Securus Technologies Holdings, Inc., Delayed Term Loan +	LIBOR + 4.500%		168,000	6.812	10/31/2024		168,420
Securus Technologies Holdings, Inc., Initial Loan (Second Lien) +	LIBOR + 8.250%		255,000	10.809	10/31/2025		255,849
Sinclair Television Group, Inc., Tranche B Term Loan +	LIBOR + 2.250%		362,911	4.808	1/4/2024		364,158
Sorenson Communications, Inc., Initial Term Loan (First Lien) +	LIBOR + 5.750%		385,880	8.148	4/30/2020		387,568
Sprint Communications, Inc., Initial Term Loan +	LIBOR + 2.500%		1,048,566	5.058	2/2/2024		1,049,384
Telenet Financing USD LLC., Term Loan AN Facility +	LIBOR + 2.250%		680,000	4.904	8/16/2026		678,647
Tribune Media Co., Term B Loan +	LIBOR + 3.000%		22,405	5.558	12/28/2020		22,493
Tribune Media Co., Term C Loan +	LIBOR + 3.000%		279,252	5.558	1/26/2024		280,344
Univision Communications, Inc., 2017 Replacement Repriced First-Lien Term Loan +	LIBOR + 2.750%		2,917,851	5.308	3/16/2024		2,807,061
Upc Financing Partnership, Facility AR +	LIBOR + 2.500%		624,684	5.154	1/16/2026		623,159
Virgin Media Bristol LLC, K Facility +	LIBOR + 2.500%		690,000	4.949	1/16/2026		690,214
West Corporation, Initial Term B Loan +	LIBOR + 4.000%		447,409	6.558	10/10/2024		445,888
West Corporation, Incremental Term B-1 Loan +	LIBOR + 3.500%		249,375	6.058	10/10/2024		246,934
Ziggo Secured Finance Partnership, Term Loan E Facility +	LIBOR + 2.500%		890,000	4.949	4/16/2025		873,918
							29,780,385

See accompanying notes to financial statements.

3

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest	Maturity
Security	Rate	Amount		Rate %	Date	Value
BANK LOANS - 91.6% (Continued)
CONSUMER, CYCLICAL - 19.0%
84 Lumber Co., Term B-1 Loan +	LIBOR + 5.250%	$	440,625	7.759	10/24/2023	$	444,298
Accuride Corporation, 2017 Refinancing Term Loan +	LIBOR + 5.250%		453,168	7.648	11/16/2023		454,584
Affinity Gaming LLC, Initial Term Loan +	LIBOR + 3.250%		360,246	5.808	6/30/2023		359,345
American Airlines, Inc., 2017 Class B Term Loan +	LIBOR + 2.000%		494,555	4.449	12/14/2023		491,978
American Airlines, Inc., 2017 Class B Term Loans +	LIBOR + 2.000%		87,220	4.527	4/28/2023		86,751
American Airlines, Inc., 2018 Replacement Term Loan +	LIBOR + 1.750%		426,723	4.277	6/28/2025		418,521
American Axle & Manufacturing, Inc., Tranche B Term Loan +	LIBOR + 2.250%		277,875	4.759	4/6/2024		277,051
American Builders & Contractors Supply Co., Inc., Term B-2 Loan +	LIBOR + 2.000%		580,471	4.558	11/1/2023		575,755
American Greetings Corporation, Initial Term Loan +	LIBOR + 4.500%		344,138	7.020	4/6/2024		345,213
Aramark Intermediate HoldCo Corp., U.S. Term B-2 Loan +	LIBOR + 1.750%		312,312	4.308	3/28/2024		312,573
Aramark Intermediate HoldCo Corp., U.S. Term B-3 Loan +	LIBOR + 1.750%		1,357,024	4.308	3/12/2025		1,358,937
Aristocrat International Pty, Ltd., Term B-3 Loan +	LIBOR + 1.750%		1,553,214	4.237	10/20/2024		1,549,417
Bass Pro Group LLC, Initial Term Loan +	LIBOR + 5.000%		763,000	7.558	9/24/2024		764,022
Beacon Roofing Supply, Inc., Initial Term Loan +	LIBOR + 2.250%		736,300	4.675	1/2/2025		730,686
Boyd Gaming Corporation, Refinancing Term B Loan +	LIBOR + 2.250%		799,142	4.759	9/16/2023		801,144
Caesars Resort Collection LLC, Term B Loan +	LIBOR + 2.750%		1,960,188	5.308	12/24/2024		1,963,049
Carlisle Companies Incorporated, Delayed Draw Term Loan (First Lien) +	LIBOR + 3.000%		103,067	5.248	3/20/2025		102,037
Carlisle Companies Incorporated, Initial Term Loan (First Lien) +	LIBOR + 3.000%		454,648	5.508	3/20/2025		450,101
CBAC Borrower, LLC, Term B Loan +	LIBOR + 4.000%		232,650	6.558	7/8/2024		233,871
CDS US Intermediate Holdings, Inc., Term B Loan (First Lien) +	LIBOR + 3.750%		625,503	6.148	7/8/2022		619,248
CEOC LLC., Term B Loan +	LIBOR + 2.000%		1,404,388	4.558	10/8/2024		1,399,121
CityCenter Holdings LLC., Term B Loan +	LIBOR + 2.250%		1,179,789	4.808	4/18/2024		1,178,868
Crown Finance US, Inc., Initial Dollar Tranche Term Loan +	LIBOR + 2.500%		601,975	5.058	2/28/2025		600,250
CSC SW Holdco, Inc., Term B-1 Loan (First Lien) +	LIBOR + 3.250%		977,382	5.695	11/14/2022		979,518
Deck Chassis Acquisition, Inc., Initial Term Loan (Second Lien) +	LIBOR + 6.000%		110,000	8.559	6/16/2023		111,238
Dexko Global, Inc., Replacement U.S. Dollar Term B Loan (First Lien) +	LIBOR + 3.500%		516,107	6.058	7/24/2024		518,287
Eldorado Resorts, Inc., Term Loan +	LIBOR + 2.250%		789,246	4.666	4/16/2024		790,975
Formula One Management, Ltd., Facility B3 (USD) +	LIBOR + 2.500%		615,202	5.300	1/31/2024		609,563
Gateway Casinos & Entertainment Ltd., Initial Term Loan +	LIBOR + 3.000%		503,738	5.398	11/30/2023		505,783
Global Appliance, Inc., Tranche B Term Loan +	LIBOR + 4.000%		600,950	6.558	9/28/2024		597,570
Golden Nugget, Inc., Initial B Term Loan +	LIBOR + 2.750%		468,172	5.261	10/4/2023		469,307
Gvc Holdings PLC, Facility B2 (USD) +	LIBOR + 2.500%		572,125	5.058	3/28/2024		574,628
Hd Supply, Inc., Term B-5 Loan +	LIBOR + 1.750%		849,494	4.237	10/16/2023		850,293
Hilton Worldwide Finance LLC, Series B-2 Term Loan +	LIBOR + 1.750%		1,324,558	4.259	10/24/2023		1,327,459
Isagenix International LLC, Senior Lien Term Loan +	LIBOR + 5.750%		582,625	8.148	6/14/2025		582,989
Leslie’s Poolmark, Inc., Tranche B-2 Term Loan +	LIBOR + 3.500%		308,011	6.058	8/16/2023		307,682
Libbey Glass, Inc., Initial Loan +	LIBOR + 3.000%		558,464	5.420	4/8/2021		557,766
Michaels Stores, Inc., 2018 New Replacement Term B Loan +	LIBOR + 2.500%		517,706	5.016	1/30/2023		515,192
Navistar Financial Corp., New TLB Loan +	LIBOR + 3.750%		710,000	6.277	7/30/2025		713,550
Navistar, Inc., Tranche B Term Loan +	LIBOR + 3.500%		932,950	5.925	11/6/2024		936,075
Neiman Marcus Group Ltd. LLC, Other Term Loan +	LIBOR + 3.250%		1,249,334	5.670	10/24/2020		1,140,879
Patriot Container Corp., Closing Date Term Loan (First Lien) +	LIBOR + 3.500%		636,800	6.008	3/20/2025		640,780
Petsmart, Inc., Tranche B-2 Loan +	LIBOR + 3.000%		724,332	5.408	3/12/2022		615,862
Playa Resorts Holding BV, Initial Term Loan +	LIBOR + 2.750%		1,044,355	5.308	4/28/2024		1,031,301
Scientific Games International, Inc., Initial Term B-5 Loan +	LIBOR + 2.750%		803,972	5.179	8/14/2024		797,296
Serta Simmons Bedding LLC, Initial Term Loan (First Lien) +	LIBOR + 3.500%		300,645	5.913	11/8/2023		271,923
Siteone Landscape Supply Holding LLC, Tranche E Term Loan +	LIBOR + 2.750%		695,999	5.199	10/28/2024		699,479
SRAM LLC, New Term Loan (2018) (First Lien) +	LIBOR + 2.750%		568,066	5.259	3/16/2024		570,562
Stars Group Holdings BV, USD Term Loan +	LIBOR + 3.500%		214,463	5.898	7/10/2025		215,654
Station Casinos LLC, Term B Facility Loan +	LIBOR + 2.500%		873,402	5.058	6/8/2023		873,987
Tenneco, Inc., Tranche B Term Loan +	LIBOR + 2.750%		795,000	5.308	9/30/2025		794,006
Ti Group Automotive Systems LLC., Initial US Term Loan +	LIBOR + 2.500%		380,738	5.058	6/30/2022		379,944
Univar Usa, Inc., Term B-3 Loan +	LIBOR + 2.250%		873,217	4.808	6/30/2024		874,147
Wyndham Hotels & Resorts, Inc., Term Loan B +	LIBOR + 1.750%		1,135,000	4.308	5/30/2025		1,135,948
							36,506,463

See accompanying notes to financial statements.

4

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest	Maturity
Security	Rate	Amount		Rate %	Date	Value
BANK LOANS - 91.6% (Continued)
CONSUMER, NON-CYCLICAL - 20.4%
21st Century Oncology Holdings, Inc., Tranche B Term Loan +	LIBOR + 6.125%	$	145,512	8.570	1/16/2023	$	136,100
Accelerated Health Systems, LLC, Initial Term Loan +	LIBOR + 3.500%		465,000	6.020	11/1/2025		467,325
Acuity Specialty Products, Inc., Initial Term Loan (First Lien) +	LIBOR + 4.000%		277,200	6.398	8/12/2024		261,781
AHP Health Partners, Inc., Term Loan +	LIBOR + 4.500%		583,538	7.058	6/30/2025		587,094
Albertson’s LLC, 2017-1 Term B-4 Loan +	LIBOR + 2.750%		1,147,885	5.308	8/24/2021		1,147,626
Albertson’s LLC, 2017-1 Term B-5 Loan +	LIBOR + 3.000%		247,968	5.396	12/20/2022		247,727
Albertson’s LLC, Term Loan B7 +	LIBOR + 3.000%		374,195	5.527	10/28/2025		371,780
AlixPartners, LLP, 2017 Refinancing Term Loan +	LIBOR + 2.750%		950,070	5.308	4/4/2024		952,150
Allied Universal Holdco LLC, Incremental Term Loan (First Lien) +	LIBOR + 4.250%		450,000	6.770	7/28/2022		450,142
Amneal Pharmaceuticals LLC, Initial Term Loan +	LIBOR + 3.500%		608,334	6.058	5/4/2025		612,973
Auris LuxCo, Term B (First Lien) +	LIBOR + 3.750%		95,000	6.258	7/24/2025		95,812
Avantor, Inc., Initial Dollar Term Loan +	LIBOR + 4.000%		660,013	6.558	11/20/2024		665,633
Bausch Health Companies, Inc., Initial Term Loan +	LIBOR + 3.000%		1,226,410	5.410	6/2/2025		1,228,569
CCS-CMGC Holdings, Inc., Initial Term Loan (First Lien) +	LIBOR + 5.500%		400,000	8.059	9/30/2025		398,500
Change Healthcare Holdings, Inc., Closing Date Term Loan +	LIBOR + 2.750%		970,125	5.308	2/29/2024		970,188
CHG Healthcare Services, Inc., New Term Loan (2017) (First Lien) +	LIBOR + 3.000%		367,267	5.558	6/8/2023		368,940
CHG PPC Parent LLC, Initial Term Loan (First Lien) +	LIBOR + 2.750%		588,525	5.308	4/1/2025		587,789
Chobani LLC, New Term Loan (First Lien) +	LIBOR + 3.500%		652,242	6.058	10/10/2023		638,588
Community Health Systems, Inc., Incremental 2021 Term H Loan +	LIBOR + 3.250%		733,185	5.571	1/28/2021		719,272
Concordia International Corp., Initial Dollar Term Loan +	LIBOR + 5.550%		91,000	7.920	9/6/2024		89,408
CPI Acquisition, Inc., Term Loan (First Lien) +	LIBOR + 4.500%		1,518,336	6.920	8/16/2022		1,004,812
Cryolife, Inc., Initial Term Loan +	LIBOR + 3.250%		238,200	5.648	12/2/2024		239,988
Diamond Bv, Initial USD Term Loan +	LIBOR + 3.000%		585,575	5.558	9/6/2024		578,744
Dole Food Company, Inc., Tranche B Term Loan +	LIBOR + 2.750%		523,125	5.262	4/6/2024		522,348
Endo Luxembourg Finance Company I Sarl, Initial Term Loan +	LIBOR + 4.250%		498,688	6.808	4/28/2024		501,647
Envision Healthcare Corporation, Initial Term Loan +	LIBOR + 3.750%		1,994,578	6.308	10/10/2025		1,956,711
Explorer Holdings, Inc., Initial Term Loan +	LIBOR + 3.750%		394,950	6.148	5/2/2023		396,186
Financial & Risk US Holdings, Inc., Initial Dollar Term Loan +	LIBOR + 3.750%		940,000	6.308	9/30/2025		931,775
Fort Dearborn Holding Company, Inc., Initial Term Loan (First Lien) +	LIBOR + 4.000%		394,610	6.410	10/20/2023		375,866
Greatbatch Ltd., New Term B Loan (2017) +	LIBOR + 3.000%		64,373	5.425	10/28/2022		64,735
Greenrock Finance, Inc., Initial USD Term B Loan (First Lien) +	LIBOR + 3.500%		253,088	6.058	6/28/2024		254,353
GW Honos Security Corporation, Term B Loan +	LIBOR + 3.500%		227,777	5.823	5/24/2024		228,970
Heartland Dental, LLC, Delayed Term Loan +	LIBOR + 3.750%		541,632	6.308	4/30/2025		540,700
Heartland Dental, LLC, Initial Term Loan +	LIBOR + 3.750%		81,448	6.113	4/30/2025		81,308
Herbalife Nutrition Ltd., Term Loan B +	LIBOR + 3.250%		245,000	5.648	8/18/2025		246,430
H- Food Holdings, LLC, Initial Term Loan +	LIBOR + 3.000%		473,813	5.558	5/24/2025		466,409
Hostess Brands, LLC, November 2017 Refinancing Term B Loan +	LIBOR +2.250%		925,426	4.808	8/4/2022		922,390
Immucor, Inc., Term B-3 Loan +	LIBOR + 5.000%		39,500	7.398	6/16/2021		40,204
Jaguar Holding Co., 2018 Term Loan +	LIBOR + 2.500%		939,599	5.058	8/18/2022		937,954
JBS USA Lux S.A., Initial Term Loan +	LIBOR + 2.500%		943,079	4.847	10/30/2022		944,494
Kronos Acquisition Intermediate, Inc., Initial Loan +	LIBOR + 4.000%		956,837	6.558	5/16/2023		945,475
Laureate Education, Inc., Series 2024 Term Loan +	LIBOR + 3.500%		810,523	6.058	4/26/2024		813,157
MedPlast Holdings, Inc., Initial Term Loan (First Lien) +	LIBOR + 3.750%		175,000	6.157	7/2/2025		176,258
Milk Specialties Company, New Term Loan +	LIBOR + 4.000%		336,140	6.398	8/16/2023		336,350
NAB Holdings, LLC, 2018 Refinancing Term Loan +	LIBOR + 3.000%		579,165	5.398	6/30/2024		573,133
NVA Holdings, Inc., Term B-3 Loan (First Lien) +	LIBOR + 2.750%		776,100	5.308	2/2/2025		770,279
One Call Corporation, Extended Term Loan (First Lien) +	LIBOR + 5.250%		614,970	7.699	11/28/2022		580,489
Ortho-Clinical Diagnostics, Inc., Second Amendment New Term Loan +	LIBOR + 3.250%		641,115	5.770	6/30/2025		641,996
Parexel International Corporation, Initial Term Loan +	LIBOR + 2.750%		618,750	5.308	9/28/2024		611,115
Parfums Holding Co., Inc., Initial Term Loan (First Lien) +	LIBOR + 4.250%		464,186	6.616	6/30/2024		464,766
Pearl Intermediate Parent LLC, Initial Term Loan (First Lien) +	LIBOR + 2.750%		465,163	5.237	2/14/2025		459,348
Pearl Intermediate Parent LLC, Delayed Draw Term Loan (First Lien) +	LIBOR + 2.750%		137,405	4.622	2/14/2025		135,687
Pharmerica Corporation, Initial Term Loan (First Lien) +	LIBOR + 3.500%		303,475	5.949	12/6/2024		304,803
Pi UK Holdco II Ltd., Facility B1 +	LIBOR + 3.500%		1,467,625	6.058	1/4/2025		1,465,336
Prime Security Services Borrower LLC, 2016-2 Refinancing Term B-1 Loan (First Lien) +	LIBOR + 2.750%		465,309	5.308	5/2/2022		466,156
Prospect Medical Holdings, Inc., Term B-1 Loan +	LIBOR + 5.500%		253,725	7.910	2/22/2024		255,945
Quorum Health Corp., Term Loan +	LIBOR + 6.750%		128,477	9.309	4/28/2022		130,103

See accompanying notes to financial statements.

5

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest	Maturity
Security	Rate	Amount		Rate %	Date	Value
BANK LOANS - 91.6% (Continued)
CONSUMER, NON-CYCLICAL - 20.3% (Continued)
Revlon Consumer Products Corporation, Initial Term B Loan +	LIBOR + 3.500%	$	653,379	5.821	9/8/2023	$	480,779
Select Medical Corp., Tranche B Term Loan +	LIBOR + 2.500%		295,500	5.020	3/6/2025		296,363
Servicemaster Company, LLC, Tranche C Term Loan +	LIBOR + 2.500%		341,894	5.058	11/8/2023		343,860
Sigma Holdco B.V, Facility B2 +	LIBOR + 3.000%		555,000	5.609	7/2/2025		554,306
St. George’s University Scholastic Services LLC, Delayed Draw Term Loan +	LIBOR + 3.500%		215,932	5.842	6/22/2025		218,631
St. George’s University Scholastic Services LLC, Term Loan +	LIBOR + 3.500%		694,068	6.058	7/16/2025		702,743
Sterigenics- Nordion Holdings, LLC, Incremental Term Loan +	LIBOR + 3.000%		1,016,663	5.558	5/16/2022		1,019,097
Surgery Center Holdings, Inc., Initial Term Loan +	LIBOR + 3.250%		757,350	5.571	9/2/2024		756,971
Syneos Health, Inc., Replacement Term B Loan +	LIBOR + 2.000%		222,834	4.558	7/31/2024		222,587
Team Health Holdings, Inc., Initial Term Loan +	LIBOR + 2.750%		293,344	5.308	2/6/2024		278,311
Transunion LLC, 2017 Replacement Term B-3 Loan +	LIBOR + 2.000%		1,144,414	4.558	4/10/2023		1,144,282
University Health Services, Inc., Incremental Tranche B Facility +	LIBOR + 1.750%		120,000	4.270	11/1/2025		120,450
University Hospital Services, Delayed Draw Term Loan +	LIBOR + 3.000%		140,000	5.469	10/18/2025		141,050
US Foods, Inc., Initial Term Loan +	LIBOR + 2.000%		458,448	4.558	6/28/2023		458,305
U.S. Renal Care Inc., Initial Term Loan (First Lien) +	LIBOR + 4.250%		619,799	6.648	12/30/2022		602,237
Wex Inc., Term B-2 Loan +	LIBOR + 2.250%		485,788	4.808	6/30/2023		487,306
							39,191,095
ENERGY - 3.7%
California Resources Corp., Initial Loan +	LIBOR + 4.750%		405,000	7.258	1/1/2023		412,087
Contura Energy, Inc., Term Loan +	LIBOR + 5.000%		533,635	7.398	3/18/2024		533,635
Fieldwood Energy LLC, Closing Date Loan (First Lien) +	LIBOR + 5.250%		180,554	7.808	4/12/2022		182,022
Fieldwood Energy LLC, Closing Date Loan 2018 (Second Lien) +	LIBOR + 7.250%		81,748	9.809	4/12/2023		79,091
Gavilan Resources LLC, Initial Term Loan (Second Lien) +	LIBOR + 6.000%		490,000	8.487	2/29/2024		463,594
Mcdermott International, Inc., Term Loan +	LIBOR + 5.000%		711,425	7.558	5/12/2025		704,133
Medallion Midland Acquisition LLC, Initial Term Loan +	LIBOR + 3.250%		570,688	5.808	10/30/2024		568,191
Moda Ingleside Energy Center, LLC, Initial Term Loan +	LIBOR + 3.250%		95,000	5.777	9/28/2025		95,871
MRC Global Inc., 2018 Refinancing Term Loan +	LIBOR + 3.000%		397,000	5.558	9/20/2024		397,992
Ocean Rig UDW, Inc., Loan +	LIBOR+ 8.000%		28,380	8.000	9/20/2024		29,869
Paragon Offshore Finance Co., Term Loan +	LIBOR + 2.750%		1,153	5.250	7/16/2021		—
Seadrill Operating LP, Initial Term Loan +	LIBOR + 6.000%		1,142,417	8.398	2/20/2021		1,063,082
Terraform Power Operating LLC, Specified Refinancing Term Loan +	LIBOR + 2.000%		605,425	4.558	11/8/2022		607,129
Traverse Midstream Partners LLC, Advance +	LIBOR + 4.000%		655,000	6.398	9/28/2024		660,220
Ultra Resources, Inc., Loan +	LIBOR + 3.000%		665,000	5.487	4/12/2024		625,336
Weatherford International Ltd., Loan +	LIBOR + 1.425%		701,129	3.952	7/12/2020		685,354
							7,107,606
FINANCIAL - 5.7%
Asurion LLC, Amendment No. 14 Replacement B-4 Term Loan +	LIBOR + 3.000%		624,695	5.558	8/4/2022		626,535
Asurion LLC, Replacement B-6 Term Loan +	LIBOR + 3.000%		325,614	5.558	11/4/2023		326,361
Asurion LLC, New B-7 Term Loan +	LIBOR + 3.000%		389,025	5.558	11/4/2024		390,033
Asurion LLC, Second Lien Replacement B-2 Term Loan +	LIBOR + 6.500%		787,456	9.059	8/4/2025		809,603
BlackHawk Network Holdings, Inc., Term Loan (First Lien) +	LIBOR + 3.000%		573,563	5.398	6/16/2025		575,447
Capital Automotive LP, Initial Tranche B-2 Term Loan (First Lien) +	LIBOR + 2.500%		627,174	5.058	3/24/2024		628,115
Capital Automotive LP, Initial Tranche B Term Loan (Second Lien) +	LIBOR + 6.000%		367,573	8.559	3/24/2025		374,464
Communications Sales & Leasing, Inc., Shortfall Term Loan +	LIBOR + 3.000%		578,011	5.558	10/24/2022		548,099
Ditech Holding Corporation, Tranche B Term Loan +	LIBOR + 6.000%		1,133,876	8.559	6/30/2022		1,057,339
Finco I LLC, 2018 Replacement Loan +	LIBOR + 2.000%		325,247	4.558	12/28/2022		325,501
Franklin Square Holdings LP, Initial Term Loan +	LIBOR + 2.500%		195,000	4.908	7/31/2025		195,975
Genworth Holdings, Inc., Initial Loan +	LIBOR + 4.500%		104,475	6.949	3/8/2023		106,826
Istar Inc., Loan +	LIBOR + 2.750%		855,246	5.193	6/28/2023		856,850
Lightstone Holdco LLC, Refinancing Term B Loan +	LIBOR + 3.750%		146,351	6.308	1/30/2024		144,600
Lightstone Holdco LLC, Refinancing Term C Loan +	LIBOR + 3.750%		7,860	6.308	1/30/2024		7,766
MGM Growth Properties Operating Partnership LP, Term B Loan +	LIBOR + 2.000%		367,575	4.558	3/20/2025		366,919
Realogy Group LLC, Extended 2025 Term Loan +	LIBOR + 2.250%		446,479	4.699	2/8/2025		445,852
Sedgwick Claims Management Services, Inc., Initial Term Loan (First Lien) +	LIBOR + 2.750%		1,283,310	5.308	2/28/2021		1,284,619
Sedgwick Claims Management Services, Inc., Initial Loan (Second Lien) +	LIBOR + 5.750%		620,000	8.254	2/28/2022		621,745
TKC Holdings, Inc., Initial Term Loan (First Lien) +	LIBOR + 3.750%		630,548	6.308	1/31/2023		631,787
UFC Holdings LLC, Term Loan (First Lien) +	LIBOR + 3.250%		595,853	5.808	8/18/2023		600,075
							10,924,511

See accompanying notes to financial statements.

6

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest	Maturity
Security	Rate	Amount		Rate %	Date	Value
BANK LOANS - 91.6% (Continued)
INDUSTRIALS - 13.5%
Accudyne Industries Borrower, Initial Term Loan +	LIBOR + 3.000%	$	375,645	5.558	8/18/2024	$	374,750
Accuride Corporation +	LIBOR + 5.250%		439,143	5.808	2/1/2025		440,516
Anchor Glass Container Corp., July 2017 Additional Term Loan (First Lien) +	LIBOR + 2.750%		430,253	5.180	12/8/2023		384,754
Anchor Glass Container Corp., Term Loan (Second Lien) +	LIBOR + 7.750%		244,000	10.200	12/8/2024		164,496
Berlin Packaging LLC, Initial Term Loan (First Lien) +	LIBOR + 3.000%		593,513	5.420	11/8/2025		593,634
Berry Global, Inc., Term S Loan +	LIBOR + 1.750%		226,743	4.175	2/8/2020		226,695
Berry Global, Inc., Term T Loan +	LIBOR + 1.750%		417,785	4.175	1/6/2021		417,446
Berry Global, Inc., Term Q Loan +	LIBOR + 2.000%		308,192	4.425	9/30/2022		308,559
Berry Global, Inc., Term R Loan +	LIBOR + 2.000%		524,030	4.425	1/20/2024		524,032
Brand Energy & Infrastructure Services, Inc., Initial Term Loan +	LIBOR + 4.250%		701,620	6.746	6/20/2024		705,668
Brookfield WEC Holdings, Inc., Initial Term Loan (First Lien) +	LIBOR + 3.750%		700,000	6.308	7/31/2025		705,299
Brookfield WEC Holdings, Inc., Initial Term Loan (Second Lien) +	LIBOR + 6.750%		280,000	9.309	8/4/2026		285,110
Bway Holding Co., Inc., Initial Term Loan +	LIBOR + 3.250%		483,875	5.675	4/4/2024		481,758
Ceva Logistics Finance BV, Facility B +	LIBOR + 3.750%		430,000	6.148	8/4/2025		431,346
Circor International, Inc., Initial Term Loan +	LIBOR + 3.500%		689,788	5.936	12/12/2024		690,360
CPG International LLC, New Term Loan +	LIBOR + 3.750%		1,274,636	6.148	5/4/2024		1,279,951
Deliver Buyer, Inc., Term Loan +	LIBOR + 5.000%		646,725	7.321	4/30/2024		649,959
Energizer Holdings, Inc., Term Loan B +	LIBOR + 2.250%		305,000	4.623	6/20/2025		305,859
Filtration Group, Inc., Initial Dollar Term Loan +	LIBOR + 3.000%		860,675	5.558	3/28/2025		865,361
Fluidra, S.A. +	LIBOR + 2.250%		548,625	4.808	7/2/2025		549,741
Gardner Denver, Inc., Tranche B-1 Dollar Term Loan +	LIBOR + 2.750%		1,105,291	5.308	7/30/2024		1,109,093
Gates Global LLC, Initial B-2 Dollar Term Loan +	LIBOR + 2.750%		626,445	5.308	3/31/2024		628,152
GFL Environmental, Inc., Effective Date Incremental Term Loan +	LIBOR + 2.750%		615,000	5.148	5/30/2025		606,544
Gopher Resource LLC, Initial Term Loan +	LIBOR + 3.250%		479,447	5.808	3/6/2025		481,544
Hillman Group, Inc., Initial Term Loan +	LIBOR + 4.000%		708,225	6.558	5/30/2025		696,893
Klockner Pentaplast Of America, Inc., Dollar Term Loan +	LIBOR + 4.250%		866,250	6.808	6/30/2022		836,581
Nn, Inc., 2017 Incremental Term Loan +	LIBOR + 3.250%		178,600	5.808	4/2/2021		178,488
Nn, Inc., Tranche B Term Loan +	LIBOR + 3.750%		214,577	6.308	10/20/2022		215,247
Paladin Brands Holding, Inc., Loan +	LIBOR + 5.500%		253,418	7.898	8/16/2022		254,368
Pro Mach Group, Inc., Initial Term Loan (First Lien) +	LIBOR + 3.000%		562,175	5.425	3/8/2025		561,261
Quikrete Holdings, Inc., Initial Loan (First Lien) +	LIBOR + 2.750%		786,538	5.308	11/16/2023		784,572
RBS Global, Inc., Refinancing Term Loan +	LIBOR + 2.000%		883,830	4.527	8/20/2024		886,318
Reynolds Group Holdings, Inc, Incremental U.S. Term Loan +	LIBOR + 2.750%		826,733	5.308	2/4/2023		828,324
Summit Materials, LLC, New Term Loan +	LIBOR + 2.000%		932,950	4.558	11/20/2024		929,890
Thermon Holding Corp., Term B Loan +	LIBOR + 3.750%		158,490	6.148	10/30/2024		159,679
Titan Acquisition, Ltd., Initial Term Loan +	LIBOR + 3.000%		1,014,900	5.558	3/28/2025		959,441
Transdigm, Inc., New Tranche F Term Loan (2018) +	LIBOR + 2.500%		1,097,620	5.058	6/8/2023		1,094,141
Transdigm, Inc., New Tranche G Term Loan +	LIBOR + 2.500%		741,643	5.058	8/22/2024		739,407
Transdigm, Inc., New Tranche E Term Loan (2018) +	LIBOR + 2.500%		635,336	5.058	5/30/2025		633,211
Tricorbraun Holdings, Inc., Closing Date Term Loan (First Lien) +	LIBOR + 3.750%		582,408	6.148	11/30/2023		585,457
Tricorbraun Holdings, Inc., Delayed Draw Term Loan (First Lien) +	LIBOR + 3.750%		58,685	6.063	11/30/2023		58,993
Trident TPI Holdings, Inc., Tranche B-1 Term Loan +	LIBOR + 3.250%		730,072	5.808	10/16/2024		727,152
Tunnel Hill Partners, LP, Cov-Lite TLB +	LIBOR + 3.500%		405,000	5.898	9/30/2025		407,025
Us Farathane LLC, Term B-4 Loan +	LIBOR + 3.500%		386,895	5.898	12/24/2021		386,412
Wrangler Buyer Corp., Initial Term Loan +	LIBOR + 2.750%		804,037	5.308	9/27/2024		805,975
							25,939,462
TECHNOLOGY - 8.9%
Applied Systems, Inc., Initial Term Loan (First Lien) +	LIBOR + 3.000%		628,650	5.398	9/20/2024		635,625
Applied Systems, Inc., Initial Term Loan (Second Lien) +	LIBOR + 7.000%		105,000	9.398	9/20/2025		107,100
Blackboard Inc., Term B-4 Loan (First Lien) +	LIBOR + 5.000%		590,258	7.469	6/30/2021		565,110
Boxer Parent Company, Inc., Initial Dollar Term Loan +	LIBOR + 4.250%		1,440,000	6.657	10/2/2025		1,446,754
Dell International LLC, Refinancing Term B Loan +	LIBOR + 2.000%		1,460,628	4.558	9/8/2023		1,460,760
Everi Payments, Inc., Term B Loan +	LIBOR + 3.000%		390,063	5.558	5/8/2024		391,892
First Data Corporation, 2022D New Dollar Term Loan +	LIBOR + 2.000%		1,210,476	4.508	7/8/2022		1,207,831
First Data Corporation, 2024A New Dollar Term Loan +	LIBOR + 2.000%		1,051,807	4.508	4/26/2024		1,047,316
Infor, Inc., Tranche B-6 Term Loan +	LIBOR + 2.750%		746,484	5.148	1/31/2022		744,711

See accompanying notes to financial statements.

7

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest	Maturity
Security	Rate	Amount		Rate %	Date	Value
BANK LOANS - 91.6% (Continued)
TECHNOLOGY - 8.9% (Continued)
Intralinks, Inc., Initial Term Loan (First Lien) +	LIBOR + 4.000%	$	496,954	6.558	11/14/2024	$	498,551
Iqvia, Inc., Term B-1 Dollar Loan +	LIBOR + 2.000%		144,019	4.398	3/8/2024		144,514
Iqvia, Inc., Incremental Term B-2 Dollar Loan +	LIBOR + 2.000%		74,250	4.398	1/16/2025		74,412
Iqvia, Inc., Term B-3 Dollar Loan +	LIBOR + 1.750%		748,125	4.148	6/12/2025		747,190
Kronos, Inc., Incremental Term Loan (First Lien) +	LIBOR + 3.000%		1,376,098	5.348	10/31/2023		1,380,075
Kronos, Inc., Initial Term Loan (Second Lien) +	LIBOR + 8.250%		120,000	10.598	10/31/2024		122,150
Neustar, Inc., TLB4 (First Lien) +	LIBOR + 3.500%		232,650	6.058	8/8/2024		233,558
Neustar, Inc., TLB3 (First Lien) +	LIBOR + 2.500%		35,937	5.058	1/8/2020		36,022
Presidio Holdings, Inc., Term B Loan +	LIBOR + 2.750%		563,075	5.150	2/2/2024		564,015
Rackspace Hosting, Inc., Term B Loan (First Lien) +	LIBOR + 3.000%		672,488	5.343	11/4/2023		654,135
Science Applications International Corporation, Trance B +	LIBOR + 1.750%		220,000	4.237	11/1/2025		220,000
SS&C Technologies Holdings, Inc., Term B-3 Loan +	LIBOR + 2.250%		1,173,026	4.808	4/16/2025		1,168,521
SS&C Technologies Holdings, Inc., Term B-4 Loan +	LIBOR + 2.250%		454,664	4.808	4/16/2025		452,917
SS&C Technologies Holdings, Inc., Term B-5 Loan +	LIBOR + 2.250%		275,000	4.808	4/16/2025		273,896
Tempo Acquisition LLC., Initial Term Loan +	LIBOR + 3.000%		553,000	5.558	4/30/2024		554,106
Vertafore, inc., Initial Term Loan (First Lien) +	LIBOR + 3.250%		1,645,000	5.808	7/2/2025		1,641,916
Western Digital Corporation, U.S. Term B-4 Loan +	LIBOR + 1.750%		746,222	4.270	4/28/2023		742,957
							17,116,034
UTILITIES - 1.9%
Aplp Holdings LP, Term Loan +	LIBOR + 3.000%		298,786	5.349	4/12/2023		299,757
Calpine Construction Finance Co. LP, Term B Loan +	LIBOR + 2.500%		718,730	5.058	1/16/2025		718,734
NRG Energy, Inc., Term Loan +	LIBOR + 1.750%		945,567	4.148	6/30/2023		943,255
Talen Energy Supply LLC, Term B-1 Loan +	LIBOR + 4.000%		196,508	6.558	7/16/2023		197,275
Talen Energy Supply LLC, Initial Term Loan +	LIBOR + 4.000%		328,635	6.558	4/16/2024		329,918
Texas Competitive Electric Holdings Co. LLC Escrow Bonds			635,000	—	10/1/2020		444
Vistra Operations Co. LLC, Initial Term Loan +	LIBOR + 2.000%		228,582	4.558	8/4/2023		228,343
Vistra Operations Co. LLC, 2018 Incremental Term Loan +	LIBOR + 2.000%		872,813	4.479	1/1/2026		871,224
							3,588,950
TOTAL BANK LOANS (Cost - $177,552,276)							176,264,173
BONDS & NOTES - 3.5%
CHEMICALS - 0.1%
Hexion, Inc.			105,000	6.625	4/15/2020		93,187
NOVA Chemicals Corp. - 144A			65,000	4.875	6/1/2024		59,962
NOVA Chemicals Corp. - 144A			40,000	5.000	5/1/2025		36,700
							189,849
COMPUTERS - 0.3%
Exela Intermediate LLC - 144A			520,000	10.000			543,244
DIVERSIFIED FINANCIAL SERVICES - 0.1%
Springleaf Finance Corp.			250,000	6.125	5/15/2022		252,500
FOOD - 0.1%
Dole Food Co., Inc. - 144A			175,000	7.250	6/15/2025		168,875
HEALTHCARE-SERVICES - 0.4%
Eagle Holding Co II LLC - 144A			175,000	7.625	5/15/2022		176,312
Surgery Center Holdings, Inc. - 144A			130,000	8.875	4/15/2021		134,225
Tenet Healthcare Corp. ^			405,000	4.625	7/15/2024		391,372
							701,909
HOME BUILDERS - 0.3%
Lennar Corp.			420,000	2.950	11/29/2020		409,500
TRI Pointe Group, Inc.			70,000	4.375	6/15/2019		70,262
TRI Pointe Group, Inc.			130,000	4.875	7/1/2021		129,025
							608,787

See accompanying notes to financial statements.

8

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2018

	Principal		Interest	Maturity
Security	Amount		Rate %	Date	Value
BONDS & NOTES - 3.5% (Continued)
LODGING - 0.1%
Hilton Domestic Operating Co., Inc. - 144A	$	295,000	5.125	5/1/2026	$	289,100
MEDIA - 0.3%
CCO Holdings LLC - 144A		180,000	4.000	3/1/2023		171,900
Comcast Corp.		108,000	2.848	10/1/2021		108,085
Dish DBS Corp. ^		175,000	5.875	7/15/2022		166,031
iHeartCommunications, Inc.		95,000	9.000	12/15/2019		68,875
						514,891
OIL & GAS - 0.5%
Alta Mesa Holdings LP		135,000	7.875	12/15/2024		121,500
Carrizo Oil & Gas, Inc.		140,000	6.250	4/15/2023		138,250
Chesapeake Energy Corp.		170,000	6.625	8/15/2020		175,950
Denbury Resources, Inc. - 144A		185,000	7.500	2/15/2024		181,762
Denbury Resources, Inc. - 144A		60,000	9.250	3/31/2022		62,775
EP Energy LLC / Everest Acquisition Finance, Inc. - 144A		160,000	8.000	11/29/2024		155,200
Range Resources Corp.		125,000	5.000	3/15/2023		121,250
						956,687
OIL & GAS SERVICES - 0.1%
Bristow Group, Inc. - 144A ^		200,000	8.750	3/1/2023		189,000
PACKAGING & CONTAINERS - 0.2%
Ardagh Packaging Finance PLC - 144A		235,000	6.000	2/15/2025		220,900
BWAY Holding Co. - 144A		265,000	5.500	4/15/2024		255,063
						475,963
PHARMACEUTICALS - 0.2%
Bausch Health Cos, Inc. - 144A		445,000	5.500	11/1/2025		437,769
PIPELINES - 0.1%
Energy Transfer Equity LP		190,000	4.250	3/15/2023		188,575
PRIVATE EQUITY - 0.2%
Icahn Enterprises LP		310,000	6.250	2/1/2022		313,739
REAL ESTATE INVESTMENT TRUSTS - 0.2%
IStar Financial, Inc.		60,000	6.000	4/1/2022		60,150
IStar Financial, Inc.		335,000	5.250	9/15/2022		324,950
						385,100
RETAIL - 0.1%
Cumberland Farms, Inc. - 144A		125,000	6.750	5/1/2025		128,750
SOFTWARE - 0.2%
First Data Corp. - 144A		190,000	5.375	8/15/2023		192,138
First Data Corp. - 144A		90,000	5.000	1/15/2024		89,213
First Data Corp. - 144A		25,000	5.750	1/15/2024		25,250
						306,601
TELECOMMUNICATIONS - 0.0%
Frontier Communications Corp.		90,000	8.500	4/15/2020		90,675
TOTAL BONDS & NOTES (Cost - $6,945,438)						6,742,014

See accompanying notes to financial statements.

9

SCHEDULE OF INVESTMENTS

Dunham Floating Rate Bond Fund (Continued)

October 31, 2018

Security	Shares					Value
RIGHTS - 0.0%
TRA Rights		10,588				$	8,555
TOTAL RIGHTS (Cost - $17,470)
	Principal		Interest		Maturity
	Amount		Rate %		Date
U.S. GOVERNMENT - 0.5%
Treasury Bill	$	1,000,000	2.310	+	3/14/2019		991,479
TOTAL U.S. GOVERNMENT (Cost - $991,595)
	Shares
SHORT-TERM INVESTMENT - 4.1%
MONEY MARKET FUND - 4.1%
Fidelity Investments Money Market Fund - Class I		7,927,289	1.580	+			7,927,289
TOTAL SHORT-TERM INVESTMENT - (Cost - $7,927,289)
COLLATERAL FOR SECURITIES LOANED - 1.5%
Mount Vernon Prime Portfolio # (Cost - $2,835,975)		2,835,975	2.390	+			2,835,975
TOTAL INVESTMENTS - 101.2% (Cost - $196,270,043)							194,769,485
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.2)%							(2,392,377	)
NET ASSETS - 100.0%						$	192,377,108

LP - Limited Partnership.

LLC - Limited Liability Company.

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, 2018 the total market value of 144A securities is $3,518,138 or 1.83% of net assets.

* Non-Income producing security.

^ All or a portion of these securities are on loan. Total loaned securities had a value of $2,757,563 at October 31, 2018. Securities loaned with a value of $2,001,870 have been sold and are pending settlement.

+ Variable rate security. Interest rate is as of October 31, 2018

# 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)
Bank Loans	90.5	%	Oil & Gas	0.5	%
Short-Term Investment	4.1	%	Healthcare-Services	0.3	%
Other **	2.1	%	Computers	0.3	%
Collateral for Securities Loaned	1.4	%	Media	0.3	%
U.S. Government	0.5	%	Total	100.0	%

* Based on total value of investments as of October 31, 2018

** 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.

10

Dunham Corporate/Government Bond Fund (Unaudited)

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

Investment-grade bonds, as measured by the Bloomberg Barclays Aggregate Bond Index, fell 2.1 percent in the fiscal year ended October 31, 2018, after increasing 0.9 percent over the previous fiscal year. Treasuries in the middle of the yield curve, as measured by the ICE BofA ML Treasuries 5-7 Years Index, fell 2.0 percent, while long-term Treasuries, as measured by the ICE BofA ML Treasuries 10+ Years Index, tumbled 6.2 percent over the same twelve months. Corporate bonds, as measured by the ICE BofA ML U.S. Corporate Bond Master Index, underperformed intermediate-term Treasury bonds, falling 2.8 percent over the fiscal year. High-yield bonds, as measured by the ICE BofA ML High-Yield Bond Cash Pay Index, also had a disappointing performance increasing just 0.8 percent.

The Fund continued to balance risk versus reward by choosing to emphasize lower duration bonds and overweighting lower credit quality securities, which benefitted the Fund for a fifth consecutive fiscal year. The average effective duration of the Fund was 5.29 years, while the benchmark index had an average duration of 5.99 years. While the lower duration exposure did not adversely affect performance during the most recent fiscal period, the overweight to lower credit quality securities versus the benchmark contributed to the Fund’s performance. Treasury yields fluctuated within a 76 basis point range over the fiscal period. The 10-year Treasury yield went from its lowest point of 2.31 percent early in the first fiscal quarter to its highest point of 3.23 late in the fiscal year, before settling at 3.14 percent. The overweight to securitized products contributed positively to Fund performance over the fiscal period. The Sub-Adviser’s overweight to the securitized products was slightly more than the previous fiscal year’s overweight, combining for over 20 percent of the Fund. The index had significantly less exposure to these products. The overweight to corporate investment-grade securities was increased slightly over the fiscal period, equaling roughly 34 percent of the Fund’s assets, and more than 8 percent greater than the index’s allocation to that sector.

Contributors over the fiscal year ended October 31, 2018, included the Safeway Inc. 7.25% 2/1/2031 (786514BA6) (holding weight*: 0.17 percent). Safeway bonds have benefited from positive underlying momentum in Albertson’s grocery business. Same store sales have been positive for three straight quarters and EBITDA growth has accelerated year-to-date. The failure of the proposed Rite Aid (RAD) (not held) Acquisition in August eliminated a significant amount of secured acquisition financing that would have further layered the unsecured Safeway bonds which lack guarantees from the other operating entities. After reporting a solid quarter in October and hinting at plans to pay down a substantial amount of debt, Albertsons announced the repayment of $1billion of secured term debt with cash on hand and a temporary revolver draw, which should be paid off as working capital releases through the holiday selling season. The debt pay down reinforced management’s commitment to delever ahead of another potential attempt at an IPO, which would be credit positive for the Safeway bonds. Another positive contributor to Fund performance was the Gateway Casinos & Entertainment Ltd. 8.25% 03/1/2024 (36760BAE9) (holding weight*: 0.10 percent). This holding reacted positively to a solid earnings report as well as a potential IPO.

Detractors over the fiscal year included two positions that came from emerging market countries. Turkey and Argentina drove a good amount of the overall emerging market sentiment over the past year. The weakening global macro backdrop (excluding the U.S.), caused most major equity markets to decline. Emerging market equities were down more. This in turn produced spread widening. In tandem, the U.S. dollar strengthened. Both tend to hurt emerging market countries as they raise the cost of servicing U.S. dollar denominated debt. The impact was most severe for emerging market countries with large global financing needs. This includes Argentina and Turkey. Turkiye Vakiflar Bankast 5.625% 05/30/2022 (90015WAF0) (holding weight**: 0.28 percent), a government owned Turkish bank traded down in tandem with Turkey. This position fell over 21 percent prior to being sold. The Argentine Republic Government International Bond 6.8975% 01/26/2027 (040114HL7) (holding weight**: 0.10 percent) also traded lower as Argentina reached a point where it had to seek IMF assistance. Over the fiscal year, the Argentine Republic Government International Bond 6.8975% 01/26/2027 declined 24.1 percent before being eliminated from the Fund in late August.

The Sub-Adviser is optimistic for the remainder of 2018 and 2019. It believes that fundamentals within corporate credit are still in good shape and are constructive on economic growth. The Sub-Adviser also 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. It believes that the key risks moving forward are U.S. and China trade relations, inflation and consumer sentiment, and valuations as fiscal stimulus abates. They closely monitor economic data as it will drive the Fed’s interest rate decision. It is also important to stay diversified and granular, keeping small positions and maintaining liquidity. The Sub-Adviser believes that the prospect of continued volatility in the bond market will present opportunities and feels that the Fund is well positioned to take advantage of those opportunities as they arise.

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

** 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, 2018

		Annualized	Annualized	Annualized Since Inception
	One Year	Five Years	Ten Years	(12/10/04)
Class N	(2.93)%	1.37%	4.25%	3.53%
Class C	(3.67)%	0.61%	3.47%	2.76%
Class A with load of 4.50%	(7.53)%	0.20%	3.50%	2.88%*
Class A without load	(3.17)%	1.12%	3.98%	3.29%*
Barclays Aggregate Bond Index	(2.05)%	1.83%	3.94%	3.68%
Morningstar Intermediate-Term Bond Category	(1.91)%	1.77%	4.52%	3.34%

* 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 1.36% for Class N, 2.11% for Class C and 1.61% 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.

11

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund

October 31, 2018

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
CORPORATE BONDS & NOTES - 63.3%
AEROSPACE / DEFENSE - 0.1%
TransDigm, Inc.		$	50,000	6.375		6/15/2026	$	49,125
AGRICULTURE - 0.2%
Bunge Ltd Finance Corp.			110,000	4.350		3/15/2024		108,082
AUTO PARTS & EQUIPMENT - 0.6%
Lear Corp.			195,000	3.800		9/15/2027		177,368
Tenneco, Inc.			115,000	5.000		7/15/2026		96,025
								273,393
AUTOMOBILE ABS - 7.1%
American Credit Acceptance Receivables Trust 2017-2 - 144A			135,000	2.860		6/12/2023		134,485
American Credit Acceptance Receivables Trust 2018-3 - 144A			165,000	3.750		10/15/2024		164,707
Avid Automobile Receivables Trust 2018-1 - 144A			167,757	2.840		8/15/2023		166,365
Avis Budget Rental Car Funding AESOP LLC - 144A			76,667	2.970		2/20/2020		76,676
California Republic Auto Receivables Trust 2014-3			2,944	1.790		3/16/2020		2,942
Capital Auto Receivables Asset Trust 2017-1 - 144A			160,000	2.700		9/20/2022		156,870
Carnow Auto Receivables Trust - 144A			64,133	2.920		9/15/2022		63,816
Centre Point Funding LLC - 144A			91,776	2.610		8/20/2020		90,737
CPS Auto Receivables Trust 2017-D - 144A			100,000	2.430		1/18/2022		98,988
Drive Auto Receivables Trust 2015-D - 144A			37,643	3.380		11/15/2021		37,679
Drive Auto Receivables Trust 2017-3			135,000	2.800		7/15/2022		134,579
Drive Auto Receivables Trust 2017-A - 144A			160,000	2.980		1/18/2022		159,786
DT Auto Owner Trust 2017-3 - 144A			160,000	3.010		5/15/2023		159,525
Exeter Automobile Receivables Trust 2017-2 - 144A			160,000	2.820		5/16/2022		158,995
Exeter Automobile Receivables Trust 2018-1 - 144A			170,000	3.030		1/17/2023		168,583
First Investors Auto Owner Trust 2017-2 - 144A			135,000	2.650		11/15/2022		133,110
Flagship Credit Auto Trust 2016-1 - 144A			18,997	2.770		12/15/2020		18,991
Flagship Credit Auto Trust 2017-3 - 144A			160,000	2.910		9/15/2023		157,148
GLS Auto Receivables Trust - 144A			160,000	2.980		12/15/2021		159,105
Hertz Vehicle Financing II LP - 144A			135,000	2.670		9/25/2021		132,494
Hyundai Auto Lease Securitization Trust 2018-A - 144A			166,520	2.550		8/17/2020		166,139
Hyundai Auto Receivables Trust 2017-B			160,000	2.230		2/15/2023		155,287
OneMain Direct Auto Receivables Trust 2017-2 - 144A			135,000	2.820		7/15/2024		132,801
Prestige Auto Receivables Trust 2017-1 - 144A			160,000	2.810		1/17/2023		156,687
Santander Drive Auto Receivables Trust 2014-4			130,265	3.100		11/16/2020		130,403
Santander Drive Auto Receivables Trust 2016-1			120,000	3.090		4/15/2022		120,073
Santander Drive Auto Receivables Trust 2017-1			115,000	2.580		5/16/2022		114,213
Tesla Auto Lease Trust 2018-A - 144A			167,632	2.320		12/20/2019		167,058
								3,518,242
BANKS - 9.6%
Banco de Credito e Inversiones SA - 144A			370,000	3.500		10/12/2027		330,919
Banco Santander Chile - 144A			150,000	3.875		9/20/2022		149,235
Bank of America Corp.			291,000	4.200		8/26/2024		288,914
Bank of Montreal ^	5 Year Swap Rate US + 1.432%		234,000	3.803	+	12/15/2032		214,770
Bank of New York Mellon Corp.	3 Month LIBOR + 3.420%		135,000	4.950	+	12/29/2049		136,012
BBVA Bancomer SA/Texas - 144A	5 Year Treasury Note + 2.650%		200,000	5.125	+	1/18/2033		177,202
Capital One Financial Corp.			165,000	4.200		10/29/2025		159,465
Capital One Financial Corp.			165,000	3.750		7/28/2026		151,595
Citigroup Inc			41,215	2.350		8/2/2021		39,864
Citigroup Inc			160,000	4.050		7/30/2022		160,823
Citigroup Inc			52,000	3.200		10/21/2026		47,784
Goldman Sachs Group, Inc.			200,000	4.250		10/21/2025		194,804
Huntington Bancshares, Inc. ^	3 Month LIBOR + 2.880%		100,000	5.700	+	7/15/2166		98,187
JPMorgan Chase & Co.	3 Month LIBOR + 3.800%		205,000	5.300	+	12/29/2049		208,587
KeyCorp	3 Month LIBOR + 3.606%		115,000	5.000	+	12/29/2049		109,609
M&T Bank Corp	3 Month LIBOR + 3.520%		170,000	5.125	+	12/29/2049		167,025
Morgan Stanley			275,000	6.375		7/24/2042		333,486
PNC Financial Services Group, Inc.	3 Month LIBOR + 3.040%		310,000	4.850	+	5/29/2049		299,925
PNC Financial Services Group, Inc. ^	3 Month LIBOR + 3.300%		170,000	5.000	+	12/29/2049		164,815
Santander Holdings USA, Inc.			165,000	3.700		3/28/2022		162,312

See accompanying notes to financial statements.

12

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
CORPORATE BONDS & NOTES - 63.3% (Continued)
BANKS - 9.6% (Continued)
Santander Holdings USA, Inc.		$	65,000	4.400		7/13/2027	$	60,771
Toronto-Dominion Bank	5 Year Swap Rate US + 2.205%		195,000	3.625	+	9/15/2031		181,724
UBS AG/Stamford CT			650,000	7.625		8/17/2022		713,375
Wells Fargo & Co.	3 Month LIBOR + 3.110%		165,000	5.900	+	12/15/2165		166,444
								4,717,647
BUILDING MATERIALS - 1.2%
CRH America Finance, Inc. - 144A			200,000	3.400		5/9/2027		185,241
Masco Corp. ^			30,000	4.450		4/1/2025		29,920
Masco Corp.			56,000	5.950		3/15/2022		59,589
Owens Corning			165,000	3.400		8/15/2026		149,706
Vulcan Materials Co.			165,000	3.900		4/1/2027		154,318
								578,774
CHEMICALS - 0.7%
NOVA Chemicals Corp. - 144A			55,000	4.875		6/1/2024		50,737
NOVA Chemicals Corp. - 144A			100,000	5.000		5/1/2025		91,750
SABIC Capital II BV - 144A			200,000	4.500		10/10/2028		196,380
								338,867
COMMERCIAL MBS - 3.3%
Aventura Mall Trust 2013-AVM - 144A			155,000	3.743	++	12/5/2032		156,815
Aventura Mall Trust 2013-AVM - 144A			100,000	3.867	++	12/5/2032		100,990
BAMLL Commercial Mortgage Securities Trust 2015-200P - 144A			105,000	3.218		4/14/2033		101,446
Caesars Palace Las Vegas Trust 2017-VICI - 144A			100,000	4.138		10/15/2034		99,942
Cold Storage Trust 2017-ICE3 - 144A	1 Month LIBOR + 1.000%		260,000	3.279	+	4/15/2024		260,439
GAHR Commercial Mortgage Trust 2015-NRF - 144A			105,000	3.382	+	12/15/2019		104,544
GS Mortgage Securities Corp Trust 2012-ALOHA - 144A			132,000	3.551		4/10/2022		132,081
Hilton USA Trust 2016-SFP - 144A			185,000	3.323		11/5/2035		179,595
Hospitality Mortgage Trust - 144A	1 Month LIBOR + 4.000%		100,000	3.461	+	5/8/2019		100,055
JP Morgan Chase Commercial Mortgage Securities Trust 2011-C4 - 144A			97,467	4.388		5/15/2021		99,325
Morgan Stanley Capital I Trust 2017-CLS - 144A	1 Month LIBOR + 0.700%		85,000	2.980	+	11/15/2034		84,969
One Market Plaza Trust 2017-1MKT - 144A			105,000	3.614		2/10/2024		104,440
RETL 2018-RVP - 144A	1 Month LIBOR + 2.050%		113,280	4.330	+	3/15/2033		113,505
								1,638,146
COMMERCIAL SERVICES - 0.7%
Ashtead Capital, Inc. - 144A			200,000	4.375		8/15/2027		184,440
Graham Holdings Co. - 144A			120,000	5.750		6/1/2026		121,200
United Rentals North America, Inc.			20,000	6.500		12/15/2026		20,270
								325,910
COMPUTERS - 0.7%
Dell International LLC / EMC Corp - 144A			155,000	6.020		6/15/2026		160,857
Dell International LLC / EMC Corp - 144A			65,000	8.100		7/15/2036		73,542
Hewlett Packard Enterprise Co.			100,000	4.900		10/15/2025		101,841
								336,240
DIVERSIFIED FINANCIAL SERVICES - 2.3%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust			150,000	3.650		7/21/2027		134,830
BrightSphere Investment Group PLC			165,000	4.800		7/27/2026		159,016
Brookfield Finance LLC			174,000	4.000		4/1/2024		172,794
E*TRADE Financial Corp.			175,000	4.500		6/20/2028		172,317
Jefferies Group LLC			130,000	5.500		10/18/2023		134,583
Jefferies Group LLC			14,000	6.875		4/15/2021		14,960
Navient Corp.			135,000	6.750		6/25/2025		131,962
Springleaf Finance Corp.			90,000	6.875		3/15/2025		86,400
Synchrony Financial			135,000	3.950		12/1/2027		119,237
								1,126,099
ELECTRIC - 0.9%
Duke Energy Corp.			170,000	2.650		9/1/2026		152,355
Exelon Corp.			230,000	3.497		6/1/2022		224,493
PSEG Power LLC			47,000	3.850		6/1/2023		46,712
								423,560
ENERGY - ALTERNATE RESOURCES - 0.2%
TerraForm Power Operating LLC - 144A			90,000	5.000		1/31/2028		80,775
ENGINEERING & CONSTRUCTION - 0.1%
Frontdoor, Inc. - 144A			70,000	6.750		8/15/2026		71,575

See accompanying notes to financial statements.

13

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
CORPORATE BONDS & NOTES - 63.3% (Continued)
ENTERTAINMENT - 0.2%
Eldorado Resorts, Inc. - 144A		$	35,000	6.000		9/15/2026	$	34,367
Gateway Casinos & Entertainment Ltd. - 144A			45,000	8.250		3/1/2024		47,363
								81,730
FOOD - 0.5%
Kraft Heinz Foods Co.			165,000	3.000		6/1/2026		147,498
Safeway, Inc.			85,000	7.250		2/1/2031		84,363
								231,861
HEALTHCARE PRODUCTS - 0.8%
Becton Dickinson and Co.			33,000	3.363		6/6/2024		31,572
Becton Dickinson and Co.			120,000	3.700		6/6/2027		112,884
Fresenius US Finance II, Inc. - 144A			25,000	4.500		1/15/2023		25,265
Zimmer Biomet Holdings, Inc. ^			230,000	3.550		4/1/2025		217,249
								386,970
HEALTHCARE - SERVICES - 1.7%
Anthem, Inc.			35,000	3.650		12/1/2027		32,779
Anthem, Inc.			175,000	4.101		3/1/2028		169,505
Cardinal Health, Inc.			140,000	3.410		6/15/2027		127,087
Centene Corp. - 144A			25,000	5.375		6/1/2026		25,438
Halfmoon Parent, Inc. - 144A			5,000	4.125		11/15/2025		4,949
Halfmoon Parent, Inc. - 144A			138,000	4.375		10/15/2028		135,239
HCA,.Inc			120,000	5.375		2/1/2025		121,050
Surgery Center Holdings, Inc. - 144A			95,000	8.875		4/15/2021		98,088
Tenet Healthcare Corp. ^			135,000	4.625		7/15/2024		130,457
								844,592
HOME BUILDERS - 0.9%
Lennar Corp.			135,000	5.250		6/1/2026		129,439
PulteGroup, Inc.			125,000	6.375		5/15/2033		116,563
TRI Pointe Group, Inc.			85,000	5.875		6/15/2024		79,688
William Lyon Homes, Inc.			135,000	6.000		9/1/2023		123,863
								449,553
HOME EQUITY ABS - 0.4%
GSAA Trust 2005-1 AF4 (a)			108,909	5.619		11/25/2034		109,906
NovaStar Mortgage Funding Trust Series 2004-4	1 Month LIBOR + 1.725%		100,677	4.006	+	3/25/2035		102,117
								212,023
INSURANCE - 1.7%
Allstate Corp.	3 Month LIBOR + 2.938%		150,000	5.750	+	8/15/2053		151,890
Athene Holding Ltd.			135,000	4.125		1/12/2028		124,037
MetLife, Inc.	3 Month LIBOR + 2.959%		76,000	5.875	+	Perpetual		75,905
Prudential Financial, Inc.	3 Month LIBOR + 3.920%		300,000	5.625	+	6/15/2043		305,655
Teachers Insurance & Annuity Association of America - 144A	3 Month LIBOR + 2.661%		110,000	4.375	+	9/15/2054		109,729
Trinity Acquisition PLC			60,000	4.400		3/15/2026		59,374
								826,590
INVESTMENT COMPANIES - 0.7%
Ares Capital Corp.			80,000	3.500		2/10/2023		76,343
Ares Capital Corp.			105,000	4.250		3/1/2025		99,969
FS Investment Corp.			110,000	4.250		1/15/2020		110,369
FS Investment Corp.			50,000	4.750		5/15/2022		49,662
								336,343
IRON/STEEL - 0.9%
ArcelorMittal ^			170,000	6.125		6/1/2025		182,147
GTL Trade Finance, Inc. / Gerdau Holdings, Inc. - 144A			150,000	5.893		4/29/2024		153,750
United States Steel Corp.			135,000	6.250		3/15/2026		127,575
								463,472
LODGING - 0.2%
Marriott Ownership Resorts, Inc. - 144A			55,000	6.500		9/15/2026		55,688
Wyndham Worldwide Corp.			45,000	4.500		4/1/2027		41,906
								97,594
MACHINERY- DIVERSIFIED - 0.6%
Oshkosh Corp.			183,000	4.600		5/15/2028		179,475
CNH Industrial NV			137,000	4.500		8/15/2023		138,370
								317,845

See accompanying notes to financial statements.

14

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
CORPORATE BONDS & NOTES - 63.3% (Continued)
MEDIA - 1.0%
Comcast Corp.		$	71,000	3.950		10/15/2025	$	70,947
Comcast Corp.			34,000	4.150		10/15/2028		33,762
Discovery Communications LLC ^			160,000	3.950		3/20/2028		149,243
DISH DBS Corp.			110,000	5.875		7/15/2022		104,363
Meredith Corp. - 144A			115,000	6.875		2/1/2026		115,288
								473,603
MINING - 1.1%
Anglo American Capital PLC - 144A			200,000	4.000		9/11/2027		182,427
BHP Billiton Finance USA Ltd - 144A	5 Year Swap Rate USD + 5.093%		200,000	6.750	+	10/19/2075		217,000
Glencore Funding LLC - 144A			165,000	4.000		3/27/2027		151,988
								551,415
MISCELLANEOUS MANUFACTURING - 0.6%
General Electric Co.	3 Month LIBOR + 3.330%		321,000	5.000	+	Perpetual		297,728
OFFICE / BUSINESS EQUIPMENT - 0.3%
Pitney Bowes, Inc.			159,000	4.125		5/15/2022		145,088
OIL & GAS - 1.2%
EP Energy LLC / Everest Acquisition Finance, Inc. - 144A			65,000	8.000		11/29/2024		63,050
Helmerich & Payne International Drilling Co.			100,000	4.650		3/15/2025		101,353
Holly Frontier Corp.			165,000	5.875		4/1/2026		172,600
Jagged Peak Energy LLC - 144A			105,000	5.875		5/1/2026		102,638
Range Resources Corp.			135,000	4.875		5/15/2025		125,550
Transocean Guardian Ltd. - 144A			40,000	5.875		1/15/2024		39,750
								604,941
OIL & GAS SERVICES - 0.3%
Bristow Group, Inc. - 144A ^			50,000	8.750		3/1/2023		47,250
USA Compression Partners LP / USA Compression Finance Corp. - 144A			105,000	6.875		4/1/2026		106,444
								153,694
OTHER ABS - 6.2%
American Homes 4 Rent 2014-SFR2 Trust - 144A			130,000	4.705		10/17/2036		132,613
American Homes 4 Rent 2015-SFR2 Trust - 144A			120,000	4.691		10/17/2045		122,605
AXIS Equipment Finance Receivables VI LLC - 144A			140,000	3.890		7/20/2022		140,031
Bayview Opportunity Master Fund IVa Trust 2017-RT1 - 144A			87,118	3.000		3/28/2057		85,431
Bayview Opportunity Master Fund IVa Trust 2017-SPL5 -144A			100,000	4.000		6/28/2057		99,903
CoreVest American Finance 2018-1 Trust - 144A			114,157	3.804		5/15/2023		113,936
CWABS Asset-Backed Certificates Trust 2005-1 (a)			185,030	5.159		7/25/2035		190,347
Diamond Resorts Owner Trust - 144A			98,958	3.270		10/22/2029		97,889
MVW Owner Trust 2016-1 - 144A			75,720	2.250		12/20/2033		73,225
MVW Owner Trust 2017-1 - 144A			122,230	2.420		12/20/2034		118,143
Oak Hill Advisors Residential Loan Trust 2017-NPL2 - 144A (a)			190,279	3.000		7/25/2057		187,054
Pretium Mortgage Credit Partners I 2017-NPL2 LLC - 144A (a)			124,226	3.250		3/28/2057		123,666
Pretium Mortgage Credit Partners I 2017-NPL5 LLC - 144A			70,193	3.327		12/30/2032		69,870
RCO Mortgage LLC 2017-1 -144A (a)			92,729	3.375		8/25/2022		92,350
Sierra Timeshare 2014-2 Receivables Funding LLC - 144A			10,494	2.050		6/20/2031		10,483
Sofi Consumer Loan Program 2017-5 LLC - 144A			105,000	2.780		9/25/2026		103,192
Sofi Consumer Loan Program 2017-6 LLC - 144A			100,000	2.820		11/25/2026		98,407
Taco Bell Funding LLC - 144A			172,375	3.832		5/25/2046		172,514
TGIF Funding LLC 2017-1A - 144A			130,950	6.202		4/30/2047		130,236
Towd Point Mortgage Trust 2015-1 A2 - 144A			172,000	3.250		10/25/2053		169,637
Towd Point Mortgage Trust 2015-2 - 144A			190,000	3.250		11/25/2060		182,705
Towd Point Mortgage Trust 2015-6 - 144A			130,000	3.750		4/25/2055		128,151
Towd Point Mortgage Trust 2017-1 - 144A			115,000	3.750		10/25/2056		111,319
Towd Point Mortgage Trust 2018-4 - 144A			112,654	3.000		6/25/2058		109,462
Tricon American Homes 2017-SFR1 Trust - 144A			100,000	2.716		9/17/2022		95,615
VSE 2017-A VOI Mortgage LLC - 144A			99,161	2.330		3/20/2035		95,602
								3,054,386
PHARMACEUTICALS - 1.4%
AbbVie, Inc.			100,000	3.200		5/14/2026		91,673
AbbVie, Inc.			55,000	3.600		5/14/2025		52,609
Bausch Health Cos, Inc. - 144A			70,000	5.500		11/1/2025		68,863
Bausch Health Cos, Inc. - 144A			10,000	6.500		3/15/2022		10,375
Bausch Health Cos, Inc. - 144A			20,000	7.000		3/15/2024		20,994

See accompanying notes to financial statements.

15

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest	Maturity
Security	Rate	Amount		Rate %	Date	Value
CORPORATE BONDS & NOTES - 63.3% (Continued)
PHARMACEUTICALS - 1.4% (Continued)
Cardinal Health, Inc.		$	105,000	3.079	6/15/2024	$	98,653
CVS Health Corp.			154,000	4.300	3/25/2028		150,472
Elanco Animal Health, Inc. - 144A			30,000	4.900	8/28/2028		29,694
HLF Financing Sarl LLC - 144A			75,000	7.250	8/15/2026		76,031
Teva Pharmaceutical Finance Netherlands III BV ^			90,000	3.150	10/1/2026		73,472
							672,836
PIPELINES - 2.8%
Andeavor Logistics LP			135,000	4.250	12/1/2027		128,719
Cheniere Energy Partners LP - 144A			55,000	5.625	10/1/2026		54,313
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp			110,000	5.750	4/1/2025		110,275
Enbridge Energy Partners LP			165,000	5.875	10/15/2025		179,787
Energy Transfer Partners LP			165,000	4.200	4/15/2027		155,927
Kinder Morgan Inc/DE ^			160,000	4.300	6/1/2025		159,370
Kinder Morgan Inc/DE			45,000	7.750	1/15/2032		55,343
MPLX LP			135,000	4.875	12/1/2024		138,413
NuStar Logistics LP			145,000	5.625	4/28/2027		139,200
Sabine Pass Liquefaction LLC			100,000	6.250	3/15/2022		106,622
Sabine Pass Liquefaction LLC			30,000	4.200	3/15/2028		28,600
Valero Energy Partners LP ^			120,000	4.500	3/15/2028		118,458
							1,375,027
PRIVATE EQUITY - 0.5%
Apollo Management Holdings LP - 144A			135,000	4.000	5/30/2024		133,362
Icahn Enterprises LP / Icahn Enterprises Finance Corp.			135,000	6.375	12/15/2025		134,494
							267,856
REITS - 4.8%
Alexandria Real Estate Equities, Inc.			100,000	3.950	1/15/2027		95,873
Brixmor Operating Partnership LP			45,000	3.875	8/15/2022		44,785
Corporate Office Properties LP			196,000	3.600	5/15/2023		189,065
EPR Properties			220,000	4.750	12/15/2026		212,685
ESH Hospitality, Inc. -144A			100,000	5.250	5/1/2025		94,875
GLP Capital LP / GLP Financing II, Inc.			155,000	5.750	6/1/2028		157,228
Healthcare Realty Trust, Inc.			90,000	3.875	5/1/2025		86,768
Healthcare Trust of America Holdings LP			150,000	3.750	7/1/2027		140,166
Hospitality Properties Trust			165,000	4.950	2/15/2027		159,860
iStar, Inc.			110,000	5.250	9/15/2022		106,700
Kilroy Realty LP			165,000	4.375	10/1/2025		163,077
Life Storage LP			65,000	3.875	12/15/2027		60,471
Life Storage LP / CA			205,000	3.500	7/1/2026		188,808
MPT Operating Partnership LP / MPT Finance Corp			15,000	6.375	3/1/2024		15,600
MPT Operating Partnership LP / MPT Finance Corp			85,000	5.000	10/15/2027		80,087
Physicians Realty LP			140,000	3.950	1/15/2028		129,070
Retail Opportunity Investments Partnership LP			105,000	4.000	12/15/2024		98,411
Select Income REIT			170,000	4.500	2/1/2025		162,857
Welltower, Inc.			175,000	4.000	6/1/2025		170,914
							2,357,300
RETAIL - 0.7%
Dollar General Corp.			150,000	4.000	5/15/2025		144,326
QVC, Inc.			195,000	4.375	3/15/2023		191,685
							336,011
SOFTWARE - 0.9%
CDK Global, Inc.			105,000	5.875	6/15/2026		105,919
Citrix Systems, Inc.			165,000	4.500	12/1/2027		156,682
Vmware, Inc.			83,000	2.950	8/21/2022		79,532
Vmware, Inc.			88,000	3.900	8/21/2027		80,591
							422,724
STUDENT LOAN ABS - 0.7%
Navient Private Education Loan Trust 2017-A - 144A			160,000	2.880	12/16/2058		154,832
SoFi Professional Loan Program 2016-C LLC - 144A			205,000	2.360	12/25/2032		199,995
							354,827

See accompanying notes to financial statements.

16

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
CORPORATE BONDS & NOTES - 63.3% (Continued)
TELECOMMUNICATIONS - 1.1%
AT&T, Inc. - 144A		$	206,000	4.100		2/15/2028	$	195,976
Frontier Communications Corp.			105,000	7.625		4/15/2024		63,525
Frontier Communications Corp. - 144A			70,000	8.500		4/1/2026		65,275
Verizon Communications, Inc.			215,000	4.125		3/16/2027		213,161
								537,937
TRUCKING & LEASING - 0.7%
Aviation Capital Group LLC - 144A			205,000	3.500		11/1/2027		184,581
Penske Truck Leasing Co. LP - 144A			140,000	4.125		8/1/2023		139,820
								324,401
WHOLE LOAN COLLATERAL CMO - 2.7%
Angel Oak Mortgage Trust I LLC 2018-2 - 144A			51,816	3.674		7/27/2048		51,842
Banc of America Funding 2005-1 Trust			43,404	5.500		2/25/2035		43,332
Chase Mortgage Trust 2016-1 - 144A			136,285	3.750	++	4/25/2045		133,615
Citigroup Mortgage Loan Trust, Inc.			51,009	6.750		8/25/2034		54,924
COLT 2018-1 Mortgage Loan Trust - 144A			63,808	2.930		2/25/2048		63,572
Galton Funding Mortgage Trust 2017-1 - 144A			122,268	3.500		11/25/2057		120,009
JP Morgan Mortgage Trust 2017-3 - 144A			99,172	2.500		8/25/2047		94,717
JP Morgan Mortgage Trust 2017-5 - 144A			298,201	3.172	++	12/15/2047		294,261
MASTR Alternative Loan Trust 2004-4			52,131	5.500		4/25/2034		53,855
METLIFE SECURITIZATION TRUST 2017-1 - 144A			100,000	3.659	++	4/25/2055		97,367
Residential Asset Securitization Trust 2005-A1			79,890	5.500		4/25/2035		81,928
Structured Adjustable Rate Mortgage Loan Trust Series 2004-4			77,803	4.166	++	4/25/2034		79,179
Verus Securitization Trust 2018-1 - 144A			75,362	2.929		2/25/2048		74,514
Verus Securitization Trust 2018-2 - 144A			128,613	3.677		6/1/2058		128,380
								1,371,495
TOTAL CORPORATE BONDS & NOTES (Cost - $31,919,563)								31,136,277
FOREIGN GOVERNMENT BONDS - 2.3%
Argentine Republic Government International Bond			265,000	7.125		7/6/2036		202,695
Dominican Republic International Bond - 144A			100,000	5.950		1/25/2027		99,875
Dominican Republic International Bond - 144A			150,000	6.000		7/19/2028		149,063
Indonesia Government International Bond - 144A			215,000	8.500		10/12/2035		282,184
Oman Government International Bond - 144A			200,000	5.625		1/17/2028		190,995
State Oil Co of the Azerbaijan Republic			200,000	6.950		3/18/2030		212,744
TOTAL FOREIGN GOVERNMENT BONDS - (Cost - $1,178,586)								1,137,556
MUNICIPAL BONDS - 7.3%
City of Bristol VA			340,000	4.210		1/1/2042		332,132
Idaho Health Facilities Authority			135,000	5.020		3/1/2048		134,196
New York City Transitional Finance Authority Future Tax Secured Revenue			480,000	5.000		8/1/2040		531,535
Port Authority of New York & New Jersey			470,000	5.000		4/15/2057		513,640
Rockdale County Water & Sewerage Authority			305,000	3.060		7/1/2024		294,808
San Diego County Regional Airport Authority			325,000	5.594		7/1/2043		349,989
State of California			765,000	7.600		11/1/2040		1,107,154
State of Texas			245,000	3.011		10/1/2026		234,737
University of California			115,000	4.428		5/15/2048		114,742
TOTAL MUNICIPAL - (Cost - $3,736,970)								3,612,933
U.S. GOVERNMENT & AGENCY - 16.4%
U.S. GOVERNMENT AGENCY - 6.7%
Fannie Mae Pool			21,065	6.000		11/1/2034		23,008
Fannie Mae Pool			21,495	6.000		3/1/2036		23,402
Fannie Mae Pool			173,454	5.500		9/1/2036		185,900
Fannie Mae Pool			66,262	6.500		5/1/2037		74,924
Fannie Mae Pool			26,312	5.500		4/1/2038		27,976
Fannie Mae Pool			27,847	5.000		4/1/2038		29,550
Fannie Mae Pool			73,121	6.000		8/1/2038		79,633
Fannie Mae Pool			146,473	5.000		6/1/2039		154,861
Fannie Mae Pool			227,530	4.000		9/1/2044		228,221
Fannie Mae Pool			263,049	3.500		8/1/2045		257,259

See accompanying notes to financial statements.

17

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
U.S. GOVERNMENT & AGENCY - 16.4% (Continued)
U.S. GOVERNMENT AGENCY - 6.7%
Fannie Mae Pool		$	288,945	3.500		8/1/2045	$	282,568
Fannie Mae Pool			182,594	3.500		12/1/2045		178,565
Fannie Mae Pool			194,912	3.500		1/1/2046		190,590
Fannie Mae Pool			416,528	3.500		1/1/2046		407,335
Fannie Mae Pool			360,470	4.000		4/1/2046		361,256
Fannie Mae Pool			326,868	3.500		6/1/2046		319,394
Freddie Mac Gold Pool			188,265	5.000		12/1/2035		199,809
Freddie Mac Gold Pool			28,716	5.500		10/1/2039		30,657
Freddie Mac Gold Pool			262,315	3.500		4/1/2046		256,314
								3,311,222
U.S. TREASURY OBLIGATIONS - 9.7%
United States Treasury Bond			915,000	1.125		2/28/2019		911,206
United States Treasury Bond ^			1,155,000	2.000		2/15/2025		1,085,226
United States Treasury Bond ^			220,000	1.625		2/15/2026		199,061
United States Treasury Bond ^			1,185,000	3.125		2/15/2043		1,131,212
United States Treasury Bond ^			1,075,000	2.500		2/15/2046		901,971
United States Treasury Bond			595,000	3.000		8/15/2048		550,282
								4,778,958
TOTAL U.S. GOVERNMENT & AGENCY (Cost - $8,434,598)								8,090,180
BANK LOANS - 7.3%
ADVERTISING - 0.2%
Red Ventures LLC Term Loan	1 Month LIBOR + 3.750%		90,069	9.309	+	10/18/2024		90,632
AEROSPACE - 0.2%
Accudyne Industries Initial Term Loan	1 Month LIBOR + 3.000%		63,456	5.558	+	8/18/2024		63,309
TransDigm, Inc. New Tranche E Term Loan	1 Month LIBOR + 2.500%		50,000	6.308	+	5/14/2025		49,833
								113,142
AUTO MANUFACTURERS - 0.2%
Navistar, Inc. Tranche B Term Loan	1 Month LIBOR + 3.500%		89,550	5.308	+	11/2/2024		89,848
COMMERCIAL SERVICES - 0.2%
CHG Healthcare Services, Inc. New Term Loan	3 Month LIBOR + 3.000%		78,549	5.058	+	6/7/2023		78,906
DISTRIBUTION / WHOLESALE - 0.3%
American Builders & Contractors Supply Co, Inc. Term B-2 Loan	1 Month LIBOR + 2.000%		134,318	4.558	+	10/31/2023		133,227
DIVERSIFIED - FINANCIAL SERVICES - 0.6%
Capital Automotive LP Initial Tranche B-2 Term Loan	1 Month LIBOR + 2.500%		152,961	6.657	+	3/24/2024		153,190
FB Income Advisor LLC Initial Term Loan	1 Month LIBOR + 2.500%		20,000	6.308	+	7/27/2025		20,100
Refinitiv US Holdings, Inc. Initial Dollar Term Loan	1 Month LIBOR + 3.750%		135,000	5.343	+	10/1/2025		133,819
								307,109
ELECTRIC - 0.4%
NRG Energy, Inc. Term Loan	3 Month LIBOR + 1.750%		110,723	5.777	+	6/30/2023		110,453
Vistra Operations Co. LLC Initial Term Loan	1 Month LIBOR + 2.000%		46,619	4.558	+	8/4/2023		46,570
Vistra Operations Co. LLC 2018 Incremental Term Loan	1 Month LIBOR + 2.000%		59,850	4.479	+	12/1/2025		59,741
								216,764
ENTERTAINMENT - 0.5%
Crown Finance US, Inc. Initial Dollar Term Loan	1 Month LIBOR + 2.500%		74,625	8.059	+	2/7/2025		74,411
Gateway Casinos & Entertainment Limited PLC	3 Month LIBOR + 3.000%		14,963	4.908	+	3/13/2025		15,023
GVC Holdings PLC Term Loan	1 Month LIBOR + 2.500%		89,550	6.949	+	3/16/2024		89,942
Scientific Games International, Inc. Term Loan	2 Month LIBOR + 2.750%		84,575	6.308	+	8/14/2024		83,873
								263,249
FOOD - 0.4%
Albertsons LLC 2017-1 Term B-4 Loan	3 Month LIBOR + 2.750%		68,265	5.308	+	8/25/2021		68,250
Albertson’s LLC Term Loan B7	1 Month LIBOR + 3.000%		22,254	5.527	+	10/29/2025		22,110
Aramark Intermediate HoldCo Corporation Term Loan	1 Month LIBOR + 1.750%		65,286	4.308	+	3/11/2025		65,378
Hearthside Group Holdings LLC Term Loan	1 Month LIBOR + 3.000%		14,963	6.558	+	5/17/2025		14,729
								170,467

See accompanying notes to financial statements.

18

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
BANK LOANS - 7.3% (Continued)
HEALTHCARE - Services - 0.5%
CCS-CMGC Holdings, Inc. Initial Term Loan	1 Month LIBOR + 5.500%	$	80,000	5.308	+	9/25/2025	$	79,700
Envision Healthcare Corp. Initial Term Loan	1 Month LIBOR + 3.750%		113,855	5.571	+	9/28/2025		111,693
Quorum Health Corp. Term Loan	1 Month LIBOR + 6.750%		34,677	4.148	+	4/12/2022		35,116
Universal Health Services, Inc. Incremental Term Loan	1 Month LIBOR + 1.750%		10,000	5.808	+	10/26/2025		10,038
								236,547
HOME FURNISHINGS - 0.2%
Global Appliance, Inc. Tranche B Term Loan	1 Month LIBOR + 4.000%		74,500	5.179	+	10/5/2024		74,081
HOUSEHOLD PRODUCTS / WARES - 0.2%
KIK Custom Products, Inc. Initial Loan	1 Month LIBOR + 4.000%		108,120	5.648	+	5/15/2023		106,836
INSURANCE - 0.0%
Genworth Holdings, Inc. Initial Term Loan	2 Month LIBOR + 4.500%		4,975	5.398	+	2/28/2023		5,087
INVESTMENT COMPANIES - 0.3%
TKC Holdings, Inc. Initial Term Loan	1 Month LIBOR + 3.750%		59,100	4.904	+	2/1/2023		59,216
UFC Holdings LLC Term Loan	1 Month LIBOR + 3.250%		66,703	5.058	+	8/18/2023		67,176
								126,392
LODGING - 0.5%
Playa Resorts and Hotels Initial Term Loan	1 Month LIBOR + 2.750%		84,112	5.925	+	4/27/2024		83,060
Station Casino LLC Term B Facility Loan	1 Month LIBOR + 2.500%		55,633	4.808	+	6/8/2023		55,670
Wyndham Hotels & Resorts, Inc. Term B Loan	1 Month LIBOR + 1.750%		110,000	4.808	+	3/29/2025		110,092
								248,822
MACHINERY - DIVERSIFIED - 0.2%
Brookfield WEC Holdings, Inc.	3 Month LIBOR + 3.750%		80,000	4.308	+	7/26/2025		80,606
Zodiac Pool Solutions LLC Tranche B-1 Term Loan	1 Month LIBOR + 2.250%		34,913	6.808	+	3/7/2025		34,984
								115,590
MEDIA - 0.2%
Meredith Corporation Tranche B-1 Term Loan	1 Month LIBOR + 2.750%		101,935	6.558	+	1/31/2025		101,919
MINING - 0.1%
Covia Holdings Corp. Initial Term Loan	1 Month LIBOR + 3.750%		79,800	5.558	+	5/21/2025		67,257
PHARMACEUTICALS - 0.2%
Barusch Health Cos, Inc.	1 Month LIBOR + 3.000%		9,750	4.270	+	5/28/2025		9,767
Endo Luxembourg Finance Company Initial Term Loan	1 Month LIBOR + 4.250%		93,813	5.058	+	4/12/2024		94,369
HLF Financing US LLC Senior Lien Term Loan	1 Month LIBOR + 3.250%		15,000	5.058	+	8/9/2025		15,087
								119,223
PIPELINES - 0.0%
Moda Ingleside Energy Center LLC Initial Term Loan	1 Month LIBOR + 3.250%		5,000	5.348	+	9/26/2025		5,046
REGIONAL- 0.2%
Seminole Indian Tribe of Florida Term B Loan	1 Month LIBOR + 1.750%		89,100	5.808	+	7/6/2024		89,403
RETAIL - 0.2%
84 Lumber Initial Term Loan Retired	1 Month LIBOR + 5.250%		79,688	7.759	+	10/25/2023		80,352
SOFTWARE - 1.0%
Boxer Parent Co., Inc. Initial Dollar Term Loan	3 Month LIBOR + 4.250%		110,000	5.410	+	6/28/2025		110,516
IQVIA, Inc. Term B-3 Dollar Loan	3 Month LIBOR + 1.750%		109,725	5.558	+	6/8/2025		109,588
Kronos, Inc. Incremental Term Loan	3 Month LIBOR + 3.000%		79,600	4.148	+	11/1/2023		79,830
Rackspace Hosting, Inc. 2017 Refinancing Term B Loan	3 Month LIBOR + 3.000%		130,358	5.308	+	11/3/2023		126,800
Renaissance Holdings Corp.	1 Month LIBOR + 3.250%		19,950	6.558	+	5/30/2025		19,900
SS&C Technologies, Inc. Term B-5 Loan	1 Month LIBOR + 2.250%		60,000	4.308	+	4/16/2025		59,759
								506,393

See accompanying notes to financial statements.

19

SCHEDULE OF INVESTMENTS

Dunham Corporate/Government Bond Fund (Continued)

October 31, 2018

	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
BANK LOANS - 7.3% (Continued)
TELECOMMUNICATIONS - 0.5%
CenturyLink, Inc. Term Loan	1 Month LIBOR + 2.750%	$	114,138	6.308	+	1/31/2025	$	113,067
Digicel International Finance Limited Term Loan	3 Month LIBOR + 3.250%		14,887	6.270	+	5/10/2024		14,310
Telenet Financing USD LLC	1 Month LIBOR + 2.250%		105,000	5.058	+	5/17/2026		104,791
								232,168
TOTAL BANK LOANS - (Cost - $3,594,305)								3,578,460
		Shares
SHORT-TERM INVESTMENT - 2.5%
MONEY MARKET FUND - 2.5%
Fidelity Institutional Money Market Fund - Government Portfolio
(Cost - $1,240,791)			1,240,791	2.060	+		$	1,240,791
COLLATERAL FOR SECURITIES LOANED - 9.9%
Mount Vernon Prime Portfolio # (Cost - $4,848,756)			4,848,756	2.390	+			4,848,756
TOTAL INVESTMENTS - 109.0% (Cost - $54,953,569)							$	53,644,953
LIABILITIES IN EXCESS OF OTHER ASSETS - (9.0)%								(4,423,402	)
NET ASSETS - 100.0%							$	49,221,551

LLC - Limited Liability Corporation

ABS - Asset Backed Security

MBS - Mortgage Backed Security

CMO - Collateralized Mortgage Obligation

LP - Limited Partnership

REITS - 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 $4,725,852 at October 31, 2018.

+ Variable rate security. Interest rate is as of October 31, 2018.

++ Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets.

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 $14,161,870 or 28.77% of net assets.

(a) Step-Up Bond; the interest rate shown is the rate in effect as of October 31, 2018.

# 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, 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)
Corporate Bonds & Notes	58.1	%	Bank Loans	6.7	%
U.S. Government & Agencies	15.1	%	Short - Term	2.3	%
Collateral For Securities Loaned	9.0	%	Foreign Government Bonds	2.1	%
Municipal	6.7	%	Total	100.0	%

Based on total value of investments as of October 31, 2018.

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

See accompanying notes to financial statements.

20

Dunham Monthly Distribution Fund (Unaudited)

Message from the Sub-Adviser (Perella Weinberg Partners)

The fiscal year began with volatility near its lowest levels ever achieved. The VIX (Chicago Board Options Exchange SPX Volatility Index) was in the low 9s at the beginning of November, while the average VIX level over the past 10 years was near 19. The VIX closed above 37 in early February (spiking significantly higher in intra-day trading), as equity markets sustained a significant drawdown into correction territory. These sell-offs and corresponding spikes in volatility were generally triggered by “concerns” and headlines rather than deteriorating fundamentals. Some of these headlines have been pervasive throughout the fiscal year, and even intensified through the final months of the 12-month period. For example, tariffs and a trade war with China took a prevalent seat along with U.S. mid-term elections and rising interest rates. In the final month of the fiscal year, the VIX breached 25 while U.S. equities, as measured by the S&P 500 Index, experienced an intra-month decline of more than 10 percent. Regardless of the cause, volatility spikes generally correspond with widening spreads on merger deals and other risk-arbitrage opportunities. During the final fiscal quarter, event driven strategies, as measured by the Credit Suisse Event Driven Liquid Index, fell 0.5 percent. While broader in scope, long/short equity strategies, as measured by the Credit Suisse Long/Short Liquid Index, plummeted 4.7 percent. This most recent downturn brought fiscal year performance for event driven strategies to 0.7 percent, while long/short equity strategies ended the 12-month period down 4.0 percent.

Within the Fund, the event driven allocation is primarily represented in the form of announced mergers. While this allocation has historically comprised approximately half of the Fund’s exposure during the fiscal year, the final fiscal quarter saw the allocation end at 61 percent. This higher allocation is indicative of the Sub-Adviser’s general optimism regarding opportunities in the space, as well as its current bias to reduce overall directional risk from movements in the broad equity markets. Although cross-border mergers are on pace to exceed $1.3 trillion in 2018, an approximate 30% increase over 2017, the trade war with China delayed some sizeable active deals and has stressed the mergers and acquisitions market as a whole. The acquisition of NXP Semiconductors (NXPI) (holding weight*: 0.88 percent) by Qualcomm (QCOM) (holding weight*: 0.79 percent), was thrown into limbo as the trade war between the United States and China escalated through the summer months. During the fiscal year, NXPI fell 35.8 percent, while QCOM increased 27.8 percent.

Despite the increase in volatility, many mergers were completed unabashed. Within the Fund, the $5 billion paper and plastic container cash or stock acquisition of KapStone Paper and Packaging Corp. (KS) (holding weight*: 1.66 percent) by Westrock Co. (WRK) (holding weight**: not held) was just a week away from completion when the Fund reached its fiscal year-end. From the acquisition announcement in January through the fiscal year-end, KS rose 1.7 percent. The frozen-food focused $11 billion cash and stock acquisition of Pinnacle Foods Inc. (PF) (holding weight**: 3.24 percent) by ConAgra Brands Inc. (CAG) (holding weight*: 0.00 percent) finalized at the end of October. Since the announcement of the deal through its closing, PF and CAG increased 3.1 percent and 3.8 percent, respectively. Even the cross-border $7 billion scent-based cash and stock acquisition of Israel-based Frutarom Industries Ltd. (FRUT IT) (holding weight**: 2.04 percent) by U.S.-based International Flavors and Fragrances Inc. (IFF) (holding weight*: -0.73 percent) successfully resolved in early October. The IFF/FRUT IT deal terms were amended in mid-August, and since that date through completion, IFF and FRUT IT increased 2.6 percent and 3.0 percent, respectively.

After adding AT&T Inc. (T) (holding weight*: -0.36 percent) to the long/short strategy during the third fiscal quarter, following its acquisition of Time Warner Inc. (TWX) (holding weight**: 3.69 percent), T decreased 0.6 percent. However, while the Sub-Adviser initially believed that the synergies and other benefits from T’s acquisitions were catalysts for relative outperformance, it reversed its long position to a short position near the end of the fiscal year. Within the consumer staples sector, the Sub-Adviser’s addition of PepsiCo Inc. (PEP) (holding weight*: 0.85 percent) to the long/short strategy in early May contributed positively to overall Fund performance. Since its addition to the Fund, PEP increased 17.5 percent. This strong performance included a slight 1.5 percent drawdown in the most recent fiscal quarter. The Sub-Adviser continued to increase the short position in the Consumer Staples Select Sector SPDR Fund (XLP) (holding weight*: -1.39 percent). During the last two fiscal quarters combined, XLP increased 10.7 percent. Therefore, the exposure to PEP within the consumer staples sector was a positive contributor to absolute performance, even after adjusting for the effects of the short position in XLP.

One of the largest contributors to the Fund during the previous fiscal quarter was Dell Technologies Inc. Class V (DVMT) (holding weight*: 1.80 percent), a tracking stock representing the VMWare Inc. business of Dell. During the summer, DVMT’s value surged 28.9 percent due to Michael Dell and other large shareholders’ efforts to draft a $22 billion deal to use the tracking stock as a means to bring Dell Technologies Inc. Class C back to the public markets. During the final fiscal quarter, DVMT detracted 2.3 percent as the technology sector broadly fell. However, this decline was more than offset by the summer’s strong performance, ending the last six months with a return of 25.9 percent.

While risk-off trading and uncertainty in the equity markets have rattled returns across strategy-types and regulatory hurdles facing prominent vertical mergers compounded with trade war rhetoric, the Sub-Adviser remains optimistic toward the space. In addition, the Sub-Adviser’s risk management techniques combined with its disciplined bottom-up analysis provide a means for navigating more turbulent markets. The Sub-Adviser continues to be optimistic that the repatriation of offshore cash due to 2017’s tax reform may be a source of dry powder for additional merger activity. It also believes that a healthy economy and strong corporate balance sheets may provide opportunities across both the event driven space and within the long/short strategy utilized within the Fund.

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

Growth of $100,000 Investment

Total Returns as of October 31, 2018
		Annualized	Annualized	Annualized Since
	One Year	Five Years	Ten Years	Inception (8/1/08)*
Class N	(0.41)%	2.11%	4.05%	3.33%**
Class C	(1.37)%	1.09%	3.00%	1.94%
Class A with load of 5.75%	(6.36)%	0.65%	3.25%	2.10%
Class A without load	(0.65)%	1.85%	3.87%	2.70%
IQ Hedge Market Neutral Total Return Index	0.34%	1.70%	3.65%	2.81%
IQ Hedge Market Neutral Beta Index***	(0.17)%	1.49%	2.73%	2.20%
Morningstar Multialternative Category	(1.98)%	0.70%	2.27%	0.66%

* 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.

*** Change in the Fund’s benchmark. As a result, the Fund’s performance is compared to both indices in the table above.

IQ Hedge Market Neutral Total Return Index seeks to replicate the risk-adjusted return characteristics of the collective hedge funds using a market neutral hedge fund investment style. Market Neutral hedge funds typically invest in both long and short positions in asset classes while minimizing exposure to systematic risk.

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 2.74% for Class N, 3.74% for Class C and 2.99% for Class A. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of Fund shares or Fund distributions. For performance information current to the most recent month- end, please call 1-800- 442-4358 or visit our website www.dunham.com.

21

SCHEDULE OF INVESTMENTS

Dunham Monthly Distribution Fund

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 81.4%
AEROSPACE/DEFENSE - 2.8%
Rockwell Collins, Inc.		60,861	$	7,791,425
AIRLINES - 0.0%
American Airlines Group, Inc. *		101,283		101,283
APPAREL - 0.8%
NIKE, Inc.		29,212		2,192,068
AUTO PARTS & EQUIPMENT 0.0%
Altra Industrial Motion Corp.		3		97
BANKS - 2.5%
Bank of America Corp.		79,801		2,194,527
Citigroup, Inc.		21,306		1,394,691
State Bank Financial Corp.		136,292		3,484,986
				7,074,204
BEVERAGES - 1.3%
Constellation Brands, Inc.		6,591		1,313,125
PepsiCo., Inc.		20,971		2,356,721
				3,669,846
BIOTECHNOLOGY - 3.4%
Endocyte, Inc. * ^		181,251		4,286,586
Shire PLC - ADR		28,420		5,166,756
				9,453,342
CHEMICALS - 1.5%
A. Schulman, Inc. *		44,665		89,330
DowDuPont, Inc.		13,910		750,027
FMC Corp.		8,616		672,737
International Flavors & Fragrances, Inc. *		13,928		2,009,769
KMG Chemicals, Inc.		9,983		748,925
				4,270,788
COMMERCIAL SERVICES - 0.8%
Rent-A-Center, Inc. *		168,996		2,408,193
COMPUTERS - 3.7%
Apple, Inc.		16,932		3,705,737
Dell Technologies, Inc. *		55,132		4,983,381
Perspecta, Inc.		63,149		1,546,519
				10,235,637
ELECTRONICS - 2.3%
Honeywell International, Inc.		15,757		2,281,929
Orbotech Ltd. *		55,953		3,130,011
Resideo Technologies, Inc. *		46,722		983,502
				6,395,442
FOOD - 2.0%
Conagra Brands, Inc.		89,936		3,201,726
Mondelez International, Inc.		53,460		2,244,251
				5,445,977
GAS - 1.9%
Vectren Corp.		75,123		5,373,548
HEALTHCARE-SERVICES - 4.4%
Aetna, Inc.		62,120		12,324,608

See accompanying notes to financial statements.

22

SCHEDULE OF INVESTMENTS

Dunham Monthly Distribution Fund (Continued)

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 81.4% (Continued)
HOLDING COMPANIES - DIVERSIFIED - 0.2%
Constellation Alpha Capital Corp. *		43,102	$	435,330
HOUSEWARES - 0.5%
Newell Brands, Inc.		81,109		1,288,011
INSURANCE - 2.6%
Aspen Insurance Holdings Ltd. ^		128,576		5,384,763
MetLife, Inc.		21,385		880,848
Navigators Group, Inc.		14,191		981,308
				7,246,919
INTERNET - 1.2%
Alphabet, Inc. *		2,417		2,635,932
Pandora Media, Inc. * ^		39,928		673,413
				3,309,345
LEISURE PRODUCTS - 0.0%
YETI Holdings, Inc. *		432		6,882
LODGING - 1.5%
Marriott International, Inc.		19,439		2,272,225
MGM Resorts International		75,237		2,007,323
				4,279,548
MACHINERY - DIVERSIFIED - 0.3%
Xylem, Inc. ^		12,498		819,619
MEDIA - 6.7%
Altice USA, Inc.		115,085		1,877,036
CBS Corp.		60,522		3,470,937
Walt Disney Co.		11,887		1,364,984
Discovery, Inc. * ^		48,227		1,562,072
Twenty-First Century Fox, Inc.		226,775		10,322,798
				18,597,827
MINING - 0.5%
Nevsun Resources, Ltd.		324,990		1,447,700
OIL & GAS - 7.8%
Devon Energy Corp.		39,052		1,265,285
Energen Corp. *		95,196		6,851,256
Marathon Petroleum Corp.		42,555		2,998,000
MEG Energy Corp. *		215,897		1,731,122
Ocean Rig UDW, Inc. *		160,518		4,862,090
Royal Dutch Shell PLC - ADR		65,949		4,167,317
				21,875,070
PACKAGING & CONTAINERS - 4.0%
Bemis Co., Inc.		143,231		6,555,683
KapStone Paper and Packaging Corp.		131,025		4,585,875
				11,141,558
PHARMACEUTICALS - 2.9%
Express Scripts Holding Co. *		82,028		7,954,255
PIPELINES - 2.3%
Dominion Energy Midstream Partners LP		60,022		1,087,599
Energy Transfer LP		1		16
Spectra Energy Partners LP		91,280		3,149,160
Valero Energy Partners LP		49,786		2,090,016
				6,326,791

See accompanying notes to financial statements.

23

SCHEDULE OF INVESTMENTS

Dunham Monthly Distribution Fund (Continued)

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 81.4% (Continued)
REAL ESTATE INVESTMENT TRUSTS - 6.0%
Forest City Realty Trust, Inc.		289,183	$	7,275,844.00
InfraREIT, Inc. *		67,384		1,416,412
LaSalle Hotel Properties		194,578		6,423,020
Macerich Co.		19,288		995,646
Senior Housing Properties Trust		31,825		511,428
Winthrop Realty Trust		102,617		80,041
				16,702,391
RETAIL - 2.3%
Darden Restaurants, Inc.		7,775		828,426
Home Depot, Inc.		11,729		2,062,896
Walmart, Inc.		35,017		3,511,505
				6,402,827
SAVINGS & LOANS - 0.2%
Beneficial Bancorp, Inc.		39,284		614,009
SEMICONDUCTORS - 3.8%
Broadcom, Inc.		10,136		2,265,295
Integrated Device Technology, Inc. *		61,643		2,885,509
Intel Corp.		17,942		841,121
NXP Semiconductors NV		32,638		2,447,524
QUALCOMM, Inc. ^		34,845		2,191,402
				10,630,851
SOFTWARE - 10.2%
Borqs Technologies, Inc. * ^		110,107		440,428
CA, Inc.		180,381		8,001,701
Dun & Bradstreet Corp.		52,469		7,465,289
Microsoft Corp.		30,634		3,272,017
Oracle Corp.		39,746		1,941,195
Red Hat, Inc. *		22,795		3,912,534
SendGrid, Inc. * ^		37,916		1,377,109
Take-Two Interactive Software, Inc. *		8,946		1,152,871
TiVo Corp.		83,979		923,769
				28,486,913
TELECOMMUNICATIONS - 1.0%
Mitel Networks Corp. *		50,965		559,596
Oclaro, Inc. *		99,669		819,279
T-Mobile US, Inc. *		19,862		1,361,540
				2,740,415
TOTAL COMMON STOCKS (Cost - $234,654,325)				227,042,719
EXCHANGE TRADED FUNDS - 6.6%
DEBT EXCHANGE TRADED FUNDS - 5.1%
Health Care Select Sector SPDR Fund ^		21,208		1,881,150
Invesco Senior Loan ETF		112,101		2,579,444
iShares iBoxx $ Investment Grade Corporate Bond		7,811		876,629
iShares MBS ETF		29,091		2,981,536
iShares US Real Estate ETF ^		18,125		1,415,744
SPDR Blackstone / GSO Senior Loan ETF		96,040		4,515,801
TOTAL DEBT EXCHANGE TRADED FUNDS - (Cost - $14,556,590)				14,250,304
EQUITY EXCHANGE TRADED FUND - 1.5%
SPDR S&P Regional Banking ETF ^		78,809		4,254,898
TOTAL EQUITY EXCHANGE TRADED FUND - (Cost - $4,089,555)
TOTAL EXCHANGE TRADED FUNDS - (Cost - $18,646,145)				18,505,202

See accompanying notes to financial statements.

24

SCHEDULE OF INVESTMENTS

Dunham Monthly Distribution Fund (Continued)

October 31, 2018

Security				Shares		Value
RIGHTS - 0.0%
Nexstar Broadcasting Group, Inc. *				87,600		$	876
TOTAL RIGHTS (Cost - $26,280)
WARRANTS - 0.0%
Borqs Technologies, Inc. *				105,552			8,444
TOTAL WARRANTS (Cost - $8,254)
				Exercise
	Counterparty	Contracts**	Notional Amount	Price	Expiration Date
PURCHASED PUT OPTIONS - 0.6%
S&P 500 Index	JP Morgan	87	25,230,000	2,900.00	12/21/2018		1,701,720
TOTAL PURCHASED PUT OPTIONS (Cost - $559,699)
					Interest
				Shares	Rate
SHORT-TERM INVESTMENT - 41.3%
MONEY MARKET FUND - 41.3%
Fidelity Investments Money Market Fund - Class I				115,223,319	1.58% +		115,223,319
TOTAL SHORT-TERM INVESTMENT (Cost - $115,223,319)
COLLATERAL FOR SECURITIES LOANED - 4.7%
Mount Vernon Prime Portfolio # (Cost - $13,208,219)				13,208,219	2.39% +		13,208,219
TOTAL INVESTMENTS - 134.5% (Cost - $382,326,242)						$	375,690,499
LIABILITIES IN EXCESS OF OTHER ASSETS - (34.5)%							(96,642,283	)
NET ASSETS - 100.0%						$	279,048,216

* 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.

ETF - Exchange Traded Fund

LLC - Limited Liability Company

PLC - Public Limited Company

REITS - Real Estate Investment Trusts

+ Variable rate security. Interest rate is as of October 31, 2018.

^ All or a portion of these securities are on loan. Total loaned securities had a value of $13,073,633 at October 31, 2018.

# 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%.

					Exercise
Security	Counterparty	Contracts**	Notional Amount		Price		Expiration Date	Value
WRITTEN CALL OPTIONS - (0.1)%
Endocyte, Inc	JP Morgan	604	$	1,449,600	$	24.00	4/18/2019	$	12,080
MGM Resorts International MGM	JP Morgan	534		1,495,200.00		28.00	11/16/2018		23,496
S&P 500 Index	JP Morgan	87		7,830,000		900.00	12/21/2018		64,815
Take- Two Interactive Software, Inc.	JP Morgan	89		1,112,500		125.00	11/16/2018		86,152
TOTAL WRITTEN CALL OPTIONS - (Premiums Received - $806,730)									186,543
					Shares
SECURITIES SOLD SHORT * - (28.4)%
AEROSPACE/DEFENSE - (0.8)%
United Technologies Corp.						17,681			2,196,157
AIRLINES - (0.1)%
American Airlines Group, Inc.						5,810			203,815
AUTO MANUFACTURERS - (0.2)%
Ford Motor Co.						24,276			231,836
Tesla, Inc.						650			219,258
									451,094
BANKS - (1.2)%
Cadence Bancorp LLC						158,134			3,488,436

See accompanying notes to financial statements.

25

SCHEDULE OF INVESTMENTS

Dunham Monthly Distribution Fund (Continued)

October 31, 2018

Security	Shares		Value
SECURITIES SOLD SHORT* - (28.4)% (Continued)
BUILDING MATERIALS - (0.2)%
Martin Marietta Materials, Inc.		1,226	$	209,989
Vulcan Materials Co.		2,031		205,415
				415,404
CHEMICALS - (1.4)%
International Flavors & Fragrances, Inc.		13,928		2,014,824
Linde PLC ^		11,793		1,951,388
				3,966,212
COMPUTERS - (0.1)%
Lumentum Holdings, Inc.		6,645		363,149
ELECTRIC - (0.4)%
Dominion Energy, Inc.		14,813		1,057,944
ELECTRONICS - (0.0)%
Fortive Corp		2		149
EQUITY EXCHANGE TRADED FUNDS - (5.2)%
Consumer Staples Select Sector SPDR Fund		69,663		3,832,162
Consumer Discretionary Select Sector SPDR Fund		13,540		1,426,845
Energy Select Sector SPDR Fund		33,771		2,268,060
Industrial Select Sector SPDR Fund		15,044		1,051,275
iShares Russell 2000 ETF		13,909		2,086,767
SPDR S&P 500 ETF Trust		14,484		3,919,805
				14,584,914
FOOD - (1.4)%
Conagra Brands Inc		89,936		3,201,722
General Mills Inc		5,309		232,534
JM Smucker Co.		2,219		240,362
Kraft Heinz Co.		4,108		225,817
				3,900,435
FOREST PRODUCTS & PAPER - (0.1)%
International Paper Co.		4,586		208,021
HEALTHCARE-SERVICES - (1.5)%
Cigna Corp.		19,966		4,268,930
INSURANCE - (0.5)%
Berkshire Hathaway, Inc.		6,978		1,432,444
INTERNET - (0.8)%
Netflix Inc		1,990		600,542
Symantec Corp		10,767		195,421
Twilio Inc		18,391		1,383,371
				2,179,334
LODGING - (0.1)%
Las Vegas Sands Corp		3,853		196,619
MEDIA - (0.7)%
Liberty Global PLC		15,666		392,277
Sirius XM Holdings, Inc.		117,166		705,339
Walt Disney Co.		8,701		999,136
				2,096,752
MINING - (0.1)%
Newmont Mining Corp.		7,579		234,343

See accompanying notes to financial statements.

26

SCHEDULE OF INVESTMENTS

Dunham Monthly Distribution Fund (Continued)

October 31, 2018

Security	Shares		Value
SECURITIES SOLD SHORT* - (28.4)% (Continued)
OIL & GAS - (5.1)%
Apache Corp.		16,170	$	611,711
Diamondback Energy, Inc.		35,618		4,002,038
Exxon Mobil Corp.		62,877		5,010,039
Husky Energy, Inc.		74,526		1,056,104
Pioneer Natural Resources Co.		4,232		623,247
Transocean Ltd		260,204		2,864,846
				14,167,985
PACKAGING & CONTAINERS - (2.3)%
Amcor Ltd		693,598		6,538,116
PHARMACEUTICALS - (2.1)%
CVS Health Corp		41,940		3,036,037
Takeda Pharmaceutical Co. Ltd.		71,869		2,910,295
				5,946,332
PIPELINES - (1.1)%
Enbridge, Inc.		96,090		2,989,360
REAL ESTATE INVESTMENT TRUSTS - (1.5)%
Annaly Capital Management, Inc.		1		10
Pebblebrook Hotel Trust		125,833		4,241,831
				4,241,841
SAVINGS & LOANS - (0.2)%
WSFS Financial Corp		11,836		503,385
SEMICONDUCTORS - (0.5)%
Cabot Microelectronics Corp		1,996		194,850
KLA-Tenco Corp.		13,987		1,280,370
				1,475,220
SOFTWARE - (0.4)%
Salesforce.com, Inc.		1		137
VMware, Inc.		7,295		1,031,440
				1,031,577
TELECOMMUNICATIONS - (0.4)%
AT&T, Inc.		32,298		990,903
Vodafone Group PLC		10,570		200,090
				1,190,993
TOTAL SECURITIES SOLD SHORT - (Proceeds - $82,024,956)			$	79,328,961

* Non-Income producing security.

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

ETF - Exchange Traded Fund

LLC - Limited Liability Company

LP - Limited Partnership

PLC - Public Limited Company

Portfolio Composition * - (Unaudited)
Short-Term Investment	31.0	%	Consumer, Cyclical	3.8	%
Technology	13.1	%	Collateral For Securities Loaned	3.5	%
Consumer, Non-Cyclical	10.9	%	Basic Materials	1.5	%
Financial	8.4	%	Utilities	1.4	%
Energy	7.5	%	Purchased Options	0.5	%
Industrial	6.9	%	Diversified	0.1	%
Communications	6.5	%	Warrants	0.0	%
Exchange Traded Funds	4.9	%	Rights	0.0	%
			Total	100.0	%

* Based on total value of investments as of October 31, 2018

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

See accompanying notes to financial statements.

27

Dunham Dynamic Macro Fund (Unaudited)

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

It was a disappointing fiscal year ended October 31, 2018 for most asset classes around the globe. There were periods of strong equity growth, especially in the United States, as investors focused on a strong domestic economy, encouraging earnings releases, and some developments on the geopolitical front. These periods of growth were interrupted by two large spikes of volatility in February and October. During these periods, investors could not overlook all the geopolitical volatility such as trade tensions, political attacks on NATO and the Federal Reserve, and leaving the Iran deal, to name a few. Additionally weighing on investors is the concern that the Federal Open Market Committee (FOMC) will raise interest rates too quickly, possibly pushing the United States into a recession. These concerns were exacerbated by a hawkish tone from the FOMC to cap off the fiscal year, as well as a statement from the FOMC indicating that they have yet to clearly define the neutral rate they are targeting.

Over the fiscal year ended October 31, 2018, U.S. stocks, as measured by the S&P 500 Index, increased 7.3 percent, after surging 23.6 percent over the previous fiscal year. International stocks, as measured by the MSCI ACWI ex US Index, lost 8.2 percent over the most recent fiscal year, after surging 23.6 percent in the previous fiscal year. Domestic investment-grade bonds, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, fell 2.1 percent, while higher-yielding bonds, as measured by the ICE Bank of America Merrill Lynch U.S. Cash Pay High-Yield Index, increased 0.8 percent. International bonds also did not fare well, falling 2.1 percent, as measured by the Bloomberg Barclays Global Aggregate Ex-USD Total Return Index. Meanwhile, the yield on the 10-year U.S. Treasury fluctuated within a relatively narrow range of 76 basis points, beginning the fiscal year at 2.38 percent, once again breaching the 3 percent mark late in the fiscal period, before settling at 3.14 percent.

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 asset classes, with the ability to hold long or short positions, depending on the risk/reward profile of the investment. The overall strategy is divided into three sub-strategies: growth assets, which includes U.S. equities, developed markets ex-U.S. equities, and high-yield bonds; defensive assets, which includes exposure to U.S. bonds, developed markets ex-U.S. bonds, and cash, with a diversifying/hedging component utilized to attempt to achieve the desired downside protection; and real assets, which consists of Treasury Inflation- Protected Securities (TIPS) and commodities.

The growth asset strategy detracted from performance over the fiscal quarter and fiscal year ended October 31, 2018, after strongly contributing to performance over the previous fiscal year. The Fund’s largest growth exposure was dedicated to developed ex-U.S countries. There were very few places to hide globally over the fiscal year. The iShares Currency Hedged MSCI Japan ETF (HEWJ) (holding weight*: 8.67 percent) declined 3.7 percent, and the iShares Hedged MSCI Germany ETF (HEWG) (holding weight*: 5.34 percent) plummeted 10.5 percent. This allocation was reduced over the fiscal year and moved further into U.S. equities. This shift benefited the Fund as U.S. equities outperformed international developed equities. This exposure was implemented through the SPDR S&P 500 ETF Trust (SPY) (holding weight*: 24.31 percent), which increased 7.2 percent. The growth exposure’s weighting in high- yield bonds also helped mitigate some losses as the SPDR Bloomberg Barclays High-Yield Bond ETF (JNK) (holding weight*: 5.25 percent) fell just 0.3 percent. High-yield bonds benefitted from low default rates, strong earnings releases, and limited issuance.

The defensive asset strategy also detracted from Fund performance over the fiscal year, albeit not as significantly as the growth asset strategy. Earlier in the year, the diversification benefits of bonds was coming into question as the correlation between stocks and bonds increased. At that time, the Sub-Adviser utilized cash as a hedge. As the correlations between stocks and bonds once again turned negative, the Sub-Adviser moved back approximately 20 percent into bonds. Unfortunately, as volatility once again spiked in the final three-month period of the fiscal year, the correlation between stocks and bonds spiked along with it. As a result, both the growth and defensive asset strategy fell in the final month of the fiscal year. Fortunately, the Fund received some positive contributions from the options positions, as well as the short Japan and short Germany positions.

The real assets strategy, while the smallest allocation in the Fund, was the only positive performing strategy over the first half of the fiscal year. In the second half of the fiscal year and final fiscal quarter, this allocation slightly detracted. Real assets fluctuated from 4.8 percent at the beginning of the fiscal period, and finished at an 11.1 percent allocation at the end of the fiscal year. The goal of the strategy is to hedge against inflation. Inflation hedges are accessed through TIPS via the iShares TIPS ETF (TIP) (holding weight*: 5.10 percent), and commodities via the iShares Commodities Select Strategy ETF (COMT) (holding weight*: 6.02 percent). Over the fiscal year, TIP fell 1.4 percent while COMT increased 8.9 percent.

The Sub-Adviser is optimistic for opportunities within the asset categories the Fund invests in for the rest of 2018 and 2019, albeit with continued volatility. The Sub-Adviser remains steadfast in its belief 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 systematic risk and lower correlation than traditional equity investments.

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

Growth of $100,000 Investment

Total Returns as of October 31, 2018
			Annualized Since
	One	Annualized	Inception
	Year	Five Years	(4/30/2010)
Class N	(6.39)%	0.11%	0.76%
Class C	(7.29)%	(0.90)%	(0.24)%
Class A with load of 5.75%	(11.92)%	(1.33)%	(0.20)%
Class A without load	(6.52)%	(0.16)%	0.50%
IQ Hedge Global Macro Beta Index	0.18%	0.43%	1.34%
Morningstar Multialternative Category	(1.98)%	0.70%	1.19%

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 1.98% for Class N, 2.98% for Class C and 2.23% for Class A. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of Fund shares or Fund distributions. For performance information current to the most recent month-end, please call 1- 800-442-4358 or visit our website www.dunham.com.

28

SCHEDULE OF INVESTMENTS

Dunham Dynamic Macro Fund

October 31, 2018

Security	Shares		Value
EXCHANGE TRADED FUNDS - 54.8%
COMMODITY EXCHANGE TRADED FUNDS - 6.0%
iShares Commodities Select Strategy ETF		73,626	$	2,727,843
DEBT EXCHANGE TRADED FUNDS - 10.4%
iShares TIPS Bond ETF		21,232		2,310,890
SPDR Bloomberg Barclays High Yield Bond ETF ^		67,660		2,378,926
				4,689,816
EQUITY EXCHANGE TRADED FUNDS - 38.4%
iShares Currency Hedged MSCI Germany ETF		93,905		2,418,993
iShares Currency Hedged MSCI Japan ETF		126,182		3,926,784
SPDR S&P 500 ETF Trust ^		40,707		11,016,535
				17,362,312
TOTAL EXCHANGE TRADED FUNDS (Cost - $20,426,579)				24,779,971

				Expiration	Exercise
	Counter Party	Contracts	Notional	Date	Price
PURCHASED OPTIONS * + - 6.2%
CALL OPTION ON FUTURES PURCHASED - 5.6%
US 10 Year Future	Goldman Sachs	242	252,600	11/26/2018	US $108	2,525,875
PUT OPTIONS ON FUTURES PURCHASED - 0.6%
Euro-Bund Option	Goldman Sachs	30	50,220	11/26/2018	EUR $173	17,676
S&P 500 E-Mini Option	Goldman Sachs	100	238,000	3/18/2019	US $2,250	119,000
S&P 500 E-Mini Option	Goldman Sachs	50	163,500	6/24/2019	US $2,150	81,750
Swiss Market Index Option	Morgan Stanley	70	1,420,524	12/21/2018	CHF $8,921	14,122
Swiss Market Index Option	Morgan Stanley	20	351,095	12/21/2018	CHF $8,951	3,490
Swiss Market Index Option	Morgan Stanley	110	2,133,601	12/21/2018	CHF $8,997	21,211
Swiss Market Index Option	Morgan Stanley	40	854,988	12/21/2018	CHF $9,042	8,500
						265,749
TOTAL PURCHASED OPTIONS (Cost - $3,184,890)						2,791,624

	Principal	Discount
	Amount ($)	Rate (%)		Maturity
SHORT-TERM INVESTMENTS - 38.5%
U.S. GOVERNMENT SECURITIES - 28.5%
US Treasury Bill	1,590,000	0.3995		12/6/2018		1,586,771
US Treasury Bill	11,412,000	1.1236		3/14/2019		11,314,766
						12,901,537
	Shares	Interest Rate (%)
MONEY MARKET - 10.0%
Morgan Stanley Institutional Liquidity Fund	4,527,709	2.0500	^^			4,527,709
TOTAL SHORT-TERM INVESTMENTS - (Cost - $17,431,354)						17,429,246
COLLATERAL FOR SECURITIES LOANED - 29.2%
Mount Vernon Prime Portfolio # (Cost - $13,226,350)	13,226,350	2.3900	^^			13,226,350
TOTAL INVESTMENTS - 128.7% (Cost - $54,269,173)					$	58,227,191
LIABILITIES IN EXCESS OF OTHER ASSETS - (28.7)%						(12,974,887	)
NET ASSETS - 100.0%					$	45,252,304

See accompanying notes to financial statements.

29

SCHEDULE OF INVESTMENTS

Dunham Dynamic Macro Fund (Continued)

October 31, 2018

								Unrealized
						Expiration		Appreciation
Open Futures Contracts	Counter Party	Contracts	Notional			Date		(Depreciation)
LONG FUTURES CONTRACTS ** - (1.6)%
Amsterdam Index Future	Goldman Sachs	15	$	1,550,400		11/16/2018		$	(13,924	)
AUST 10 Year Bond Future	Goldman Sachs	1		129,413		12/17/2018			—
CAC 40 10 Euro Future	Goldman Sachs	15		763,500		11/16/2018			5,924
CAN 10 Year Bond Future	Goldman Sachs	63		8,325,450		12/18/2018			(52,305	)
Euro Bund Future	Goldman Sachs	10		1,602,600		12/6/2018			435
FTSE 100 Index Future	Goldman Sachs	71		5,048,810		12/21/2018			(116,290	)
FTSE/MIB Index Future	Goldman Sachs	24		2,278,200		12/21/2018			(194,274	)
Hang Seng Index Future	Goldman Sachs	7		8,718,850		11/29/2018			2,631
Long Gilt Future	Goldman Sachs	4		489,640		12/27/2018			9,567
MSCI Emerging Markets Future	Goldman Sachs	18		861,030		12/21/2018			(76,275	)
S&P/TSX 60 IX Future	Goldman Sachs	31		5,544,040		12/20/2018			(253,856	)
S&P 500 E-mini Future	Goldman Sachs	25		3,388,875		12/21/2018			(2,862	)
Topix Index Future	Goldman Sachs	4		65,640,000		12/13/2018			(448	)
US 10 Year Note (CBT)	Goldman Sachs	42		4,974,375		12/19/2018			(6,497	)
TOTAL FUTURES CONTRACTS PURCHASED									(698,174	)
SHORT FUTURES CONTRACTS ** - (0.0)%
10 Year Mini JGB Future	Goldman Sachs	(48)		(722,544,000	)	12/12/2018			(11,747	)
Dax Index Future	Goldman Sachs	(5)		(1,432,188	)	12/21/2018			10,499
IBEX 35 Index Future	Goldman Sachs	(3)		(266,592	)	11/16/2018			(999	)
SPI 200 Futures	Goldman Sachs	(19)		(2,754,050	)	12/20/2018			7,812
TOTAL FUTURES CONTRACTS SOLD									5,565
							Exercise Price	Value
OPTIONS WRITTEN *+ - (0.1)%
WRITTEN CALL FUTURE OPTIONS - (0.1)%
Swiss Market Index Option	Morgan Stanley	(70)		(1,420,524	)	12/21/2018	CHF $8,921		(14,122	)
Swiss Market Index Option	Morgan Stanley	(20)		(467,823	)	12/21/2018	CHF $8,951		(7,182	)
Swiss Market Index Option	Morgan Stanley	(110)		(2,265,870	)	12/21/2018	CHF $8,997		(4,651	)
Swiss Market Index Option	Morgan Stanley	(40)		(722,419	)	12/21/2018	CHF $9,042		(22,525	)
TOTAL WRITTEN FUTURE OPTIONS - (Premium - $47,938)									(48,480	)

CHF - Swiss Franc

ETF - Exchange Traded Fund

EUR - Euro

* Non income producing security.

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

^ All or a portion of these securities are on loan. Total loaned securities had a value of $13,066,387.

^^ Variable rate security. Interest rate is as of October 31, 2018.

** 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.

# 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, 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%.

See accompanying notes to financial statements.

30

Dunham High-Yield Bond Fund (Unaudited)

Message from the Sub-Adviser (PineBridge Investments LLC)

High-yield bonds, as measured by the ICE BofA ML US Cash Pay High-Yield Index, outperformed investment-grade corporate bonds, as measured by the ICE BofA ML US Corporate Index, and Treasury bonds, as measured by the ICE BofA ML US Treasury Index, during the most recent fiscal quarter and fiscal year. In the three-month period ended October 31, 2018, high- yield bonds fell 0.4 percent, investment-grade corporate bonds fell 1.1 percent, while Treasury bonds declined 0.7 percent. This outperformance of high -yield bonds caps off a relatively strong outperformance in the full fiscal year, when high-yield bonds increased 0.8 percent versus a 2.8 percent decline for investment-grade corporate bonds and a decline of 2.1 percent for Treasury bonds. In 2017, the Fed increased the Fed Funds rate three times for a total increase of 0.75 percent. For 2018, investors were given guidance that three increases could be on the way with a possibility of a fourth. The first three of these increases occurred on March, June and September with the possibility of another one coming in December.

The first half of the fiscal year was a tale of two halves for the high-yield market. In the first fiscal quarter, Congress made surprising progress on U.S. tax reform, supporting investors moving capital back into the asset class currently offering attractive spread levels and all-in yields. Positive investor sentiment continued into December as the market was able to easily absorb the passage of the GOP tax bill, a Fed rate hike, and multi-year highs in oil prices. The narrative for corporate fundamentals continued to improve amid upgrades to global growth expectations and optimism around the impact of GOP tax reform. However, toward the beginning of the second fiscal quarter, optimism began to wane as U.S. Treasury yields surged to reach the highest levels seen since 2014. Negative investor sentiment translated into outflows from the asset class, creating a negative technical environment and driving spreads wider. The volatility continued in the third fiscal quarter. Most topical were investor concerns related to U.S. trade policy and the potential impact on global growth expectations. In the final quarter of the fiscal year, equity markets suffered their largest monthly decline in seven years in October, as investors faced softening growth in Europe and emerging markets, Saudi Arabia-driven geopolitical concerns, Italy’s budget woes, Brexit, and a multi-year high in the U.S. treasury rate. Amid the turmoil, credit spreads in high yield debt markets, while wider, actually held in relatively well. Primary issuance remained subdued in October in response to heightened market volatility. The high-yield market remains significantly undersupplied so far in 2018, contributing to a supportive technical environment.

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 Bloomberg Barclays US High-Yield Ba/B 2% Issuer Capped Index, experienced a 156 basis point increase in yield from beginning to end of the fiscal year. Although the yield has increased to 6.23 percent since the beginning of the fiscal year, it is still well below the five year high of 7.63 percent that occurred in January 2016.

For the first three quarters of the fiscal year, the Fund benefited relatively from security selection while sector selection served as a slight detraction for the period. For the final quarter of the fiscal year, security selection was the main culprit, with sector selection having a relatively muted impact. From a sector selection standpoint, the Fund benefited from the cash position and overweight allocation to the REIT sector. However, these contributions were roughly offset by the impact of an underweight allocation to consumer non-cyclicals and off benchmark holdings. From a security selection standpoint, contributions from energy names were more than offset by detractions in the basic industry, finance company, and technology sectors. Two holdings that detracted from Fund performance over the most recent fiscal quarter and year were the Sanchez Energy Corp 6.125% 1/15/2023 (79970YAD7) (holding weight*: 0.13 percent) and the Altice Luxembourg SA 7.625% 02/15/25(02154VAB7) (holding weight*: 0.87 percent). These bonds detracted 50.1 percent and 14.7 percent, respectively.

The largest positions within the Fund came from the communications sector and had a meaningful impact on performance. For example, the Fund continued to hold the Sprint Corp. 7.875% bond maturing in 2023 (85207UAF2) (holding weight*: 3.01 percent). Sprint is currently the fourth largest wireless carrier in the United States, and during the most recent fiscal quarter, the Sprint Corp. bond increased 2.1 percent, resulting in a 2.7 percent increase for the full fiscal year. The selloff in the first fiscal quarter was triggered with the withdrawal of Sprint’s acquisition of T-Mobile in mid-November. The subsequent rally was sparked by the announcement of T-Mobile’s acquisition of Sprint. The second largest holding in the Fund at the end of the most recent fiscal year was the CSC Holdings LLC 5.5 4/15/27 (126307AQ0) (holding weight*: 1.53 percent), a subsidiary of Altice SUA Inc. (ATUS) (not held) that provides cable and internet services to consumers. During the most recent fiscal year, the CSC Holding bond detracted from performance within the Fund, declining 1.4 percent.

The Sub-Adviser believes that sales and earnings should remain strong for the next two quarters; however, momentum has peaked suggesting slower earnings growth ahead. At an option-adjusted spread of 350-375, valuations imply a default rate of 2 percent. It believes that value looks fair versus the cycle and marginally cheap over the six-month horizon. The technical backdrop remains positive overall, with volatile flows and continued light primary calendar. Trade war fears and commodity price movement may continue to have outsized influence day-to-day. However, the Sub-Adviser believes that investors will experience sustained gains from credit and see credit spreads tighten once the equity markets find stability.

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

Growth of $100,000 Investment

Total Returns as of October 31, 2018
		Annualized	Annualized	Annualized Since
	One Year	Five Years	Ten Years	Inception(7/1/05)
Class N	(0.80)%	2.92%	7.81%	4.92%
Class C	(1.43)%	2.20%	7.04%	4.15%
Class A with load of 4.50%	(5.41)%	1.71%	7.05%	3.98%*
Class A without load	(1.04)%	2.65%	7.55%	4.39%*
BofA ML BB-B U.S. Non-Distressed HY Index	0.34%	4.18%	8.87%	5.98%
Barclays U.S. Corporate High-Yield Bond	0.28%	4.23%	9.71%	6.40%
Ba/B 2% Issuer Capped Index** Morningstar High-Yield Bond Category	0.13%	3.35%	8.93%	5.47%

* Class A commenced operations on January 3, 2007.

** Change in the Fund’s benchmark. As a result, the Fund’s performance is compared to both indices in the table above.

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.

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. Investors cannot invest directly in an index or benchmark.

As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including the cost of underlying funds, are 1.20% 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

31

SCHEDULE OF INVESTMENTS

Dunham High-Yield Bond Fund

October 31, 2018

	Principal		Interest		Maturity
Security	Amount		Rate %		Date	Value
BONDS & NOTES - 96.2%
AEROSPACE/DEFENSE - 0.9%
Triumph Group, Inc.	$	783,000		4.875	4/1/2021	$	741,423
UAL 2007-1 Pass Through Trust		245,888		6.636	7/2/2022		257,875
							999,298
AUTO MANUFACTURERS - 0.9%
Allison Transmission, Inc. - 144A		551,000		5.000	10/1/2024		536,189
JB Poindexter & Co., Inc. - 144A		528,000		7.125	4/15/2026		546,480
							1,082,669
AUTO PARTS & EQUIPMENT - 0.7%
Delphi Technologies PLC - 144A		890,000		5.000	10/1/2025		805,450
BUILDING MATERIALS - 0.5%
Standard Industries, Inc. - 144A		550,000		6.000	10/15/2025		543,125
CHEMICALS - 4.5%
Consolidated Energy - 144A		685,000		6.875	6/15/2025		700,413
GCP Applied Technologies - 144A		211,000		5.500	4/15/2026		204,406
Kraton Polymers LLC. - 144A		855,000		7.000	7/15/2025		805,838
NOVA Chemicals Corp. - 144A		1,150,000		5.000	5/1/2025		1,055,125
OCI NV - 144A		563,000		6.625	4/15/2023		579,186
Rayonier AM Products, Inc. -144A		700,000		5.500	6/1/2024		658,000
Starfruit US -144A ^		628,000		8.000	10/1/2026		610,730
Trinseo Materials Operating SCA - 144A		555,000		5.375	9/1/2025		515,762
							5,129,460
COAL - 0.7%
SunCoke Energy Partners LP - 144A		810,000		7.500	6/15/2025		826,200
COMMERCIAL SERVICES - 4.3%
ADT Corp.		104,000		6.250	10/15/2021		107,640
ADT Corp.		761,000		4.125	6/15/2023		707,730
Ahern Rentals, Inc. - 144A		565,000		7.375	5/15/2023		525,450
Cimpress NV - 144A		830,000		7.000	6/15/2026		833,113
Graham Holdings Co. - 144A		527,000		5.750	6/1/2026		532,270
Great Lakes Dredge & Dock Corp.		535,000		8.000	5/15/2022		547,038
Jurassic Holdings III - 144A ^		555,000		6.875	2/15/2021		521,700
Refinitiv US Holdings, Inc. - 144A		179,000		6.250	5/15/2026		178,329
Refinitiv US Holdings, Inc. -144A		349,000		8.250	11/15/2026		340,275
United Rentals North AM		585,000		6.500	12/15/2026		592,892
							4,886,437
COMPUTERS - 2.6%
Dell International LLC - 144A		110,000		7.125	6/15/2024		116,507
Diebold Nixdorf, Inc. ^		773,000		8.500	4/15/2024		486,990
Everi Payments, Inc. - 144A		725,000		7.500	12/15/2025		723,188
Harland Clarke Holdings Corp. - 144A		835,000		8.375	8/15/2022		757,763
Seagate HDD Cayman		925,000		4.875	3/1/2024		876,132
							2,960,580
COSMETICS/PERSONAL CARE - 1.0%
Coty, Inc. - 144A ^		575,000		6.500	4/15/2026		537,625
First Quality Finance Co., Inc. - 144A		600,000		5.000	7/1/2025		553,500
							1,091,125
DISTRIBUTION/WHOLESALE - 0.7%
H&E Equipment Services, Inc.		820,000		5.625	9/1/2025		783,100

See accompanying notes to financial statements.

32

SCHEDULE OF INVESTMENTS

Dunham High-Yield Bond Fund (Continued)

October 31, 2018

	Principal		Interest		Maturity
Security	Amount		Rate %		Date	Value
BONDS & NOTES - 96.2% (Continued)
DIVERSIFIED FINANCIAL SERVICES - 5.2%
Alliance Data Systems Corp. - 144A	$	850,000		5.875	11/1/2021	$	866,830
Credit Acceptance Corp.		266,000		7.375	3/15/2023		275,310
Enova International, Inc. - 144A		765,000		8.500	9/1/2024		722,925
Enova International, Inc. - 144A		400,000		8.500	9/15/2025		381,000
LPL Holdings, Inc. - 144A		775,000		5.750	9/15/2025		754,656
Navient Corp.		1,075,000		5.625	8/1/2033		879,544
Quicken Loans, Inc. - 144A ^		875,000		5.750	5/1/2025		847,656
Springleaf Finance Corp.		800,000		6.875	3/15/2025		768,000
Springleaf Finance Corp.		238,000		7.125	3/15/2026		225,951
Travelport Corporate Finance PLC - 144A		278,000		6.000	3/15/2026		279,390
							6,001,262
ELECTRIC - 0.5%
Clearway Energy Operating LLC		565,000		5.375	8/15/2024		561,822
ELECTRICAL COMPONENTS & EQUIPMENT - 1.1%
Energizer Gamma Acquisition, Inc. - 144A ^		575,000		6.375	7/15/2026		576,438
EnerSys - 144A		719,000		5.000	4/30/2023		713,608
							1,290,046
ELECTRONICS - 1.3%
Ingram Micro, Inc. +		817,000		5.450	12/15/2024		797,435
TTM Technologies, Inc. - 144A		750,000		5.625	10/1/2025		733,125
							1,530,560
ENERGY - 0.6%
Pattern Energy Group, Inc. - 144A		739,000		5.875	2/1/2024		735,305
ENGINEERING & CONSTRUCTION - 1.7%
frontdoor, Inc.- 144A		560,000		6.750	8/15/2026		572,600
Tutor Perini Corp. - 144A		850,000		6.875	5/1/2025		853,188
Weekley Homes LLC ^		547,000		6.000	2/1/2023		527,855
							1,953,643
ENTERTAINMENT - 2.1%
Eldorado Resorts - 144A		740,000		6.000	9/15/2026		726,606
International Game Technology PLC - 144A		520,000		6.500	2/15/2025		529,100
LHMC Finco Sarl - 144A		605,000		7.875	12/20/2023		611,353
Scientific Games International, Inc. - 144A		605,000		7.875	12/20/2023		550,175
							2,417,234
FOOD - 2.7%
Albertsons Companies LLC		1,042,000		5.750	3/15/2025		922,170
JBS USA LLC - 144A		808,000		5.875	7/15/2024		796,082
JBS USA LLC - 144A		204,000		5.750	6/15/2025		196,605
Land O’ Lakes Capital Trust - 144A		318,000		7.450	3/15/2028		344,633
Pilgrim’s Pride Corp. - 144A		880,000		5.875	9/30/2027		800,800
							3,060,290
FOREST PRODUCTS & PAPER - 0.2%
Cascades, Inc. - 144A		183,000		5.500	7/15/2022		182,543
Cascades, Inc. - 144A		102,000		5.750	7/15/2023		100,980
							283,523

See accompanying notes to financial statements.

33

SCHEDULE OF INVESTMENTS

Dunham High-Yield Bond Fund (Continued)

October 31, 2018

	Principal		Interest		Maturity
Security	Amount		Rate %		Date	Value
BONDS & NOTES - 96.2% (Continued)
HEALTHCARE- PRODUCTS - 0.3%
Ortho-Clinical Diagnostics, Inc. - 144A	$	331,000		6.625	8/15/2022	$	319,746
HEALTHCARE-SERVICES - 2.6%
Centene Escrow I Corp. - 144A		547,000		5.375	6/1/2026		556,573
Community Health Systems, Inc. ^		213,000		5.125	8/1/2021		202,883
HCA, Inc.		1,012,000		5.375	2/1/2025		1,020,855
HCA, Inc.		300,000		5.250	6/15/2026		306,000
MEDNAX, Inc. - 144A		907,000		5.250	12/1/2023		908,134
							2,994,445
HOME BUILDERS - 1.1%
Mattamy Group Corp. - 144A		743,000		6.500	10/1/2025		702,135
William Lyon Homes, Inc.		547,000		6.000	9/1/2023		501,873
							1,204,008
HOUSEHOLD PRODUCTS - 0.5%
Central Garden & Pet Co.		600,000		5.125	2/1/2028		555,000
INSURANCE - 0.5%
AmWINS Group, Inc. - 144A		580,000		7.750	7/1/2026		597,400
INTERNET - 1.1%
Cogent Communications Group, Inc. - 144A		705,000		5.375	3/1/2022		712,931
Netflix, Inc.		563,000		5.875	2/15/2025		573,613
							1,286,544
INVESTMENT COMPANIES - 0.5%
FS Energy & Power Fund - 144A		542,000		7.500	8/15/2023		550,943
IRON/STEEL - 2.1%
AK Steel Corp. ^		475,000		6.375	10/15/2025		425,125
Cleveland-Cliffs, Inc. - 144A ^		325,000		4.875	1/15/2024		311,188
Cleveland-Cliffs, Inc.		600,000		5.750	3/1/2025		569,250
Commercial Metals Co. - 144A		462,000		5.750	4/15/2026		444,675
United States Steel Corp. ^		625,000		6.875	8/15/2025		615,625
							2,365,863
LODGING - 0.8%
Wyndham Worldwide Corp. +		575,000		5.400	4/1/2024		556,313
Wyndham Worldwide Corp. +		410,000		5.750	4/1/2027		381,813
							938,126
MACHINERY-CONSTRUCTION & MINING - 0.5%
Terex Corp. - 144A ^		559,000		5.625	2/1/2025		532,448
MACHINERY-DIVERSIFIED - 0.4%
Cleaver-Brooks, Inc. - 144A		419,000		7.875	3/1/2023		422,143
MEDIA - 9.7%
Altice Financing SA - 144A		825,000		7.500	5/15/2026		777,562
Altice France SA - 144A		885,000		7.375	5/1/2026		850,432
Altice France SA - 144A		213,000		8.125	2/1/2027		211,403
Altice Luxembourg SA - 144A		1,150,000		7.625	2/15/2025		984,688
Belo Corp.		676,000		7.750	6/1/2027		723,320
Block Communications, Inc. - 144A		898,000		6.875	2/15/2025		914,837
CCO Holdings LLC - 144A		232,000		5.875	4/1/2024		234,610
CCO Holdings LLC - 144A		275,000		5.375	5/1/2025		269,844

See accompanying notes to financial statements.

34

SCHEDULE OF INVESTMENTS

Dunham High-Yield Bond Fund (Continued)

October 31, 2018

	Principal		Interest		Maturity
Security	Amount		Rate %		Date	Value
BONDS & NOTES - 96.2% (Continued)
MEDIA - 9.7% (Continued)
CCO Holdings LLC - 144A ^	$	378,000		5.000	2/1/2028	$	353,194
CSC Holdings LLC - 144A		1,800,000		5.500	4/15/2027		1,732,500
DISH DBS Corp. ^		825,000		5.000	3/15/2023		724,969
EW Scripps Co. - 144A		579,000		5.125	5/15/2025		545,707
Gray Television, Inc. - 144A		482,000		5.125	10/15/2024		458,502
Gray Television, Inc. - 144A		103,000		5.875	7/15/2026		99,106
McGraw-Hill Global Education Holdings LLC - 144A ^		630,000		7.875	5/15/2024		539,437
Sirius XM Radio, Inc. - 144A		560,000		5.375	7/15/2026		548,800
Univision Communications, Inc. - 144A		885,000		5.125	5/15/2023		835,882
UPCB Finance IV Ltd. - 144A		300,000		5.375	1/15/2025		292,650
							11,097,443
METAL FABRICATE - 1.2%
Novelis Corp. - 144A		650,000		6.250	8/15/2024		645,125
Novelis Corp. - 144A		725,000		5.875	9/30/2026		685,125
							1,330,250
MINING - 1.9%
First Quantum Minerals Ltd. - 144A		473,000		7.250	4/1/2023		438,707
Freeport-McMoRan, Inc. ^		551,000		3.875	3/15/2023		511,052
Hi-Crush Partners LP - 144A ^		850,000		9.500	8/1/2026		678,937
Hudbay Minerals, Inc. - 144A		598,000		7.250	1/15/2023		598,000
							2,226,696
OIL & GAS - 8.4%
Callon Petroleum Co.		565,000		6.375	7/1/2026		563,587
Chaparral Energy, Inc. - 144A		450,000		8.750	7/15/2023		432,720
Endeavor Energy Resources LP - 144A		650,000		5.500	1/30/2026		671,125
Extraction Oil & Gas, Inc. - 144A		575,000		5.625	2/1/2026		488,750
Hilcorp Energy I LP - 144A		842,000		5.000	12/1/2024		797,795
Lonestar Resources America, Inc. - 144A		521,000		11.250	1/1/2023		571,797
MEG Energy Corp. - 144A		125,000		6.375	1/30/2023		120,937
MEG Energy Corp. - 144A		925,000		6.500	1/15/2025		959,687
Newfield Exploration Co. ^		550,000		5.375	1/1/2026		557,909
Noble Holding International Ltd.		407,000		7.750	1/15/2024		382,071
Noble Holding International Ltd. - 144A ^		495,000		7.875	2/1/2026		493,144
PBF Holding Co. LLC		100,000		7.250	6/15/2025		103,250
QEP Resources, Inc. ^		640,000		5.625	3/1/2026		604,800
Sanchez Energy Corp.		386,000		6.125	1/15/2023		144,750
Shelf Drilling Holdings Ltd. - 144A		550,000		8.250	2/15/2025		553,437
Southwestern Energy Co.		525,000		7.500	4/1/2026		536,812
Trinidad Drilling Ltd. - 144A		925,000		6.625	2/15/2025		929,625
Wildhorse Resource Development Corp.		639,000		6.875	2/1/2025		639,000
							9,551,196
OIL & GAS SERVICES - 3.0%
Apergy Corp. - 144A		373,000		6.375	5/1/2026		379,061
Calfrac Holdings LP - 144A ^		565,000		8.500	6/15/2026		511,325
Forum Energy Technologies, Inc.		605,000		6.250	10/1/2021		595,925
KCA Deutag UK Finance PLC - 144A		700,000		9.875	4/1/2022		679,000
Nine Energy Service, Inc. - 144A		265,000		8.750	11/1/2023		270,300
Pioneer Energy Services		563,000		6.125	3/15/2022		482,772
USA Compression Partners LP - 144A		528,000		6.875	4/1/2026		535,260
							3,453,643

See accompanying notes to financial statements.

35

SCHEDULE OF INVESTMENTS

Dunham High-Yield Bond Fund (Continued)

October 31, 2018

	Principal		Interest		Maturity
Security	Amount		Rate %		Date	Value
BONDS & NOTES - 96.2% (Continued)
PACKAGING & CONTAINERS - 2.3%
Crown Americas LLC - 144A	$	256,000		4.750	2/1/2026	$	242,240
Crown Cork & Seal Co., Inc.		392,000		7.375	12/15/2026		421,400
Intertape Polymer Group, Inc. - 144A		575,000		7.000	10/15/2026		576,437
Multi-Color Corp. - 144A		725,000		4.875	11/1/2025		665,187
Owens-Brockway Glass Container, Inc. - 144A		739,000		5.375	1/15/2025		719,601
							2,624,865
PHARMACEUTICALS - 1.3%
Bausch Health Cos, Inc. - 144A		1,150,000		5.875	5/15/2023		1,101,125
Endo Finance LLC - 144A		286,000		5.375	1/15/2023		245,245
Herbalife International, Inc. - 144A		87,000		7.250	8/15/2026		88,196
							1,434,566
PIPELINES - 4.1%
Cheniere Corpus Christi Holdings LLC		900,000		7.000	6/30/2024		975,375
Energy Transfer Equity LP		620,000		4.250	3/15/2023		615,350
Genesis Energy LP ^		900,000		6.000	5/15/2023		852,750
Holly Energy Partners LP - 144A ^		571,000		6.000	8/1/2024		575,282
SemGroup Corp.		875,000		5.625	7/15/2022		844,375
SemGroup Corp.		145,000		5.625	11/15/2023		137,750
Summit Midstream Holdings LLC		675,000		5.500	8/15/2022		671,625
							4,672,507
REAL ESTATE - 2.0%
Greystar Real Estate Partners LLC - 144A		610,000		5.750	12/1/2025		593,225
Kennedy-Wilson, Inc.		935,000		5.875	4/1/2024		902,275
Realogy Group LLC - 144A ^		905,000		4.875	6/1/2023		823,550
							2,319,050
REAL ESTATE INVESTMENT TRUSTS - 6.1%
CTR Partnership LP		623,000		5.250	6/1/2025		608,982
ESH Hospitality, Inc. - 144A		865,000		5.250	5/1/2025		820,669
GEO Group, Inc.		600,000		5.125	4/1/2023		565,500
GEO Group, Inc.		310,000		5.875	10/15/2024		289,013
GLP Capital LP		550,000		5.375	4/15/2026		547,937
Iron Mountain, Inc. - 144A		980,000		4.875	9/15/2027		877,100
iStar, Inc.		250,000		6.000	4/1/2022		250,625
iStar, Inc.		733,000		5.250	9/15/2022		711,010
MPT Operating Partnership LP		769,000		5.000	10/15/2027		724,552
Sabra Health Care LP		700,000		5.125	8/15/2026		671,243
Starwood Property Trust, Inc.		1,000,000		4.750	3/15/2025		955,000
							7,021,631
RETAIL - 3.1%
Brinker International, Inc. - 144A		413,000		5.000	10/1/2024		390,285
Conn’s, Inc. ^		584,000		7.250	7/15/2022		580,350
FirstCash, Inc. - 144A		450,000		5.375	6/1/2024		445,500
Golden Nugget, Inc. - 144A		221,000		8.750	10/1/2025		227,630
Lithia Motors Inc - 144A		575,000		5.250	8/1/2025		543,375
Party City Holdings, Inc. - 144A ^		562,000		6.625	8/1/2026		547,950
Staples, Inc. - 144A ^		877,000		8.500	9/15/2025		798,070
							3,533,160

See accompanying notes to financial statements.

36

SCHEDULE OF INVESTMENTS

Dunham High-Yield Bond Fund (Continued)

October 31, 2018

	Principal		Interest			Maturity
Security	Amount		Rate %			Date	Value
BONDS & NOTES - 96.2% (Continued)
SOFTWARE - 1.8%
CDK Global, Inc.	$	489,000		5.875		6/15/2026	$	493,279
Donnelley Financial Solutions, Inc.		770,000		8.250		10/15/2024		796,950
Infor, Inc.		304,000		6.500		5/15/2022		304,760
Rackspace Hosting, Inc. - 144A ^		550,000		8.625		11/15/2024		518,375
								2,113,364
TELECOMMUNICATIONS - 8.1%
Anixter, Inc. - 144A		390,000		6.000		12/1/2025		391,950
C&W Senior Financing Designated Activity Co. - 144A		633,000		6.875		9/15/2027		606,097
CenturyLink, Inc. ^		800,000		6.750		12/1/2023		818,000
Frontier Communications Corp.		915,000		9.000		8/15/2031		567,300
Hughes Satellite Systems Corp.		816,000		6.625		8/1/2026		779,280
Inmarsat Finance PLC - 144A		575,000		6.500		10/1/2024		568,531
Intelsat Jackson Holdings SA		1,235,000		5.500		8/1/2023		1,108,412
Intelsat Jackson Holdings SA - 144A		384,000		8.500		10/15/2024		377,760
Sprint Corp.		3,185,000		7.875		9/15/2023		3,407,950
Telesat LLC - 144A		611,000		8.875		11/15/2024		652,242
								9,277,522
TRUCKING & LEASING - 0.6%
Avolon Holdings Funding Ltd. - 144A		725,000		5.125		10/1/2023		713,218
TOTAL BONDS & NOTES (Cost - $114,155,413)								110,076,906
	Shares
SHORT-TERM INVESTMENT - 2.8%
MONEY MARKET FUND - 2.8%
First American Government Obligations Fund - Class Z		3,181,216		1.550	+		$	3,181,216
TOTAL SHORT-TERM INVESTMENT (Cost - $3,181,216)
COLLATERAL FOR SECURITIES LOANED - 13.7%
Mount Vernon Prime Portfolio # (Cost - $15,645,300)		15,645,300		2.390	+			15,645,300
TOTAL INVESTMENTS - 112.7% (Cost - $132,981,929)							$	128,903,422
LIABILITIES IN EXCESS OF OTHER ASSETS - (12.7)%								(14,521,632	)
NET ASSETS - 100.0%							$	114,381,790

^ All or a portion of these securities are on loan. Total loaned securities had a value of $15,148,897 at October 31, 2018.

+ Variable rate security. Interest rate is as of October 31, 2018.

# 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%.

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, 2018 the total market value of 144A securities is $68,138,389 or 59.57% of net assets.

LLC - Limited Liability Corporation

LP - Limited Partnership

PLC - Public Limited Company

Portfolio Composition ** - (Unaudited)
B1	16.1	%	Ba1	5.1	%
B2	16.1	%	Caa2	2.6	%
B3	16.1	%	Short-Term Investment	2.5	%
Collateral For Securities Loaned	12.1	%	Baa3	1.0	%
Ba3	11.8	%	Caa3	0.8	%
Ba2	9.1	%	Other	0.7	%
Caa1	6.0	%	Total	100.0	%

** Based on total value of investments as of October 31, 2018. 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.

37

Dunham Alternative Dividend Fund (Unaudited)

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

The Sub-Adviser believes U.S stock markets over the fiscal year ended October 31, 2018 have been characterized by periods of calm interrupted by sudden, violent selloffs and persistently negative returns for most other major asset classes outside of the U.S. equity markets. The Sub-Adviser points out that international stocks, as well as high-quality bonds, produced negative returns over the fiscal year period. The Sub-Adviser feels that while exposure to the outperforming S&P 500 Index allowed moderate and conservatively allocated portfolios to limit losses to low single-digits, it should be emphasized that without the S&P 500 and NASDAQ indices’ influence, balanced portfolios would have suffered tremendously. The Sub-Adviser believes this is a key theme going forward and that most investors and financial advisors are either not aware of it or complacent about it. Conservative strategies, as measured by the Dow Jones Moderately Conservative Portfolio Index, fell 0.4 percent over the fiscal year ended October 31, 2018.

The investment objective of the Fund is to provide income while preserving capital during market downturns. A secondary investment objective of the Fund is capital appreciation. The Sub-Adviser seeks to achieve the current income and capital appreciation of the Fund’s investment objective through an income and yield oriented portfolio, which is achieved through equity dividends primarily through common stocks, exchange-traded funds (“ETFs”) and exchange-traded notes (“ETNs”). The Fund invests principally in securities of companies the Sub-Adviser believes to be undervalued but also may invest in securities of companies that the Sub-Adviser believes to have the potential for long- term growth. The Fund’s Sub-Adviser seeks to achieve the Fund’s capital preservation investment objective by 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 in an attempt to protect the Fund against market declines.

Holdings that contributed positively to the Fund return included Verizon Communications Inc. (VZ) (holding percentage*: 3.03 percent), a company that offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The company is well positioned to benefit from the conversion to 5G technology in the wireless industry. The holding had a 12-month dividend yield of 4.2 percent and returned 25.0 percent for the fiscal year. Another top contributor to the Fund during the fiscal year was Kohl's Corporation (KSS) (holding weight**: 1.02 percent), a retailer in the United States. The Sub-Adviser felt that the stock price had perhaps gone up too quickly along with a run- up in the retail sector and that price increase provided an opportunity to book a profit. The Sub-Adviser decided to liquidate the position. The holding increased at annualized rate of 28.0 percent during the time owned during the fiscal year and paid a 3.1 percent dividend yield. Another top performer for the Fund was Cisco Systems, Inc. (CSCO) (holding weight*: 1.83 percent), a company that designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry worldwide. CSCO has been a leading performer in the technology space as well as benefitting from the overall rising tide in the technology sector. For the fiscal year, the holding increased 36.2 percent and paid a dividend yield of 2.8 percent.

One of the Fund’s top detractors to returns includes General Electric Co. (GE) (holding percentage**: 0.78 percent), a worldwide infrastructure and technology company. The holding had a 12- month dividend yield of 4.8 percent and experienced a 25.9 percent decline over the fiscal year. The Sub-Adviser decided to liquidate the position on March 14, 2018. One of the Fund’s core telecommunications holdings, AT&T (T) (holding percentage**: 2.75 percent), a company that provides communications and digital entertainment services, declined 7.6 percent over the fiscal year and paid out a 6.5 percent 12-month dividend yield. AT&T’s recent acquisitions have not added value to the stock. While the dividend continued to be strong, the Sub-Adviser decided the poor price performance did not justify holding the position for the dividend. The Sub-Adviser liquidated the holding on October 26, 2018. Another laggard for the Fund was Compass Minerals International, Inc. (CMP) (holding weight**: 1.51 percent), a company that produces and sells salt, and specialty plant nutrition and chemical products primarily in the United States, Canada, Brazil, and the United Kingdom. During the period, CMP had a production issue with its main salt mine. The holding fell 23.8 percent during the fiscal year and paid a dividend yield of 5.9 percent.

The Sub-Adviser has spent time during the last fiscal year prioritizing defensive positioning, with an expectation that the U.S. stock market, particularly the S&P 500 and NASDAQ, would join bonds in a "bear market." So far, in 2018, there have been three rapid market dives that have scared investors, but none of the moves followed through to the downside enough for the Fund to fully take advantage of the downside protection. October provided an example of what defensive positioning can do for the Fund. During the last month of the fiscal year, the S&P 500 Index fell by 9.2 percent while the Dow Jones Moderately Conservative Index fell by 3.3 percent. The Sub-Adviser has a portion of the Fund invested to be defensive, which can turn into a positive by exploiting down markets. These hedging positions in the Fund can complement the tactical income focus. Amidst the volatile environment, the Sub-Adviser believes that its self-described "bend, but don't break" approach helped sidestep much of the decline and the Fund outperformed the benchmark during the fiscal period. The Sub-Adviser’s view is that the Fund’s performance versus the benchmark can be a result of whether the period experiences high or low volatility; during periods of low volatility, the Sub-Adviser’s emphasis on options to protect the portfolio will temporarily drag on returns. However, the performance gap can be quickly made up when the stock markets become more volatile. This is not a long-term strategy for the Fund, but during what the Sub-Adviser believes is a very late stage bull market period, the Sub-Adviser feels it provides a better chance of achieving the Fund's objectives. However, consistently high dividend income continues to be an ever-present feature of the Fund's strategy.

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

** Holdings not held during period referenced.

Growth of $100,000 Investment

Total Returns as of October 31, 2018
		Annualized Since
	One Year	Inception (8/31/2016)
Class N	(0.38)%	(0.81)%
Class C	(1.35)%	(1.76)%
Class A with load of 5.75%	(6.30)%	(3.65)%
Class A without load	(0.57)%	(0.99)%
Dow Jones Moderately Conservative Portfolio Index	(0.42)%	2.85%
Morningstar Long/Short Equity Category	(0.29)%	4.34%

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). Investors cannot invest directly in an index or benchmark.

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 1.39% for Class N, 2.39% for Class C and 1.64% 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.

38

SCHEDULE OF INVESTMENTS

Dunham Alternative Dividend Fund

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 39.2%
ELECTRIC - 6.4%
Duke Energy Corp. ^		22,400	$	1,850,912
Entergy Corp. ^		21,400		1,796,530
				3,647,442
ELECTRICAL COMPONENTS & EQUIPMENT - 0.9%
Emerson Electric Co.		7,600		515,888
FOOD - 3.0%
General Mills, Inc.		39,500		1,730,100
INSURANCE - 2.1%
Prudential Financial, Inc.		12,600		1,181,628
LODGING - 1.0%
Las Vegas Sands Corp.		10,500		535,815
OIL & GAS - 4.0%
Chevron Corp.		10,400		1,161,160
Exxon Mobil Corp.		14,200		1,131,456
				2,292,616
PHARMACEUTICALS - 3.1%
AbbVie, Inc.		7,500		583,875
CVS Health Corp. ^		16,600		1,201,674
				1,785,549
REAL ESTATE INVESTMENT TRUSTS - 5.4%
Public Storage, Inc. ^		5,800		1,191,726
Simon Property Group, Inc. ^		10,300		1,890,256
				3,081,982
RETAIL - 2.9%
Foot Locker, Inc.		11,000		518,540
McDonald's Corp.		6,500		1,149,850
				1,668,390
SEMICONDUCTORS - 2.1%
Intel Corp.		25,000		1,172,000
TELECOMMUNICATIONS - 6.3%
BCE, Inc.		15,000		583,200
Cisco Systems, Inc. ^		25,000		1,143,750
Verizon Communications, Inc.		33,100		1,889,679
				3,616,629
TRANSPORTATION - 2.0%
United Parcel Service, Inc.		10,700		1,139,978
TOTAL COMMON STOCKS (Cost - $21,187,283)				22,368,017
EXCHANGE TRADED FUNDS - 32.4%
COMMODITY EXCHANGE TRADED FUND - 3.0%
SPDR Gold Shares ETF ^		15,000		1,727,250
DEBT EXCHANGE TRADED FUNDS - 8.1%
iShares 1-3 Year Treasury Bond ETF		28,000		2,326,240
iShares 7-10 Year Treasury Bond ETF ^		23,000		2,315,180
				4,641,420

See accompanying notes to financial statements.

39

SCHEDULE OF INVESTMENTS

Dunham Alternative Dividend Fund (Continued)

October 31, 2018

Security	Shares		Value
EXCHANGE TRADED FUNDS - 32.4% (Continued)
EQUITY EXCHANGE TRADED FUNDS - 21.3%
Consumer Staples Select Sector SPDR Fund		32,000	$	1,760,320
ProShares Short S&P 500 ETF ^		150,000		4,390,500
Real Estate Select Sector SPDR Fund ETF		54,000		1,732,860
Utilities Select Sector SPDR Fund ETF ^		25,000		1,342,250
Vanguard Dividend Appreciation ETF		28,000		2,902,480
				12,128,410
TOTAL EXCHANGE TRADED FUNDS (Cost - $18,520,346)				18,497,080

	Counterparty	Contracts**	Notional Amount		Exercise Price		Expiration Date	Value
PURCHASED OPTIONS * - 2.0%
PURCHASED PUT OPTIONS * - 1.5%
iShares MSCI Emerging Markets ETF	Pershing	1,000	$	3,916,000	$	38.00	12/21/2018	$	111,000
Invesco QQQ Trust Series	Pershing	125		2,122,750		165.00	11/16/2018		34,375
Invesco QQQ Trust Series	Pershing	125		2,122,750		160.00	12/21/2018		39,125
S&P 500 Index	Pershing	75		20,338,050		2,550.00	12/21/2018		217,125
S&P 500 Index	Pershing	50		13,558,700		2,600.00	12/21/2018		193,000
S&P 500 Index	Pershing	50		13,558,700		2,650.00	12/21/2018		257,000
TOTAL PURCHASED PUT OPTIONS (Cost - $1,392,607)									851,625
PURCHASED CALL OPTIONS * - 0.5%
SPDR Gold Shares	Pershing	500		5,757,500		120.00	1/18/2019		45,000
S&P 500 Index	Pershing	30		8,135,220		2,725.00	11/16/2018		108,300
S&P 500 Index	Pershing	30		8,135,220		2,750.00	12/21/2018		157,650
TOTAL PURCHASED CALL OPTIONS (Cost - $373,251)									310,950
TOTAL PURCHASED OPTIONS (Cost - $1,765,858)									1,162,575

		Interest
Security	Shares	Rate	Value
SHORT-TERM INVESTMENT - 35.7%
MONEY MARKET FUND - 35.7%
Invesco Short-Term Investments Trust Treasury Portfolio - Institutional Class	20,379,954	1.62%+		20,379,954
TOTAL SHORT-TERM INVESTMENT (Cost - $20,379,954)
COLLATERAL FOR SECURITIES LOANED - 26.6%
Mount Vernon Prime Portfolio # (Cost - $15,186,887)	15,186,887	2.39%+		15,186,887
TOTAL INVESTMENTS - 135.9% (Cost - $77,040,328)			$	77,594,513
LIABILITIES IN EXCESS OF OTHER ASSETS - (35.9)%				(20,513,518	)
NET ASSETS - 100.0%			$	57,080,995

* 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, 2018

^ All of a portion of these securities are on loan. Total loaned securities had a value of $14,766,803 at October 31, 2018.

# 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%.

ETF - Exchange Traded Fund

Portfolio Composition * - (Unaudited)
Short-Term Investment	26.3	%	Energy	3.0	%
Exchange Traded Funds	23.8	%	Consumer, Cyclical	2.8	%
Collateral for Securities Loaned	19.6	%	Industrial	2.1	%
Financial	5.5	%	Technology	1.5	%
Utilities	4.7	%	Purchased Options	1.5	%
Communications	4.7	%	Total	100.0	%
Consumer, Non-Cyclical	4.5	%

^* Based on total value of investments as of October 31, 2018.

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

See accompanying notes to financial statements.

40

Dunham International Opportunity Bond Fund (Unaudited)

Message from the Sub-Adviser (Allianz Global Investors U.S. LLC)

Since 2013, the United States Federal Reserve began to reverse course on its eased monetary policy. However, it was not until the end of 2015 that the first interest rate increase took place to bring the lower bound of the overnight rate above zero, and the pace of additional interest rate increases was slow until the end of 2016. Therefore, the “fear of rising rates” has not presented a significant problem for bond investors until the last two years. During the most recent fiscal year, the Fed raised rates four times, which placed upward pressure on U.S. 10- Year Treasury yields, as measured by the BofA Merrill Lynch U.S. Treasury 10-Year Index. During the fiscal year, the U.S. 10-Year Treasury fell 4.4 percent. As rising U.S. yields generally correlate with a rising dollar, foreign currencies broadly slumped against the U.S. dollar, as measured by the Deutsche Bank US Dollar Index, by 4.4 percent. This tightening policy stance taken by the U.S. Fed provided some breathing room for foreign central banks to continue their own tightening policies to keep local inflation in check.

Japan has long struggled to harness an inflation figure suitable for healthy economic expansion. Its central bank has targeted a near-zero yield on its 10-year government debt in an effort to encourage its investors to seek returns in its publicly traded companies. Nonetheless, Japan’s debt market remains one of the largest in the world. The Central Bank of Japan has maintained significantly accommodative monetary policies to spur growth, which has generally been to the detriment of the Yen. During the most recent fiscal quarter, the Yen slid 1.0 percent versus the U.S. dollar. However, the Yen had gained versus the U.S. dollar by 0.6 percent over the fiscal year. During the fiscal year, the largest holding in the Fund, Japan’s 2.1% government bond maturing in December 2027 (B2B35B7) (holding weight*: 7.31 percent), increased only 0.1 percent when priced in local currency. When converted to U.S. dollars, the flat return changed to a 0.7 percent gain during the same period due to the relative appreciation of the Yen. Although issued by a Japanese company, Sumitomo Mitsui Financial Group Inc. adjustable rate bond maturing in 2023 (86562MAW0) (holding weight*: 0.69 percent) issues its debt in U.S. dollars. Therefore, its 0.9 percent gain in the final fiscal quarter does not require any currency adjustment.

Throughout the fiscal year, the United Kingdom represented the second -largest country allocation in the Fund. The Fund’s exposure to the United Kingdom continued to be allocated between both government bonds and local corporate bonds. For example, the Fund not only held the United Kingdom 4.5% government bond maturing in 2042 (B1VWPJ5) (holding weight*: 0.97 percent), but also held the Britain-based insurer Lloyds Bank PLC 6.5% bond maturing in 2020 (B4XSGX3) (holding weight*: 0.67 percent) and the British multinational bank HSBC 6% bond maturing in 2019 (B51JX89) (holding weight*: 0.64 percent). During the fiscal year, the United Kingdom government bond increased 3.1 percent while the Lloyds Bank and HSBC bonds declined 0.1 percent each. Only the United Kingdom government bond was issued in British pounds, as the Lloyds Bank and HSBC bonds were issued in Euros. Therefore, the United Kingdom government bond’s gain was completely erased by the pound’s 3.9 percent slide versus the U.S. dollar. As the Euro fared better than the pound, only a 2.9 percent decline versus the dollar, the two banks’ slightly negative returns suffered a lesser downward adjustment when currency conversion was factored into performance.

One of the greatest struggles within the Fund during the fiscal year was through its exposure to Italy. Italian debt, such as the government-issued Buoni Poliennali del Tesoro 5% bond maturing in 2040 (B415B86) (holding weight*: 0.95 percent) was amongst the Fund’s poorest performers, as it declined 12.1 percent over the fiscal year. Italy’s debt decline was further exacerbated by the 2.9 percent decline in the Euro versus the U.S. dollar. Another European Union member to the north saw a lesser decline in its debt during the same time period. The Netherlands-based Deutsche Telekom 0.625% bond maturing in 2023 (BD1DGH7) (holding weight*: 0.77 percent) declined 1.1 percent over the fiscal year, as the conversion of Euros to U.S. dollars detracted an additional 2.9 percent. One of the strongest performers on the European mainland was the Deutschland 2.50% bond maturing in 2044 (B7X7Y93) (holding weight*: 0.50 percent). This German bund increased 4.8 percent in local currency terms during the fiscal year, and even after the Euro’s 2.9 percent haircut versus the U.S. dollar, the bund sustained slightly more than a 1.8 percent positive return.

As the currency denomination of the debt often varies with different issuances, the Republic of Indonesia’s 2.15% bond maturing in 2024 (BF41YJ0) (holding weight*: 0.62 percent) was one of the best beneficiaries of issuing its debt with an external currency. The bond, issued in Euros, declined 4.0 percent when adjusted to U.S. dollars. However, had it used its local currency, it would have seen an additional 8.0 percent negative adjustment, as the Indonesia Rupiah plummeted 10.9 percent versus the U.S. dollar during the fiscal year. The Fund also held the Malaysia Government 3.9% bond maturing in 2026 (BD6RZ22) (holding weight*: 0.31 percent), which increased 3.9 percent over the same 12- month period, when measured in its local Malaysian Ringgits. The Ringgit gained 1.1 percent versus the U.S. dollar, aiding the Malaysia Government bond to be one of the strongest performers in the Fund over the fiscal year, up 5.0 percent.

The Sub-Adviser has generally maintained a slightly shorter duration in the Fund as it continues to monitor the status of U.S. interest rate increases and the ramifications for foreign bond markets. As global economic growth momentum has generally slowed, the Sub-Adviser believes that pressure is building for central banks, particularly in the most developed countries, to tighten rather than continue to ease monetary policy. Specifically, this was evidenced by the G6 money supply growth remaining below its long-term averages, indicating weaker growth and inflation dynamics ahead. Coupling this number with the yield curve flattening, enhances the Sub-Adviser’s concerns. Therefore, the Sub-Adviser stressed that regional divergences will likely become more apparent and that being selective regarding regional exposures will be even more important going forward.

* Holdings percentage(s) of total investments as of 10/31/2018.

Growth of $100,000 Investment

Total Returns as of October 31, 2018
		Annualized Since
	One Year	Inception (11/1/13)
Class N	(4.08)%	(1.85)%
Class C	(4.72)%	(2.58)%
Class A with load of 4.50%	(8.66)%	(2.98)%
Class A without load	(4.32)%	(2.08)%
Barclays Global ex-US Aggregate Bond Index Unhedged	(2.09)%	(0.67)%
Morningstar World Bond Category	(1.73)%	0.95%

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 1.54% for Class N, 2.29% for Class C and 1.79% 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.

41

SCHEDULE OF INVESTMENTS

Dunham International Opportunity Bond Fund

October 31, 2018

			Principal					Maturity
Security		Variable Rate	Amount			Interest Rate %		Date	Value
CORPORATE BONDS & NOTES - 37.5%
AGRICULTURE - 0.6%
BAT International Finance PLC				200,000	EUR	0.8750		10/13/2023	$	224,339
APPAREL - 1.4%
LVMH Moet Hennessy Louis Vuitton SE				450,000	EUR	0.3750		5/26/2022		512,650
AUTO MANUFACTURERS - 1.2%
BMW Finance NV				400,000	EUR	0.7500		4/15/2024		449,341
BANKS - 15.2%
ABN AMRO Bank NV				200,000	EUR	6.3750		4/27/2021		260,161
Banco de Sabadell SA				300,000	EUR	0.6250		11/3/2020		344,541
Banco Santander SA		3 Month Euro LIBOR + 0.75%		200,000	EUR	0.4310	+	3/28/2023		224,817
BNP Paribas SA		3 Month Euro LIBOR + 0.62%		250,000	EUR	0.3010	+	5/22/2023		281,491
BPCE SA				100,000	EUR	4.6250		7/18/2023		130,496
CaixaBank SA				400,000	EUR	0.6250		11/12/2020		459,991
Commonwealth Bank of Australia		Euro 5 Year Swap Rate + 1.75%		200,000	EUR	2.0000	+	4/22/2027		230,817
Credit Agricole SA/London				200,000	EUR	1.8750		12/20/2026		228,089
Credit Suisse Group Funding Guernsey Ltd.				200,000	EUR	1.2500		4/14/2022		230,102
HSBC Holdings PLC				200,000	EUR	6.0000		6/10/2019		234,761
ING Bank NV		Euro 5 Year Swap Rate + 2.25%		200,000	EUR	3.6250	+	2/25/2026		241,413
KBC Group NV		Euro 5 Year Swap Rate + 1.98%		200,000	EUR	2.3750	+	11/25/2024		231,602
Lloyds Bank PLC				200,000	EUR	6.5000		3/24/2020		245,998
Mitsubishi UFJ Financial Group, Inc.	��	3 Month LIBOR + 0.86%		400,000	USD	3.3680	+	7/26/2023		400,917
National Australia Bank Ltd.				150,000	GBP	5.1250		12/9/2021		211,865
Nordea Bank AB		Euro 5 Year Swap Rate + 1.25%		200,000	EUR	1.0000	+	9/7/2026		226,483
Santander UK PLC				100,000	EUR	2.0000		1/14/2019		113,810
Societe Generale SA				100,000	EUR	0.7500		5/26/2023		114,437
Sumitomo Mitsui Financial Group, Inc.		3M LIBOR + 0.74%		250,000	USD	3.1888	+	1/17/2023		250,132
UBS Group Funding Switzerland AG				200,000	EUR	1.2500		9/1/2026		221,037
Westpac Banking Corp.				650,000	EUR	0.3750		3/5/2023		730,466
										5,613,426
BEVERAGES - 2.3%
Anheuser-Busch InBev SA/NV				300,000	EUR	0.8750		3/17/2022		345,467
Heineken NV				200,000	EUR	3.5000		3/19/2024		259,389
Pernod Richard SA				200,000	EUR	1.5000		5/18/2026		231,889
										836,745
CHEMICALS - 1.6%
Air Liquide Finance SA				500,000	EUR	0.7500		6/13/2024		572,575
ELECTRIC - 3.0%
Enel Finance International NV				200,000	EUR	1.9660		1/27/2025		230,409
Engie SA				300,000	EUR	2.3750		5/19/2026		372,802
Iberdrola Finanzas SAU				200,000	EUR	1.0000		3/7/2025		226,931
Innogy Finance BV				250,000	EUR	1.0000		4/13/2025		282,289
										1,112,431
ENGINEERING & CONSTRUCTION - 1.8%
ABB Finance BV				450,000	EUR	2.6250		3/26/2019		515,698
Heathrow Funding Ltd.				100,000	GBP	7.1250		2/14/2024		155,517
										671,215
FOOD - 0.6%
Danone SA				200,000	EUR	0.7090		11/3/2024		225,792

See accompanying notes to financial statements.

42

SCHEDULE OF INVESTMENTS

Dunham International Opportunity Bond Fund (Continued)

October 31, 2018

		Principal				Maturity
Security	Variable Rate	Amount			Interest Rate %	Date	Value
CORPORATE BONDS & NOTES - 37.5% (Continued)
INSURANCE - 2.0%
Great-West Lifeco, Inc.			300,000	EUR	2.5000	4/18/2023	$	367,733
Willow No 2 Ireland PLC for Zurich Insurance Co., Ltd.			300,000	EUR	3.3750	6/27/2022		376,466
								744,199
MINING - 1.0%
Anglo American Capital PLC			200,000	EUR	3.2500	4/3/2023		242,140
Glencore Finance Europe SA			100,000	EUR	1.6250	1/18/2022		114,549
								356,689
OIL & GAS - 2.2%
BG Energy Capital PLC			350,000	EUR	1.2500	11/21/2022		411,808
BP Capital Markets PLC			350,000	EUR	0.8300	9/19/2024		396,486
								808,294
PHARMACEUTICALS - 1.2%
GlaxoSmithKline Capital PLC			250,000	EUR	1.2500	5/21/2026		286,150
Teva Pharmaceutical Finance Netherlands II BV			150,000	EUR	0.3750	7/25/2020		167,589
								453,739
REAL ESTATE - 0.6%
DEMIRE Deutsche Mittelstand Real Estate AG			100,000	EUR	2.8750	7/15/2022		115,529
Westfield America Management Ltd.			100,000	GBP	2.1250	3/30/2025		125,801
								241,330
SAVINGS & LOANS - 1.4%
Nationwide Building Society			350,000	EUR	1.6250	4/3/2019		399,678
Nationwide Building Society			100,000	GBP	5.6250	9/9/2019		132,600
								532,278
TELECOMMUNICATIONS - 1.4%
Deutsche Telekom International Finance BV			250,000	EUR	0.6250	4/3/2023		284,230
Telecom Italia SpA/Milano			50,000	GBP	6.3750	6/24/2019		65,525
Telecom Italia SpA/Milano			150,000	EUR	2.5000	7/19/2023		167,950
								517,705
TOTAL CORPORATE BONDS & NOTES (Cost - $14,132,076)								13,872,748
FOREIGN GOVERNMENT BONDS - 57.8%
Bundesrepublik Deutschland Bundesanleihe			370,000	EUR	0.5000	2/15/2028		425,950
Bundesrepublik Deutschland Bundesanleihe			100,000	EUR	2.5000	8/15/2046		154,997
Bundesrepublik Deutschland Bundesanleihe			470,000	EUR	4.7500	7/4/2034		855,984
Bundesrepublik Deutschland Bundesanleihe			120,000	EUR	2.5000	7/4/2044		183,750
Canadian Government Bond			160,000	CAD	5.0000	6/1/2037		166,121
Canadian Government Bond			280,000	CAD	3.5000	12/1/2045		253,442
Colombia Government International Bond			200,000	EUR	3.8750	3/22/2026		255,517
Denmark Government Bond			2,420,000	DKK	3.0000	11/15/2021		406,486
French Republic Government Bond OAT			650,000	EUR	0.7500	5/25/2028		740,911
French Republic Government Bond OAT			130,000	EUR	1.2500	5/25/2034		149,449
French Republic Government Bond OAT			70,000	EUR	4.7500	4/25/2035		122,704
French Republic Government Bond OAT			290,000	EUR	4.5000	4/25/2041		526,910
Indonesia Government International Bond - 144A			200,000	EUR	2.1500	7/18/2024		227,315
Indonesia Treasury Bond			2,450,000,000	EUR	6.1250	5/15/2028		136,057
Ireland Government Bond			130,000	EUR	5.4000	3/13/2025		192,914
Italy Buoni Poliennali Del Tesoro			180,000	EUR	4.2500	9/1/2019		210,236
Italy Buoni Poliennali Del Tesoro			120,000	EUR	5.5000	11/1/2022		151,515
Italy Buoni Poliennali Del Tesoro			410,000	EUR	4.5000	3/1/2024		502,831
Italy Buoni Poliennali Del Tesoro			480,000	EUR	3.7500	9/1/2024		568,520
Italy Buoni Poliennali Del Tesoro			180,000	EUR	2.0500	8/1/2027		185,902
Italy Buoni Poliennali Del Tesoro			270,000	EUR	5.0000	9/1/2040		350,466

See accompanying notes to financial statements.

43

SCHEDULE OF INVESTMENTS

Dunham International Opportunity Bond Fund (Continued)

October 31, 2018

		Principal				Maturity
Security	Variable Rate	Amount			Interest Rate %	Date	Value
FOREIGN GOVERNMENT BONDS - 57.8% (Continued)
Japan Government Ten Year Bond			77,650,000	JPY	0.8000	9/20/2022	$	712,283
Japan Government Thirty Year Bond			21,250,000	JPY	1.5000	3/20/2045		218,838
Japan Government Thirty Year Bond			53,800,000	JPY	0.5000	9/20/2046		436,861
Japan Government Twenty Year Bond			224,150,000	JPY	1.9000	9/20/2023		2,179,169
Japan Government Twenty Year Bond			256,900,000	JPY	2.1000	12/20/2027		2,695,678
Japan Government Twenty Year Bond			84,950,000	JPY	1.7000	9/20/2033		895,104
Kingdom of Belgium Government Bond			130,000	EUR	4.2500	9/28/2022		173,110
Kingdom of Belgium Government Bond- 144A			130,000	EUR	5.0000	3/28/2035		228,792
Malaysia Government Bond			220,000	MYR	4.1810	7/15/2024		53,084
Malaysia Government Bond			480,000	MYR	3.9000	11/30/2026		113,023
Mexican Bonos			3,270,000	MXN	5.7500	3/5/2026		136,322
Mexico Government International Bond			100,000	EUR	1.7500	4/17/2028		107,596
Portugal Obrigacoes do Tesouro OT - 144A			100,000	EUR	4.1250	4/14/2027		134,725
Province of Ontario Canada			280,000	CAD	2.4000	6/2/2026		203,852
Republic of Austria Government Bond - 144A			270,000	EUR	1.2000	10/20/2025		326,088
Republic of Poland Government Bond			360,000	PLN	5.7500	9/23/2022		106,282
Spain Government Bond - 144A			600,000	EUR	4.0000	4/30/2020		723,481
Spain Government Bond			900,000	EUR	1.1500	7/30/2020		1,044,226
Spain Government Bond - 144A			100,000	EUR	5.4000	1/31/2023		137,220
Spain Government Bond - 144A			150,000	EUR	3.8000	4/30/2024		197,898
Spain Government Bond - 144A			210,000	EUR	1.9500	4/30/2026		251,318
Spain Government Bond - 144A			190,000	EUR	1.4500	10/31/2027		215,828
Spain Government Bond - 144A			80,000	EUR	2.3500	7/30/2033		94,194
Spain Government Bond - 144A			190,000	EUR	4.2000	1/31/2037		281,074
Sweden Government Bond			770,000	SEK	4.2500	3/12/2019		85,781
Swiss Confederation Government Bond			480,000	CHF	4.0000	2/11/2023		569,353
United Kingdom Gilt			250,000	GBP	2.7500	9/7/2024		349,407
United Kingdom Gilt			300,000	GBP	1.5000	7/22/2026		390,927
United Kingdom Gilt			290,000	GBP	4.2500	6/7/2032		489,457
United Kingdom Gilt			70,000	GBP	4.2500	3/7/2036		122,872
United Kingdom Gilt			185,000	GBP	4.5000	12/7/2042		357,944
United Kingdom Gilt			250,000	GBP	3.2500	1/22/2044		406,838
United Kingdom Gilt			70,000	GBP	4.2500	12/7/2055		148,489
United Kingdom Gilt			20,000	GBP	4.0000	1/22/2060		42,058
TOTAL FOREIGN GOVERNMENT BONDS (Cost - $22,236,067)								21,397,149
WHOLE LOAN COLLATERAL - 1.1%
Bankinter 10 FTA	3M Euro LIBOR + 0.16%		92,781	EUR	0.0000 +	6/21/2043		104,720
Dutch Property Finance 2017-1 BV	3M Euro LIBOR + 0.68%		231,160	EUR	0.3630 +	1/28/2048		264,536
Fondo de Titulizacion de Activos Santander Hipotecario 2	3M Euro LIBOR +		40,933	EUR	0.0000 +	1/18/2049		45,803
TOTAL WHOLE LOAN COLLATERAL (Cost - $408,265)								415,059
		Shares
SHORT - TERM INVESTMENT - 0.6%
MONEY MARKET FUND - 0.6%
Fidelity Institutional Money Market Fund - Government Portfolio - Institutional Class			196,043		2.0600+			196,043
TOTAL SHORT-TERM INVESTMENT (Cost - $196,043)
TOTAL INVESTMENTS - 97.0% (Cost - $36,972,451)							$	35,880,999
OTHER ASSETS LESS LIABILITIES - 3.0%								1,125,018
NET ASSETS - 100.0%							$	37,006,017

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

+ Variable rate security. Interest rate is as of October 31, 2018.

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 $2,817,933 or 7.6% of net assets.

See accompanying notes to financial statements.

44

SCHEDULE OF INVESTMENTS

Dunham International Opportunity Bond Fund (Continued)

October 31, 2018

									Unrealized
									Appreciation
Futures Contracts *	Counterparty	Contracts			Notional			Expiration	(Depreciation)
FUTURES CONTRACTS PURCHASED - (0.3)%
Australian 10Y BOND Future	Credit Suisse		7		$	642,049		12/17/2018	$	(190	)
Canadian 10Y Bond Future	Credit Suisse		6			603,769		12/18/2018		(10,606	)
EURO BUXL 30Y Bond Future	Credit Suisse		3			601,310		12/6/2018		(1,323	)
EURO-BUND Future	Credit Suisse		1			181,583		12/6/2018		1,549
EURO-SCHATZ Future	Credit Suisse		6			761,240		12/6/2018		284
Long Gilt Future	Credit Suisse		2			312,819		12/27/2018		45
NET UNREALIZED LOSS FROM FUTURES CONTRACTS PURCHASED										(10,241	)
FUTURES CONTRACTS SOLD - 0.1%
EURO-BOBL Future	Credit Suisse		(27	)		(4,021,061	)	12/6/2018		4,637
NET UNREALIZED GAIN FROM FUTURES CONTRACTS SOLD										4,637
NET UNREALIZED LOSS FROM FUTURES CONTRACTS									$	(5,604	)

* 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	21.1	%	Germany	4.7	%
Britain	13.5	%	Australia	3.5	%
Spain	11.8	%	Belgium	2.6	%
France	11.4	%	Switzerland	2.1	%
Netherlands	8.0	%	Other Countries	15.3	%
Italy	6.0	%	Total	100.00	%

** Based on total value of investments as of October 31, 2018.

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

See accompanying notes to financial statements.

45

SCHEDULE OF INVESTMENTS

Dunham International Opportunity Bond Fund (Continued)

October 31, 2018

As of October 31, 2018 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	11/21/2018	Barclays	$	1,197,707	$	849,075		$	(11,900	)
Australian Dollar	11/21/2018	Citigroup		52,000		36,864			(708	)
British Pound	11/21/2018	Citigroup		43,000		54,994			(1,156	)
Canadian Dollar	11/21/2018	Barclays		1,287,434		980,711			(10,569	)
Canadian Dollar	11/21/2018	Citigroup		266,756		203,202			(2,755	)
Euro	11/21/2018	Barclays		103,270		117,206			(2,400	)
Euro	11/21/2018	Citigroup		576,434		654,221			(16,080	)
Japanese Yen	11/21/2018	Barclays		326,051,107		2,893,537			(45,555	)
Japanese Yen	11/21/2018	Citigroup		162,770,152		1,444,502			(10,573	)
New Zealand Dollar	11/21/2018	Citigroup		103,497		67,599			(289	)
Czech Koruna	1/23/2019	Barclays		1,121,861		49,398			(1,340	)
Hungary Forint	1/23/2019	Citigroup		14,302,000		50,237			(1,632	)
Indonesian Rupiah	1/23/2019	Barclays		433,000,000		28,147			152
Mexican Peso	1/23/2019	Barclays		631,708		30,754			(2,321	)
Mexican Peso	1/23/2019	Citigroup		7,510,000		365,621			(27,697	)
Russian Ruble	1/23/2019	Barclays		5,038,000		75,904			(390	)
Singapore Dollar	1/23/2019	Barclays		165,000		119,387			(972	)
South Korean Won	1/23/2019	Barclays		953,363,000		839,236			(10,888	)
								$	(147,073	)

									Unrealized
	Settlement		Local Currency			U.S. Dollar			Appreciation
Foreign Currency	Date	Counterparty	Amount Sold			Market Value			(Depreciation)
To Buy USD and To Sell:
Australian Dollar	11/21/2018	Citigroup	$	(805,000	)	$	(570,678	)	$	6,053
British Pound	11/21/2018	Citigroup		(539,068	)		(689,433	)		15,910
Euro	11/21/2018	Barclays		(4,228,531	)		(4,799,150	)		137,818
Euro	11/21/2018	Citigroup		(1,732,450	)		(1,966,236	)		45,637
Japanese Yen	11/21/2018	Barclays		(20,225,174	)		(179,488	)		(1,191	)
Japanese Yen	11/21/2018	Citigroup		(35,776,179	)		(317,495	)		3,523
Mexican Peso	1/23/2019	Citigroup		(7,221,000	)		(351,552	)		4,305
									$	212,055

				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:
Euro	Swiss Franc	11/21/2018	Barclays	$	168,100	$	(189,355	)	$	190,785	$	(188,601	)	$	2,184
Euro	Danish Krona	11/21/2018	Barclays		187,382		(1,397,175	)		212,668		(212,563	)		105
Euro	Swedish Krone	11/21/2018	Citigroup		578,917		(6,044,974	)		657,039		(662,542	)		(5,503	)
British Pound	Euro	11/21/2018	Barclays		459,865		(515,148	)		588,138		(584,665	)		3,473
British Pound	Euro	11/21/2018	Barclays		192,962		(216,980	)		246,785		(246,260	)		525
Japanese Yen	Euro	11/21/2018	Barclays		40,640,488		(309,579	)		360,664		(351,356	)		9,308
Norwegian Krone	Euro	11/21/2018	Barclays		647,754		(67,335	)		77,135		(76,421	)		714
Swedish Krone	Euro	11/21/2018	Barclays		7,560,657		(724,080	)		828,664		(821,790	)		6,874
Polish Zloty	Euro	1/23/2019	Barclays		150,000		(34,776	)		39,257		(39,724	)		(467	)
														$	17,213
Net Unrealized Gain on Forward Currency Contracts														$	82,195

See accompanying notes to financial statements.

46

Dunham Appreciation & Income Fund (Unaudited)

Message from the Sub-Adviser (Logan Circle Partners LP)

It was a disappointing fiscal year ended October 31, 2018 for most asset classes around the globe. There were periods of strong equity growth, especially in the United States, as investors focused on a strong domestic economy, encouraging earnings releases, and some developments on the geopolitical front. These periods of growth were interrupted by two large spikes of volatility in February and October. During these periods, investors could not overlook all the geopolitical volatility. Additionally weighing on investors is the concern that the Federal Open Market Committee (FOMC) will raise interest rates too quickly, possibly pushing the United States into a recession.

U.S. large cap stocks, as measured by the Russell 1000 Index, rose 7.2 percent during the first eight months of the fiscal year, while U.S. small cap stocks, as measured by the Russell 2000 Index, gained 10.3 percent. Fewer than one-third of the convertible securities in the Bank of America/Merrill Lynch All Convertibles All Qualities Index are issued by large capitalization companies. Therefore, the majority of convertible securities are more closely related to the movements in small- and mid-capitalization stocks. During the first eight months of the period ended October 31, 2018, convertible securities increased 6.2 percent. 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, decreased 1.3 percent during the same period.

During this time, the Fund was managed as a convertible securities strategy. The Sub-Adviser continued to focus on identifying credit improvement opportunities in small- and mid-capitalization companies and non-investment grade securities. The Sub-Adviser looked to maximize return through both the value of the fixed income features and price changes in the underlying common stock. This is in contrast to convertible securities that trade predominantly 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 may reduce the volatility experienced from the common stocks while benefitting from the support offered by the bond features.

The Sub-Adviser’s strong security selection more than offset the slight detraction coming from their sector allocation. The security with the largest contribution to positive performance also came from the best performing sector which was the media sector. World Wrestling Entertainment, Inc. (98156QAA6) (holding weight**: 4.02 percent) is an integrated media and entertainment company with operations in live wrestling events, original television programming, music, and advertising, among others. World Wrestling Entertainment, Inc. increased 160.7 percent. A position that relatively detracted from performance over the first eight months of the fiscal quarter was Wright Medical Group, N.V. (98235TAE7) (holding weight**: 2.46 percent). This company offers surgical solutions for the upper and lower extremities and biologics markets, serving customers worldwide. This position increased 2.3 percent over the same time-period.

The Fund undertook a Sub-Adviser change on July 1, 2018. As of that date, the Fund was Sub-Advised by Logan Circle Partners, L.P. The Sub-Adviser implements a long short credit strategy that seeks positive returns regardless of market environment through a fundamental credit based, best ideas approach, implemented without a benchmark orientation while minimizing interest rate duration exposure. The trade format that attempts to achieve the idiosyncratic return profile is broken down into five different categories. These categories include long positions, short positions, pairs trades, catalyst driven, and opportunistic trades.

The largest portion of the Fund is dedicated to the core long positions. One position that positively contributed to Fund performance was the Republic of Argentina 6.25% 04/22/2019 (040114HB9) (holding weight*: 2.3 percent). This position increased 2.5 percent in final four months of the fiscal year. Contributions also came from the catalyst driven positions, which made up approximately 20 percent of the Fund. For example, Braskem America Finance Co 7.125% 7/22/2041 (0554CAA0) (holding weight*: 0.52 percent) is in advanced talks to be purchased by LyondellBasell Industries (LYB) (not held). This acquisition will increase the quality of Braskem as it will go from a BB rated Brazilian company to a BBB rated United States Company. This position increased 1.5 percent over the same time period. The most mercurial types of positions within the Fund is the opportunistic trades. These are often dynamic short term investments that seek to profit from temporary mispricing. An opportunistic position within the portfolio is the Enterprise Develop Authority 12.0% 07/15/2024 (29390WAA4) (holding weight*: 2.56 percent). This position is a development bond for the HardRock Casino being built in Sacramento. This position increased 1.8 percent during its short time in the Fund.

The Sub-Adviser is optimistic for the remainder of 2018 and the next year. Despite this optimism, there are concerns that the Sub-Adviser is closely monitoring. In regard to high grade supply, M&A related issuance has been in full force this year, but the list of pending deals has dwindled, and given the uncertainty in the macro landscape, particularly as it relates to pertinent issues like trade wars, there is certainly a risk that his could slow in 2019. High-yield meanwhile is running at the slowest pace of issuance since 2009, and there is little to indicate that this trend will abate. The Sub-Adviser still believes high-yield trades are too tight relative to investment grade, so the Sub-Adviser is likely to avoid the more “beta” type positions in high- yield. The Sub-Adviser believes that the recent bout of volatility proves the value of remaining nimble, and given the outlook for range bound spreads heading into year-end, they will look to add to liquid credit opportunities during these bouts of weakness

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

** Holding not held during period referenced.

Growth of $100,000 Investment

Total Returns as of October 31, 2018
		Annualized	Annualized	Annualized Since
	One Year	Five Years	Ten Years	Inception (12/10/04)
Class N	8.55%	4.71%	9.29%	5.58%
Class C	7.45%	3.66%	8.21%	4.53%
Class A with load of 5.75%	1.98%	3.23%	8.38%	4.51%*
Class A without load	8.22%	4.45%	9.02%	5.03%*
BofA Merrill Lynch US 3-Month Treasury Bill Index + 3%	4.73%	3.57%	3.36%	4.36%
BofA Merrill Lynch All Convertibles All Qualities Index**	9.15%	9.24%	7.66%	7.15%
Morningstar Convertibles Category	2.20%	5.44%	10.42%	6.46%

* Class A commenced operations on January 3, 2007.

** Change in Fund’s benchmark. As a result, the Fund’s performance is compared to both indices in the table above.

The BofA Merrill Lynch US 3-Month Treasury Bill Index +3% is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled in a newly selected issue. The issue selected at each month- end rebalancing is the outstanding Treasury Bill that matures closet to, but not beyond, three months from the rebalancing date. To qualify for selection, an issue must have settled on or before the month-end rebalancing date. Plus an annualized return of 3%.

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 1.85% for Class N, 2.85% for Class C and 2.10% 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

47

SCHEDULE OF INVESTMENTS

Dunham Appreciation & Income Fund

October 31, 2018

Security		Shares					Value
COMMON STOCK - 0.1%
TELECOMMUNICATIONS - 0.1%
NII Holdings, Inc. * ^			10,000				$	62,200
TOTAL COMMON STOCK (Cost - $57,730)
	Variable	Principal		Interest		Maturity
Security	Rate	Amount		Rate %		Date	Value
BONDS & NOTES - 40.9%
BANKS - 7.0%
Barclays PLC		$	2,280,000	8.250		12/15/2018		2,293,441
Wachovia Capital Trust II			1,000,000	2.936		1/15/2027		912,500
								3,205,941
CHEMICALS - 2.3%
Braskem America Finance Co. - 144A			205,000	7.125		7/22/2041		228,831
Braskem Netherlands Finance BV - 144A			900,000	4.500		1/10/2028		837,225
								1,066,056
COMPUTERS - 2.0%
Dell International LLC/EMC Corp. - 144A			800,000	8.100		7/15/2036		905,131
DIVERSIFIED FINANCIAL SERVICES - 1.7%
TMX Finance LLC - 144A			800,000	11.125		4/1/2023		754,000
ENTERTAINMENT - 2.5%
Enterprise Development Authority - 144A			1,175,000	12.000		7/15/2024		1,125,062
FOOD - 1.4%
JBS Investments GmbH - 144A			635,000	6.250		2/5/2023		626,269
FOREIGN SOVEREIGN - 2.3%
Republic of Argentina ^			1,020,000	6.250		4/22/2019		1,028,160
FOREST PRODUCTS & PAPER - 1.6%
Suzano Austria GmbH- 144A			710,000	6.000		1/15/2029		724,200
INSURANCE - 3.4%
Prudential Financial, Inc.			530,000	5.700		9/15/2048		514,365
United Insurance Holdings Corp.			1,000,000	6.250		12/15/2027		1,021,969
								1,536,334
MEDIA - 3.3%
American Media, Inc. - 144A			1,500,000	5.500		9/1/2021		1,498,125
MINING - 3.7%
Freeport-McMoRan, Inc.			1,100,000	5.450		3/15/2043		937,750
New Gold, Inc. - 144A			400,000	6.250		11/15/2022		350,000
New Gold, Inc. - 144A			500,000	6.375		5/15/2025		403,125
								1,690,875
OIL & GAS - 7.5%
Petroleos Mexicanos - 144A			975,000	6.500		1/23/2029		934,781
Spectra Energy Partners LP			2,500,000	0.000		11/19/2018		2,496,512
								3,431,293
TELECOMMUNICATIONS - 2.2%
Sprint Spectrum Co. LLC - 144A			1,000,000	4.738		3/20/2025		1,001,250
TOTAL BONDS & NOTES (Cost - $18,783,332)								18,592,696
BANK LOANS - 2.0%
TECHNOLOGY - 2.0%
First Data Corporation, 2024A New Dollar Term Loan	LIBOR + 2.000%		900,000	4.508	+	4/26/2024		896,157
TOTAL BANK LOANS (Cost - $901,125)
U.S. GOVERNMENT - 40.1%
TREASURY BILLS - 37.3%
Treasury Bill			6,735,000	2.086		11/8/2018		6,732,219
Treasury Bill ^			6,820,000	2.144		11/23/2018		6,811,055
Treasury Bill ^			3,410,000	2.158		11/29/2018		3,404,281
								16,947,555

See accompanying notes to financial statements.

48

SCHEDULE OF INVESTMENTS

Dunham Appreciation & Income Fund (Continued)

October 31, 2018

	Principal		Interest		Maturity
Security	Amount		Rate %		Date	Value
U.S. GOVERNMENT - 40.1% (Continued)
TREASURY NOTES/BONDS - 2.8%
Treasure Note / Bond ^	$	535,000	3.000		8/15/2028	$	522,388
Treasure Note / Bond		800,000	2.875		8/15/2048		739,875
							1,262,263
TOTAL U.S. GOVERNMENT (Cost - $18,208,635)							18,209,818
	Shares
SHORT-TERM INVESTMENT - 13.4%
MONEY MARKET FUND - 13.4%
First American Government Obligations Fund - Class Z		6,104,406	1.550	+			6,104,406
TOTAL SHORT-TERM INVESTMENT (Cost - $6,104,406)
COLLATERAL FOR SECURITIES LOANED - 26.2%
Mount Vernon Prime Portfolio # (Cost - $11,938,479)		11,938,479	2.390	+			11,938,479
TOTAL INVESTMENTS - 122.7% (Cost - $55,993,707)						$	55,803,756
LIABILITIES IN EXCESS OF OTHER ASSETS - (22.7)%							(10,338,294	)
TOTAL NET ASSETS - 100.0%						$	45,465,462

^ All or a portion of these securities are on loan. Total loaned securities had a value of $11,698,510 at October 31, 2018.

* Non-income producing security.

+ Variable rate security. Interest rate is as of October 31, 2018.

# 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%.

LLC - Limited Liability Company

LP - Limited Partnership

PLC - Public Limited Company

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 $9,387,999 or 20.7% of net assets.

						Unrealized
	Short		Notional		Maturity	Appreciation/
Security	Contracts		Amount		Date	(Depreciation)
OPEN SHORT FUTURES CONTRACTS - (0.3)%
U.S. 10 Year Treasury Note		12	$	1,421,250	December-18	$	21,656
US Treasury Long Bond		16		2,210,000	December-18		100,501
NET UNREALIZED GAIN FROM OPEN SHORT FUTURE CONTRACTS						$	122,157

CREDIT DEFAULT SWAPS
								Unrealized
		Notional Value at		Premium			Maturity	Appreciation/
Description (1)	Counterparty	October 31, 2018		Paid (Received)			Date	(Depreciation)
To Buy Protection - Kraft Heinz Food	JPMorgan	2,000,000		$	(32,787	)	June 20, 2023	$	16,830
To Sell Protection - Newell Brands	JPMorgan	(2,000,000	)		(33,464	)	June 20, 2023		(13,014	)
NET UNREALIZED GAIN FROM CREDIT DEFAULT SWAPS								$	3,816

(1) If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising of the referenced index.

Portfolio Composition * - (Unaudited)
Bonds & Notes	33.3	%
U.S. Government	32.6	%
Collateral for Securities Loaned	21.4	%
Short-Term Investment	10.9	%
Bank Loans	1.6	%
Common Stock	0.2	%
Total	100.0	%

* Based on total value of investments as of October 31, 2018.

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

See accompanying notes to financial statements.

49

Dunham Large Cap Value Fund (Unaudited)

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

Large cap value stocks, as measured by the Russell 1000 Value Index, reversed course yet again in the most recent fiscal quarter, dropping 3.6 percent after increasing 4.8 percent for the previous fiscal quarter. These recent shifts brought performance over the fiscal year down to 3.0 percent. Over the most recent fiscal quarter, large cap growth stocks, as measured by the Russell 1000 Growth Index, similarly dropped, decreasing 3.4 percent, to end the fiscal year up 10.7 percent. During the fiscal year, concerns of an overheated market combined with fears that the Fed would raise rates “too quickly”, intensifying rhetoric surrounding tariffs and trade wars with China sparking the latest equity selloff. The dispersion across sector performance was significantly more pronounced in the most recent fiscal quarter than in the previous fiscal quarter. The dispersion from the best performing sector, consumer staples, and the worst performing sector, materials, was over 18 percent. Most of the dispersion was skewed toward the downside, as seven of the 11 sectors posted returns in the red and three posted negative returns in the double-digits.

The Fund maintained an overweight position in the healthcare sector, benefitting from the positive performance in the fiscal year. However, the Fund’s holdings within the sector experienced mixed results. Examples included Gilead Sciences Inc. (GILD) (holding weight*: 1.11 percent), a therapeutic provider for the treatment of infectious diseases, including hepatitis, HIV, and infections related to AIDS, and Pfizer Inc. (PFE) (holding weight*: 2.56 percent), one of the world’s largest research- based pharmaceutical firms, producing medicines and medical devices for a vast array of fields and applications. During the fiscal year, PFE increased 27.4 percent, while GILD decreased 6.3 percent. Conversely, stock selection played a positive role in the worst performing sector, materials. While the materials sector declined more than 9 percent during the fiscal year, the Sub-Adviser’s stock selection mitigated some of that loss through its careful stock selection. During the fiscal year, the Fund held Air Products and Chemicals Inc. (APD) (holding weight*: 1.23 percent), a producer and global distributor of atmospheric, process, and specialty gases. During the fiscal year, APD decreased only 0.6 percent, outperforming its sector peers by more than 8.0 percent.

One of the strongest performing sectors within the Fund and in the large cap value space was the technology sector. Although the sector was negative for large cap value stocks in general during the most recent fiscal quarter, down 1.8 percent, it increased more than 8.0 percent when measured over the full fiscal year. Two holdings that contributed positively to Fund performance during the most recent fiscal quarter’s drawdown were Microsoft Corporation (MSFT) (holding weight*: 1.99 percent), which develops, manufactures, licenses, sells, and supports software products and Oracle Corporation (ORCL) (holding weight*: 1.65 percent), which supplies software for enterprise information management. During the most recent fiscal quarter, MSFT and ORCL increased 1.1 percent and 2.9 percent, respectively. As the technology sector was the third-best performing large cap value sector over the fiscal year, this most recent fiscal quarter’s slight downturn was not enough to erase its earlier sizeable gains. For example, MSFT was up 30.7 percent over the fiscal year. ORCL, however, suffered a sizeable selloff in mid- March that it did not recover from through fiscal year-end, closing out the 12-month period with a negative 2.5 percent return.

As the largest underweight for the Fund, the consumer staples sector’s positive return in a sea of negative performance during the most recent fiscal quarter was a drag on relative performance. However, the Sub-Adviser’s stock selection was in-line with the sector’s performance. For example, the Fund continued to hold Tyson Foods, Inc. (TSN) (holding weight*: 1.30 percent). TSN produces, distributes, and markets chicken, beef, pork, prepared foods, and related products through national and regional grocery retailers. TSN was one of the poorest performers in the fiscal year, declining 16.4 percent, but in the most recent fiscal quarter, TSN rose 4.4 percent.

The largest sector in the large cap value space, financial services, ended the fiscal year down only 0.5 percent. As this sector comprises close to one-quarter of the index, it was a meaningful detractor from positive performance for the benchmark and for the Fund. Financial services companies, particularly banks and other lenders that generally benefit from a steeper yield curve, suffered from a stubbornly flat yield curve. The Fund did have exposure to financial services companies that have a lending component within their business lines, including JP Morgan Chase & Co. (JPM) (holding weight*: 4.14 percent), a global provider of financial services and retail banking. Although JPM is one of the United States’ largest lenders, it also has business lines that are less reliant on attractive lending margins. Therefore, JPM instead increased 10.8 percent during the fiscal year, outperforming its sector peers by more than 11 percent. The Fund also held Allstate Corp. (ALL) (holding weight*: 1.04 percent). As a property-liability insurer, ALL is still categorized as a financial services company, but due to having less reliance on the direction of interest rates or yield curve steepness, ALL was not impacted like the rest of the sector. During the fiscal year, ALL increased 3.8 percent.

The Sub-Adviser continues to believe that the negative macro headlines remain problematic for investors that are fearful of additional market declines. The Sub-Adviser also believes that as the Fed attempts to keep inflation in check, it could result in an adverse shock to the economy if the pace is too quick. Conversely, the Sub-Adviser believes moderate rate increases that are clearly broadcasted should be well-received by investors. The Sub-Adviser continues to emphasize that the corporate earnings backdrop is one of the strongest ever and sees expectations for 2019 starting to move up. The Sub-Adviser remains focused on identifying companies with what it believes are attractive valuations relative to peers.

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

Growth of $100,000 Investment

Total Returns as of October 31, 2018
	One	Annualized	Annualized	Annualized Since Inception
	Year	Five Years	Ten Years	(12/10/04)
Class N	1.98%	6.91%	10.07%	6.11%
Class C	1.00%	5.85%	8.97%	5.06%
Class A with load of 5.75%	(4.07)%	5.38%	9.16%	4.27%*
Class A without load	1.79%	6.64%	9.80%	4.80%*
Russell 1000 Value Index	3.03%	8.61%	11.30%	7.19%
Morningstar Large Cap Value Category	3.20%	7.78%	10.66%	6.40%

* 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.

Investors cannot invest directly in an index or benchmark.

As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.13% for Class N, 2.13% for Class C and 1.38% 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 Large Cap Value Fund

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 97.6%
AEROSPACE/DEFENSE - 2.2%
Northrop Grumman Corp.		1,928	$	505,039
Raytheon Co. ^		6,129		1,072,820
				1,577,859
AIRLINES - 1.3%
Delta Air Lines, Inc.		17,663		966,696
APPAREL - 1.1%
PVH Corp.		6,374		769,915
AUTO PARTS & EQUIPMENT - 1.1%
BorgWarner, Inc.		20,365		802,585
BANKS - 12.8%
Bank of America Corp.		84,213		2,315,857
Huntington Bancshares, Inc. ^		60,996		874,073
JPMorgan Chase & Co.		26,978		2,941,142
Morgan Stanley		14,482		661,248
State Street Corp.		10,258		705,237
SunTrust Banks, Inc.		15,163		950,114
Wells Fargo & Co.		14,458		769,599
				9,217,270
BEVERAGES - 1.4%
PepsiCo, Inc.		9,059		1,018,050
BIOTECHNOLOGY - 2.2%
Biogen, Inc. *		2,534		771,020
Gilead Sciences, Inc.		11,578		789,388
				1,560,408
BUILDING MATERIALS - 0.7%
Owens Corning		10,410		492,081
CHEMICALS - 1.2%
Air Products & Chemicals, Inc.		5,676		876,091
COSMETICS / PERSONAL CARE - 1.5%
Procter & Gamble Co.		11,947		1,059,460
DIVERSIFIED FINANCIAL SERVICES - 4.9%
American Express Co.		9,187		943,781
Discover Financial Services ^		14,818		1,032,370
E*TRADE Financial Corp		13,277		656,149
Intercontinental Exchange, Inc.		11,853		913,155
				3,545,455
ELECTRIC - 4.4%
American Electric Power Co., Inc.		11,738		861,100
DTE Energy Co. ^		8,725		980,690
Xcel Energy, Inc.		27,826		1,363,752
				3,205,542
ELECTRONICS - 1.0%
Honeywell International, Inc.		4,884		707,301
Resideo Technologies, Inc. *		814		17,135
				724,436
ENVIRONMENTAL CONTROL - 1.8%
Waste Management, Inc.		14,151		1,266,090
FOOD - 1.3%
Tyson Foods, Inc.		15,388		922,049
HEALTHCARE-PRODUCTS - 3.5%
Danaher Corp.		5,287		525,528
Hill-Rom Holdings, Inc.		4,994		419,895
Medtronic PLC		8,100		727,542
Thermo Fisher Scientific, Inc. ^		3,578		836,000
				2,508,965

Security	Shares		Value
HEALTHCARE-SERVICES - 2.0%
Laboratory Corp of America Holdings *		5,101	$	818,966
UnitedHealth Group, Inc.		2,450		640,307
				1,459,273
INSURANCE - 5.3%
Allstate Corp.		7,730		739,915
Berkshire Hathaway, Inc. *		2,456		504,168
Chubb Ltd.		7,641		954,437
Prudential Financial, Inc.		10,015		939,207
Travelers Cos., Inc.		5,386		673,950
				3,811,677
INTERNET - 0.8%
eBay, Inc. *		19,828		575,607
IRON / STEEL - 0.6%
Nucor Corp.		7,990		472,369
MACHINERY- DIVERSIFIED - 0.6%
Caterpillar, Inc.		3,491		423,528
MEDIA - 4.0%
Comcast Corp.		41,024		1,564,655
Viacom, Inc.		21,715		694,446
Walt Disney Co.		5,785		664,292
				2,923,393
MISCELLANEOUS MANUFACTURING - 2.2%
Parker-Hannifin Corp.		4,936		748,446
Ingersoll-Rand PLC		9,102		873,246
				1,621,692
OIL & GAS - 9.8%
Chevron Corp.		16,787		1,874,269
ConocoPhillips		18,520		1,294,548
EOG Resources, Inc.		9,625		1,013,897
Exxon Mobil Corp.		14,209		1,132,173
Marathon Petroleum Corp.		14,694		1,035,192
Phillips 66		6,805		699,690
				7,049,769
OIL & GAS SERVICES - 0.6%
Halliburton Co.		12,552		435,303
PHARMACEUTICALS - 9.3%
Allergan PLC		4,259		672,965
CVS Health Corp.		15,746		1,139,853
Eli Lilly & Co.		8,082		876,412
Johnson & Johnson		7,460		1,044,325
Merck & Co., Inc.		15,878		1,168,780
Pfizer, Inc.		42,272		1,820,232
				6,722,567
REITS - 4.1%
Alexandria Real Estate Equities, Inc.		5,796		708,445
Equity LifeStyle Properties, Inc.		7,807		739,245
Highwoods Properties, Inc.		9,474		403,971
Prologis, Inc. ^		17,020		1,097,280
				2,948,941
RETAIL - 0.8%
Home Depot, Inc.		3,165		556,660
SEMICONDUCTORS - 3.4%
Broadcom Ltd.		3,794		847,921
Intel Corp.		13,294		623,223
ON Semiconductor Corp. * ^ ++		27,980		475,660
Qualcomm, Inc. ^		8,245		518,528
				2,465,332
SOFTWARE - 3.6%
Microsoft Corp.		13,243		1,414,485
Oracle Corp. ^		23,995		1,171,916
				2,586,401

See accompanying notes to financial statements.

51

SCHEDULE OF INVESTMENTS

Dunham Large Cap Value Fund (Continued)

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 97.6% (Continued)
TELECOMMUNICATIONS - 8.1%
AT&T, Inc.		57,537	$	1,765,235
Cisco Systems, Inc.		38,318		1,753,048
Verizon Communications, Inc.		40,141		2,291,650
				5,809,933
TOTAL COMMON STOCKS (Cost - $58,335,958)				70,375,397
SHORT - TERM INVESTMENT - 1.0%
MONEY MARKET FUND - 1.0%
STIT-STIC Prime Portfolio - 2.14% +		707,092		707,092
(Cost - $707,092)
COLLATERAL FOR SECURITIES LOANED - 7.2%
Mount Vernon Prime Portfolio, 2.39% + #		5,248,049		5,248,049
(Cost - $5,248,049)

Security	Shares	Value
TOTAL INVESTMENTS - 105.8% (Cost - $64,291,099)		$	76,330,538
LIABILITIES IN EXCESS OF OTHER ASSETS - (5.8)%			(4,211,076	)
NET ASSETS - 100.0%		$	72,119,462

PLC - Public Limited Company

REITS - 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 $5,157,171 at October 31, 2018. Securities loaned with a value of $163,602 have been sold and are pending settlement.

+ Variable rate security. Interest rate is as of October 31, 2018.

++ Shares out on loan as of October 31, 2018 are in excess of shares held in portfolio.

# 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)
Financial	25.6	%	Technology	6.6	%
Consumer, Non-cyclical	20.0	%	Utilities	4.2	%
Communications	12.2	%	Consumer, Cyclical	4.1	%
Energy	9.8	%	Basic Materials	1.8	%
Industrial	8.0	%	Others **	7.7	%
			Total	100.0	%

* Based on total value of investments as of October 31, 2018.

** Includes collateral for securities loaned as of October 31, 2018.

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

See accompanying notes to financial statements.

52

Dunham Focused Large Cap Growth Fund (Unaudited)

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

Over the fiscal year, concerns regarding escalating trade wars, faster inflation, geopolitical concerns, and higher interest rates were mostly overlooked as investors focused on a strong domestic economy and impressive earnings. U.S. equities rose higher until the final quarter of the fiscal year as some of these concerns came to the forefront as the President threatened tariffs on all remaining Chinese goods, the 10 year treasury increased over 40 basis points to 3.23 percent (albeit still near historic lows), and Fed Chairman, Jerome Powell’s, dubious response on the level of the neutral rate. Large cap growth stocks, as measured by the Russell 1000 Growth Index, increased 10.7 percent over the fiscal year ended October 31, 2018. Large cap growth stocks outperformed the broad U.S. stock market, as measured by the S&P 500 Index, as the index increased 7.3 percent. Furthermore, large cap growth stocks outperformed both small cap stocks and their large cap value counterparts. Small cap stocks, as measured by the Russell 2000 Index, increased 1.9 percent and large cap value stocks, as measured by the Russell 1000 Value Index, increased 3.0 percent over the fiscal year ended October 31, 2018.

The Sub-Adviser strives to own companies with prospects of strong, sustainable cash flow growth; that compete in business spaces with substantial market opportunity benefitting from secular trends; that possess competitive advantages and/or barriers to entry; and employ managers with vision and operating skills focused on creating shareholder value. The Sub-Adviser believes that the stocks in the Fund not only have strong balance sheets, but also garner free cash flow even in a stressed U.S. economic environment. The Sub-Adviser’s investment process consists of bottom- up fundamental analysis of individual companies that leads them to uncover what it believes are the best stocks, up to a maximum of 35 holdings, within the large cap growth universe.

The positions within the consumer discretionary sector was a large contributor to the Fund relative to the benchmark during the first three quarters of the fiscal year. However, in the final three-month period, this sector detracted from Fund Performance. Amazon.com, Inc. (AMZN) (holding weight*: 7.11 percent), a position within the consumer discretionary sector had a strong first three quarters of the fiscal year increasing over 6 percent The company beat earnings and revenue expectations by a considerable degree due to growth of its AWS cloud service and advertising business. AWS alone reported $6.1 billion in revenue which represents a 49 percent increases over the year. In the final three-month period ended October 31, 2018, AMZN detracted from Fund performance falling 10.1 percent. The Sub-Adviser attributes the move to a systematic market decline as investors’ unloaded positions that increased the most this year. A contributor from the consumer discretionary was Burlington Stores, Inc. (BURL) (holding weight*: 2.38 percent). BURL is a nationally recognized retailer of high-quality, branded merchandise at everyday low prices that are typically 40 to 60 percent below those of department stores. Burlington’s merchandise includes mostly in-season, fashion-focused footwear, apparel, and accessories for women, men, and children. BURL increased 13.9 percent since its inception into the portfolio in mid-July. The Sub-Adviser believes that the company’s growth will be driven by continued share gains in the off-price apparel and footwear segment, store growth and increasing store productivity.

Despite detracting for the three-month period ended October 31, 2018, the holdings within the technology sector were the strongest performing sector holdings for the full fiscal year. A position that contributed in the most recent fiscal quarter but also the full fiscal year was Adobe Systems Incorporated (ADBE) (holding weight*: 6.00 percent), which develops, markets, and supports computer design software products and technologies. ADBE increased 0.4 percent over the fiscal quarter, and 40.3 percent over the full fiscal year. The Sub-Adviser attributes the strong performance to a combination of a good quality product and sound execution by company leadership. The Sub-Adviser also believes that ADBE is experiencing a strong secular tailwind for the software as a service business, as tax reform has left large corporations with additional cash that is often being invested in software. Additionally, the Sub-Adviser was seeing a strong improvement in the digital marketing portion of revenue for ADBE. A position from the technology sector that detracted from Fund performance over the most recent fiscal quarter and year was, Alphabet Inc. (GOOG) (holding weight*: 5.88 percent), which, through its subsidiaries, provides web-based searches, advertisements, maps, software applications, mobile operating systems, consumer content, and commerce. GOOG fell 11.5 percent in the most recent quarter and increased only 5.9 percent over the full fiscal year. GOOG provided seesaw like returns over the fiscal year, which may be attributed to the government’s scrutiny of rival technology companies’ privacy policies in the second fiscal quarter, GOOG’s higher-than-anticipated capital expenditures, and a technology sell-off in the final three-month period ended October 31, 2018.

The Sub-Adviser claims no expertise in economic or market predictions, and top -down analysis plays no part in its approach to investing; instead, the Sub-Adviser uses a fundamentals-driven, bottom–up process to identify and own what it believes are the best growth companies. The Sub-Adviser strives to own companies with prospects of strong, sustainable cash flow growth; that compete in business spaces with substantial market opportunity benefitting from secular trends; that possess competitive advantages and/or barriers to entry; and employ managers with vision and operating skills focused on creating shareholder value. The Sub-Adviser believes that the stocks in the Fund not only have strong balance sheets, but also garner free cash flow even in a stressed U.S. economic environment.

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

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

Growth of $100,000 Investment

Total Returns as of October 31, 2018
		Annualized	Annualized Since
	One	Five	Inception
	Year	Years	(12/8/11)
Class N	17.24%	10.54%	12.94%
Class C	16.08%	9.46%	11.83%
Class A with load of 5.75%	10.27%	8.96%	11.69%
Class A without load	16.98%	10.25%	12.66%
Russell 1000 Growth Index	10.71%	13.43%	15.85%
Morningstar Large Cap Growth Category	8.58%	10.91%	13.84%

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 1.16% for Class N, 2.16% for Class C and 1.41% 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 Focused Large Cap Growth Fund

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 99.0%
BIOTECHNOLOGY - 7.7%
Alexion Pharmaceuticals, Inc. *		10,344	$	1,159,252
BioMarin Pharmaceutical, Inc. *		7,649		705,008
Illumina, Inc. *		10,186		3,169,374
Vertex Pharmaceuticals, Inc. *		7,085		1,200,624
				6,234,258
COMMERCIAL SERVICES - 9.3%
PayPal Holdings, Inc. *		30,199		2,542,454
S&P Global, Inc.		8,140		1,484,085
Square, Inc. * ^		27,624		2,028,983
TransUnion		22,920		1,506,990
				7,562,512
DIVERSIFIED FINANCIAL SERVICES - 12.5%
Mastercard, Inc.		24,226		4,788,753
Visa, Inc. ^		39,228		5,407,580
				10,196,333
HEALTHCARE-PRODUCTS - 7.3%
Align Technology, Inc. *		6,073		1,343,347
Edwards Lifesciences Corp. *		15,631		2,307,136
Intuitive Surgical, Inc. *		4,346		2,265,048
				5,915,531
INTERNET - 21.8%
Alibaba Group Holding Ltd. - ADR *		17,889		2,545,247
Alphabet, Inc. *		4,442		4,783,012
Amazon.com, Inc. *		3,618		5,781,600
Booking Holdings, Inc. *		994		1,863,333
Facebook, Inc. *		18,267		2,772,748
				17,745,940
RETAIL - 7.2%
Burlington Stores, Inc. *		11,280		1,934,407
Home Depot, Inc.		8,097		1,424,100
Ulta Beauty, Inc. *		9,032		2,479,465
				5,837,972
SEMICONDUCTORS - 3.2%
NVIDIA Corp.		12,398		2,613,870

Security	Shares		Value
SOFTWARE - 30.0%
Adobe Systems, Inc. *		19,855	$	4,879,565
Autodesk, Inc. *		10,987		1,420,070
Microsoft Corp.		38,638		4,126,925
Salesforce.com, Inc. *		38,867		5,334,107
ServiceNow, Inc. * ^		15,566		2,818,069
Splunk, Inc. *		17,236		1,720,842
Veeva Systems, Inc. *		27,604		2,521,625
Workday, Inc. * ^		11,598		1,542,766
				24,363,969
TOTAL COMMON STOCKS (Cost - $47,123,287)				80,470,385
SHORT-TERM INVESTMENT - 1.0%
MONEY MARKET FUND - 1.0%
Invesco Treasury Obligations - Institutional Class 2.04% +		857,412		857,412
(Cost - $857,412)
COLLATERAL FOR SECURITIES LOANED - 12.5%
Mount Vernon Prime Portfolio, 2.39% +# (Cost - $10,151,601)		10,151,601		10,151,601
TOTAL INVESTMENTS - 112.5%  (Cost - $58,132,300)			$	91,479,398
LIABILITIES IN EXCESS OF OTHER ASSETS - (12.5)%				(10,179,251	)
NET ASSETS - 100.0%			$	81,300,147

^ All or a portion of these securities are on loan. Total loaned securities had a value of $10,474,437 at October 31, 2018.

* Non-Income producing security.

ADR - American Depositary Receipt.

+ Variable rate security. Interest rate is as of October 31, 2018.

# 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)
Technology	29.5	%	Collateral for Securities Loaned	11.1	%
Consumer, Non-Cyclical	21.5	%	Consumer, Cyclical	6.4	%
Communications	19.4	%	Short-Term Investments	0.9	%
Financial	11.2	%	Total	100.0	%

^* Based on total value of investments as of October 31, 2018.

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

See accompanying notes to financial statements.

54

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”), were down 8.24 percent during the 12-month period ending October 31, 2018 (the “fiscal year”).

The best performing developed market countries as measured by the Index during the fiscal year were Israel, up 11.22 percent, and Norway, up 3.96 percent. The worst performing developed market countries were Belgium, down 23.38 percent, and Italy, down 16.26 percent. The best performing emerging market countries during the fiscal year as measured by the Index were Qatar, up 37.31 percent and Russia, up 10.69 percent. The worst performing emerging market countries were Turkey, down 43.07 percent, and Greece, down 20.08 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: China, primarily due to an overweight in energy and an underweight to Information technology; and Brazil, primarily due to an overweight to the materials sector. Countries contributing most to underperformance relative to the Index included: Turkey, primarily due to an overweight in the financials sector, as well as, poor selection in materials; and Denmark, primarily due to overweights to the financials sector as well as underweights to the materials sectors.

Sectors contributing most to returns relative to the Index during the fiscal year included: the energy sector, primarily due to overweights in China, Russia, and Italy; the health care sector, primarily due to overweights in Japan; and the communication services sector, primarily due to underweights in China. The sectors contributing the most to underperformance relative to the Index was the information technology sector, primarily due to overweights in Japan and South Korea; and the utilities sector, primarily due to underweights in Germany.

The stocks contributing most to returns relative to the Index during the fiscal year included: Vale S.A. (holding weight*: 0.55 percent), a Brazilian materials company; oil company Lukoil Pjsc (holding weight*: 1.01 percent), a Russian energy company; and Sap Se (holding weight*: 1.08 percent), a German information technology company. Stocks contributing most to underperformance relative to the Index included: Samsung Electronics Co Ltd. (holding weight*: 2.84 percent), a South Korean information technology company; Continental AG (holding weight*: 0.56 percent), a German consumer discretionary company; and Danske Bank A/S (holding weight*: 0.44 percent), a Dutch financial company.

The foregoing Sub-Adviser background and Insights from the Sub-Adviser are provided by Arrowstreet as of October 31, 2018 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) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

Growth of $100,000 Investment

Total Returns as of October 31, 2018
	One	Annualized	Annualized	Annualized Since Inception
	Year	Five Years	Ten Years	(12/10/04)
Class N	(7.08)%	2.23%	8.42%	4.72%
Class C	(8.03)%	1.21%	7.34%	3.68%
Class A with load of 5.75%	(12.68)%	0.77%	7.50%	1.55%*
Class A without load	(7.37)%	1.97%	8.15%	2.06%*
MSCI All Country World ex US Index (net)	(8.24)%	1.63%	6.92%	4.91%
Morningstar Foreign Large Cap Blend Category	(8.17)%	1.65%	6.42%	4.17%

* 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 1.56% for Class N, 2.56% for Class C and 1.81% 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

55

SCHEDULE OF INVESTMENTS

Dunham International Stock Fund

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 98.1%
AEROSPACE / DEFENSE - 0.4%
BAE Systems PLC - ADR ^		3,174	$	85,539
IHI Corp.		4,300		157,277
Safran SA		1,991		257,384
				500,200
AGRICULTURE - 0.5%
Imperial Brands PLC		6,138		207,837
Swedish Match AB		7,783		396,953
				604,790
AIRLINES - 0.3%
Deutsche Lufthansa AG		5,684		114,136
International Consolidated Airlines Group SA		13,982		107,927
International Consolidated Airlines Group SA		15,197		117,120
Turk Hava Yollari AO *		1		2
				339,185
APPAREL - 0.9%
adidas AG		3,064		720,797
Burberry Group PLC - ADR		2,500		58,425
Kering SA - ADR		100		4,440
Kering SA		454		201,869
				985,531
AUTO MANUFACTURERS - 0.6%
Hino Motors Ltd.		21,100		201,939
Honda Motor Co Ltd. - ADR		6,800		193,800
Porsche Automobil Holding SE - ADR		13,000		82,290
Renault SA		3,188		238,145
				716,174
AUTO PARTS & EQUIPMENT - 0.9%
Cie Generale des Etablissements Michelin SCA		1,588		162,628
Continental AG		3,829		631,189
Weichai Power Co Ltd.		181,000		178,995
				972,812
BANKS - 6.8%
Australia & New Zealand Banking Group Ltd.		14,911		274,694
Banco do Brasil SA *		28,800		330,682
Bank of China Ltd. - ADR		2,800		29,708
Bank of China Ltd.		1,784,000		760,305
Bank of Communications Co Ltd.		384,000		288,576
Bank of Montreal		3,300		246,642
BNP Paribas SA		5,784		301,534
China Construction Bank Corp. - ADR		23,500		372,593
China Everbright Bank Co. Ltd.		475,000		212,086
Danske Bank A/S		25,689		491,817
Erste Group Bank AG - ADR		5,100		104,219
Grupo Financiero Banorte SAB de CV		25,800		142,677
Grupo Financiero Banorte SAB de CV - ADR		1,828		50,124
Industrial & Commercial Bank of China Ltd.- ADR		23,330		316,355
Mitsubishi UFJ Financial Group, Inc.		92,200		557,941
Resona Holdings, Inc.		40,100		210,890
Royal Bank of Canada		17,755		1,293,274
Sberbank of Russia PJSC - ADR *		52,386		618,155
Toronto-Dominion Bank		14,596		809,494
Turkiye Is Bankasi AS		81,167		57,949
UniCredit SpA		16,394		209,674
Yapi ve Kredi Bankasi AS *		184,313		53,322
				7,732,711

Security	Shares		Value
BEVERAGES - 1.0%
Ambev SA		41,100	$	179,691
Asahi Group Holdings Ltd.		5,000		219,686
Coca-Cola HBC AG		3,447		102,521
Diageo PLC - ADR		3,992		551,535
Treasury Wine Estates Ltd.		4,877		52,538
				1,105,971
BIOTECHNOLOGY - 1.0%
CSL Limited		6,234		832,927
Shire PLC- ADR		1,800		327,240
				1,160,167
BUILDING MATERIALS - 0.9%
AGC, Inc.		20,700		677,897
Asia Cement Corp		44,000		46,652
Cie de Saint-Gobain		4,573		172,332
HeidelbergCement AG		1,507		102,308
				999,189
CHEMICALS - 2.6%
Asahi Kasei Corp.		9,900		118,764
BASF SE *		6,496		498,670
Covestro AG 144A		7,604		490,546
Croda International PLC		826		50,860
JSR Corp.		23,400		348,673
Koninklijke DSM NV		5,858		511,636
Mitsubishi Chemical Holdings Corp.		37,900		295,393
Shin-Etsu Chemical Co. Ltd.		6,800		568,111
Sumitomo Chemical Co. Ltd.		14,000		70,119
				2,952,772
COAL - 0.3%
China Shenhua Energy Co. Ltd.		129,000		291,951
COMMERCIAL SERVICES - 2.0%
Ashtead Group PLC		11,360		280,344
China Conch Venture Holdings Ltd.		31,000		87,249
Edenred		6,784		257,429
Experian PLC		20,616		473,985
RELX PLC		8,912		176,188
RELX PLC		42,562		842,489
Wirecard AG		613		114,706
				2,232,390
COMPUTERS - 1.9%
Capgemini SE		1,436		175,404
CGI Group, Inc. *		4,300		265,310
Check Point Software Technologies Ltd. * ^		5,374		596,514
Compal Electronics, Inc.		375,000		207,142
Computershare Ltd.		25,961		364,871
NTT Data Corp. *		33,800		433,864
Obic Co., Ltd.		1,500		136,536
				2,179,641
COSMETICS / PERSONAL CARE - 2.8%
Kao Corp.		7,500		498,828
Kose Corp.		300		44,826
L’Oreal SA		2,925		659,254
Pola Orbis Holdings, Inc.		700		18,697
Unicharm Corp.		23,500		637,412
Unilever NV - ADR		20,357		1,094,270
Unilever PLC		4,648		246,116
				3,199,403

See accompanying notes to financial statements.

56

SCHEDULE OF INVESTMENTS

Dunham International Stock Fund (Continued)

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 98.1% (Continued)
DISTRIBUTION / WHOLESALE - 1.0%
Marubeni Corp.		9,000	$	72,965
Mitsubishi Corp.		14,700		413,663
Sumitomo Corp.		22,200		336,641
Toyota Tsusho Corp.		7,500		270,617
				1,093,886
DIVERSIFIED FINANCIAL SERVICES - 2.5%
ASX Ltd.		4,023		169,112
B3 SA - Brasil Bolsa Balcao		35,500		255,080
China Merchants Securities Co. Ltd. - 144A		152,400		173,125
CITIC Securities Co. Ltd.		78,500		138,637
Deutsche Boerse AG		3,126		395,180
Hana Financial Group, Inc.		10,225		344,436
Hargreaves Lansdown PLC		7,275		173,374
Japan Exchange Group, Inc.		14,200		254,287
Noah Holdings Ltd. - ADR *		416		15,687
ORIX Corp.		36,500		594,516
Schroders PLC *		2,729		77,871
Yuanta Financial Holding Co., Ltd. *		498,000		242,177
				2,833,482
ELECTRIC - 1.6%
Centrais Eletricas Brasileiras SA *		37,200		233,846
CEZ AS		4,959		118,009
Enel SpA *		212,026		1,039,945
Fortum OYJ *		16,246		342,111
Kansai Electric Power Co., Inc.		2,400		36,727
Origin Energy Ltd. *		8,679		45,015
				1,815,653
ELECTRICAL COMPONENTS & EQUIPMENT - 0.2%
Brother Industries Ltd		10,100		184,813
Schneider Electric SE		529		38,266
				223,079
ELECTRONICS - 0.8%
AU Optronics Corp. *		103,000		40,243
Hoya Corp.		10,600		599,597
Kyocera Corp.		4,100		221,865
Nidec Corp.		600		77,053
				938,758
ENGINEERING & CONSTRUCTION - 0.4%
Enka Insaat ve Sanayi AS *		1		1
LendLease Group		38,522		481,492
				481,493
ENTERTAINMENT - 0.6%
Aristocrat Leisure Ltd.		25,172		474,742
OPAP SA		16,478		154,866
				629,608
FOOD - 3.4%
Associated British Foods PLC - ADR		3,400		105,298
CJ CheilJedang Corp. *		362		37,749
Koninklijke Ahold Delhaize NV		8,613		197,226
Metro, Inc.		11,000		346,019
Orkla ASA		51,818		448,476
Seven & i Holdings Co. Ltd.		22,200		961,090
Tesco PLC - ADR		15,100		122,763
Wesfarmers Ltd.		16,835		558,009
Wm Morrison Supermarkets PLC		29,595		93,730
Woolworths Group Ltd.		33,207		670,798
Yakult Honsha Co. Ltd.		4,000		283,196
				3,824,354
FOREST PRODUCTS & PAPER- 0.5%
Stora Enso OYJ		7,287		109,527
UPM-Kymmene OYJ		14,043		451,625
				561,152
GAS - 0.1%
Tokyo Gas Co., Ltd.		6,400		157,367

Security	Shares		Value
HEALTHCARE - PRODUCTS - 2.8%
Cochlear Ltd.		2,747	$	346,452
EssilorLuxottica SA		2,247		307,000
Getinge AB		12,450		122,279
Koninklijke Philips NV *		24,762		923,847
Olympus Corp.		6,900		229,949
Smith & Nephew PLC		27,710		450,264
Smith & Nephew PLC - ADR ^		8,738		287,305
Sonova Holding AG		1,574		257,014
Sysmex Corp.		2,400		168,305
Terumo Corp.		2,200		118,739
				3,211,154
HEALTHCARE - SERVICES - 0.4%
Fresenius Medical Care AG & Co KGaA		6,118		480,534
Sonic Healthcare Ltd. ^		1,500		23,925
				504,459
HOLDING COMPANIES-DIVERSIFIED - 0.7%
Financiere de Tubize SA		1,315		91,074
Haci Omer Sabanci Holding AS *		1		1
Industrivarden AB		15,944		340,614
Itausa - Investimentos Itau SA *		136,638		411,992
				843,681
HOME FURNISHINGS - 0.4%
Arcelik AS		1		3
LG Electronics, Inc.		2,286		127,798
Panasonic Corp.		30,200		324,033
				451,834
HOUSEHOLD PRODUCTS/WARES - 0.2%
Henkel AG & Co KGaA		1,505		164,487
HOUSEWARES - 0.1%
Turkiye Sise ve Cam Fabrikalari AS *		103,490		87,432
INSURANCE - 6.9%
Aegon NV - ADR ^		50,350		306,128
Aegon NV		7,354		45,115
AIA Group Ltd.		43,400		330,253
Allianz SE		2,859		595,798
Assicurazioni Generali SpA		30,414		490,959
AXA SA		30,706		768,741
China Life Insurance Co., Ltd.		41,523		417,721
China Life Insurance Co., Ltd. - ADR * ^		108,607		103,226
China Taiping Insurance Holdings Co. Ltd.		124,000		416,649
Dai-ichi Life Holdings, Inc.		17,800		333,964
Insurance Australia Group Ltd.		28,891		139,848
Japan Post Holdings Co., Ltd.		48,700		577,406
MS&AD Insurance Group Holdings, Inc.		20,500		615,654
NN Group NV		23,981		1,030,064
Porto Seguro SA		5,500		80,505
Shin Kong Financial Holding Co., Ltd. *		642,115		211,707
Sompo Holdings, Inc.		6,000		247,429
Sony Financial Holdings, Inc.		11,100		256,026
Sul America SA		15,500		103,278
Tokio Marine Holdings, Inc.		15,400		725,398
				7,795,869
INTERNET - 0.7%
Auto Trader Group PLC - 144A		48,367		252,646
SEEK Ltd.		15,773		200,566
Trend Micro, Inc.		5,400		310,800
				764,012
INVESTMENT COMPANIES - 0.5%
Investor AB		4,901		213,992
Kinnevik AB *		13,241		367,548
				581,540
INVESTMENT COMPANIES - 1.7%
ArcelorMittal		30,885		770,945
BlueScope Steel Ltd.		15,592		159,963
JFE Holdings, Inc.		5,000		93,941
POSCO		1,122		256,818
Vale SA *		40,700		616,882
				1,898,549

See accompanying notes to financial statements.

57

SCHEDULE OF INVESTMENTS

Dunham International Stock Fund (Continued)

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 98.1% (Continued)
LEISURE TIME - 0.3%
TUI AG		19,994	$	330,557
LODGING - 0.0%
Crown Resorts Ltd.		408		3,633
MACHINERY CONSTRUCTION & MINING - 1.0%
Hitachi Ltd. - ADR		1,793		109,723
Hitachi Ltd.		21,200		647,973
Komatsu Ltd.		12,700		330,681
				1,088,377
MACHINERY - DIVERSIFIED - 0.6%
Hexagon AB		3,983		195,187
Keyence Corp.		1,000		488,433
				683,620
MEDIA - 1.1%
Pearson PLC - ADR		26		296
Vivendi SA		21,438		517,231
Wolters Kluwer NV *		12,437		705,858
				1,223,385
METAL FABRICATE / HARDWARE - 0.1%
Tenaris SA - ADR		5,344		156,205
MINING - 2.5%
Anglo American PLC		24,875		530,730
BHP Billiton Ltd.		46,457		1,072,841
BHP Billiton PLC		10,980		218,960
Boliden AB		11,569		264,529
Rio Tinto PLC - ADR ^		10,683		526,565
South32 Ltd.- ADR		7,980		102,862
South32 Ltd.		26,158		67,523
				2,784,010
MISCELLANEOUS MANUFACTURING - 2.0%
Doosan Corp.		1,070		70,873
FUJIFILM Holdings Corp.		9,700		419,454
Siemens AG		10,589		1,217,602
Siemens AG - ADR		9,732		559,006
				2,266,935
OFFICE / BUSINESS EQUIPMENT - 0.4%
Canon, Inc.		13,700		390,154
Ricoh Co., Ltd.		9,800		97,809
				487,963
OIL & GAS - 12.5%
BP PLC - ADR		26,264		1,139,070
China Petroleum & Chemical Corp		1,550,000		1,263,004
CNOOC Ltd. - ADR		7,180		1,215,215
CNOOC Ltd.		371,000		632,011
Ecopetrol SA - ADR		1,468		34,146
Eni SpA		79,423		1,411,032
Equinor ASA - ADR ^		20,341		522,764
Galp Energia SGPS SA		18,666		324,684
Gazprom PJSC - ADR		30,800		144,760
Gazprom PJSC - ADR		67,456		319,607
Inpex Corp.		5,000		56,923
JXTG Holdings, Inc.		62,200		420,210
LUKOIL PJSC - ADR		15,187		1,134,469
Novatek PJSC - ADR		497		84,242
PetroChina Co., Ltd. - ADR *		8,450		613,808
PetroChina Co., Ltd.		328,000		235,916
Petroleo Brasileiro SA - ADR		9,323		138,167
Petroleo Brasileiro SA - ADR		14,633		237,786
Polski Koncern Naftowy ORLEN SA *		6,490		156,337

Security	Shares		Value
OIL & GAS - 12.5% (Continued)
Polskie Gornictwo Naftowe i Gazownictwo SA *		48,396	$	79,083
PTT Exploration & Production PCL		96,300		405,244
PTT PCL		244,000		375,204
Repsol SA		34,011		607,953
Royal Dutch Shell PLC ADR		11,195		735,623
Royal Dutch Shell PLC - ADR		6,327		399,803
Royal Dutch Shell PLC		21,081		669,800
Santos Ltd.		69,443		326,212
SK Innovation Co., Ltd. *		1,090		204,560
Woodside Petroleum Ltd.		11,641		286,848
				14,174,481
PHARMACEUTICALS - 10.4%
Astellas Pharma, Inc.		39,200		605,541
AstraZeneca PLC - ADR ^		12,503		484,866
Bayer AG		9,156		702,078
Chugai Pharmaceutical Co. Ltd.		10,700		626,339
Daiichi Sankyo Co. Ltd.		10,300		393,629
Eisai Co. Ltd.		1,800		149,878
GlaxoSmithKline PLC - ADR		33,900		1,324,134
Grifols SA		12,969		269,611
Novartis AG		11,577		1,015,085
Novo Nordisk A/S - ADR		15,300		660,654
Novo Nordisk A/S		16,055		693,592
Ono Pharmaceutical Co. Ltd.		11,400		258,661
Otsuka Holdings Co. Ltd.		4,700		224,752
Roche Holding AG		10,718		2,611,600
Roche Holding AG - ADR		13,300		403,788
Shionogi & Co. Ltd.		8,000		511,459
Takeda Pharmaceutical Co. Ltd.		13,600		563,750
UCB SA		3,051		256,314
				11,755,731
PRIVATE EQUITY - 0.5%
3i Group PLC		51,117		572,172
REAL ESTATE - 0.2%
REA Group Ltd.		3,566		181,639
Wharf Real Estate Investment Co Ltd.		17,000		105,675
				287,314
REIT - 0.6%
Link REIT		38,000		337,819
RioCan Real Estate Investment Trust		13,350		243,975
Scentre Group		34,108		96,173
				677,967
RETAIL - 2.3%
Alimentation Couche-Tard, Inc.		4,100		196,282
Canadian Tire Corp. Ltd.		4,000		451,216
Cie Financiere Richemont SA - ADR		18,300		132,767
Cie Financiere Richemont SA		10,407		761,600
Fast Retailing Co. Ltd.		600		302,050
HUGO BOSS AG		2,774		198,310
Kingfisher PLC		45,221		146,788
Luxottica Group SpA		6,803		427,402
				2,616,415
SEMICONDUCTORS - 5.6%
Macronix International		141,780		78,943
Nanya Technology Corp.		126,000		210,389
Samsung Electronics Co. Ltd. - ADR - 144A		126		117,558
Samsung Electronics Co. Ltd.		67,400		2,523,172
Samsung Electronics Co. Ltd.		8,550		269,759
Samsung Electronics Co. Ltd. - ADR		375		293,250
SK Hynix, Inc. *		14,214		856,044
STMicroelectronics NV		21,978		334,215
Taiwan Semiconductor Manufacturing Co. Ltd. *		35,000		262,758
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR ^		36,343		1,384,668
United Microelectronics Corp. *		185,000		70,500
				6,401,256

See accompanying notes to financial statements.

58

SCHEDULE OF INVESTMENTS

Dunham International Stock Fund (Continued)

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 98.1% (Continued)
SOFTWARE - 2.9%
Amadeus IT Group SA		12,912	$	1,040,101
Constellation Software, Inc.		300		206,970
Dassault Systemes SE - ADR		1,011		126,815
Oracle Corp Japan		2,500		169,193
Sage Group PLC		6,798		47,249
SAP SE		11,373		1,218,178
Ubisoft Entertainment SA *		5,667		508,524
				3,317,030
TELECOMMUNICATIONS - 3.3%
China Mobile Ltd.		18,500		173,362
KDDI Corp.		23,000		556,498
Nice Ltd. - ADR *		1,319		139,735
Nippon Telegraph & Telephone Corp. - ADR		567		22,964
Nippon Telegraph & Telephone Corp.		14,800		610,223
Nokia OYJ *		74,934		423,421
Telecom Italia SpA - ADR *		58,300		346,885
Telecom Italia SpA - ADR		7,800		39,702
Telefonica SA		64,891		532,493
Vodafone Group PLC - ADR		47,662		902,242
				3,747,525
TRANSPORTATION - 3.4%
Canadian National Railway Co.		14,157		1,213,195
Canadian Pacific Railway Ltd.		800		164,000
Canadian Pacific Railway Ltd.		1,500		308,361
Central Japan Railway Co.		2,400		460,499
DSV A/S		3,979		319,320
East Japan Railway Co.		6,100		532,666
Guangshen Railway Co., Ltd.		266,000		99,692
Hankyu Hanshin Holdings, Inc. *		200		6,605
Kamigumi Co., Ltd.		4,000		82,524
Nippon Express Co., Ltd.		1,500		94,646
Tobu Railway Co., Ltd. *		5,700		158,504
West Japan Railway Co.		5,800		390,025
				3,830,037
TOTAL COMMON STOCKS (Cost - $111,070,105)				111,239,349

Security			Shares		Value
EXCHANGE TRADED FUND - 0.6%
EQUITY FUND - 0.6%
iShares MSCI EAFE ETF				10,432	$	651,583
TOTAL EXCHANGE TRADED FUND (Cost - $689,856)
WARRANT- 0.0%
Barito Pacific TBK PT				35,722		870
TOTAL WARRANTS (Cost - $0)
			Principal
	Interest Rate		Amount
PREFERRED STOCK - 0.5%
OIL & GAS - 0.5%
Petroleo Brasileiro SA		0.000		84,100		625,118
TOTAL PREFERRED STOCK (Cost - $561,149)
			Shares
SHORT-TERM INVESTMENT - 0.0%
MONEY MARKET FUND - 0.0%
Fidelity Institutional Money Market Fund -
Government Portfolio - Institutional Class		2.060+		30,943		30,943
TOTAL SHORT-TERM INVESTMENT (Cost - $30,943)
COLLATERAL FOR SECURITIES LOANED - 3.8%
Mount Vernon Prime Portfolio, 2.39% + # (Cost - $4,306,692)				4,306,692		4,306,692
TOTAL INVESTMENTS - 103.0% (Cost - $116,658,745)					$	116,854,555
LIABILITIES IN EXCESS OF OTHER ASSETS - (3.0)%						(3,439,158	)
NET ASSETS - 100.0%					$	113,415,397

^ All or a portion of these securities are on loan. Total loaned securities had a value of $4,260,072 at October 31, 2018.

* Non-income producing security.

ADR - American Depositary Receipt.

NV - Non-Voting REIT - Real Estate Investment Trust.

+ Variable rate security. Interest rate is as of October 31, 2018.

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 $1,033,875 or 0.9% of net assets.

# 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)
Japan	20.1	%	Switzerland	4.8	%
Britain	9.9	%	Netherlands	4.7	%
Germany	7.4	%	South Korea	4.4	%
China	6.3	%	France	4.0	%
Australia	6.1	%	Other Countries **	27.4	%
Canada	4.9	%	Total	100.0	%

^* Based on total value of investments as of October 31, 2018.

^** Includes collateral for securities loaned as of October 31, 2018.

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

See accompanying notes to financial statements.

59

Dunham Real Estate Stock Fund (Unaudited)

Message from the Sub-Adviser ( Barings LLC)

The real estate investment trust (REIT) market had a positive fiscal year ended October 31, 2018, however a negative final three months eliminated about two-thirds of the year-to-date 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 shy aware from REITs. Over the fiscal year, the 10-year Treasury rose from 2.37 percent at the beginning of the period to 3.23 percent at the end of the fiscal year, fluctuating within a 91 basis point range throughout. REITs, as measured by the FTSE NAREIT All REIT Index, increased 4.3 percent over the first three fiscal quarters, while dropping 2.7 percent in the fourth fiscal quarter. For the year, REITs increased 1.6 percent, while other broad equity indexes, such as the S&P 500 Index, gained 7.4 percent. The underperformance of REITs over the last fiscal year continued the trend of underperformance, since REITs also trailed the S&P 500 index the previous fiscal year by 14.8 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. Free standing, regional mall, and manufactured home REIT sectors, had the strongest positive contributions to the Fund’s return over the past fiscal year. The timber, data center, and self storage REIT sectors, were the leading detractors to the Fund performance over fiscal year.

From a sector standpoint, the Fund’s underweight allocation to the diversified REIT sector had the biggest positive contribution to the Fund’s performance versus the benchmark over the fiscal year ended October 31, 2018. The Fund also outperformed versus the benchmark by being overweight in free standing REITs and underweight the timber REIT sector for the period. However, the performance due to allocation decisions by the Fund versus the benchmark was overall a net loss of 1.4 percent for the fiscal year. The Fund missed out on strong returns in the infrastructure REIT sector by being underweight versus the benchmark. Infrastructure REITS returned 8.2 percent for the benchmark during the fiscal year. The Fund was hurt relative to the benchmark by having almost twice the exposure to data center REITs during the period. The data center REIT sector lost 14.2 percent for the index during the period and the additional weighting by the Fund hurt relative performance. The Fund also lost ground versus the benchmark by being underweight self storage REITs. Self storage REITs returned 7.2 percent for the index over the fiscal year. Overall, the underperformance of the Fund can be attributed to asset allocation compared to the benchmark index. The Fund did add 0.3 percent in relative performance versus the benchmark due to security selection, but that was not enough to overcome the allocation decision shortfalls.

Within the equity selection, the top contributor to the Fund performance was Simon Property Group, Inc. (SPG) (holding weight*: 4.55 percent), a company that is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations. The holding returned 24.0 percent during the fiscal year. SPG benefited from continuing repositioning and repurposing of retail mall space. Another top contributor to the Fund was from the apartment REIT sector. UDR, Inc. (UDR) (holding percentage*: 5.15 percent), is a leading multifamily real estate investment trust that manages, buys, sells, develops and redevelops real estate properties in smaller tertiary U.S. markets. Over the fiscal year, the holding increased 12.1 percent. Another holding that contributed positively to the Fund’s performance was American Tower Corporation (AMT) (holding weight*: 5.11 percent), a company that is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 170,000 communications sites. The holding increased 10.8 percent during the fiscal year. The Sub-Adviser believes the company will continue to benefit from the effects of capital expenditures of wireless companies ongoing investments in developing 5G technology for their wireless platforms.

On the opposite side of the spectrum, security selection in data centers and timber sectors detracted from Fund performance versus the benchmark. The top two detractors to the Fund’s performance came from the data center space. Equinix, Inc. (EQIX) (holding weight*: 3.85 percent), a company that connects various companies directly to their customers and partners inside interconnected data centers, lost 16.5 percent during the fiscal year. Digital Realty Trust, Inc. (DLR) (holding weight*: 6.18 percent), a company that supports the data center, colocation and interconnection strategies of more than 2,300 firms across its secure, network-rich portfolio of data centers located domestically and internationally, decreased 9.7 percent during the fiscal year. Even with the poor yearly returns, the Sub-Adviser currently has a positive outlook for the data center REIT sector, which leads the Sub-Adviser to continue a strong overweight to the sector versus the benchmark. The Sub-Adviser believes the data center sector has growth opportunities and part of the poor performance was the overall negative sentiment to the tech sector in the market in general. Another detractor to the Fund’s return came from the timber REIT space. Weyerhaeuser Company (WY) (holding weight*: 1.83 percent), one of the world’s largest private owners of timberlands, tumbled 23.1 percent during the most recent fiscal year. The Sub-Adviser has concerns about the ongoing trade war between the U.S. and China, which has pushed the Chinese to buy timber from Canada and New Zealand. The Sub-Adviser also feels that the timber space might have performed poorly due to market concerns of a top in the housing market, which would slow home building and timber demand.

Going forward, the Sub-Adviser is optimistic about REIT performance through the remainder of 2018 and through next year, as it sees discounts to net asset values in several sectors. As mentioned earlier, the Sub-Adviser believes there are growth opportunities in the data center space. The Sub-Adviser also sees strong value opportunities in single family rentals, regional malls, and office REITs. The Sub-Adviser does not like the valuations in the health care and free standing triple net lease REIT spaces. The Sub-Adviser will continue to monitor the effects of the trade war between the United States and China on all of the REIT sectors. The Sub-Adviser will continue to look to take advantage of distortions in valuations throughout the macroeconomic, capital market, and real estate cycles, through investment selections that will favor specific themes with better growth, rather than country or sector allocations.

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

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

Growth of $100,000 Investment

Total Returns as of October 31, 2018
	One	Annualized	Annualized	Annualized Since Inception
	Year	Five Years	Ten Years	(12/10/04)
Class N	(0.48)%	6.79%	10.79%	6.19%
Class C	(1.50)%	5.72%	9.68%	5.14%
Class A with load of 5.75%	(6.43)%	5.27%	9.87%	3.13%*
Class A without load	(0.74)%	6.53%	10.52%	3.65%*
FTSE NAREIT All REITs Index	1.62%	8.21%	11.71%	6.77%
Morningstar Real Estate Category	0.29%	6.76%	10.67%	6.27%

* 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 1.17% for Class N, 2.17% for Class C and 1.42% 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

60

SCHEDULE OF INVESTMENTS

Dunham Real Estate Stock Fund

October 31, 2018

Security	Shares		Value
COMMON STOCK - 1.8%
LODGING - 1.8%
Hilton Worldwide Holdings, Inc.		13,356	$	950,547
TOTAL COMMON STOCK (Cost - $770,602)
REITS - 96.4%
APARTMENTS - 12.1%
AvalonBay Communities, Inc. ^		11,250		1,973,025
Camden Property Trust		18,160		1,639,303
Invitation Homes, Inc. ^		6,400		140,032
UDR, Inc. ^		70,240		2,752,706
				6,505,066
DIVERSIFIED - 28.9%
American Tower Corp.		17,510		2,728,233
Cousins Properties, Inc. ^		133,400		1,108,554
Crown Castle International Corp.		25,270		2,747,860
Digital Realty Trust, Inc.		31,950		3,299,157
Equinix, Inc.		5,430		2,056,558
Gaming and Leisure Properties, Inc.		22,130		745,560
New Residential Investment Corp.		88,200		1,577,016
Vornado Realty Trust		4,660		317,253
Weyerhaeuser Co.		36,710		977,587
				15,557,778
FINANCE - MORTGAGE LOAN/BANKER - 2.6%
TPG RE Finance Trust, Inc.		71,820		1,423,472
HEALTHCARE - 8.0%
Medical Properties Trust, Inc. ^		53,910		801,103
National Health Investors, Inc.		7,020		515,689
Physicians Realty Trust		38,760		642,641
Sabra Health Care REIT, Inc. ^		46,610		1,009,107
Welltower, Inc. ^		20,560		1,358,399
				4,326,939
HOTELS - 5.1%
Chesapeake Lodging Trust ^		26,760		786,476
Host Hotels & Resorts, Inc.		56,830		1,086,021
Park Hotels & Resorts, Inc.		30,622		890,182
				2,762,679
MANUFACTURED HOMES - 2.0%
Sun Communities, Inc.		11,010		1,106,175
OFFICE - 8.6%
Boston Properties, Inc.		17,190		2,075,864
Hudson Pacific Properties, Inc.		26,280		796,284
JBG SMITH Properties ^		5,640		211,387
Kilroy Realty Corp.		22,323		1,537,608
				4,621,143

Security	Shares		Value
REGIONAL MALLS - 5.7%
Macerich Co.		12,120	$	625,634
Simon Property Group, Inc.		13,241		2,429,988
				3,055,622
SHOPPING CENTERS - 4.8%
Acadia Realty Trust ^		26,828		746,892
Regency Centers Corp.		28,944		1,833,892
				2,580,784
SINGLE FAMILY - 7.0%
Agree Realty Corp.		21,030		1,204,388
National Retail Properties, Inc. ^		26,440		1,236,070
STORE Capital Corp.		46,920		1,362,088
				3,802,546
STORAGE - 3.9%
Extra Space Storage, Inc. ^		23,310		2,099,299
WAREHOUSE/INDUSTRIAL - 7.7%
First Industrial Realty Trust, Inc.		41,000		1,258,700
Prologis, Inc. ^		44,490		2,868,270
				4,126,970
TOTAL REITS (Cost - $47,872,641)				51,968,473
SHORT-TERM INVESTMENT - 0.9%
MONEY MARKET FUND - 0.9%
Fidelity Investments Money Market - Class I, 1.58% +		497,413		497,413
TOTAL SHORT-TERM INVESTMENT (Cost - $497,413)
COLLATERAL FOR SECURITIES LOANED - 16.6%
Mount Vernon Prime Portfolio, 2.39% +# (Cost - $8,953,610)		8,953,610		8,953,610
TOTAL INVESTMENTS - 115.7% (Cost - $58,094,266)			$	62,370,043
LIABILITIES IN EXCESS OF OTHER ASSETS - (15.7)%				(8,454,811	)
TOTAL NET ASSETS - 100.00%			$	53,915,232

^ All or a portion of these securities are on loan. Total loaned securities had a value of $8,551,531 at October 31, 2018. Securities loaned with a value of $39,209 have been sold and are pending settlement.

REITS - Real Estate Investment Trusts.

+ Variable rate security. Interest rate is as of October 31, 2018.

# 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)
Diversified	25.0	%	Hotels	4.4	%
Collateral for Securities Loaned	14.4	%	Shopping Centers	4.1	%
Apartments	10.4	%	Storage	3.4	%
Office	7.4	%	Finance - Mortgage Loan/Banker	2.3	%
Healthcare	6.9	%	Manufactured Homes	1.8	%
Warehouse	6.6	%	Lodging	1.5	%
Single Family	6.1	%	Short-Term Investment	0.8	%
Regional Malls	4.9	%	Total	100.0	%

* Based on total value of investments as of October 31, 2018.

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

See accompanying notes to financial statements.

61

Dunham Small Cap Value Fund (Unaudited)

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

Small cap value stocks, as measured by the Russell 2000 Value Index, experienced a volatile fiscal year rising and falling each fiscal quarter, ending the fiscal year nearly flat, down 0.6 percent. In the first fiscal quarter, small cap value stocks rose 3.2 percent. However during the second fiscal quarter, small cap value stocks whipsawed, down 2.2 percent. During the third fiscal quarter, small cap value stocks jumped back, rising 8.3 percent. Another reversal occurred during the last fiscal quarter, as small cap value stocks plunged 9.1 percent. The dispersion in sector performance during the fiscal year was high, as the best performing sector, communication services, outpaced the worst performing sector, materials, by approximately 26 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 banking industry group, the largest weighting for the Fund, did not have as large of an impact on overall performance during the fiscal year compared to last fiscal year. The energy sector and the commercial services sector provided both contributors and detractors to Fund performance throughout the fiscal year, while the healthcare industry group was one of the top industry groups for the Fund during the fiscal year.

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 contrast to the previous fiscal quarter’s top contributor coming from the energy sector, the most recent fiscal quarter’s top detractor came from the energy sector. The top detractor, Newpark Resources Inc. (NR) (holding weight*: 0.94 percent), a global supplier of drilling fluids systems and composite matting systems for oil and gas companies, was different than the third fiscal quarter’s top contributor, Penn Virginia Corporation (PVAC) (holding weight*: 0.86 percent), an independent oil and gas company engaged in the exploration, development and production of oil and natural gas primarily in Eagle Ford Shale in South Texas and other onshore regions of the United States. For the fiscal year, NR declined 6.2 percent and PVAC rocketed 76.5 percent, while the Russell 2000 Value Index energy sector decreased approximately 1.6 percent. True to the Sub-Adviser’s investment strategy, the Fund’s returns are a reflection of their security selection and not sector allocation decisions.

The third fiscal quarter’s second top contributor came from the commercial services industry group, while the fourth fiscal quarter’s second largest detractor was from the commercial industry group, specifically in the trucking industry. During the fourth fiscal quarter, Echo Global Logistics, Inc. (ECHO) (holding weight*: 0.90 percent), an international logistics company fell with the majority of the transportation sector in late September and its positive earnings release at fiscal quarter end was not enough to lift the holding from being the second greatest detractor. The previous fiscal quarter’s second top contributor, ArcBest Corporation (ARCB) (holding weight*: 1.15 percent), which provides freight and logistics solutions experienced increased demand and its good earnings report helped the holding contribute to positive Fund performance. Over the fiscal year, both ECHO and ARCB contributed to positive Fund performance, appreciating 6.9 percent and 14.8 percent, respectively. Meanwhile, the Russell 2000 Value Index industrials sector dropped approximately 1.3 percent during the fiscal year.

The healthcare industry group contributed to positive Fund performance during the fiscal year. Healthcare was the strongest performing industry group for the Fund during the first fiscal quarter, while healthcare had the top two contributors for Fund performance during the second fiscal quarter even though the sector was negative during the same period. During the third fiscal quarter, healthcare returned to the top performing industry group, while in the fourth fiscal quarter, healthcare fell slightly. Haemonetics Corporation (HAE) (holding weight**: 1.44 percent), a company that provides hematology products and solutions, was one such company that performed well over the fiscal year. The company continued year-over-year revenue increases, led by steady growth in their plasma franchise, which is seeing strong end-market demand for plasma-derived biopharmaceuticals. By the time the Sub-Adviser exited the holding on September 19, 2018, HAE returned 130.8 percent. Another contributor was Sucampo Pharmaceuticals Inc. (SCMP) (holding percentage**: 1.09 percent), a biopharmaceutical company focused on developing, identifying, acquiring, and marketing medicines that helped unmet medical needs, primarily in gastroenterology, ophthalmology, and oncology-related disorders. During the first fiscal quarter, the Sub-Adviser exited the holding on January 8, 2018, after the holding rose 84.0 percent. SCMP’s large gain was due to the announced acquisition of the company by a United Kingdom pharmaceutical company. A detractor for the Fund during the second fiscal quarter was Anika Therapeutics, Inc. (ANIK) (holding weight*: 0.61 percent), a company that provides orthopedic medicines for patients with degenerative orthopedic diseases and traumatic conditions globally. ANIK fell 34 percent during the second fiscal quarter. Part of the poor performance might be attributed to a revenue miss and a product recall during the period. However, ANIK still ended the fiscal year positive, up 7.5 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, investors may have taken notice of small cap U.S. value stocks, as investors may have thought these companies were more insulated from tariffs since the majority of their customers tend to be from the U.S. In addition, the Sub-Adviser is optimistic that although it is sector neutral, its careful stock selection will allow it to be less interest rate sensitive within rate-sensitive sectors, as indicators suggest that rates will continue to rise in 2018. Furthermore, the Sub-Adviser believes that its sector-, beta-, and market-capitalization-neutral bottom-up stock picking strategy will continue to outperform based upon stock selection, especially during environments with elevated volatility, which may persist in the future.

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

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

Growth of $100,000 Investment

Total Returns as of October 31, 2018
		Annualized	Annualized	Annualized Since Inception
	One Year	Five Years	Ten Years	(12/10/04)
Class N	0.31%	7.41%	10.95%	5.99%
Class C	(0.63)%	6.35%	9.84%	4.95%
Class A with load of 5.75%	(5.70)%	5.89%	10.04%	4.81%*
Class A without load	0.08%	7.15%	10.69%	5.34%*
Russell 2000 Value Index	(0.59)%	7.18%	10.95%	7.03%
Morningstar Small Cap Value Category	(2.24)%	5.83%	11.21%	6.88%

* 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.

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

Investors cannot invest directly in an index or benchmark.

As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.39% for Class N, 2.39% for Class C and 1.64% 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.

62

SCHEDULE OF INVESTMENTS

Dunham Small Cap Value Fund

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 97.9%
AEROSPACE / DEFENSE - 1.9%
Esterline Technologies Corp. * ^		3,700	$	434,232
Moog, Inc.		6,560		469,368
				903,600
AUTO PARTS & EQUIPMENT - 1.2%
Cooper Tire & Rubber Co. ^		8,888		274,550
Tower International, Inc.		10,227		303,640
				578,190
BANKS - 18.3%
BancFirst Corp. ^		4,660		267,391
Bancorp, Inc. *		31,318		328,839
BankUnited, Inc.		15,452		511,461
Banner Corp.		9,940		574,731
Cathay General Bancorp		13,910		523,990
Central Pacific Financial Corp.		10,420		281,757
First Bancorp ^		6,400		236,096
First Citizens BancShares, Inc.		1,580		674,075
First Interstate BancSystem, Inc. ^		10,370		429,940
Franklin Financial Network, Inc. * ^		6,360		215,604
Heartland Financial USA, Inc. ^		8,310		441,593
Independent Bank Corp. ^		10,280		227,496
International Bancshares Corp.		14,000		541,800
National Bank Holdings Corp.		6,810		229,906
Simmons First National Corp.		17,200		460,616
TriCo Bancshares		7,833		282,145
TrustCo Bank Corp. NY		19,000		142,310
Trustmark Corp.		14,985		461,538
UMB Financial Corp. ^		8,200		523,570
United Community Banks, Inc.		17,800		442,686
Walker & Dunlop, Inc.		8,200		344,072
Wintrust Financial Corp.		6,980		531,457
				8,673,073
BIOTECHNOLOGY - 1.2%
AMAG Pharmaceuticals, Inc. * ^		17,900		384,850
MacroGenics, Inc. *		11,230		184,846
				569,696
CHEMICALS - 1.7%
Minerals Technologies, Inc.		5,676		310,761
Stepan Co.		6,025		497,605
				808,366
COMMERCIAL SERVICES - 5.4%
Aaron’s, Inc. ^		12,740		600,436
CBIZ, Inc. *		11,720.00		259,950
Ennis, Inc.		11,390		220,510
FTI Consulting, Inc. * ^		7,200		497,592
Graham Holdings Co.		860		499,703
K12, Inc. *		22,120		473,589
				2,551,780
COMPUTERS - 2.9%
Electronics For Imaging, Inc. * ^		17,260		525,567
Insight Enterprises, Inc. *		11,800		609,942
MTS Systems Corp.		5,210		246,694
				1,382,203
DIVERSIFIED FINANCIAL SERVICES - 1.6%
Federated Investors, Inc. ^		15,400		379,918
Piper Jaffray Cos.		5,440		377,427
				757,345
ELECTRIC - 3.5%
NorthWestern Corp.		10,440		613,454
PNM Resources, Inc.		12,080		463,993
Portland General Electric Co.		13,280		598,662
				1,676,109

Security	Shares		Value
ELECTRICAL COMPONENTS & EQUIPMENT - 2.5%
Energizer Holdings, Inc. ^		10,120	$	594,752
EnerSys ^		7,260		577,678
				1,172,430
ELECTRONICS - 5.6%
Electro Scientific Industries, Inc. * ^		27,200		788,800
Knowles Corp. * ^		29,700		480,546
Sanmina Corp. * ^		16,800		425,040
Tech Data Corp. * ^		7,400		522,884
Vishay Intertechnology, Inc. ^		22,780		416,874
				2,634,144
ENTERTAINMENT - 1.0%
International Speedway Corp.		12,474		467,900
FOOD - 1.1%
Sanderson Farms, Inc. ^		5,130		504,741
GAS - 2.1%
Southwest Gas Holdings, Inc.		7,020		542,435
Spire, Inc.		6,100		442,738
				985,173
HAND / MACHINE TOOLS - 1.0%
Regal Beloit Corp.		6,400		458,880
HEALTHCARE - PRODUCTS - 0.6%
Meridian Bioscience, Inc.		17,670		286,431
HEALTHCARE - SERVICES - 1.3%
Magellan Health, Inc. *		4,321		281,124
Providence Service Corp. *		5,010		331,111
				612,235
HOME BUILDERS- 1.6%
Taylor Morrison Home Corp. *		23,910		395,471
TRI Pointe Group, Inc. * ^		29,890		355,691
				751,162
HOME FURNISHINGS - 0.6%
Ethan Allen Interiors, Inc. ^		13,790		263,941
INSURANCE - 3.6%
American Equity Investment Life Holding Co.		21,926		684,530
Essent Group Ltd. *		7,700		303,534
Selective Insurance Group, Inc.		11,167		724,180
				1,712,244
IRON / STEEL - 0.9%
Schnitzer Steel Industries, Inc.		16,527		444,576
LODGING - 0.7%
Marcus Corp.		8,600		335,572
MEDIA - 2.0%
Gannett Co., Inc. ^		39,940		387,418
Gray Television, Inc. *		32,270		558,594
				946,012
METAL FABRICATE / HARDWARE - 0.9%
Rexnord Corp. *		16,700		447,727
MISCELLANEOUS MANUFACTURING - 1.2%
ITT, Inc.		10,900		550,450
OFFICE FURNISHINGS - 0.7%
Interface, Inc.		19,740		321,565

See accompanying notes to financial statements.

63

SCHEDULE OF INVESTMENTS

Dunham Small Cap Value Fund (Continued)

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 97.9% (Continued)
OIL & GAS - 3.6%
Gulfport Energy Corp. *		36,230	$	330,055
Laredo Petroleum, Inc. * ^		32,350		169,514
Par Pacific Holdings, Inc. *		19,080		337,334
Penn Virginia Corp. * ^		5,884		404,702
Unit Corp. *		20,378		471,343
				1,712,948
OIL & GAS SERVICES - 2.7%
Exterran Corp. *		16,272		339,922
Helix Energy Solutions Group, Inc. * ^		56,700		483,084
Newpark Resources, Inc. * ^		54,207		445,039
				1,268,045
PACKAGING & CONTAINERS - 0.9%
Silgan Holdings, Inc. ^		16,800		403,704
PHARMACEUTICALS - 0.6%
Anika Therapeutics, Inc. *		8,033		287,260
REAL ESTATE - 0.7%
Realogy Holdings Corp. ^		16,800		320,376
REITS - 13.8%
Apollo Commercial Real Estate Finance, Inc. ^		28,390		531,177
Braemar Hotels & Resorts, Inc.		29,630		315,263
Brandywine Realty Trust		34,300		482,258
Chatham Lodging Trust ^		27,350		533,325
Community Healthcare Trust, Inc.		7,580		225,278
Corporate Office Properties Trust ^		18,900		488,376
National Storage Affiliates Trust ^		18,900		503,307
Preferred Apartment Communities, Inc.		30,310		510,724
Ramco-Gershenson Properties Trust ^		27,950		371,176
Rayonier, Inc.		16,400		495,280
Rexford Industrial Realty, Inc.		18,000		570,060
Sabra Health Care REIT, Inc. ^		25,300		547,745
STAG Industrial, Inc.		19,100		505,386
Xenia Hotels & Resorts, Inc.		21,400		439,770
				6,519,125
RETAIL - 1.8%
Conn’s, Inc. * ^		8,800		244,464
Denny’s Corp. *		10,700		185,645
MarineMax, Inc. * ^		17,371		395,364
				825,473
SAVINGS & LOANS - 1.0%
Flagstar Bancorp, Inc. *		15,012		462,219
SEMICONDUCTORS - 0.6%
Rambus, Inc. *		33,480		291,611

Security	Shares		Value
SOFTWARE - 1.6%
MicroStrategy, Inc. *		2,570	$	323,743
Progress Software Corp.		13,641		438,422
				762,165
TELECOMMUNICATIONS - 2.0%
Ciena Corp. * ^		17,620		550,801
United States Cellular Corp. * ^		8,040		384,071
				934,872
TRANSPORTATION - 2.5%
ArcBest Corp.		14,601		541,989
Covenant Transportation Group, Inc. *		9,320		233,280
Echo Global Logistics, Inc. *		16,595		426,657
				1,201,926
WATER - 1.0%
California Water Service Group		11,800		495,600
TOTAL COMMON STOCKS - (Cost - $47,279,686)				46,280,869
EXCHANGE TRADED FUND - 1.2%
EQUITY FUND - 1.2%
iShares Russell 2000 Value ETF ^		4,700		569,405
TOTAL EXCHANGE TRADED FUND (Cost - $586,370)
SHORT-TERM INVESTMENT - 1.0%
MONEY MARKET FUND - 1.0%
Invesco STIT-Treasury Portfolio Institutional Class - 2.09% +		464,798		464,798
(Cost - $464,798)
COLLATERAL FOR SECURITIES LOANED - 27.6%
Mount Vernon Prime Portfolio 2.39% + #		13,055,943		13,055,943
(Cost - $13,055,943)
TOTAL INVESTMENTS - 127.7% (Cost - $61,386,797)			$	60,371,015
LIABILITIES IN EXCESS OF OTHER ASSETS - (27.7)%				(13,114,600	)
NET ASSETS - 100.0%			$	47,256,415

REITS - Real Estate Investment Trust

^ All or a portion of these securities are on loan. Total loaned securities had a value of $12,766,484 at October 31, 2018.

* Non Income producing security.

+ Variable rate security - interest rate is as of October 31, 2018.

# 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)
Financial	30.6	%	Energy	4.9	%
Industrial	12.9	%	Technology	4.0	%
Consumer, Non-cyclical	8.0	%	Communications	3.1	%
Consumer, Cyclical	5.9	%	Basic Materials	2.1	%
Utilities	5.2	%	Other **	23.3	%
			Total	100.0	%

* Based on total value of investments as of October 31, 2018.

** Includes collateral for securities loaned as of October 31, 2018.

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

See accompanying notes to financial statements.

64

Dunham Emerging Markets Stock Fund (Unaudited)

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

The fiscal year began with an upbeat tone that rewarded the historically higher-volatility asset classes such as emerging markets. In the first fiscal quarter, emerging markets stocks, as measured by the MSCI Emerging Markets Index, rose 12.5 percent. This surge was met with three consecutive negative fiscal quarters, as trade tensions and global shifts in monetary policy sent investors fleeing from generally higher risk asset classes. During the most recent fiscal quarter, emerging markets stocks fell 11.7 percent, bringing the return for the fiscal year deep into negative territory, down 12.5 percent. Although the broad emerging markets space was down double- digits during the most recent fiscal quarter and the entire fiscal year, the losses were not spread evenly across the emerging markets countries.

As the Sub-Adviser believes that there significant idiosyncrasies in the primary factors that drive or detract from economic growth amongst the emerging markets countries, it seeks to identify the differences that create persistent mispricing opportunities, especially those that translate to significantly affecting the price of publicly traded securities. Therefore, the Sub-Adviser’s country selection is expected to be a primary driver of the Fund’s performance. The Sub-Adviser focuses on individual countries and bottom-up stock selection within those countries, with an overweight or an underweight to economic sectors being largely incidental. During periods where the dispersion in country returns is wide, such as the most recent fiscal quarter, the Sub-Adviser’s country selection becomes even more crucial.

Unfortunately, when the top performing countries in one fiscal quarter flip to becoming among the poorest performers the next fiscal quarter, this poses additional difficulty in avoiding the adverse effects of those inflections. For example, in the first fiscal quarter South Africa was one of the strongest performing countries, outperforming emerging markets stocks in general by 9.4 percent. However, during the next three fiscal quarters, South Africa fell drastically, underperforming by 10.0 percent. During the fiscal year, South Africa was down 17.4 percent. Barloworld Limited (BAW SJ) (holding weight*: 0.35 percent), a South African industrial brand management company with many unrelated businesses, ranging from information technology, building materials, and motor vehicles proved to be a moderate detractor from Fund performance during the most recent fiscal quarter and the fiscal year. In local currency terms, the stock declined 5.4 percent during the most recent fiscal quarter and declined 7.5 percent over the fiscal year.

As China was consistently in the news headlines for the majority of the fiscal year, the Sub-Adviser generally maintained China as the Fund’s largest country weighting. Comprising nearly one- third of the emerging markets space, exposure to China dictated a sizeable amount of the returns for both the most recent fiscal quarter and the fiscal year. Along with many other emerging markets countries, China rose strongly in the first fiscal quarter, up 16.4 percent. However, as the tariff rhetoric soured, so did the returns as China fell 28.5 percent over the following three fiscal quarters. Fund holdings such as Agile Group Holdings Limited (3383 HK) (holding weight*: 0.70 percent), a developer and manager of commercial and hotel real estate properties, detracted further from the volatility experienced through the Fund’s allocation to China. During the most recent fiscal quarter, 3383 HK declined 22.5 percent, bringing its return for the fiscal year deep into negative territory, down 14.3 percent.

As the second and third largest developing markets, Korea and Taiwan comprised close to one-quarter of emerging markets equities. During the fiscal year, Korea decreased 19.9 percent while Taiwan decreased 9.0 percent. Although the Fund’s overweight allocation to Taiwan contributed positively to the Fund’s relative performance, the security selection within Taiwan generally detracted. During the fiscal year, the Fund held Macronix International Co., Ltd. (2337 TT) (holding weight*: 0.39 percent), a developer of memory products, including nonvolatile memory integrated circuits, Read Only Memory, and flash memory. As 2337 TT struggled with U.S./China trade-war concerns impacting major Taiwanese exporters, the stock declined 62.8 percent during the fiscal year. Conversely, some of the countries with moderate allocations, such as Russia and Brazil, not only performed quite disparately from their developing market peers, but were two of a very small group that finished the fiscal year in positive territory. During the fiscal year, Russia and Brazil increased 10.7 percent and 4.8 percent, respectively. In addition, the Sub-Adviser’s stock selection within these countries contributed further to these positive returns. Lukoil PJSC (LKOD LI) (holding weight*: 2.27 percent), a vertically integrated Russian oil and gas company, and Banco Santander Brasil SA (BSBR) (holding weight*: 1.21 percent), a Brazilian bank that offers retail, commercial, and private banking in addition to asset management services, experienced strong positive performance during the fiscal year, rising 41.8 percent and 29.8 percent, respectively.

Since the start of the fiscal year, the Sub-Adviser has consistently reiterated its belief that emerging markets have been trading at a significant discount to developed markets, particularly compared to the U.S. market. This latest downturn has added to the relative deficit. The Sub-Adviser also believes that as central banks around the globe seek ways to reign in their historically lenient fiscal policies, developing markets may provide an attractive opportunity for growth, particularly at these depressed valuations. Additionally, the Sub-Adviser is optimistic that as the trade war rhetoric begins to dissipate, general risk-taking in the market should return.

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

Growth of $100,000 Investment

Total Returns as of October 31, 2018
		Annualized	Annualized	Annualized Since Inception
	One Year	Five Years	Ten Years	(12/10/04)
Class N	(18.57)%	(1.61)%	6.71%	4.39%
Class C	(19.35)%	(2.60)%	5.65%	3.37%
Class A with load of 5.75%	(23.41)%	(3.02)%	5.83%	(0.89)%*
Class A without load	(18.73)%	(1.86)%	6.45%	(0.39)%*
MSCI Emerging Markets Index (net)	(12.52)%	0.78%	7.84%	7.26%
Morningstar Diversified Emerging Markets Category	(13.45)%	(0.03)%	6.82%	6.08%

* 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 1.75% for Class N,2.75% for Class C and 2.00% 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 Emerging Markets Stock Fund

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 96.7%
AUTO MANUFACTURERS - 0.6%
Mahindra & Mahindra Ltd.		39,000	$	404,321
AUTO PARTS & EQUIPMENT - 1.5%
Weichai Power Co Ltd.		1,000,000		988,923
BANKS - 19.3%
Absa Group Ltd.		45,000		454,270
Agricultural Bank of China Ltd.		1,500,000		660,485
Banco do Estado do Rio Grande do Sul SA - ADR		75,000		395,545
Banco Santander Brasil SA - ADR		70,000		793,100
Bancolombia SA		32,000		1,182,080
China CITIC Bank Corp. Ltd.		1,000,000		620,036
China Construction Bank Corp.		1,800,000		1,428,849
China Merchants Bank Co., Ltd.		212,000		818,877
CITIC Ltd.		400,000		601,199
Commercial International Bank Egypt SAE - ADR		325,000		1,412,125
Credicorp Ltd.		7,000		1,579,970
Grupo Financiero Banorte SAB de CV		60,000		331,806
ICICI Bank Ltd. - ADR		60,000		569,400
Industrial & Commercial Bank of China Ltd.		1,100,000		746,563
Itau Unibanco Holding SA		40,000		526,800
Sberbank of Russia PJSC - ADR *		55,000		649,000
				12,770,105
BEVERAGES - 0.4%
Ambev SA - ADR		60,000		259,800
BUILDING MATERIALS - 0.6%
West China Cement Ltd.		2,850,000		423,256
CHEMICALS - 2.8%
Formosa Chemicals & Fibre Corp. *		180,000		653,230
Grand Pacific Petrochemical Corporation *		700,000		473,797
Kingboard Chemical Holdings Ltd. *		160,000		429,937
Mexichem SAB de CV		120,000		314,829
				1,871,793
COAL - 1.2%
China Shenhua Energy Company		350,000		792,115
COMMERCIAL SERVICES - 0.4%
Estacio Participacoes SA		45,000		280,455
COMPUTERS - 3.0%
Infosys Ltd. - ADR		90,000		852,300
Lenovo Group Ltd.		900,000		574,199
Tata Consultancy Services Ltd. *		20,000		524,309
				1,950,808
DISTRIBUTION / WHOLESALE - 0.4%
LF Corp. *		15,000		288,986
DIVERSIFIED FINANCIAL SERVICES - 2.5%
Hana Financial Group, Inc.		22,500		757,927
Housing Development Finance Corp Ltd.		15,000		358,853
Investec Limited *		88,000		545,800
				1,662,580
ELECTRIC - 0.4%
Engie Brasil Energia SA		25,000		267,869
ELECTRICAL COMPONENTS & EQUIPMENT - 1.0%
Tianneng Power International Ltd.		200,000		160,554
Walsin Lihwa Corp. *		1,000,000		497,363
				657,917

Security	Shares		Value
ELECTRONICS - 2.3%
Hannstar Display Corporation *		2,000,000	$	441,264
HEG Ltd.		9,000		523,379
Zhen Ding Technology Holding Ltd.		250,000		571,994
				1,536,637
ENGINEERING & CONSTRUCTION - 2.6%
China Communications Services Corp.		1,200,000		972,762
Daewoo Engineering & Construction Co. *		60,000		239,530
Ecorodovias Infraestructura e Logistica SA *		87,000		220,164
Grupo Aeroportuario del Centro Norte SAB de CV - ADR		7,000		292,390
				1,724,846
ENVIRONMENTAL CONTROL - 0.8%
China Water Affairs Group Ltd.		600,000		543,197
FOOD - 3.7%
JBS SA		230,000		633,437
Nestle India Ltd. *		4,000		548,569
Orion Holdings Corp. *		18,000		248,082
Tingyi Cayman Islands Holding Corp.		370,000		548,389
Uni-President Enterprises Corp. *		190,000		460,532
				2,439,009
FOREST PRODUCTS & PAPER - 1.1%
Fibria Celulose SA - ADR		20,000		384,200
Mondi Ltd.		15,000		358,670
				742,870
GAS - 0.7%
GAIL India Ltd. *		85,000		430,651
HOLDING COMPANIES - DIVERSIFIED - 0.3%
Barloworld Ltd.		28,000		228,011
HOME FURNISHINGS - 1.2%
LG Electronics, Inc.		14,000		782,668
HOUSEHOLD PRODUCTS/WARES - 0.5%
Kimberly-Clark de Mexico SAB de CV		250,000		361,340
INSURANCE - 3.3%
Cathay Financial Holding Co., Ltd. *		400,000		635,070
IRB Brasil Resseguros S/A		30,000		579,082
People’s Insurance Co Group of China Ltd.		1,200,000		490,962
Shin Kong Financial Holding Co., Ltd. *		1,417,281		467,282
				2,172,396
INTERNET- 8.3%
Alibaba Group Holding Ltd. - ADR *		13,000		1,849,640
Baidu, Inc. *		2,300		437,138
MercadoLibre, Inc.		1,400		454,300
Naspers Ltd.		2,600		455,618
Tencent Holdings Ltd.		66,000		2,261,847
				5,458,543
INVESTMENT COMPANIES- 0.5%
Hyundai Heavy Industries Holdings Co., Ltd. *		1,000		314,244
IRON / STEEL- 4.0%
Kumba Iron Ore Ltd.		15,000		293,827
POSCO		2,500		572,232
Severstal PJSC - GDR		35,000		542,850
Vale SA - ADR		80,000		1,208,000
				2,616,909
MACHINERY-DIVERSIFIED - 0.8%
SFA Engineering Corp. *		15,000		513,734
METAL FABRICATE/HARDWARE - 0.7%
Catcher Technology Co., Ltd.		45,000		455,003

See accompanying notes to financial statements.

66

SCHEDULE OF INVESTMENTS

Dunham Emerging Markets Stock Fund (Continued)

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 96.7% (Continued)
MINING - 0.9%
Southern Copper Corp. ^		15,000	$	575,100
OIL & GAS - 10.7%
China Petroleum & Chemical Corp.		750,000		611,131
Ecopetrol SA - ADR		42,000		976,920
Gazprom PJSC - ADR		150,000		710,700
Lukoil PJSC - ADR		20,000		1,494,000
PetroChina Co Ltd		500,000		359,629
Petroleo Brasileiro SA - ADR		100,000		1,625,000
Reliance Industries Ltd. *		45,000		646,033
SK Innovation Co., Ltd. *		3,500		656,845
				7,080,258
PHARMACEUTICALS - 1.3%
Dr Reddy’s Laboratories Ltd. *		14,000		480,941
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. - 144A		120,000		411,417
				892,358
REAL ESTATE - 2.5%
Agile Group Holdings Ltd.		400,000		459,728
Country Garden Services Holdings Co., Ltd. *		40,229		52,467
Longfor Properties Co., Ltd. *		150,000		364,646
Shimao Property Holdings Ltd.		250,000		492,770
Sino-Ocean Group Holding Ltd.		750,000		294,918
				1,664,529
RETAIL - 2.1%
Mr. Price Group Limited		15,000		234,639
Wal-Mart de Mexico SAB de CV		120,000		307,777
Zhongsheng Group Holdings Ltd.		450,000		822,918
				1,365,334
SEMICONDUCTORS - 9.7%
Macronix International Co., Ltd.		459,002		255,572
Samsung Electronics Co. Ltd.		80,000		2,994,864
SK Hynix, Inc. *		7,700		463,736
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR ^		70,000		2,667,000
				6,381,172
SOFTWARE - 0.6%
IGG Inc.		350,000		371,159

Security	Shares		Value
TELECOMMUNICATIONS - 3.5%
America Movil SAB de CV - ADR		40,000	$	575,600
China Mobile Ltd.		70,000		655,965
SK Telecom Co Ltd.		1,700		399,433
TIM Participacoes SA - ADR		45,000		696,150
				2,327,148
TRANSPORTATION - 0.5%
Imperial Holdings Ltd. *		28,500		315,930
TOTAL COMMON STOCKS (Cost - $66,924,531)				63,911,974
EXCHANGE TRADED FUND - 2.2%
EQUITY FUND - 2.2%
VanEck Vectors Vietnam ETF ^		95,000		1,442,100
TOTAL EXCHANGE TRADED FUNDS (Cost - $1,722,262)
SHORT- TERM INVESTMENT - 0.7%
MONEY MARKET - 0.7%
First American Government Obligations Fund 2.05% +		441,426		441,426
(Cost - $441,426)
COLLATERAL FOR SECURITIES LOANED - 4.9%
Mount Vernon Prime Portfolio, 2.39% + # (Cost - $3,261,189)		3,261,189		3,261,189
TOTAL INVESTMENTS - 104.5% (Cost - $72,349,408)			$	69,056,689
LIABILITIES IN EXCESS OF OTHER ASSETS - (4.5)%				(2,970,881	)
NET ASSETS - 100.0%			$	66,085,808

ADR - American Depositary Receipt ETF - Exchange Traded

Fund GDR - Global Depositary Receipt

* Non-income producing security

^ All or a portion of these securities are on loan. Total loaned securities had a value of $3,224,650 at October 31, 2018.

+ Variable rate security. Interest rate is as of October 31, 2018.

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 $411,417 or 0.6% of net assets.

# 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)
China	25.5	%	Russia	4.9	%
South Korea	11.9	%	South Africa	3.7	%
Brazil	11.4	%	Hong Kong	3.3	%
Taiwan	11.0	%	Other Countries **	20.6	%
India	7.7	%	Total	100.0	%

^* Based on total value of investments as of October 31, 2018.

** Includes Collateral for Securities Loaned as of October 31, 2018.

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

See accompanying notes to financial statements.

67

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, decreased 9.4 percent in the most recent fiscal quarter, bringing down the performance of the benchmark for the fiscal year to a return of 4.1 percent. During the fiscal year, the heaviest weighted sectors in the benchmark index had a mixed performance. The heaviest weighted sector, health care, at nearly one quarter of the benchmark’s assets, returned a strong 11.5 percent during the fiscal year. The next highest weighted sector in the index is information technology at 20.3 percent. The information technology sector returned 6.1 percent for the fiscal year. Even with strong performances from those two sectors, the overall return of the index was held down by a poor fiscal year for the industrial sector. At 18.0 percent of the benchmark and losing 5.2 percent for the fiscal year, the industrial sector was a drag on the benchmark’s performance for the period.

The Fund outperformed the benchmark for the fiscal year by 11.9 percent. Most of the outperformance was due to security selection, but sector allocation did add some net positive performance to the Fund for the fiscal year. The Fund was underweight the materials sector which was a positive for the Fund versus the benchmark. The materials sector fell 15.4 percent for the fiscal year for the benchmark, which meant that the Funds allocation of less than 1 percent to the sector was a comparative benefit. The Fund also had limited exposure to the real estate sector with less than 1 percent of the holdings in the space. The Fund also outperformed the benchmark by having an overweight to communications services. The sector returned 13.2 percent during the fiscal year. The Fund benefitted by having almost twice the exposure to the sector when compared to the benchmark’s weighting.

The remaining outperformance by the Fund versus the benchmark index for the fiscal year came from security selection. The technology sector was by far the largest overweight for the Fund during the fiscal year, even though it is highly weighted in the benchmark index. The large overweight enhanced the overall return to the Fund as the security selection for the information technology sector returned 20.8 percent for the Fund during the fiscal year. The health care sector was also a strong sector for the Fund. The securities in the health care sector returned 45.8 for the Fund during the period. The other leading sector for the Fund’s return was the consumer discretionary sector. During the fiscal year, the stock selection in the consumer discretionary sector returned 43.8 percent for the Fund. The few misses for the Fund primarily came from the financial sector. The Fund’s holdings in the financial sector lost 14.6 percent for the Fund during the period. The poorest performing sectors for the Fund were real estate and materials, which fell 30.4 percent and 29.9 percent, respectively. As stated earlier, since the weighting in the Fund for these sectors were both under 1 percent, the impact to the Fund performance was limited.

In reviewing the individual positions, the top contributor to the Fund’s performance during the fiscal year period came from the heavily-weighted information technology sector. Roku, Inc. (ROKU) (holding percentage*: 1.02 percent), a company that offers streaming media players and accessories under the Roku brand that allow users to access its TV streaming platform, returned 168.7 percent during the fiscal year. ROKU continues to profit from the cord- cutting movement. Being first-to-market in their space led to a large subscriber base that allows for targeted advertising sales. Etsy, Inc. (ETSY) (holding percentage**: 0.27 percent), a company that offers a commerce platform to sell and buy homemade goods online, increased 201.9 percent before being sold by the Sub-Adviser on September 26, 2018. Another top contributor to the Fund during the fiscal year was Foundation Medicine, Inc. (FMI) (holding percentage**: 1.32 percent), a world-leading molecular insights company, connecting physicians and their patients to the latest cancer treatment approaches and making precision medicine a reality for thousands. A competitor acquired the company in June. The holding increased 203.7 percent for the Fund during the fiscal year period.

Even with the strong security selection outperformance against the benchmark for the period, the Fund did have some individual holdings that were detractors to the Fund’s return. The top detractor to the performance of the Fund was eHealth, Inc. (EHTH) (holding percentage**: 0.30 percent), a company that provides private online health insurance exchange services to individuals, families, and small businesses in the United States and China. EHTH is a healthcare knowledge source, but had trouble diversifying into Medicare options. The holding lost 47.8 percent during the fiscal year before being liquidated by the Fund on March 5, 2018. Another poor performer for the Fund was Tivity Health, Inc. (TVTY) (holding percentage**: 0.44 percent), a company that provides fitness and health improvement programs in the United States. One of TVTY’s primary offerings is the SilverSneakers senior fitness program. However, the partnerships have not been as profitable as envisioned, which cause the holding to lose 24.9 percent before being liquidated by the Fund on November 17, 2017. Another detractor to the Fund’s performance was from the information technology sector. Mercury Systems, Inc. (MRCY) (holding percentage**: 0.41 percent), a company that provides sensor and safety critical mission processing subsystems for various critical defense and intelligence programs in the United States, had a tough period as capital expenditure costs soared. MRCY increased spending in hopes of keeping up with their deep-pocketed competitors. The spending strategy led to poor financials and the Fund exited the position on April 27, 2018. The holding lost 36.4 percent during the fiscal year period.

In general, the Sub-Adviser’s stock selection was the main factor for outperformance of the Fund versus the benchmark for the most recent fiscal year. The Sub-Adviser’s investment approach involves a thorough understanding of each stock’s value proposition and risk. The Sub-Adviser is continuing to monitor the effects of tariffs, health care policies and infrastructure spending opportunities on future small cap growth stock valuations.

* Holdings percentage(s) of total investments, excluding collateral for securities loaned, as of 10/31/2018.

** 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, 2018
		Annualized	Annualized	Annualized Since Inception
	One Year	Five Years	Ten Years	(12/10/04)
Class N	16.02%	10.47%	14.52%	9.31%
Class C	14.91%	9.37%	13.37%	8.24%
Class A with load of 5.75%	9.07%	8.89%	13.55%	8.64%*
Class A without load	15.75%	10.19%	14.23%	9.19%*
Russell 2000 Growth Index	4.13%	8.75%	13.89%	8.70%
Morningstar Small Cap Growth Category	8.05%	8.49%	13.27%	7.85%

* 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 1.36% for Class N, 2.36% for Class C and 1.61% for Class A. Class A shares are subject to a sales load of 5.75% and a deferred sales charge of up to 0.75%. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of Fund shares or Fund distributions. For performance information current to the most recent month- end, please call 1- 800- 442-4358 or visit our website www.dunham.com

68

SCHEDULE OF INVESTMENTS

Dunham Small Cap Growth Fund

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 95.2%
ADVERTISING- 0.9%
Trade Desk, Inc. * ^		3,602	$	445,027
AEROSPACE & DEFENSE - 2.2%
Aerojet Rocketdyne Holdings, Inc. *		13,709		484,202
Cubic Corp.		8,551		561,031
				1,045,233
BANKS - 2.2%
First Merchants Corp. ^		15,308		636,966
United Community Banks, Inc.		17,079		424,755
				1,061,721
BIOTECHNOLOGY - 3.7%
Emergent BioSolutions, Inc. *		7,408		453,295
REGENXBIO, Inc. * ^		3,609		240,612
Stemline Therapeutics, Inc. *		29,638		443,977
Veracyte, Inc. * ^		26,049		386,828
Viking Therapeutics, Inc. * ^		15,113		205,537
				1,730,249
CHEMICALS - 0.4%
Rogers Corp. *		1,679		206,618
COMMERCIAL SERVICES - 1.9%
BrightView Holdings, Inc .* ^		24,698		363,555
HealthEquity, Inc. * ^		5,759		528,676
				892,231
COMPUTERS - 2.5%
Elastic NV *		7,126		484,568
Pure Storage, Inc. *		17,206		347,217
WNS Holdings Ltd. - ADR *		7,036		353,137
				1,184,922
DISTRIBUTION/WHOLESALE - 1.1%
SiteOne Landscape Supply, Inc. * ^		7,373		501,659
DIVERSIFIED FINANCIAL SERVICES - 2.4%
Evercore, Inc.		5,712		466,613
LendingTree, Inc. * ^		1,117		225,288
Moelis & Co.		11,106		448,238
				1,140,139
ELECTRICAL COMPONENTS & EQUIPMENT - 0.9%
Littelfuse, Inc.		2,448		443,480
ELECTRONICS - 1.2%
FLIR Systems, Inc.		4,693		217,333
II-VI, Inc. * ^		9,488		353,238
				570,571
ENGINEERING & CONSTRUCTION - 3.6%
Granite Construction, Inc. ^		10,523		481,112
MasTec, Inc. * ^		11,169		485,963
NV5 Global, Inc. *		4,072		317,901
Primoris Services Corp.		19,485		412,497
				1,697,473
ENTERTAINMENT - 1.9%
Red Rock Resorts, Inc. ^		18,010		416,751
Vail Resorts, Inc. ^		1,840		462,429
				879,180

Security	Shares		Value
HEALTHCARE-PRODUCTS - 8.7%
AxoGen, Inc. * ^		9,006	$	335,834
CareDx, Inc. * ^		15,432		402,930
CryoLife, Inc. *		14,374		445,307
Inspire Medical Systems, Inc. * ^		9,780		391,982
Insulet Corp. * ^		4,919		433,905
iRhythm Technologies, Inc. *		5,262		406,542
Merit Medical Systems, Inc. * ^		5,242		299,423
OraSure Technologies, Inc. *		33,257		462,272
Repligen Corp. * ^		8,283		449,104
ViewRay, Inc. *		28,720		248,428
West Pharmaceutical Services, Inc.		2,142		226,881
				4,102,608
HEALTHCARE-SERVICES - 3.9%
Catalent, Inc. *		12,155		490,333
LHC Group, Inc. * ^		4,873		445,538
Natera, Inc. *		17,975		394,731
Neuronetics, Inc. * ^		19,452		495,637
				1,826,239
HOME BUILDERS - 1.8%
Cavco Industries, Inc. *		2,397		480,862
Slyline Corp.		16,022		381,804
				862,666
HOME FURNISHINGS - 1.0%
Roku, Inc. *		8,821		490,448
INSURANCE - 0.5%
Health Insurance Innovations, Inc. *		4,511		220,588
INTERNET - 10.5%
Bandwidth, Inc. *		9,368		499,876
Eventbrite, Inc. *		11,482		324,941
FireEye, Inc. *		36,693		678,454
GrubHub, Inc. *		2,541		235,652
Mimecast Ltd. *		7,470		260,404
Pandora Media, Inc. * ^		57,870		491,895
Shutterfly, Inc. *		8,589		429,450
Twilio, Inc. * ^		6,911		519,845
Twitter, Inc. *		21,974		763,597
Zendesk, Inc. *		7,401		406,833
Zscaler, Inc. * ^		10,108		366,819
				4,977,766
LODGING - 0.8%
Boyd Gaming Corp. ^		14,239		378,188
MACHINERY-CONSTRUCTION/MINING - 1.6%
BWX Technologies, Inc.		12,646		739,285
MISCELLANEOUS MANUFACTURING - 1.6%
ESCO Technologies, Inc.		5,343		327,099
John Bean Technologies Corp. ^		4,190		435,634
				762,733
OIL & GAS - 1.5%
Matador Resources Co. * ^		17,171		495,212
PDC Energy, Inc. *		5,480		232,626
				727,838

See accompanying notes to financial statements.

69

SCHEDULE OF INVESTMENTS

Dunham Small Cap Growth Fund (Continued)

October 31, 2018

Security	Shares		Value
COMMON STOCKS - 95.2% (Continued)
PHARMACEUTICALS - 2.6%
Coherus Biosciences, Inc. *		24,909	$	291,186
DexCom, Inc. *		1,725		229,028
Heron Therapeutics, Inc. * ^		14,626		406,018
Madrigal Pharmaceuticals, Inc. * ^		1,648		314,537
				1,240,769
RETAIL - 8.1%
American Eagle Outfitters, Inc.		25,502		588,076
At Home Group, Inc. * ^		18,370		502,236
Carvana Co. * ^		7,534		291,943
Casey’s General Stores, Inc. ^		3,721		469,255
Dave & Buster’s Entertainment, Inc.		9,479		564,474
Noodles & Co. *		47,896		451,659
Ollie’s Bargain Outlet Holdings, Inc. * ^		5,773		536,312
Wingstop, Inc.		7,007		438,778
				3,842,733
SEMICONDUCTORS - 0.4%
Silicon Laboratories, Inc. *		2,572		209,695
SOFTWARE - 20.3%
Altair Engineering, Inc. *		13,763		524,921
Alteryx, Inc. * ^		7,923		419,840
Atlassian Corp PLC *		8,041		610,392
Avalara, Inc. * ^		8,923		299,099
Blackline, Inc. *		7,714		357,775
Bottomline Technologies, Inc. *		7,060		470,478
Box, Inc. * ^		26,069		469,242
Coupa Software, Inc. * ^		7,479		484,864
Everbridge, Inc. * ^		8,041		408,724
Evolent Health, Inc. * ^		18,350		407,370
LiveRamp Holdings, Inc. *		11,911		544,094
ManTech International Corp.		7,619		436,416
Omnicell, Inc. * ^		6,931		490,022
Pivotal Software, Inc. * ^		26,338		537,295
ServiceNow, Inc. * ^		2,707		490,075
Smartsheet, Inc. * ^		21,185		501,237
Tabula Rasa HealthCare, Inc. * ^		3,420		252,670
Take-Two Interactive Software, Inc. *		4,950		637,907
Talend SA - ADR *		7,260		449,757
Yext, Inc. * ^		24,204		465,201
Zuora, Inc. *		16,603		339,033
				9,596,412

Security	Shares		Value
TELECOMMUNICATIONS - 2.6%
8x8, Inc. *		28,329	$	486,976
Sierra Wireless, Inc. *		18,771		337,315
Vonage Holdings Corp. *		32,358		429,067
				1,253,358
TOYS/GAMES/HOBBIES - 1.0%
Funko, Inc. * ^		26,163		493,173
TRANSPORTATION - 3.4%
Air Transport Services Group, Inc. *		27,614		541,234
CryoPort, Inc. * ^		23,736		263,470
Marten Transport Ltd. ^		15,097		290,768
Saia, Inc. *		8,073		507,469
				1,602,941
TOTAL COMMON STOCKS  (Cost - $41,981,272)				45,125,943
SHORT-TERM INVESTMENT - 6.0%
MONEY MARKET FUND - 6.0%
Fidelity Investment Money Market Fund - Class I 2.06% +		2,837,928		2,837,928
TOTAL SHORT-TERM INVESTMENT (Cost - $2,837,928)
COLLATERAL FOR SECURITIES LOANED - 31.5%
Mount Vernon Prime Portfolio, 2.39% +# (Cost - $14,957,666)		14,957,666		14,957,666
TOTAL INVESTMENTS - 132.7% (Cost - $59,776,866)			$	62,921,537
LIABILITIES IN EXCESS OF OTHER ASSETS - (32.7)%				(15,520,254	)
NET ASSETS - 100.0%			$	47,401,283

^ All or a portion of these securities are on loan. Total loaned securities had a value of $15,072,952 at October 31, 2018. Securities loaned with a value of $576,938 have been sold and are pending settlement.

# 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%.

* Non-Income producing security.

+ Variable rate security. Interest rate is as of October 31, 2018.

ADR - American Depositary Receipt.

PLC - Public Limited Company

Portfolio Composition * - (Unaudited)
Collateral For Securities Loaned	23.8	%	Communication	10.6	%
Technology	17.5	%	Short-Term Investment	4.5	%
Consumer, Non-Cyclical	15.6	%	Financial	3.8	%
Consumer, Cyclical	11.8	%	Energy	1.2	%
Industrial	10.9	%	Basic Materials	0.3	%
			Total	100.0	%

* Based on total value of investments as of October 31, 2018.

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

See accompanying notes to financial statements.

70

STATEMENTS OF ASSETS AND LIABILITIES

October 31, 2018

				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	$	196,270,043		$	54,953,569		$	382,326,242		$	54,269,173		$	132,981,929		$	77,040,328		$	36,972,451
Investments in securities, at value	$	194,769,485		$	53,644,953		$	375,690,499		$	58,227,191		$	128,903,422		$	77,594,513		$	35,880,999
Cash		479,487			14,036			—			223,926			—			14,010			—
Foreign currency, at value (cost $11,039,644, 831 and $753,531, respectively)		—			—			10,808,147			831			—			—			747,950
Deposits with brokers for futures		—			—			—			823,738			—			—			147,485
Unrealized appreciation on forward foreign currency exchange contracts		—			—			—			—			—			—			236,581
Unrealized appreciation on futures		—			—			—			36,868			—			—			6,515
Receivable for securities sold		4,377,104			207,485			18,418,022			14,122			182,858			2,470,296			—
Interest and dividends receivable		612,215			407,573			310,628			9,962			1,734,067			143,279			313,915
Receivable for Fund shares sold		1,523			18,823			231			458			41			—			6,238
Due from sub-advisor		—			—			—			—			17,612			—			—
Prepaid expenses and other assets		32,649			32,345			46,029			27,694			34,661			15,030			30,006
Total Assets		200,272,463			54,325,215			405,273,556			59,364,790			130,872,661			80,237,128			37,369,689
Liabilities:
Option contracts written (premiums received $806,730 and $47,938, respectively)		—			—			186,543			48,480			—			—			—
Payable upon return of securities loaned		2,835,975			4,848,756			13,208,219			13,226,350			15,645,300			15,186,887			—
Securities sold short (proceeds $82,024,956)		—			—			79,328,961			—			—			—			—
Cash overdraft		—			—			18,930,414			—			—			—			—
Unrealized depreciation on forward foreign currency exchange contracts		—			—			—			—			—			—			154,386
Unrealized depreciation on futures		—			—			—			729,477			—			—			12,119
Payable for dividends on short sales		—			—			109,620			—			—			—			—
Payable for securities purchased		4,779,838			172,509			13,257,907			14,122			666,377			7,315,314			132,074
Payable for Fund shares redeemed		84,476			679			607,597			17,456			49,893			588,530			425
Distributions payable		3,616			930			77,008			—			8,085			—			—
Payable to adviser		97,705			21,255			154,847			25,711			58,717			31,316			18,980
Payable to sub-adviser		24,256			7,962			73,529			18,058			—			1,808			7,227
Payable for distribution fees		6,197			4,787			41,817			4,032			18,344			1,244			1,690
Payable for administration fees		25,984			15,993			21,949			4,216			15,009			5,415			7,956
Payable for fund accounting fees		6,002			1,822			9,180			1,594			3,837			2,246			1,165
Payable for transfer agent fees		2,525			2,599			2,908			2,790			2,543			2,091			2,311
Payable for custody fees		12,321			8,109			21,802			2,531			3,526			3,963			9,402
Payable for shareholder servicing fees		457			296			6,383			441			832			—			—
Payable to broker		—			—			164,670			—			—			—			—
Accrued expenses and other liabilities		16,003			17,967			21,986			17,228			18,408			17,319			15,937
Total Liabilities		7,895,355			5,103,664			126,225,340			14,112,486			16,490,871			23,156,133			363,672
Net Assets	$	192,377,108		$	49,221,551		$	279,048,216		$	45,252,304		$	114,381,790		$	57,080,995		$	37,006,017
Net Assets:
Paid in capital	$	196,630,423		$	53,778,714		$	290,142,727		$	46,375,461		$	123,940,829		$	63,545,427		$	37,981,653
Accumulated loss		(4,253,315	)		(4,557,163	)		(11,094,511	)		(1,123,157	)		(9,559,039	)		(6,464,432	)		(975,636	)
Net Assets	$	192,377,108		$	49,221,551		$	279,048,216		$	45,252,304		$	114,381,790		$	57,080,995		$	37,006,017
Net Asset Value Per Share
Class N Shares:
Net Assets	$	164,935,798		$	41,150,672		$	201,404,524		$	35,637,941		$	94,596,076		$	53,686,199		$	31,838,500
Shares of beneficial interest outstanding (no par value; unlimited shares authorized)		17,140,543			3,151,472			5,780,485			3,739,494			10,844,095			5,021,306			3,563,487
Net asset value, offering and redemption price per share	$	9.62		$	13.06		$	34.84		$	9.53		$	8.72		$	10.69		$	8.93
Class A Shares:
Net Assets	$	20,204,864		$	5,310,927		$	42,979,970		$	7,918,084		$	12,393,478		$	2,509,271		$	3,801,795
Shares of beneficial interest outstanding (no par value; unlimited shares authorized)		2,101,692			407,217			1,272,702			837,146			1,407,157			235,235			429,451
Net asset value and redemption price per share *	$	9.61		$	13.04		$	33.77		$	9.46		$	8.81		$	10.67		$	8.85
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)	$	10.06		$	13.65		$	35.83		$	10.04		$	9.23		$	11.32		$	9.27
Class C Shares:
Net Assets	$	7,236,446		$	2,759,952		$	34,663,722		$	1,696,279		$	7,392,236		$	885,525		$	1,365,722
Shares of beneficial interest outstanding (no par value; unlimited shares authorized)		752,396			213,096			1,282,722			187,880			851,415			83,077			157,753
Net asset value, offering and redemption price per share	$	9.62		$	12.95		$	27.02		$	9.03		$	8.68		$	10.66		$	8.66

* 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.

71

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

October 31, 2018

					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	$	55,993,707	$	64,291,099	$	58,132,300	$	116,658,745	$	58,094,266	$	61,386,797	$	72,349,408		$	59,776,866
Investments in securities, at value	$	55,803,756	$	76,330,538	$	91,479,398	$	116,854,555	$	62,370,043	$	60,371,015	$	69,056,689		$	62,921,537
Foreign currency, at value (cost $207,357 and $1,085, respectively)		—		—		—		205,773		—		—		1,080			—
Cash		9,062		2,131		—		8,678		—		—		—			—
Receivable for securities sold		2,884,140		1,613,224		—		1,387,620		564,938		—		278,795			1,514,720
Interest and dividends receivable		227,748		108,946		10,988		538,416		22,164		11,629		89,736			14,836
Receivable for Fund shares sold		7,343		679		71,182		1,086		452		843		588			706
Unrealized appreciation on swap contracts		3,816		—		—		—		—		—		—			—
Unrealized appreciation on futures		122,157		—		—		—		—		—		—			—
Receivable from Administrator		—		—		2,674		—		—		—		—			4,973
Prepaid expenses and other assets		33,633		36,482		32,346		35,636		33,821		26,203		33,541			48,509
Total Assets		59,091,655		78,092,000		91,596,588		119,031,764		62,991,418		60,409,690		69,460,429			64,505,281
Liabilities:
Payable upon return of securities loaned		11,938,479		5,248,049		10,151,601		4,306,692		8,953,610		13,055,943		3,261,189			14,957,666
Payable to custodian for cash overdraft		5,531		—		—		—		—		—		—			—
Payable for securities purchased		1,524,956		604,826		—		1,052,490		—		—		—			2,033,422
Payable for Fund shares redeemed		694		25,298		23,492		37,806		63,154		15,088		14,492			9,943
Premiums Paid on Swaps		66,251		—		—		—		—		—		—			—
Distributions payable		472		—		—		—		—		—		—			—
Payable to adviser		24,862		41,111		46,515		64,452		24,077		26,313		37,452			27,421
Payable to sub-adviser		28,319		14,676		35,353		81,205		9,199		23,421		7,523			37,110
Payable for distribution fees		8,360		7,159		9,008		12,208		116		4,155		7,451			10,223
Payable for administration fees		3,399		6,394		7,029		13,254		4,585		3,961		6,947			4,435
Payable for fund accounting fees		1,177		2,699		2,896		3,883		1,932		1,459		2,321			1,734
Payable for transfer agent fees		2,031		2,348		2,521		2,354		2,253		2,116		2,367			1,734
Payable for custody fees		762		3,579		1,356		28,163		194		2,939		21,596			2,818
Payable for shareholder servicing fees		484		487		981		1,501		498		1,655		943			1,133
Accrued expenses and other liabilities		20,416		15,912		15,689		12,359		16,568		16,225		12,340			16,359
Total Liabilities		13,626,193		5,972,538		10,296,441		5,616,367		9,076,186		13,153,275		3,374,621			17,103,998
Net Assets	$	45,465,462	$	72,119,462	$	81,300,147	$	113,415,397	$	53,915,232	$	47,256,415	$	66,085,808		$	47,401,283
Net Assets:
Paid in capital	$	45,250,474	$	57,325,502	$	42,954,461	$	105,917,472	$	49,620,843	$	43,241,878	$	69,684,010		$	35,844,771
Accumulated earnings (loss)		214,988		14,793,960		38,345,686		7,497,925		4,294,389		4,014,537		(3,598,202	)		11,556,512
Net Assets		45,465,462	$	72,119,462	$	81,300,147	$	113,415,397	$	53,915,232	$	47,256,415	$	66,085,808		$	47,401,283
Net Asset Value Per Share
Class N Shares:
Net Assets	$	36,055,215	$	55,427,577	$	59,424,335	$	89,401,197	$	43,163,204	$	37,247,801	$	53,261,101		$	33,882,224
Shares of beneficial interest outstanding (no par value; unlimited shares authorized)		3,924,514		3,908,475		2,641,286		5,726,199		2,812,129		2,369,504		4,143,679			1,671,045
Net asset value, offering and redemption price per share	$	9.19	$	14.18	$	22.50	$	15.61	$	15.35	$	15.72	$	12.85		$	20.28
Class A Shares:
Net Assets	$	6,264,793	$	12,525,324	$	15,031,441	$	18,250,270	$	8,444,366	$	7,869,288	$	9,661,977		$	10,799,129
Shares of beneficial interest outstanding (no par value; unlimited shares authorized)		683,409		887,992		679,976		1,177,954		546,377		506,059		769,353			556,158
Net asset value, and redemption price per share *	$	9.17	$	14.11	$	22.11	$	15.49	$	15.46	$	15.55	$	12.56		$	19.42
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)	$	9.73	$	14.97	$	23.46	$	16.44	$	16.40	$	16.50	$	13.33		$	20.60
Class C Shares:
Net Assets	$	3,145,454	$	4,166,561	$	6,844,371	$	5,763,930	$	2,307,662	$	2,139,326	$	3,162,730		$	2,719,930
Shares of beneficial interest outstanding (no par value; unlimited shares authorized)		351,672		309,840		325,972		392,605		158,711		154,943		266,953			170,039
Net asset value, offering and redemption price per share	$	8.94	$	13.45	$	21.00	$	14.68	$	14.54	$	13.81	$	11.85		$	16.00

* 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.

72

STATEMENTS OF OPERATIONS

For the Year Ended October 31, 2018

				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	$	9,310,458		$	2,327,090		$	650,357		$	280,402		$	6,966,458		$	145,863		$	413,829
Dividend income		109,781			3,486			6,200,277			565,628			—			3,277,090			—
Securities lending income		7,608			10,860			48,704			50,442			83,330			31,350			—
Less: Foreign withholding taxes		—			—			(35,740	)		(95	)		—			(18,408	)		(45,650	)
Total Investment Income		9,427,847			2,341,436			6,863,598			896,377			7,049,788			3,435,895			368,179
Operating Expenses:
Investment advisory fees		1,117,553			313,640			1,841,701			290,977			709,623			350,256			220,822
Sub-advisory fees		558,777			188,184			1,758,579			335,743			378,466			323,313			165,616
Sub-advisory performance fees		(280,250	)		(20,687	)		(1,234,480	)		22,565			(49,380	)		(102,631	)		(76,626	)
Fund accounting fees		37,666			12,929			53,402			8,796			24,225			10,405			6,942
Distribution fees- Class C Shares		49,490			22,637			340,171			18,401			57,111			10,531			10,371
Distribution fees- Class A Shares		47,133			14,968			109,284			17,413			30,439			3,835			8,580
Administration fees		155,765			101,650			132,822			24,513			91,250			28,684			48,887
Registration fees		31,901			39,183			45,337			48,814			38,099			12,801			33,551
Transfer agent fees		37,964			22,316			49,764			20,017			30,039			21,014			19,362
Custodian fees		44,627			36,317			172,917			8,621			15,203			14,835			41,163
Professional fees		25,951			17,482			31,144			16,076			23,136			14,898			16,176
Chief Compliance Officer fees		23,561			7,310			33,295			6,762			14,916			7,050			4,310
Printing and postage expense		29,597			17,001			74,752			8,501			26,851			7,023			7,501
Trustees’ fees		14,397			4,675			18,966			3,840			9,495			4,158			3,475
Insurance expense		2,872			1,686			708			1,052			2,140			620			77
Security borrowing fees		—			—			1,048,060			—			—			—			—
Shareholder servicing fees		2,308			475			18,983			1,299			4,490			9,501			200
Dividend expense on short sales		—			—			2,068,294			—			—			—			—
Interest expense		—			5,108			2,166			2,391			556			—			2,412
Miscellaneous expenses		15,337			4,600			19,845			4,000			9,282			4,077			4,000
Net Operating Expenses		1,914,649			789,474			6,585,710			839,781			1,415,941			720,370			516,819
Net Investment Income (Loss)		7,513,198			1,551,962			277,888			56,596			5,633,847			2,715,525			(148,640	)
Realized and Unrealized Gain (Loss) on Investments, Futures, Purchased Options, Securities Sold Short, Written Options, Swap Contracts, Foreign Currency Transactions, and Foreign Currency Exchange Contracts:
Net realized gain (loss) from:
Investments		(331,695	)		(1,340,800	)		12,938,715			195,927			(321,233	)		(3,272,095	)		465,804
Futures		—			—			—			407,899			—			—			(30,406	)
Purchased Options		—			—			(4,812,307	)		(1,939,318	)		—			(971,602	)		—
Securities sold short		—			—			(4,978,218	)		—			—			—			—
Written options		—			—			3,133,386			(303,984	)		—			—			—
Swap contracts		—			—			(8,317	)		—			—			—			—
Foreign currency transactions		—			—			(232,264	)		18,291			—			90			(40,090	)
Foreign currency exchange contracts		—			—			(68,822	)		—			—			—			(72,854	)
Net realized gain (loss)		(331,695	)		(1,340,800	)		5,972,173			(1,621,185	)		(321,233	)		(4,243,607	)		322,454
Net change in unrealized appreciation (depreciation) on:
Investments		(1,770,479	)		(2,180,187	)		(19,085,369	)		(272,921	)		(6,315,823	)		627,364			(1,648,136	)
Futures		—			—			—			(1,206,590	)		—			—			21,505
Purchased Options		—			—			1,964,009			70,897			—			(400,176	)		—
Securities sold short		—			—			7,712,124			—			—			—			—
Written options		—			—			1,130,163			(15,550	)		—			—			—
Foreign currency translations		—			—			(278,113	)		8,388			—			—			(11,590	)
Foreign currency exchange contracts		—			—			—			—			—			—			63,758
Net change in unrealized appreciation (depreciation)		(1,770,479	)		(2,180,187	)		(8,557,186	)		(1,415,776	)		(6,315,823	)		227,188			(1,574,463	)
Net Realized and Unrealized Loss		(2,102,174	)		(3,520,987	)		(2,585,013	)		(3,036,961	)		(6,637,056	)		(4,016,419	)		(1,252,009	)
Net Increase (Decrease) in Net Assets Resulting From Operations	$	5,411,024		$	(1,969,025	)	$	(2,307,125	)	$	(2,980,365	)	$	(1,003,209	)	$	(1,300,894	)	$	(1,400,649	)

See accompanying notes to financial statements.

73

STATEMENTS OF OPERATIONS (Continued)

For the Year Ended October 31, 2018

							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	$	933,549		$	22,921		$	23,884		$	8,407		$	17,603		$	9,813		$	18,661		$	25,194
Dividend income		52,978			1,656,923			194,095			3,832,474			1,477,219			560,836			2,263,119			167,509
Securities lending income		11,263			16,426			20,868			18,593			12,108			15,586			13,971			69,360
Less: Foreign withholding taxes		—			—			—			(434,857	)		—			—			(278,168	)		—
Total Investment Income		997,790			1,696,270			238,847			3,424,617			1,506,930			586,235			2,017,583			262,063
Operating Expenses:
Investment advisory fees		165,671			492,965			549,955			765,129			335,427			248,585			440,022			270,654
Sub-advisory fees		127,249			227,522			296,130			765,130			206,417			171,858			338,479			208,195
Sub-advisory performance fees		(47,892	)		86,706			56,166			69,243			(130,428	)		34,383			(243,276	)		185,054
Fund accounting fees		4,950			14,362			17,085			23,550			10,567			6,742			14,183			8,326
Distribution fees- Class C Shares		29,347			45,372			72,880			63,727			23,390			24,224			34,669			28,287
Distribution fees- Class A Shares		10,106			30,449			38,115			44,278			18,659			15,193			23,509			22,896
Administration fees		18,157			37,233			42,086			98,750			27,462			21,062			45,121			24,756
Registration fees		35,899			39,402			34,401			39,658			37,100			46,544			39,347			26,350
Transfer agent fees		17,718			23,517			25,842			27,750			21,380			18,662			22,125			20,108
Custodian fees		4,247			11,983			6,277			103,904			10,275			7,654			85,746			17,900
Professional fees		15,580			16,776			19,601			19,977			17,527			15,276			20,277			16,211
Chief Compliance Officer fees		3,110			10,827			10,834			16,710			6,543			4,929			10,210			4,800
Printing and postage expense		14,930			11,801			14,826			15,601			11,201			7,501			11,501			10,842
Trustees’ fees		2,095			6,330			6,880			9,875			4,145			3,175			5,914			3,451
Insurance expense		329			2,288			1,178			3,318			778			856			1,828			601
Interest expense		139			63			5,362			1,811			—			—			1,713			238
Shareholder servicing fees		2,574			2,500			5,535			401			2,474			2,975			4,075			4,701
Miscellaneous expenses		2,943			2,500			5,458			8,400			4,508			2,300			9,200			4,223
Total Operating Expenses		407,152			1,062,596			1,208,611			2,077,212			607,425			631,919			864,643			857,593
Less: Fees paid indirectly		—			(2,180	)		(3,204	)		(2,807	)		—			—			—			(5,148	)
Net Operating Expenses		407,152			1,060,416			1,205,407			2,074,405			607,425			631,919			864,643			852,445
Net Investment Income (Loss)		590,638			635,854			(966,560	)		1,350,212			899,505			(45,684	)		1,152,940			(590,382	)
Realized and Unrealized Gain (Loss) on Investments, Futures, Swap Contracts, and Foreign Currency Transactions:
Net realized gain (loss) from:
Investments		2,211,813			2,733,977			6,846,462			6,583,497			(174,994	)		5,105,140			1,491,481			9,207,612
Foreign currency transactions		—			—			—			(49,832	)		—			—			(60,013	)		—
Futures		(1,601	)		—			—			—			—			—			—			—
Net realized gain (loss)		2,210,212			2,733,977			6,846,462			6,533,665			(174,994	)		5,105,140			1,431,468			9,207,612
Net change in unrealized appreciation (depreciation) on:					—															—
Investments		(1,325,959	)		(1,893,243	)		7,268,219			(16,655,505	)		(546,360	)		(5,420,545	)		(16,887,297	)		(3,717,938	)
Swap contracts		3,816			—			—			—			—			—			—			—
Futures		122,157			—			—			—			—			—			—			—
Foreign currency translations		—			—			—			(8,605	)		—			—			(2,555	)		—
Net change in unrealized appreciation (depreciation)		(1,199,986	)		(1,893,243	)		7,268,219			(16,664,110	)		(546,360	)		(5,420,545	)		(16,889,852	)		(3,717,938	)
Net Realized and Unrealized Gain (Loss)		1,010,226			840,734			14,114,681			(10,130,445	)		(721,354	)		(315,405	)		(15,458,384	)		5,489,674
Net Increase (Decrease) in Net Assets Resulting From Operations	$	1,600,864		$	1,476,588		$	13,148,121		$	(8,780,233	)	$	178,151		$	(361,089	)	$	(14,305,444	)	$	4,899,292

See accompanying notes to financial statements.

74

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, 2018			Oct. 31, 2017			Oct. 31, 2018			Oct. 31, 2017			Oct. 31, 2018			Oct. 31, 2017			Oct. 31, 2018			Oct. 31, 2017			Oct. 31, 2018			Oct. 31, 2017
Operations:
Net investment income (loss)	$	7,513,198		$	4,702,709		$	1,551,962		$	1,256,311		$	277,888		$	(2,766,800	)	$	56,596		$	(153,786	)	$	5,633,847		$	4,580,482
Net realized gain (loss) from investments, futures, purchased options, securities sold short, written options, swap contracts, foreign currency transactions and foreign currency exchange contracts		(331,695	)		(258,247	)		(1,340,800	)		3,026			5,972,173			10,336,653			(1,621,185	)		(527,008	)		(321,233	)		4,040,878
Net change in unrealized appreciation (depreciation) on investments, futures, purchased options, securities sold short, written options, foreign currency translations, and foreign currency exchange contracts		(1,770,479	)		536,363			(2,180,187	)		(303,218	)		(8,557,186	)		8,158,097			(1,415,776	)		3,217,090			(6,315,823	)		(865,697	)
Net Increase (Decrease) in Net Assets Resulting From Operations		5,411,024			4,980,825			(1,969,025	)		956,119			(2,307,125	)		15,727,950			(2,980,365	)		2,536,296			(1,003,209	)		7,755,663
Distributions to Shareholders From:
Net Investment Income:
Class N		—			(4,087,383	)		—			(1,177,753	)		—			—			—			—			—			(3,958,870	)
Class A		—			(450,028	)		—			(116,078	)		—			—			—			—			—			(488,305	)
Class C		—			(159,331	)		—			(55,479	)		—			—			—			—			—			(307,199	)
Distributions From Paid In Capital:
Class N		—			—			—			—			(7,909,457	)		(6,703,484	)		—			—			—			—
Class A		—			—			—			—			(1,741,683	)		(1,701,133	)		—			—			—			—
Class C		—			—			—			—			(1,667,572	)		(1,786,595	)		—			—			—			—
Total Distributions Paid*
Class N		(6,592,532	)		—			(1,401,772	)		—			(1,898,259	)		—			—			—			(4,663,689	)		—
Class A		(741,771	)		—			(146,528	)		—			(415,753	)		—			—			—			(548,313	)		—
Class C		(226,608	)		—			(59,070	)		—			(402,623	)		—			—			—			(308,033	)		—
Total Distributions to Shareholders		(7,560,911	)		(4,696,742	)		(1,607,370	)		(1,349,310	)		(14,035,347	)		(10,191,212	)		—			—			(5,520,035	)		(4,754,374	)
Share Transactions of Beneficial Interest:
Net proceeds from shares sold
Class N		53,805,879			77,972,512			26,102,884			25,388,027			79,596,658			82,767,969			10,438,482			10,665,191			25,839,703			38,703,285
Class A		9,607,696			8,312,809			2,745,411			2,833,269			16,902,262			15,005,391			4,198,213			3,051,464			4,933,144			4,622,910
Class C		2,552,475			3,653,981			776,525			681,527			9,988,079			6,277,406			534,780			377,738			1,222,617			1,397,307
Reinvestment of distributions
Class N		6,585,506			4,085,839			1,400,755			1,175,746			9,579,318			6,558,471			—			—			4,624,638			3,902,710
Class A		714,614			431,412			139,151			110,804			1,880,728			1,450,591			—			—			500,869			421,056
Class C		223,666			158,870			57,080			53,749			1,747,942			1,501,052			—			—			277,641			275,969
Cost of shares redeemed
Class N		(51,103,375	)		(19,048,326	)		(46,043,475	)		(11,484,873	)		(88,657,959	)		(34,414,087	)		(8,552,847	)		(5,319,852	)		(34,003,205	)		(19,670,050	)
Class A		(6,113,143	)		(3,455,776	)		(3,493,266	)		(1,491,488	)		(14,526,312	)		(21,873,892	)		(2,009,156	)		(1,051,547	)		(4,450,345	)		(3,762,035	)
Class C		(1,675,351	)		(2,152,564	)		(1,102,595	)		(879,241	)		(9,085,236	)		(12,598,772	)		(673,743	)		(640,528	)		(1,476,839	)		(1,813,997	)
Net Increase (Decrease) in Net Assets From Share Transactions of Beneficial Interest		14,597,967			69,958,757			(19,417,530	)		16,387,520			7,425,480			44,674,129			3,935,729			7,082,466			(2,531,777	)		24,077,155
Total Increase (Decrease) in Net Assets		12,448,080			70,242,840			(22,993,925	)		15,994,329			(8,916,992	)		50,210,867			955,364			9,618,762			(9,055,021	)		27,078,444
Net Assets:
Beginning 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
End of Year **	$	192,377,108		$	179,929,028		$	49,221,551		$	72,215,476		$	279,048,216		$	287,965,208		$	45,252,304		$	44,296,940		$	114,381,790		$	123,436,811

* Distributions from net investment income and net realized capital gains are combined for the year ended October 31, 2018. See “New Accounting Pronouncements” in the Notes to Financial Statements for more information. The dividends and distributions to shareholders for the year ended October 31, 2017 have not been reclassified to conform to the current year presentation.

** Net Assets- End of Year includes distributions in excess of net investment income of $167,566, $(843), $(2,251,859), $(202,369), $(6,091) as of October 31, 2017.

See accompanying notes to financial statements.

75

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			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Oct. 31, 2018			Oct. 31, 2017			Oct. 31, 2018			Oct. 31, 2017			Oct. 31, 2018			Oct. 31, 2017			Oct. 31, 2018			Oct. 31, 2017			Oct. 31, 2018			Oct. 31, 2017
Operations:
Net investment income (loss)	$	2,715,525		$	1,741,589		$	(148,640	)	$	(125,430	)	$	590,638		$	344,565		$	635,854		$	639,416		$	(966,560	)	$	(629,954	)
Net realized gain (loss) from investments, futures, purchased options, and foreign currency transactions		(4,243,607	)		(2,689,104	)		322,454			(746,954	)		2,210,212			(1,884	)		2,733,977			2,043,312			6,846,462			2,115,633
Net change in unrealized appreciation (depreciation) on investments, swap contracts, futures, purchased options, foreign currency transactions, and foreign currency exchange contracts		227,188			694,814			(1,574,463	)		1,138,727			(1,199,986	)		1,752,437			(1,893,243	)		7,413,521			7,268,219			12,624,348
Net Increase (Decrease) in Net Assets Resulting From Operations		(1,300,894	)		(252,701	)		(1,400,649	)		266,343			1,600,864			2,095,118			1,476,588			10,096,249			13,148,121			14,110,027
Distributions to Shareholders From:
Net Realized Gains:
Class N		—			—			—			(247,203	)		—			—			—			—			—			—
Class A		—			—			—			(22,172	)		—			—			—			—			—			—
Class C		—			—			—			(12,501	)		—			—			—			—			—			—
Net Investment Income:
Class N		—			(1,692,781	)		—			—			—			(520,043	)		—			(801,099	)		—			—
Class A		—			(12,525	)		—			—			—			(99,320	)		—			(105,682	)		—			—
Class C		—			(43,706	)		—			—			—			(70,590	)		—			(46,819	)		—			—
Total Distributions Paid*
Class N		(2,606,411	)		—			(37,115	)		—			(364,941	)		—			(1,037,225	)		—			(529,592	)		—
Class A		(86,286	)		—			(3,597	)		—			(72,290	)		—			(179,080	)		—			(125,188	)		—
Class C		(39,879	)		—			(1,630	)		—			(42,412	)		—			(54,544	)		—			(67,305	)		—
Total Distributions to Shareholders		(2,732,576	)		(1,749,012	)		(42,342	)		(281,876	)		(479,643	)		(689,953	)		(1,270,849	)		(953,600	)		(722,085	)		—
Share Transactions of Beneficial Interest:
Net proceeds from shares sold
Class N		40,398,303			19,627,663			8,552,449			13,229,531			24,690,679			2,772,894			11,276,861			12,569,002			14,557,522			16,482,149
Class A		2,014,096			803,596			1,815,069			1,418,934			4,941,263			856,598			5,983,202			4,524,434			6,139,307			4,903,324
Class C		230,432			993,582			438,364			466,744			966,403			202,013			770,794			698,220			1,148,834			1,968,280
Reinvestment of distributions
Class N		1,937,292			1,418,244			37,090			247,134			364,087			508,555			1,034,573			781,846			527,415			—
Class A		80,703			10,966			3,538			21,649			60,330			83,738			174,869			103,998			119,002			—
Class C		38,733			42,589			1,630			12,501			38,665			64,382			53,746			46,630			63,642			—
Cost of shares redeemed
Class N		(20,111,259	)		(7,796,129	)		(7,995,121	)		(5,738,527	)		(2,712,641	)		(8,223,181	)		(12,244,072	)		(10,523,214	)		(21,393,431	)		(21,941,733	)
Class A		(140,518	)		(55,373	)		(809,868	)		(608,331	)		(2,061,767	)		(1,678,879	)		(3,792,405	)		(2,145,911	)		(6,326,125	)		(3,875,109	)
Class C		(622,711	)		(105,568	)		(333,168	)		(344,684	)		(729,306	)		(952,836	)		(1,312,478	)		(1,648,591	)		(2,135,494	)		(1,323,535	)
Net Increase (Decrease) in Net Assets From Share Transactions of Beneficial Interest		23,825,071			14,939,570			1,709,983			8,704,951			25,557,713			(6,366,716	)		1,945,090			4,406,414			(7,299,328	)		(3,786,624	)
Total Increase (Decrease) in Net Assets		19,791,601			12,937,857			266,992			8,689,418			26,678,934			(4,961,551	)		2,150,829			13,549,063			5,126,708			10,323,403
Net Assets:
Beginning of Year		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
End of Year **	$	57,080,995		$	37,289,394		$	37,006,017		$	36,739,025		$	45,465,462		$	18,786,528		$	72,119,462		$	69,968,633		$	81,300,147		$	76,173,439

* Distributions from net investment income and net realized capital gains are combined for the year ended October 31, 2018. See “New Accounting Pronouncements” in the Notes to Financial Statements for more information. The dividends and distributions to shareholders for the year ended October 31, 2017 have not been reclassified to conform to the current year presentation.

** Net Assets- End of Year includes distributions in excess of net investment income of $0, $(136,606), $195,912, $424,909, $(577,046) as of October 31, 2017.

See accompanying notes to financial statements.

76

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, 2018			Oct. 31, 2017			Oct. 31, 2018			Oct. 31, 2017			Oct. 31, 2018			Oct. 31, 2017			Oct. 31, 2018			Oct. 31, 2017			Oct. 31, 2018			Oct. 31, 2017
Operations:
Net investment income (loss)	$	1,350,212		$	1,238,118		$	899,505		$	242,523		$	(45,684	)	$	93,447		$	1,152,940		$	648,765		$	(590,382	)	$	(343,936	)
Net realized gain (loss) from investments and foreign currency transactions		6,533,665			8,589,369			(174,994	)		280,576			5,105,140			3,149,348			1,431,468			5,242,635			9,207,612			5,792,317
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(16,664,110	)		11,078,783			(546,360	)		334,973			(5,420,545	)		3,607,860			(16,889,852	)		8,203,170			(3,717,938	)		4,393,500
Net Increase (Decrease) in Net Assets Resulting From Operations		(8,780,233	)		20,906,270			178,151			858,072			(361,089	)		6,850,655			(14,305,444	)		14,094,570			4,899,292			9,841,881
Distributions to Shareholders From:
Net Realized Gains:
Class N		—			—			—			(3,870,471	)		—			(742,732	)		—			—			—			—
Class A		—			—			—			(626,758	)		—			(158,717	)		—			—			—			—
Class C		—			—			—			(485,899	)		—			(81,547	)		—			—			—			—
Net Investment Income:
Class N		—			—			—			(494,155	)		—			(150,908	)		—			(796,221	)		—			—
Class A		—			—			—			(57,154	)		—			(22,646	)		—			(95,754	)		—			—
Class C		—			—			—			(35,575	)		—			—			—			(39,475	)		—			—
Total Distributions Paid*
Class N		(3,839,253	)		—			(545,647	)		—			(2,382,575	)		—			(510,282	)		—			(3,540,224	)		—
Class A		(663,334	)		—			(80,421	)		—			(495,340	)		—			(67,957	)		—			(1,070,104	)		—
Class C		(254,735	)		—			(19,495	)		—			(301,971	)		—			(13,160	)		—			(474,106	)		—
Total Distributions to Shareholders		(4,757,322	)		—			(645,563	)		(5,570,012	)		(3,179,886	)		(1,156,550	)		(591,399	)		(931,450	)		(5,084,434	)		—
Share Transactions of Beneficial Interest:
Net proceeds from shares sold
Class N		20,225,562			13,755,855			18,420,383			13,777,569			17,353,604			5,035,616			20,915,714			8,199,481			12,088,512			6,717,239
Class A		9,177,700			5,992,736			4,483,032			3,331,102			4,612,064			3,001,246			6,171,549			3,608,237			5,475,767			4,193,814
Class C		1,236,899			977,201			555,329			451,668			433,472			649,431			1,090,420			1,595,953			468,765			593,576
Reinvestment of distributions
Class N		3,736,841			—			544,150			4,259,930			2,312,130			871,348			494,306			775,603			3,415,609			—
Class A		644,219			—			78,284			657,161			445,163			177,734			64,832			93,730			959,794			—
Class C		250,970			—			19,299			464,142			264,864			81,120			13,079			39,226			474,106			—
Cost of shares redeemed
Class N		(14,178,501	)		(19,238,731	)		(9,723,240	)		(5,811,499	)		(2,502,809	)		(9,930,878	)		(7,511,939	)		(14,975,059	)		(6,253,725	)		(15,497,578	)
Class A		(4,944,496	)		(3,367,797	)		(2,038,975	)		(6,548,328	)		(1,141,557	)		(3,176,674	)		(2,670,093	)		(3,408,343	)		(2,475,581	)		(4,560,250	)
Class C		(1,547,611	)		(2,102,276	)		(661,776	)		(1,229,216	)		(868,985	)		(811,262	)		(659,386	)		(2,226,817	)		(777,346	)		(782,773	)
Net Increase (Decrease) in Net Assets From Share Transactions of Beneficial Interest		14,601,583			(3,983,012	)		11,676,486			9,352,529			20,907,946			(4,102,319	)		17,908,482			(6,297,989	)		13,375,901			(9,335,972	)
Total Increase in Net Assets		1,064,028			16,923,258			11,209,074			4,640,589			17,366,971			1,591,786			3,011,639			6,865,131			13,190,759			505,909
Net Assets:
Beginning 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
End of Year **	$	113,415,397		$	112,351,369		$	53,915,232		$	42,706,158		$	47,256,415		$	29,889,444		$	66,085,808		$	63,074,169		$	47,401,283		$	34,210,524

* Distributions from net investment income and net realized capital gains are combined for the year ended October 31, 2018. See “New Accounting Pronouncements” in the Notes to Financial Statements for more information. The dividends and distributions to shareholders for the year ended October 31, 2017 have not been reclassified to conform to the current year presentation.

** Net Assets- End of Year includes distributions in excess of net investment income of $1,043,638, $95,638, $49,727, $221,092, $25,856 as of October 31, 2017.

See accompanying notes to financial statements.

77

FINANCIAL HIGHLIGHTS

Dunham Floating Rate Bond Fund

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

	Class N
	Year Ended October 31,
	2018			2017			2016			2015			2014*
Net asset value, beginning of year	$	9.73		$	9.70		$	9.60		$	9.87		$	10.00
Income from investment operations:
Net investment income**		0.40			0.35			0.33			0.32			0.29
Net realized and unrealized gain (loss)		(0.11	)		0.03			0.10			(0.27	)		(0.15	)
Total income from investment operations		0.29			0.38			0.43			0.05			0.14
Less distributions:
Distributions from net investment income		(0.40	)		(0.35	)		(0.33	)		(0.32	)		(0.27	)
Total distributions		(0.40	)		(0.35	)		(0.33	)		(0.32	)		(0.27	)
Net asset value, end of year	$	9.62		$	9.73		$	9.70		$	9.60		$	9.87
Total return +		3.02	%		4.01	%		4.63	%		0.51	%		1.43	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	164,936		$	157,485		$	94,219		$	73,316		$	63,120
Ratios of expenses to average net assets:		0.97	%		1.03	%		1.34	%		1.27	%		1.27	%
Ratios of net investment income to average net assets:		4.08	%		3.60	%		3.24	%		3.24	%		2.87	%
Portfolio turnover rate		79	%		91	%		62	%		51	%		50	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014*			2018			2017			2016			2015			2014*
Net asset value, beginning of year	$	9.72		$	9.70		$	9.59		$	9.87		$	10.00		$	9.73		$	9.69		$	9.59		$	9.86		$	10.00
Income (loss) from investment operations:
Net investment income**		0.37			0.32			0.31			0.30			0.28			0.33			0.28			0.26			0.24			0.22
Net realized and unrealized gain (loss)		(0.11	)		0.03			0.11			(0.28	)		(0.16	)		(0.11	)		0.04			0.10			(0.26	)		(0.16	)
Total income (loss) from investment operations		0.26			0.35			0.42			0.02			0.12			0.22			0.32			0.36			(0.02	)		0.06
Less distributions:
Distributions from net investment income		(0.37	)		(0.33	)		(0.31	)		(0.30	)		(0.25	)		(0.33	)		(0.28	)		(0.26	)		(0.25	)		(0.20	)
Total distributions		(0.37	)		(0.33	)		(0.31	)		(0.30	)		(0.25	)		(0.33	)		(0.28	)		(0.26	)		(0.25	)		(0.20	)
Net asset value, end of year	$	9.61		$	9.72		$	9.70		$	9.59		$	9.87		$	9.62		$	9.73		$	9.69		$	9.59		$	9.86
Total return +#		2.77	%		3.64	%		4.49	%		0.16	%		1.20	%		2.26	%		3.31	%		3.87	%		(0.23	)%		0.63	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	20,205		$	16,229		$	10,923		$	8,598		$	13,664		$	7,236		$	6,215		$	4,545		$	3,573		$	3,888
Ratios of expenses to average net assets:		1.22	%		1.28	%		1.59	%		1.52	%		1.52	%		1.72	%		1.78	%		2.10	%		2.02	%		2.02	%
Ratios of net investment income to average net assets:		3.84	%		3.33	%		3.49	%		2.99	%		2.84	%		3.43	%		2.89	%		2.74	%		2.49	%		2.24	%
Portfolio turnover rate		79	%		91	%		62	%		51	%		50	%		79	%		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 year.

+ Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares 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. Adjustments may apply to some but not all years and classes.

See accompanying notes to financial statements.

78

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,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	13.82		$	13.92		$	13.75		$	14.14		$	14.07
Income (loss) from investment operations:
Net investment income*		0.34			0.31			0.36			0.42			0.38
Net realized and unrealized gain (loss)		(0.74	)		(0.08	)		0.19			(0.37	)	��	0.16
Total income (loss) from investment operations		(0.40	)		0.23			0.55			0.05			0.54
Less distributions:
Distributions from net investment income		(0.36	)		(0.33	)		(0.38	)		(0.44	)		(0.42	)
Distributions from net realized gains		—			—			—			—			(0.05	)
Total distributions		(0.36	)		(0.33	)		(0.38	)		(0.44	)		(0.47	)
Net asset value, end of year	$	13.06		$	13.82		$	13.92		$	13.75		$	14.14
Total return +#		(2.93	)%		1.72	%		4.09	%		0.36	%		3.85	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	41,151		$	62,757		$	48,025		$	41,989		$	43,888
Ratios of expenses to average net assets:		1.20	%		1.35	%		1.13	%		1.06	%		1.37	%
Ratios of net investment income to average net assets:		2.53	%		2.27	%		2.61	%		3.00	%		2.69	%
Portfolio turnover rate		92	%		61	%		58	%		54	%		60	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	13.80		$	13.90		$	13.73		$	14.13		$	14.06		$	13.71		$	13.81		$	13.65		$	14.05		$	13.98
Income (loss) from investment operations:
Net investment income*		0.31			0.28			0.33			0.38			0.35			0.24			0.21			0.26			0.31			0.27
Net realized and unrealized gain (loss)		(0.74	)		(0.08	)		0.19			(0.37	)		0.15			(0.74	)		(0.08	)		0.18			(0.37	)		0.16
Total income (loss) from investment operations		(0.43	)		0.20			0.52			0.01			0.50			(0.50	)		0.13			0.44			(0.06	)		0.43
Less distributions:
Distributions from net investment income		(0.33	)		(0.30	)		(0.35	)		(0.41	)		(0.38	)		(0.26	)		(0.23	)		(0.28	)		(0.34	)		(0.31	)
Distributions from net realized gains		—			—			—			—			(0.05	)		—			—			—			—			(0.05	)
Total distributions		(0.33	)		(0.30	)		(0.35	)		(0.41	)		(0.43	)		(0.26	)		(0.23	)		(0.28	)		(0.34	)		(0.36	)
Net asset value, end of year	$	13.04		$	13.80		$	13.90		$	13.73		$	14.13		$	12.95		$	13.71		$	13.81		$	13.65		$	14.05
Total return +#		(3.17	)%		1.47	%		3.86	%		0.04	%		3.59	%		(3.67	)%		0.98	%		3.27	%		(0.45	)%		3.08	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	5,311		$	6,260		$	4,832		$	4,788		$	3,684		$	2,760		$	3,199		$	3,364		$	3,698		$	3,690
Ratios of expenses to average net assets:		1.45	%		1.60	%		1.38	%		1.31	%		1.62	%		1.95	%		2.10	%		1.88	%		1.81	%		2.12	%
Ratios of net investment income to average net assets:		2.31	%		2.01	%		2.40	%		2.74	%		2.44	%		1.81	%		1.52	%		1.89	%		2.27	%		1.94	%
Portfolio turnover rate		92	%		61	%		58	%		54	%		60	%		92	%		61	%		58	%		54	%		60	%

* 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. 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. Adjustments may apply to some but not all years and classes.

See accompanying notes to financial statements.

79

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,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	36.71		$	35.74		$	36.36		$	38.16		$	38.47
Income (loss) from investment operations:
Net investment income (loss)*		0.09			(0.36	)		0.14			(0.18	)		0.17
Net realized and unrealized gain (loss)		(0.25	)		2.79			0.49			(0.39	)		1.35
Total income (loss) from investment operations		(0.16	)		2.43			0.63			(0.57	)		1.52
Less distributions:
Distributions from net investment income		—			—			(0.55	)		—			—
Distributions from net realized gains		(0.35	)		—			—			(0.80	)		(1.59	)
Tax return of capital		(1.36	)		(1.46	)		(0.70	)		(0.43	)		(0.24	)
Total distributions		(1.71	)		(1.46	)		(1.25	)		(1.23	)		(1.83	)
Net asset value, end of year	$	34.84		$	36.71		$	35.74		$	36.36		$	38.16
Total return + #		(0.45	)%		6.92	%		1.79	%		(1.53	)%		4.01	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	201,405		$	212,178		$	153,084		$	163,843		$	156,964
Ratios of expenses to average net assets:
After waivers		2.16	%		2.73	%		1.85	%		2.09	%		2.53	%
Dividends/borrowings on short sales		1.10	%		1.17	%		0.61	%		0.47	%		0.59	%
Excluding dividends/borrowings on short sales:
Before fee waivers		1.06	%		1.59	%		1.26	%		2.17	%		2.11	%
After fee waivers		1.06	%		1.56	%		1.24	%		1.62	%		1.94	%
Ratios of net investment income (loss) to average net assets:
Before fee waivers		0.25	%		(1.06	)%		0.39	%		(0.56	)%		0.26	%
After fee waivers		0.25	%		(1.03	)%		0.40	%		(0.48	)%		0.43	%
Portfolio turnover rate		453	%		382	%		208	%		155	%		229	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	35.73		$	34.90		$	35.63		$	37.52		$	37.95		$	29.15		$	28.94		$	29.99		$	32.01		$	32.87
Income (loss) from investment operations:
Net investment income (loss)*		0.00	(a)		(0.40	)		0.13			(0.27	)		0.07			(0.21	)		(0.55	)		(0.14	)		(0.46	)		(0.20	)
Net realized and unrealized gain (loss)		(0.25	)		2.69			0.39			(0.39	)		1.33			(0.21	)		2.22			0.34			(0.33	)		1.17
Total income (loss) from investment operations		(0.25	)		2.29			0.52			(0.66	)		1.40			(0.42	)		1.67			0.20			(0.79	)		0.97
Less distributions:
Distributions from net investment income		—			—			(0.55	)		—			—			—			—			(0.55	)		—			—
Distributions from net realized gains		(0.35	)		—			—			(0.80	)		(1.59	)		(0.35	)		—			—			(0.80	)		(1.59	)
Tax return of capital		(1.36	)		(1.46	)		(0.70	)		(0.43	)		(0.24	)		(1.36	)		(1.46	)		(0.70	)		(0.43	)		(0.24	)
Total distributions		(1.71	)		(1.46	)		(1.25	)		(1.23	)		(1.83	)		(1.71	)		(1.46	)		(1.25	)		(1.23	)		(1.83	)
Net asset value, end of year	$	33.77		$	35.73		$	34.90		$	35.63		$	37.52		$	27.02		$	29.15		$	28.94		$	29.99		$	32.01
Total return + #		(0.72	)%		6.64	%		1.54	%		(1.80	)%		3.74	%		(1.48	)%		5.82	%		0.75	%		(2.53	)%		2.99	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	42,980		$	41,186		$	45,552		$	74,247		$	79,132		$	34,664		$	34,601		$	39,118		$	50,215		$	48,193
Ratios of expenses to average net assets:
After waivers		2.41	%		2.93	%		2.06	%		2.33	%		2.78	%		3.16	%		3.68	%		2.83	%		3.09	%		3.53	%
Dividends/borrowings on short sales		1.10	%		1.12	%		0.59	%		0.47	%		0.59	%		1.10	%		1.12	%		0.60	%		0.47	%		0.59	%
Excluding dividends/borrowings on short sales:
Before fee waivers		1.31	%		1.83	%		1.49	%		2.42	%		2.36	%		2.06	%		2.58	%		2.24	%		3.16	%		3.11	%
After fee waivers		1.31	%		1.81	%		1.48	%		1.86	%		2.19	%		2.06	%		2.56	%		2.23	%		2.62	%		2.94	%
Ratios of net investment income (loss) to average net assets:
Before fee waivers		0.01	%		(1.14	)%		0.36	%		(0.79	)%		0.01	%		(0.73	)%		(1.89	)%		(0.50	)%		(1.54	)%		(0.74	)%
After fee waivers		0.01	%		(1.11	)%		0.37	%		(0.71	)%		0.18	%		(0.73	)%		(1.86	)%		(0.48	)%		(1.46	)%		(0.57	)%
Portfolio turnover rate		453	%		382	%		208	%		155	%		229	%		453	%		382	%		208	%		155	%		229	%

* 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. 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. Adjustments may apply to some but not all years and classes.

(a) Represents less than $0.01 per share.

See accompanying notes to financial statements.

80

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,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	10.18		$	9.55		$	9.81		$	9.65		$	9.67
Income (loss) from investment operations:
Net investment income (loss) *		0.02			(0.03	)		(0.00	) (a)		(0.14	)		0.19
Net realized and unrealized gain (loss) **		(0.67	)		0.66			(0.26	)		0.30			(0.02	)
Total income (loss) from investment operations		(0.65	)		0.63			(0.26	)		0.16			0.17
Less distributions:
Distributions from net investment income		—			—			—			—			(0.19	)
Net asset value, end of year	$	9.53		$	10.18		$	9.55		$	9.81		$	9.65
Total return + #		(6.39	)%		6.60	%		(2.68	)%		1.66	%		1.80	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	35,638		$	36,104		$	28,650		$	28,518		$	11,758
Ratios of expenses to average net assets:		1.80	%		1.83	%		1.63	%		2.15	%		1.90	%
Ratios of net investment income (loss) to average net assets:		0.20	%		(0.32	)%		(0.03	)%		(1.37	)%		1.96	%
Portfolio turnover rate		11	%		7	%		54	%		70	%		238	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	10.12		$	9.52		$	9.81		$	9.68		$	9.70		$	9.74		$	9.23		$	9.58		$	9.52		$	9.56
Income (loss) from investment operations:
Net investment income (loss) *		0.00	(a)		(0.06	)		(0.02	)		(0.14	)		0.18			(0.08	)		(0.12	)		(0.09	)		(0.26	)		0.11
Net realized and unrealized gain (loss) **		(0.66	)		0.66			(0.27	)		0.27			(0.04	)		(0.63	)		0.63			(0.26	)		0.32			(0.04	)
Total income (loss) from investment operations		(0.66	)		0.60			(0.29	)		0.13			0.14			(0.71	)		0.51			(0.35	)		0.06			0.07
Less distributions:
Distributions from net investment income		—			—			—			—			(0.16	)		—			—			—			—			(0.11	)
Net asset value, end of year	$	9.46		$	10.12		$	9.52		$	9.81		$	9.68		$	9.03		$	9.74		$	9.23		$	9.58		$	9.52
Total return + #		(6.52	)%		6.30	%		(2.95	)%		1.34	%		1.52	%		(7.29	)%		5.53	%		(3.66	)%		0.63	%		0.78	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	7,918		$	6,224		$	3,897		$	3,296		$	1,729		$	1,696		$	1,969		$	2,131		$	1,938		$	1,712
Ratios of expenses to average net assets:		2.05	%		2.08	%		1.88	%		2.40	%		2.15	%		2.80	%		2.83	%		2.63	%		3.15	%		2.90	%
Ratios of net investment income (loss) to average net assets:		0.00	% (b)		(0.58	)%		(0.26	)%		(1.63	)%		1.92	%		(0.84	)%		(1.34	)%		(1.02	)%		(2.35	)%		1.19	%
Portfolio turnover rate		11	%		7	%		54	%		70	%		238	%		11	%		7	%		54	%		70	%		238	%

* 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. 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. Adjustments may apply to some but not all years and classes.

(a) Represents less than $0.01 per share.

(b) Represents less than 0.01%.

See accompanying notes to financial statements.

81

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,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	9.22		$	8.94		$	8.92		$	9.51		$	9.61
Income (loss) from investment operations:
Net investment income*		0.44			0.42			0.44			0.44			0.46
Net realized and unrealized gain (loss)		(0.51	)		0.30			0.02			(0.59	)		(0.10	)
Total income (loss) from investment operations		(0.07	)		0.72			0.46			(0.15	)		0.36
Less distributions:
Distributions from net investment income		(0.43	)		(0.44	)		(0.44	)		(0.44	)		(0.46	)
Total distributions		(0.43	)		(0.44	)		(0.44	)		(0.44	)		(0.46	)
Net asset value, end of year	$	8.72		$	9.22		$	8.94		$	8.92		$	9.51
Total return +		(0.80	)%		8.19	%		5.39	%		(1.63	)%		3.77	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	94,596		$	103,567		$	78,194		$	78,654		$	102,412
Ratios of expenses to average net assets:		1.12	%		1.19	%		1.08	%		1.02	%		1.09	%
Ratios of net investment income to average net assets:		4.84	%		4.62	%		5.09	%		4.77	%		4.72	%
Portfolio turnover rate		101	%		142	%		62	%		51	%		62	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	9.29		$	9.02		$	8.99		$	9.58		$	9.68		$	9.17		$	8.88		$	8.86		$	9.46		$	9.55
Income (loss) from investment operations:
Net investment income*		0.42			0.40			0.42			0.41			0.44			0.37			0.35			0.37			0.37			0.38
Net realized and unrealized gain (loss)		(0.49	)		0.28			0.03			(0.59	)		(0.10	)		(0.50	)		0.30			0.02			(0.60	)		(0.08	)
Total income (loss) from investment operations		(0.07	)		0.68			0.45			(0.18	)		0.34			(0.13	)		0.65			0.39			(0.23	)		0.30
Less distributions:
Distributions from net investment income		(0.41	)		(0.41	)		(0.42	)		(0.41	)		(0.44	)		(0.36	)		(0.36	)		(0.37	)		(0.37	)		(0.39	)
Total distributions		(0.41	)		(0.41	)		(0.42	)		(0.41	)		(0.44	)		(0.36	)		(0.36	)		(0.37	)		(0.37	)		(0.39	)
Net asset value, end of year	$	8.81		$	9.29		$	9.02		$	8.99		$	9.58		$	8.68		$	9.17		$	8.88		$	8.86		$	9.46
Total return +#		(0.82	)%		7.70	%		5.21	%		(1.88	)%		3.49	%		(1.43	)%		7.45	%		4.65	%		(2.47	)%		3.13	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	12,393		$	12,085		$	10,478		$	10,224		$	22,022		$	7,392		$	7,785		$	7,687		$	9,231		$	11,652
Ratios of expenses to average net assets:		1.37	%		1.44	%		1.33	%		1.27	%		1.34	%		1.87	%		1.94	%		1.83	%		1.77	%		1.84	%
Ratios of net investment income to average net assets:		4.60	%		4.38	%		4.84	%		4.52	%		4.47	%		4.09	%		3.88	%		4.34	%		4.02	%		3.97	%
Portfolio turnover rate		101	%		142	%		62	%		51	%		62	%		101	%		142	%		62	%		51	%		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. 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. Adjustments may apply to some but not all years and classes.

See accompanying notes to financial statements.

82

FINANCIAL HIGHLIGHTS

Dunham Alternative Dividend Fund

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

	Class N
							Period Ended
	Year Ended October 31,						October 31,
	2018			2017			2016*
Net asset value, beginning of period/year	$	11.27		$	11.72		$	12.00
Income (loss) from investment operations:
Net investment income**		0.58			0.59			0.02
Net realized and unrealized loss		(0.59	)		(0.47	)		(0.30	)
Total income (loss) from investment operations		(0.01	)		0.12			(0.28	)
Less distributions:
Distributions from net investment income		(0.57	)		(0.57	)		—
Total distributions		(0.57	)		(0.57	)		—
Net asset value, end of period/year	$	10.69		$	11.27		$	11.72
Total return +#		(0.29	)%		0.90	%		(2.33	)%
Ratios/Supplemental Data:
Net assets, end of period/year (in 000s)	$	53,686		$	35,285		$	23,934
Ratios of expenses to average net assets:
Before fees paid indirectly (a)		1.31	%		1.31	%		1.88	% ^
After fees paid indirectly (a)		1.31	%		1.16	%		1.88	% ^
Ratios of net investment income to average net assets:
average net assets:
Before fees pain indirectly (a)!		5.06	%		4.83	%		0.86	% ^
After fees paid indirectly (a)!		5.06	%		4.99	%		0.86	% ^
Portfolio turnover rate		893	%		514	%		41	% (1)
	Class A									Class C
							Period Ended									Period Ended
	Year Ended October 31,						October 31,			Year Ended October 31,						October 31,
	2018			2017			2016*			2018			2017			2016*
Net asset value, beginning of period/year	$	11.27		$	11.72		$	12.00		$	11.24		$	11.71		$	12.00
Income (loss) from investment operations:
Net investment income**		0.52			0.51			0.08			0.48			0.46			0.01
Net realized and unrealized loss		(0.57	)		(0.40	)		(0.36	)		(0.61	)		(0.46	)		(0.30	)
Total income (loss) from investment operations		(0.05	)		0.11			(0.28	)		(0.13	)		0.00			(0.29	)
Less distributions:
Distributions from net investment income		(0.55	)		(0.56	)		—			(0.45	)		(0.47	)		—
Total distributions		(0.55	)		(0.56	)		—			(0.45	)		(0.47	)		—
Net asset value, end of period/year	$	10.67		$	11.27		$	11.72		$	10.66		$	11.24		$	11.71
Total return +#		(0.66	)%		0.78	%		(2.33	)%		(1.35	)%		(0.14	)%		(2.42	)%
Ratios/Supplemental Data:
Net assets, end of period/year (in 000s)	$	2,509		$	729		$	12		$	886		$	1,275		$	418
Ratios of expenses to average net assets:
Before fees paid indirectly (a)		1.56	%		1.56	%		2.61	% ^		2.31	%		2.31	%		2.74	% ^
After fees paid indirectly (a)		1.56	%		1.41	%		2.61	% ^		2.31	%		2.16	%		2.74	% ^
Ratios of net investment income to average net assets:
Before fees pain indirectly (a)!		4.61	%		4.34	%		4.18	% ^		4.17	%		3.80	%		0.44	% ^
After fees paid indirectly (a)!		4.61	%		4.37	%		4.18	% ^		4.17	%		3.95	%		0.44	% ^
Portfolio turnover rate		893	%		514	%		41	% (1)		893	%		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/year.

+ Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not reflect the impact of any sales charge.

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

^ 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. Adjustments may apply to some but not all years and classes.

(a) Does not Include the expenses of other investment companies in which the Fund invests.

! Recognition of net investment income is affected by the timing and declaration of dividends by underlying funds in which the Fund invests.

See accompanying notes to financial statements.

83

FINANCIAL HIGHLIGHTS

Dunham International Opportunity Bond Fund

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

	Class N
	Year Ended October 31,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	9.32		$	9.37		$	8.92		$	9.64		$	10.00
Income (loss) from investment operations:
Net investment income (loss)*		(0.03	)		(0.03	)		0.04			0.05			0.07
Net realized and unrealized gain (loss)		(0.35	)		0.07			0.42			(0.77	)		(0.37	)
Total income (loss) from investment operations		(0.38	)		0.04			0.46			(0.72	)		(0.30	)
Less distributions:
Distributions from net investment income		—			—			(0.01	)		—			—
Distributions from net realized gains		(0.01	)		(0.09	)		—			—			—
Tax return of capital		—			—			—			—			(0.06	)
Total distributions		(0.01	)		(0.09	)		(0.01	)		—			(0.06	)
Net asset value, end of year	$	8.93		$	9.32		$	9.37		$	8.92		$	9.64
Total return + #		(4.08	)%		0.57	%		5.14	%		(7.42	)%		(2.99	)%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	31,838		$	32,441		$	24,728		$	31,935		$	42,440
Ratios of expenses to average net assets:		1.35	%		1.54	%		1.28	%		1.38	%		1.38	%
Ratios of net investment income (loss) to average net assets:		(0.35	)%		(0.37	)%		0.41	%		0.52	%		0.66	%
Portfolio turnover rate		45	%		56	%		64	%		52	%		60	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	9.26		$	9.32		$	8.90		$	9.64		$	10.00		$	9.10		$	9.22		$	8.84		$	9.62		$	10.00
Income (loss) from investment operations:
Net investment income (loss)*		(0.06	)		(0.06	)		0.01			0.02			0.04			(0.10	)		(0.10	)		(0.03	)		(0.02	)		(0.01	)
Net realized and unrealized gain (loss)		(0.34	)		0.09			0.41			(0.76	)		(0.36	)		(0.33	)		0.07			0.41			(0.76	)		(0.36	)
Total income (loss) from investment operations		(0.40	)		0.03			0.42			(0.74	)		(0.32	)		(0.43	)		(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		(0.01	)		(0.09	)		—			—			—			(0.01	)		(0.09	)		—			—			—
Tax return of capital		—			—			—			—			(0.04	)		—			—			—			—			(0.01	)
Total distributions		(0.01	)		(0.09	)		(0.00	) (a)		—			(0.04	)		(0.01	)		(0.09	)		(0.00	) (a)		—			(0.01	)
Net asset value, end of year	$	8.85		$	9.26		$	9.32		$	8.90		$	9.64		$	8.66		$	9.10		$	9.22		$	8.84		$	9.62
Total return + #		(4.32	)%		0.46	%		4.77	%		(7.65	)%		(3.22	)%		(4.72	)%		(0.19	)%		4.31	%		(8.11	)%		(3.72	)%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	3,802		$	2,968		$	2,118		$	3,208		$	3,513		$	1,366		$	1,330		$	1,204		$	1,638		$	1,879
Ratios of expenses to average net assets:		1.60	%		1.79	%		1.53	%		1.63	%		1.63	%		2.10	%		2.29	%		2.03	%		2.13	%		2.13	%
Ratios of net investment income (loss) to average net assets:		(0.59	)%		(0.63	)%		0.10	%		0.29	%		0.41	%		(1.10	)%		(1.11	)%		(0.33	)%		(0.24	)%		(0.09	)%
Portfolio turnover rate		45	%		56	%		64	%		52	%		60	%		45	%		56	%		64	%		52	%		60	%

* 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. 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. Adjustments may apply to some but not all years and classes.

See accompanying notes to financial statements.

84

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,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	8.68		$	8.05		$	8.75		$	10.88		$	10.09
Income (loss) from investment operations:
Net investment income*		0.23			0.16			0.23			0.27			0.11
Net realized and unrealized gain (loss)		0.49			0.72			(0.39	)		(0.51	)		0.83
Total income (loss) from investment operations		0.72			0.88			(0.16	)		(0.24	)		0.94
Less distributions:
Distributions from net investment income		(0.21	)		(0.25	)		(0.36	)		(0.17	)		(0.15	)
Distributions from net realized gains		—			—			(0.18	)		(1.72	)		—
Total distributions		(0.21	)		(0.25	)		(0.54	)		(1.89	)		(0.15	)
Net asset value, end of year	$	9.19		$	8.68		$	8.05		$	8.75		$	10.88
Total return + #		8.42	%		11.20	%		(1.92	)%		(2.67	)%		9.37	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	36,055		$	12,953		$	16,929		$	20,210		$	18,576
Ratios of expenses to average net assets:		1.44	%		1.41	%		1.42	%		1.34	%		1.44	%
Ratios of net investment income to average net assets:		2.52	%		1.90	%		2.83	%		2.83	%		1.07	%
Portfolio turnover rate		275	%		106	%		96	%		82	%		129	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	8.66		$	8.03		$	8.73		$	10.85		$	10.06		$	8.46		$	7.86		$	8.56		$	10.66		$	9.90
Income (loss) from investment operations:
Net investment income*		0.19			0.14			0.20			0.24			0.09			0.11			0.07			0.14			0.18			0.01
Net realized and unrealized gain (loss)		0.50			0.72			(0.39	)		(0.50	)		0.82			0.49			0.71			(0.39	)		(0.50	)		0.80
Total income (loss) from investment operations		0.69			0.86			(0.19	)		(0.26	)		0.91			0.60			0.78			(0.25	)		(0.32	)		0.81
Less distributions:
Distributions from net investment income		(0.18	)		(0.23	)		(0.33	)		(0.14	)		(0.12	)		(0.12	)		(0.18	)		(0.27	)		(0.06	)		(0.05	)
Distributions from net realized gains		—			—			(0.18	)		(1.72	)		—			—			—			(0.18	)		(1.72	)		—
Total distributions		(0.18	)		(0.23	)		(0.51	)		(1.86	)		(0.12	)		(0.12	)		(0.18	)		(0.45	)		(1.78	)		(0.05	)
Net asset value, end of year	$	9.17		$	8.66		$	8.03		$	8.73		$	10.85		$	8.94		$	8.46		$	7.86		$	8.56		$	10.66
Total return + #		8.10	%		10.92	%		(2.19	)%		(2.84	)%		9.10	%		7.21	%		10.08	%		(2.95	)%		(3.53	)%		8.21	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	6,265		$	3,125		$	3,638		$	4,211		$	4,509		$	3,145		$	2,708		$	3,181		$	4,956		$	4,046
Ratios of expenses to average net assets:		1.69	%		1.66	%		1.67	%		1.59	%		1.69	%		2.44	%		2.41	%		2.44	%		2.34	%		2.44	%
Ratios of net investment income to average net assets:		2.13	%		1.66	%		2.57	%		2.56	%		0.83	%		1.22	%		0.93	%		1.81	%		1.91	%		0.08	%
Portfolio turnover rate		275	%		106	%		96	%		82	%		129	%		275	%		106	%		96	%		82	%		129	%

* 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. 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. Adjustments may apply to some but not all years and classes.

See accompanying notes to financial statements.

85

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,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	14.16		$	12.22		$	16.32		$	16.21		$	14.55
Income from investment operations:
Net investment income *		0.14			0.15			0.22			0.17			0.13
Net realized and unrealized gain (loss)		0.15			2.01			(0.04	)		0.06			1.70
Total income from investment operations		0.29			2.16			0.18			0.23			1.83
Less distributions:
Distributions from net investment income		(0.13	)		(0.22	)		(0.18	)		(0.12	)		(0.17	)
Distributions from net realized gains		(0.14	)		—			(4.10	)		—			—
Total distributions		(0.27	)		(0.22	)		(4.28	)		(0.12	)		(0.17	)
Net asset value, end of year	$	14.18		$	14.16		$	12.22		$	16.32		$	16.21
Total return + #		1.98	%		17.84	%		1.73	%		1.41	%		12.64	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	55,428		$	55,155		$	45,026		$	44,620		$	41,917
Ratios of expenses to average net assets:
After fee Waivers														1.26	%
Before fees paid indirectly		1.30	%		1.13	%		0.93	%		1.12	%		1.26	%
After fees paid indirectly		1.30	%		1.12	%		0.93	%		1.12	%		1.26	%
Ratios of net investment income to average net assets:
After fee Waivers														0.82	%
Before fees paid indirectly		0.94	%		1.12	%		1.81	%		1.03	%		0.82	%
After fees paid indirectly		0.94	%		1.13	%		1.81	%		1.03	%		0.82	%
Portfolio turnover rate		45	%		61	%		59	%		101	%		22	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	14.10		$	12.16		$	16.26		$	16.16		$	14.52		$	13.47		$	11.65		$	15.74		$	15.68		$	14.09
Income from investment operations:
Net investment income (loss)*		0.10			0.11			0.19			0.13			0.09			(0.01	)		0.02			0.10			0.00	(a)		(0.03	)
Net realized and unrealized gain (loss)		0.15			2.02			(0.05	)		0.06			1.69			0.15			1.92			(0.06	)		0.06			1.65
Total income from investment operations		0.25			2.13			0.14			0.19			1.78			0.14			1.94			0.04			0.06			1.62
Less distributions:
Distributions from net investment income		(0.10	)		(0.19	)		(0.14	)		(0.09	)		(0.14	)		(0.02	)		(0.12	)		(0.03	)		—			(0.03	)
Distributions from net realized gains		(0.14	)		0.00			(4.10	)		—			—			(0.14	)		—			(4.10	)		—			—
Total distributions		(0.24	)		(0.19	)		(4.24	)		(0.09	)		(0.14	)		(0.16	)		(0.12	)		(4.13	)		—			(0.03	)
Net asset value, end of year	$	14.11		$	14.10		$	12.16		$	16.26		$	16.16		$	13.45		$	13.47		$	11.65		$	15.74		$	15.68
Total return + #		1.71	%		17.66	%		1.43	%		1.15	%		12.31	%		1.00	%		16.72	%		0.66	%		0.38	%		11.49	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	12,525		$	10,174		$	6,544		$	6,577		$	7,685		$	4,167		$	4,640		$	4,850		$	5,805		$	5,639
Ratios of expenses to average net assets:
After fee Waivers														1.51	%														2.26	%
Before fees paid indirectly		1.55	%		1.38	%		1.18	%		1.37	%		1.51	%		2.30	%		2.13	%		1.93	%		2.12	%		2.26	%
After fees paid indirectly		1.55	%		1.37	%		1.18	%		1.37	%		1.51	%		2.30	%		2.12	%		1.93	%		2.12	%		2.26	%
Ratios of net investment income (loss) to average net assets:
After fee Waivers														0.57	%														(0.18	)%
Before fees paid indirectly		0.70	%		0.84	%		1.57	%		0.78	%		0.57	%		(0.07	)%		0.14	%		0.83	%		0.03	%		(0.18	)%
After fees paid indirectly		0.70	%		0.85	%		1.57	%		0.78	%		0.57	%		(0.07	)%		0.15	%		0.83	%		0.03	%		(0.18	)%
Portfolio turnover rate		45	%		61	%		59	%		101	%		22	%		45	%		61	%		59	%		101	%		22	%

* 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. 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.

(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. Adjustments may apply to some but not all years and classes.

See accompanying notes to financial statements.

86

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,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	19.37		$	15.92		$	16.97		$	15.01		$	14.02
Income (loss) from investment operations:
Net investment loss*		(0.22	)		(0.14	)		(0.10	)		(0.16	)		(0.11	)
Net realized and unrealized gain (loss)		3.53			3.59			(0.86	)		2.12			1.29
Total income (loss) from investment operations		3.31			3.45			(0.96	)		1.96			1.18
Less distributions:
Distributions from net realized gains		(0.18	)		—			(0.09	)		—			(0.19	)
Total distributions		(0.18	)		—			(0.09	)		—			(0.19	)
Net asset value, end of year	$	22.50		$	19.37		$	15.92		$	16.97		$	15.01
Total return +		17.24	%		21.67	%		(5.66	)%		13.06	%		8.48	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	59,424		$	56,472		$	51,242		$	51,312		$	37,106
Ratios of expenses to average net assets:
Before fee waivers and fees paid indirectly		1.30	%		1.16	%		1.20	%		1.34	%		1.16	%
After fee waivers and fees paid indirectly		1.29	%		1.14	%		1.20	%		1.34	%		1.16	%
Ratios of net investment loss to average net assets:
Before fee waivers and fees paid indirectly		(1.01	)%		(0.79	)%		(0.64	)%		(1.00	)%		(0.76	)%
After fee waivers and fees paid indirectly		(1.01	)%		(0.77	)%		(0.64	)%		(1.00	)%		(0.76	)%
Portfolio turnover rate		25	%		38	%		29	%		45	%		29	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	19.08		$	15.73		$	16.80		$	14.91		$	13.96		$	18.27		$	15.17		$	16.33		$	14.59		$	13.76
Income (loss) from investment operations:
Net investment loss*		(0.28	)		(0.18	)		(0.14	)		(0.19	)		(0.21	)		(0.42	)		(0.30	)		(0.25	)		(0.31	)		(0.26	)
Net realized and unrealized gain (loss)		3.49			3.53			(0.84	)		2.08			1.35			3.33			3.40			(0.82	)		2.05			1.28
Total income (loss) from investment operations		3.21			3.35			(0.98	)		1.89			1.14			2.91			3.10			(1.07	)		1.74			1.02
Less distributions:
Distributions from net realized gains		(0.18	)		—			(0.09	)		—			(0.19	)		(0.18	)		—			(0.09	)		—			(0.19	)
Total distributions		(0.18	)		—			(0.09	)		—			(0.19	)		(0.18	)		—			(0.09	)		—			(0.19	)
Net asset value, end of year	$	22.11		$	19.08		$	15.73		$	16.80		$	14.91		$	21.00		$	18.27		$	15.17		$	16.33		$	14.59
Total return +		16.98	%		21.30	%		(5.84	)%		12.68	%		8.23	%		16.08	%		20.44	%		(6.56	)%		11.93	%		7.47	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	15,031		$	12,944		$	9,620		$	8,762		$	19,949		$	6,844		$	6,758		$	4,988		$	5,222		$	4,361
Ratios of expenses to average net assets:
Before fee waivers and fees paid indirectly		1.55	%		1.41	%		1.45	%		1.59	%		1.41	%		2.30	%		2.16	%		2.20	%		2.34	%		2.16	%
After fee waivers and fees paid indirectly		1.54	%		1.39	%		1.45	%		1.59	%		1.41	%		2.29	%		2.14	%		2.20	%		2.34	%		2.16	%
Ratios of net investment loss to average net assets:
Before fee waivers and fees paid indirectly		(1.26	)%		(1.05	)%		(0.91	)%		(1.20	)%		(1.48	)%		(2.01	)%		(1.80	)%		(1.67	)%		(2.00	)%		(1.87	)%
After fee waivers and fees paid indirectly		(1.26	)%		(1.03	)%		(0.91	)%		(1.20	)%		(1.48	)%		(2.01	)%		(1.78	)%		(1.67	)%		(2.00	)%		(1.87	)%
Portfolio turnover rate		25	%		38	%		29	%		45	%		29	%		25	%		38	%		29	%		45	%		29	%

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

+ Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares and does not reflect the impact of any sales charge.

See accompanying notes to financial statements.

87

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,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	17.54		$	14.24		$	14.24		$	15.21		$	15.22
Income (loss) from investment operations:
Net investment income *		0.21			0.21			0.16			0.00	(a)		0.15
Net realized and unrealized gain (loss)		(1.39	)		3.09			(0.15	)		(0.61	)		0.10
Total income (loss) from investment operations		(1.18	)		3.30			0.01			(0.61	)		0.25
Less distributions:
Distributions from net investment income		(0.26	)		—			(0.01	)		(0.30	)		(0.26	)
Distributions from net realized gains		(0.49	)		—			—			(0.06	)		—
Total distributions		(0.75	)		—			(0.01	)		(0.36	)		(0.26	)
Net asset value, end of year	$	15.61		$	17.54		$	14.24		$	14.24		$	15.21
Total return + #		(7.08	)%		23.17	%		0.06	%		(4.10	)%		1.66	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	89,401		$	90,257		$	78,640		$	76,992		$	57,359
Ratios of expenses to average net assets:
Before fees paid indirectly		1.67	%		1.56	%		1.63	%		2.04	%		2.04	%
After fees paid indirectly		1.67	%		1.55	%		1.63	%		2.04	%		2.04	%
Ratios of net investment income to average net assets:
Before fees paid indirectly		1.24	%		1.34	%		1.17	%		0.03	%		0.99	%
After fees paid indirectly		1.24	%		1.35	%		1.17	%		0.03	%		0.99	%
Portfolio turnover rate		113	%		119	%		143	%		125	%		117	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	17.42		$	14.17		$	14.21		$	15.16		$	15.19		$	16.59		$	13.60		$	13.73		$	14.68		$	14.70
Income (loss) from investment operations:
Net investment income (loss)*		0.17			0.17			0.13			(0.03	)		0.15			0.04			0.04			0.03			(0.14	)		(0.00	) (a)
Net realized and unrealized gain (loss)		(1.38	)		3.08			(0.17	)		(0.60	)		0.06			(1.31	)		2.95			(0.16	)		(0.59	)		0.10
Total income (loss) from investment operations		(1.21	)		3.25			(0.04	)		(0.63	)		0.21			(1.27	)		2.99			(0.13	)		(0.73	)		0.10
Less distributions:
Distributions from net investment income		(0.23	)		—			—			(0.26	)		(0.24	)		(0.15	)		—			—			(0.16	)		(0.12	)
Distributions from net realized gains		(0.49	)		—			—			(0.06	)		—			(0.49	)		—			—			(0.06	)		—
Total distributions		(0.72	)		—			—			(0.32	)		(0.24	)		(0.64	)		—			—			(0.22	)		(0.12	)
Net asset value, end of year	$	15.49		$	17.42		$	14.17		$	14.21		$	15.16		$	14.68		$	16.59		$	13.60		$	13.73		$	14.68
Total return + #		(7.30	)%		22.94	%		(0.28	)%		(4.26	)%		1.35	%		(8.03	)%		21.99	%		(0.95	)%		(5.06	)%		0.67	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	18,250		$	15,524		$	10,305		$	9,032		$	7,871		$	5,764		$	6,570		$	6,483		$	7,268		$	6,551
Ratios of expenses to average net assets:
Before fees paid indirectly		1.92	%		1.81	%		1.88	%		2.29	%		2.29	%		2.67	%		2.56	%		2.63	%		3.04	%		3.04	%
After fees paid indirectly		1.92	%		1.80	%		1.88	%		2.29	%		2.29	%		2.67	%		2.55	%		2.63	%		3.04	%		3.04	%
Ratios of net investment income (loss) to average net assets:
Before fees paid indirectly		1.01	%		1.07	%		0.93	%		(0.19	)%		0.97	%		0.22	%		0.30	%		0.20	%		(0.94	)%		(0.02	)%
After fees paid indirectly		1.01	%		1.08	%		0.93	%		(0.19	)%		0.97	%		0.22	%		0.31	%		0.20	%		(0.94	)%		(0.02	)%
Portfolio turnover rate		113	%		119	%		143	%		125	%		117	%		113	%		119	%		143	%		125	%		117	%

* 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. 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. Adjustments may apply to some but not all years and classes.

(a) Represents less than $0.01 per share.

See accompanying notes to financial statements.

88

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,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	15.66		$	18.31		$	19.23		$	19.27		$	16.53
Income (loss) from investment operations:
Net investment income *		0.28			0.13			0.32			0.15			0.13
Net realized and unrealized gain (loss)		(0.35	)		0.40			0.73			0.85			3.20
Total income (loss) from investment operations		(0.07	)		0.53			1.05			1.00			3.33
Less distributions:
Distributions from net investment income		(0.12	)		(0.36	)		(0.21	)		(0.11	)		(0.20	)
Distributions from net realized gains		(0.12	)		(2.82	)		(1.76	)		(0.93	)		(0.39	)
Total distributions		(0.24	)		(3.18	)		(1.97	)		(1.04	)		(0.59	)
Net asset value, end of year	$	15.35		$	15.66		$	18.31		$	19.23		$	19.27
Total return +		(0.48	)%		3.63	%		5.77	%		5.13	%		21.09	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	43,163		$	34,256		$	25,479		$	33,379		$	37,143
Ratios of expenses to average net assets:		1.10	%		1.17	%		1.21	%		1.64	%		1.59	%
Ratios of net investment income to average net assets:		1.82	%		0.79	%		1.74	%		0.80	%		0.77	%
Portfolio turnover rate		74	%		101	%		110	%		110	%		97	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	15.78		$	18.35		$	19.26		$	19.33		$	16.55		$	14.88		$	17.55		$	18.50		$	18.65		$	16.02
Income (loss) from investment operations:
Net investment income (loss) *		0.24			0.10			0.27			0.10			0.08			0.12			(0.02	)		0.13			(0.04	)		(0.04	)
Net realized and unrealized gain (loss)		(0.35	)		0.41			0.74			0.85			3.22			(0.34	)		0.38			0.70			0.82			3.11
Total income (loss) from investment operations		(0.11	)		0.51			1.01			0.95			3.30			(0.22	)		0.36			0.83			0.78			3.07
Less distributions:
Distributions from net investment income		(0.09	)		(0.26	)		(0.16	)		(0.09	)		(0.13	)		—			(0.21	)		(0.02	)		0.00			(0.05	)
Distributions from net realized gains		(0.12	)		(2.82	)		(1.76	)		(0.93	)		(0.39	)		(0.12	)		(2.82	)		(1.76	)		(0.93	)		(0.39	)
Total distributions		(0.21	)		(3.08	)		(1.92	)		(1.02	)		(0.52	)		(0.12	)		(3.03	)		(1.78	)		(0.93	)		(0.44	)
Net asset value, end of year	$	15.46		$	15.78		$	18.35		$	19.26		$	19.33		$	14.54		$	14.88		$	17.55		$	18.50		$	18.65
Total return +		(0.74	)%		3.44	%		5.54	%		4.85	%		20.73	%		(1.50	)%		2.61	%		4.73	%		4.08	%		19.88	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	8,444		$	6,002		$	9,376		$	10,386		$	3,913		$	2,308		$	2,448		$	3,211		$	3,847		$	4,166
Ratios of expenses to average net assets:		1.35	%		1.42	%		1.45	%		1.89	%		1.84	%		2.10	%		2.17	%		2.21	%		2.64	%		2.59	%
Ratios of net investment income (loss) to average net assets:		1.57	%		0.60	%		1.45	%		0.53	%		0.48	%		0.85	%		(0.11	)%		0.70	%		(0.21	)%		(0.24	)%
Portfolio turnover rate		74	%		101	%		110	%		110	%		97	%		74	%		101	%		110	%		110	%		97	%

* 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. 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.

See accompanying notes to financial statements.

89

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,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	17.47		$	14.41		$	14.27		$	15.45		$	14.65
Income (loss) from investment operations:
Net investment income (loss) *		0.00	(a)		0.07			0.09			(0.01	)		0.04
Net realized and unrealized gain (loss)		0.10	(b)		3.57			0.54			(0.18	)		1.45
Total income (loss) from investment operations		0.10			3.64			0.63			(0.19	)		1.49
Less distributions:
Distributions from net investment income		(0.04	)		(0.10	)		(0.01	)		(0.04	)		(0.02	)
Distributions from net realized gains		(1.81	)		(0.48	)		(0.48	)		(0.95	)		(0.67	)
Total distributions		(1.85	)		(0.58	)		(0.49	)		(0.99	)		(0.69	)
Net asset value, end of year	$	15.72		$	17.47		$	14.41		$	14.27		$	15.45
Total return + #		0.37	%		25.55	%		4.58	%		(1.59	)%		10.30	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	37,248		$	22,710		$	22,254		$	22,068		$	23,783
Ratios of expenses to average net assets:		1.54	%		1.32	%		1.48	%		1.79	%		1.45	%
Ratios of net investment income (loss) to average net assets: (c) !		(0.01	)%		0.45	%		0.64	%		(0.10	)%		0.27	%
Portfolio turnover rate		101	%		100	%		129	%		122	%		106	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	17.31		$	14.29		$	14.18		$	15.36		$	14.59		$	15.67		$	13.02		$	13.06		$	14.32		$	13.74
Income (loss) from investment operations:
Net investment income (loss)*		(0.04	)		0.03			0.05			(0.05	)		(0.00	) (a)		(0.15	)		(0.08	)		(0.05	)		(0.15	)		(0.10	)
Net realized and unrealized gain (loss)		0.09	(b)		3.54			0.54			(0.18	)		1.44			0.10	(b)		3.21			0.49			(0.16	)		1.35
Total income (loss) from investment operations		0.05			3.57			0.59			(0.23	)		1.44			(0.05	)		3.13			0.44			(0.31	)		1.25
Less distributions:
Distributions from net investment income		(0.00	) (a)		(0.07	)		—			—			—			—			—			—			—			—
Distributions from net realized gains		(1.81	)		(0.48	)		(0.48	)		(0.95	)		(0.67	)		(1.81	)		(0.48	)		(0.48	)		(0.95	)		(0.67	)
Total distributions		(1.81	)		(0.55	)		(0.48	)		(0.95	)		(0.67	)		(1.81	)		(0.48	)		(0.48	)		(0.95	)		(0.67	)
Net asset value, end of year	$	15.55		$	17.31		$	14.29		$	14.18		$	15.36		$	13.81		$	15.67		$	13.02		$	13.06		$	14.32
Total return + #		0.08	%		25.26	%		4.33	%		(1.83	)%		10.02	%		(0.63	)%		24.29	%		3.52	%		(2.56	)%		9.22	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	7,869		$	4,569		$	3,802		$	3,801		$	3,268		$	2,139		$	2,611		$	2,241		$	2,383		$	2,494
Ratios of expenses to average net assets:		1.79	%		1.57	%		1.73	%		2.04	%		1.70	%		2.54	%		2.32	%		2.48	%		2.79	%		2.45	%
Ratios of net investment income (loss) to average net assets: (c) !		(0.26	)%		0.19	%		0.40	%		(0.36	)%		(0.06	)%		(1.04	)%		(0.57	)%		(0.36	)%		(1.11	)%		(0.70	)%
Portfolio turnover rate		101	%		100	%		129	%		122	%		106	%		101	%		100	%		129	%		122	%		106	%

* 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. 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.

(a) Represents less than $0.01 per share.

(b) The amount of net realized and unrealized gain (loss) on investment per share for the year ended October 31, 2018 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.

(c) Does not Include the expenses of other investment companies in which the Fund invests.

# 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. Adjustments may apply to some but not all years and classes.

! Recognition of net investment income (loss) is affected by the timing and declaration of dividends by underlying funds in which the Fund invests.

See accompanying notes to financial statements.

90

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,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	15.94		$	12.73		$	11.97		$	14.75		$	14.66
Income (loss) from investment operations:
Net investment income *		0.27			0.17			0.20			0.08			0.20
Net realized and unrealized gain (loss) **		(3.20	)		3.28			0.64			(2.67	)		(0.11	)
Total income (loss) from investment operations		(2.93	)		3.45			0.84			(2.59	)		0.09
Less distributions:
Distributions from net investment income		(0.16	)		(0.24	)		(0.08	)		(0.19	)		—
Total distributions		(0.16	)		(0.24	)		(0.08	)		(0.19	)		—
Net asset value, end of year	$	12.85		$	15.94		$	12.73		$	11.97		$	14.75
Total return + #		(18.57	)%		27.69	%		7.13	%		(17.73	)%		0.61	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	53,261		$	51,365		$	46,481		$	42,831		$	35,872
Ratios of expenses to average net assets:		1.19	%		1.75	%		1.27	%		1.76	%		1.29	%
Ratios of net investment income to average net assets:		1.79	%		1.18	%		1.73	%		0.59	%		1.39	%
Portfolio turnover rate		66	%		74	%		97	%		137	%		108	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	15.58		$	12.45		$	11.71		$	14.44		$	14.39		$	14.74		$	11.82		$	11.14		$	13.76		$	13.82
Income (loss) from investment operations:
Net investment income (loss)*		0.23			0.14			0.17			0.05			0.16			0.11			0.02			0.08			(0.06	)		0.04
Net realized and unrealized gain (loss) **		(3.13	)		3.20			0.62			(2.62	)		(0.11	)		(2.94	)		3.04			0.60			(2.49	)		(0.10	)
Total income (loss) from investment operations		(2.90	)		3.34			0.79			(2.57	)		0.05			(2.83	)		3.06			0.68			(2.55	)		(0.06	)
Less distributions:
Distributions from net investment income		(0.12	)		(0.21	)		(0.05	)		(0.16	)		—			(0.06	)		(0.14	)		—			(0.07	)		—
Total distributions		(0.12	)		(0.21	)		(0.05	)		(0.16	)		—			(0.06	)		(0.14	)		—			(0.07	)		—
Net asset value, end of year	$	12.56		$	15.58		$	12.45		$	11.71		$	14.44		$	11.85		$	14.74		$	11.82		$	11.14		$	13.76
Total return + #		(18.73	)%		27.36	%		6.84	%		(17.94	)%		0.35	%		(19.30	)%		26.31	%		6.10	%		(18.60	)%		(0.43	)%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	9,662		$	8,242		$	6,348		$	4,594		$	4,036		$	3,163		$	3,467		$	3,380		$	3,216		$	3,593
Ratios of expenses to average net assets:		1.44	%		2.00	%		1.52	%		2.01	%		1.54	%		2.19	%		2.75	%		2.27	%		2.76	%		2.29	%
Ratios of net investment income (loss) to average net assets:		1.54	%		0.98	%		1.46	%		0.40	%		1.14	%		0.77	%		0.10	%		0.77	%		(0.48	)%		0.34	%
Portfolio turnover rate		66	%		74	%		97	%		137	%		108	%		66	%		74	%		97	%		137	%		108	%

* 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 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. 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. Adjustments may apply to some but not all years and classes.

See accompanying notes to financial statements.

91

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,
	2018			2017			2016			2015			2014
Net asset value, beginning of year	$	20.31		$	15.34		$	17.08		$	17.71		$	20.62
Income (loss) from investment operations:
Net investment loss*		(0.27	)		(0.15	)		(0.06	)		(0.24	)		(0.29	)
Net realized and unrealized gain (loss) (a)		3.20			5.12			(0.24	)		1.19			1.11
Total income (loss) from investment operations		2.93			4.97			(0.30	)		0.95			0.82
Less distributions:
Distributions from net investment income
Distributions from net realized gains		(2.96	)		—			(1 .40)			(1.58	)		(3.73	)
Tax return of capital		—			—			(0.04	)		—			—
Total distributions		(2.96	)		—			(1 .44)			(1.58	)		(3.73	)
Net asset value, end of year	$	20.28		$	20.31		$	15.34		$	17.08		$	17.71
Total return + #		16.02	%		32.40	%		(1.88	)%		5.36	%		3.64	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	33,882		$	24,641		$	26,010		$	23,152		$	21,153
Ratios of expenses to average net assets:
Before fees paid indirectly		1.94	%		1.36	%		1.23	%		1.58	%		1.84	%
After fees paid indirectly		1.93	%		1.35	%		1.23	%		1.58	%		1.84	%
Ratios of net investment loss to average net assets:
Before fees paid indirectly		(1.31	)%		(0.86	)%		(0.38	)%		(1.30	)%		(1.61	)%
After fees paid indirectly		(1.29	)%		(0.85	)%		(0.38	)%		(1.30	)%		(1.61	)%
Portfolio turnover rate		190	%		174	%		181	%		138	%		192	%
	Class A															Class C
	Year Ended October 31,															Year Ended October 31,
	2018			2017			2016			2015			2014			2018			2017			2016			2015			2014
Net asset value, beginning of year	$	19.62		$	14.85		$	16.62		$	17.31		$	20.28		$	16.77		$	12.79		$	14.61		$	15.51		$	18.66
Income (loss) from investment operations:
Net investment loss*		(0.31	)		(0.19	)		(0.10	)		(0.27	)		(0.34	)		(0.37	)		(0.28	)		(0.18	)		(0.36	)		(0.42	)
Net realized and unrealized gain (loss) (a)		3.07			4.96			(0.23	)		1.16			1.10			2.56			4.26			(0.20	)		1.04			1.00
Total income (loss) from investment operations		2.76			4.77			(0.33	)		0.89			0.76			2.19			3.98			(0.38	)		0.68			0.58
Less distributions:
Distributions from net investment income
Distributions from net realized gains		(2.96	)		—			(1.40	)		(1.58	)		(3.73	)		(2.96	)		—			(1.40	)		(1.58	)		(3.73	)
Tax return of capital		—			—			(0.04	)		—			—			—			—			(0.04	)		—			—
Total distributions		(2.96	)		—			(1.44	)		(1.58	)		(3.73	)		(2.96	)		—			(1.44	)		(1.58	)		(3.73	)
Net asset value, end of year	$	19.42		$	19.62		$	14.85		$	16.62		$	17.31		$	16.00		$	16.77		$	12.79		$	14.61		$	15.51
Total return + #		15.69	%		32.12	%		(2.12	)%		5.12	%		3.36	%		14.84	%		31.12	%		(2.82	)%		4.29	%		2.56	%
Ratios/Supplemental Data:
Net assets, end of year (in 000s)	$	10,799		$	6,925		$	5,540		$	6,326		$	6,443		$	2,720		$	2,644		$	2,155		$	3,163		$	3,165
Ratios of expenses to average net assets:
Before fees paid indirectly		2.19	%		1.61	%		1.48	%		1.83	%		2.09	%		2.94	%		2.36	%		2.23	%		2.58	%		2.84	%
After fees paid indirectly		2.18	%		1.60	%		1.48	%		1.83	%		2.09	%		2.93	%		2.35	%		2.23	%		2.58	%		2.84	%
Ratios of net investment loss to average net assets:
Before fees paid indirectly		(1.56	)%		(1.13	)%		(0.69	)%		(1.53	)%		(1.86	)%		(2.30	)%		(1.89	)%		(1.45	)%		(2.29	)%		(2.61	)%
After fees paid indirectly		(1.55	)%		(1.12	)%		(0.69	)%		(1.53	)%		(1.86	)%		(2.29	)%		(1.88	)%		(1.45	)%		(2.29	)%		(2.61	)%
Portfolio turnover rate		190	%		174	%		181	%		138	%		192	%		190	%		174	%		181	%		138	%		192	%

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

+ Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares 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. Adjustments may apply to some but not all years and classes.

(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.

92

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

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”)	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 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 companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards

93

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

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.

The Funds utilize various methods to measure the fair value 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.

94

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

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, 2018 for the Funds’ assets and liabilities measured at fair value:

Floating Rate Bond
Assets	Level 1		Level 2		Level 3		Total
Bank Loans *	$	—	$	176,264,173	$	—	$	176,264,173
Bonds & Notes *		—		6,742,014		—		6,742,014
Rights		—		8,555		—		8,555
U.S. Government & Agency		—		991,479		—		991,479
Short-Term Investment		7,927,289		—		—		7,927,289
Collateral for Securities Loaned		2,835,975		—		—		2,835,975
Total	$	10,763,264	$	184,006,221	$	—	$	194,769,485
Corporate/Government Bond
Assets	Level 1		Level 2		Level 3		Total
Corporate Bonds & Notes *	$	—	$	31,136,277	$	—	$	31,136,277
Foreign Government Bonds		—		1,137,556		—		1,137,556
Municipal Bonds		—		3,612,933		—		3,612,933
U.S. Government & Agency		—		8,090,180		—		8,090,180
Bank Loans *		—		3,578,460		—		3,578,460
Short-Term Investment		1,240,791		—		—		1,240,791
Collateral for Securities Loaned		4,848,756		—		—		4,848,756
Total	$	6,089,547	$	47,555,406	$	—	$	53,644,953
Monthly Distribution
Assets	Level 1		Level 2		Level 3		Total
Common Stocks	$	226,772,065	$	270,654	$	—	$	227,042,719
Exchange Traded Funds		18,505,202		—		—		18,505,202
Rights		—		876		—		876
Warrants		—		8,444		—		8,444
Options Purchased		—		1,701,720		—		1,701,720
Short-Term Investment		115,223,319		—		—		115,223,319
Collateral for Securities Loaned		13,208,219		—		—		13,208,219
Total Assets	$	373,708,805	$	1,981,694	$	—	$	375,690,499
Liabilities - Derivatives
Written Options	$	121,728	$	64,815	$	—	$	186,543
Total Liability Derivatives	$	121,728	$	64,815	$	—	$	186,543
Liabilities
Liabilities - Securities Sold Short	$	79,328,961	$	—	$	—	$	79,328,961
Total Liabilities	$	79,328,961	$	—	$	—	$	79,328,961

95

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

Dynamic Macro
Assets	Level 1		Level 2		Level 3		Total
Exchange Traded Funds *	$	24,779,971	$	—	$	—	$	24,779,971
Options Purchased		2,744,301		47,323		—		2,791,624
Short-Term Investments		4,527,709		12,901,537		—		17,429,246
Collateral for Securities Loaned		13,226,350		—		—		13,226,350
Total Assets	$	45,278,331	$	12,948,860	$	—	$	58,227,191
Assets - Derivatives
Futures	$	36,868	$	—	$	—	$	36,868
Total Asset Derivatives	$	36,868	$	—	$	—	$	36,868
Liabilities - Derivatives
Futures	$	729,477	$	—	$	—	$	729,477
Written Options		—		48,480		—		48,480
Total Liability Derivatives	$	729,477	$	48,480	$	—	$	777,957
High-Yield Bond
Assets	Level 1		Level 2		Level 3		Total
Bonds & Notes *	$	—	$	110,076,906	$	—	$	110,076,906
Short-Term Investment		3,181,216		—		—		3,181,216
Collateral for Securities Loaned		15,645,300		—		—		15,645,300
Total	$	18,826,516	$	110,076,906	$	—	$	128,903,422
Alternative Dividend
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	22,368,017	$	—	$	—	$	22,368,017
Exchange Traded Funds *		18,497,080		—		—		18,497,080
Options Purchased		229,500		933,075		—		1,162,575
Short-Term Investment		20,379,954		—		—		20,379,954
Collateral for Securities Loaned		15,186,887		—		—		15,186,887
Total Assets	$	76,661,438	$	933,075	$	—	$	77,594,513
International Opportunity Bond
Assets	Level 1		Level 2		Level 3		Total
Corporate Bonds & Notes *	$	—	$	13,872,748	$	—	$	13,872,748
Foreign Government Bonds *		—		21,397,149		—		21,397,149
Whole Loan Collateral		—		415,059		—		415,059
Short-Term Investment		196,043		—		—		196,043
Total Assets	$	196,043	$	35,684,956	$	—	$	35,880,999
Assets - Derivatives
Futures Contracts	$	6,515	$	—	$	—	$	6,515
Foreign Currency Exchange Contracts		—		236,581		—		236,581
Total Asset Derivatives	$	6,515	$	236,581	$	—	$	243,096
Liabilities - Derivatives
Futures Contracts	$	12,119	$	—	$	—	$	12,119
Foreign Currency Exchange Contracts		—		154,386		—		154,386
Total Liability Derivatives	$	12,119	$	154,386	$	—	$	166,505

96

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

Appreciation & Income
Assets	Level 1		Level 2		Level 3		Total
Common Stock *	$	62,200	$	—	$	—	$	62,200
Bonds & Notes *		—		18,592,696		—		18,592,696
Bank Loans		—		896,157		—		896,157
U.S. Government		—		18,209,818		—		18,209,818
Short-Term Investment		6,104,406		—		—		6,104,406
Collateral for Securities Loaned		11,938,479		—		—		11,938,479
Total Assets	$	18,105,085	$	37,698,671	$	—	$	55,803,756
Assets - Derivatives
Futures	$	122,157	$	—	$	—	$	122,157
Swap Contracts		—		16,830		—		16,830
Total Asset Derivatives	$	122,157	$	16,830	$	—	$	138,987
Liabilities - Derivatives
Swap Contracts	$	—	$	13,014	$	—	$	13,014
Total Liability Derivatives	$	—	$	13,014	$	—	$	13,014
Large Cap Value
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	70,375,397	$	—	$	—	$	70,375,397
Short-Term Investment		707,092		—		—		707,092
Collateral for Securities Loaned		5,248,049		—		—		5,248,049
Total	$	76,330,538	$	—	$	—	$	76,330,538
Focused Large Cap Growth
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	80,470,385	$	—	$	—	$	80,470,385
Short-Term Investment		857,412		—		—		857,412
Collateral for Securities Loaned		10,151,601		—		—		10,151,601
Total	$	91,479,398	$	—	$	—	$	91,479,398
International Stock
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	28,710,860	$	82,528,489	$	—	$	111,239,349
Exchange Traded Fund		651,583		—		—		651,583
Warrant		870		—		—		870
Preferred Stocks *		625,118		—		—		625,118
Short-Term Investment		30,943		—		—		30,943
Collateral for Securities Loaned		4,306,692		—		—		4,306,692
Total	$	34,326,066	$	82,528,489	$	—	$	116,854,555
Real Estate Stock
Assets	Level 1		Level 2		Level 3		Total
Common Stock *	$	950,547	$	—	$	—	$	950,547
REITs *		51,968,473		—		—		51,968,473
Short-Term Investment		497,413		—		—		497,413
Collateral for Securities Loaned		8,953,610		—		—		8,953,610
Total	$	62,370,043	$	—	$	—	$	62,370,043

97

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

Small Cap Value
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	46,280,869	$	—	$	—	$	46,280,869
Exchange Traded Fund *		569,405		—		—		569,405
Short-Term Investment		464,798		—		—		464,798
Collateral for Securities Loaned		13,055,943		—		—		13,055,943
Total	$	60,371,015	$	—	$	—	$	60,371,015
Emerging Markets Stock
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	26,005,871	$	37,906,103	$	—	$	63,911,974
Exchange Traded Fund		1,442,100		—		—		1,442,100
Short-Term Investment		441,426		—		—		441,426
Collateral for Securities Loaned		3,261,189		—		—		3,261,189
Total	$	31,150,586	$	37,906,103	$	—	$	69,056,689
Small Cap Growth
Assets	Level 1		Level 2		Level 3		Total
Common Stocks *	$	45,125,943	$	—	$	—	$	45,125,943
Short-Term Investment		2,837,928		—		—		2,837,928
Collateral for Securities Loaned		14,957,666		—		—		14,957,666
Total	$	62,921,537	$	—	$	—	$	62,921,537

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

The Funds did not hold any Level 3 securities during the 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 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

98

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

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 and Appreciation & Income are subject to stock market risk and fixed income risk in the normal course of pursuing its investment objectives. The Funds may enter into various swap transactions for investment purposes to manage equity risk and credit 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 Funds amortize 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 Funds segregate 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 Funds’ 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, International Opportunity Bond, and Appreciation & Income are subject to equity risk, 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, interest rates, and foreign exchange 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, 2018 as disclosed in the Schedules of Investments and the amounts realized and changes in unrealized gains and losses on derivative instruments during the year then 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.

99

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

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, 2018:

Location on the Statements of Assets and Liabilities
Derivatives Investment Type	Asset Derivatives	Liability Derivatives
Equity/Currency/Commodity	Investments in securities	Option contracts written
Interest rate contracts	Unrealized appreciation on futures	Unrealized depreciation on futures
	Unrealized appreciation on swap contracts	Unrealized depreciation on forward foreign
	Unrealized appreciation on forward foreign currency exchange contracts	currency exchange contracts

The following table sets forth the fair value of each Fund’s derivative contracts by primary risk exposure as of October 31, 2018:

Asset Derivatives Investment Value
									Total value at
	Equity		Currency		Commodity		Interest Rate		October 31,
	Contracts		Contracts		Contracts		Contracts		2018
Monthly Distribution
Purchased Options	$	1,701,720	$	—	$	—	$	—	$	1,701,720
Dynamic Macro
Futures	$	26,866	$	—	$	—	$	10,002	$	36,868
Purchased Options		248,073		—		—		2,543,551		2,791,624
Alternative Dividend
Purchased Options	$	1,162,575	$	—	$	—	$	—	$	1,162,575
International Opportunity Bond
Forward Foreign Currency Contracts	$	—	$	236,581	$	—	$	—	$	236,581
Futures		—		—		—		6,515		6,515
Appreciation & Income
Swap Contracts	$	3,816	$	—	$	—	$	—	$	3,816
Futures		—		—		—		122,157		122,157
Liability Derivatives Investment Value
									Total value at
	Equity		Currency		Commodity		Interest Rate		October 31,
	Contracts		Contracts		Contracts		Contracts		2018
Monthly Distribution
Written Options	$	186,543	$	—	$	—	$	—	$	186,543
Dynamic Macro
Futures	$	658,928	$	—	$	—	$	70,549	$	729,477
Written Options		48,480		—		—		—		48,480
International Opportunity Bond
Forward Foreign Currency Contracts	$	—	$	154,386	$	—	$	—	$	154,386
Futures		—		—		—		12,119		12,119

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, 2018.

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

100

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

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, 2018:

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			2018
Monthly Distribution
Purchased Options	$	(4,812,307	)	$	—		$	—	$	—		$	(4,812,307	)
Written Options		3,133,386			—			—		—			3,133,386
Swaps		(8,317	)		—			—		—			(8,317	)
Forward Foreign Currency Contracts		—			(68,822	)		—		—			(68,822	)
Dynamic Macro
Futures	$	(146,104	)	$	—		$	—	$	554,003		$	407,899
Purchased Options		(399,915	)		—			—		(1,539,403	)		(1,939,318	)
Written Options		(303,984	)		—			—		—			(303,984	)
Alternative Dividend Purchased Options	$	(971,602	)	$	—		$	—	$	—		$	(971,602	)
International Opportunity Bond
Futures	$	—		$	—		$	—	$	(30,406	)	$	(30,406	)
Forward Foreign Currency Contracts	$	—		$	(72,854	)	$	—	$	—		$	(72,854	)
Appreciation & Income
Futures	$	—		$	—		$	—	$	(1,601	)	$	(1,601	)
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			2018
Monthly Distribution
Purchased Options	$	1,964,009		$	—		$	—	$	—		$	1,964,009
Written Options		1,130,163			—			—		—			1,130,163
Dynamic Macro Futures		(989,243	)		—			—		(217,347	)		(1,206,590	)
Purchased Options		92,872			—			—		(21,975	)		70,897
Written Options		(15,550	)		—			—		—			(15,550	)
Alternative Dividend
Purchased Options	$	(400,176	)	$	—		$	—	$	—		$	(400,176	)
International Opportunity Bond
Futures	$	—		$	—		$	—	$	21,505		$	21,505
Forward Foreign Currency Contracts		—			63,758			—		—			63,758
Appreciation & Income
Futures	$	—		$	—		$	—	$	122,157		$	122,157
Swaps		3,816			—			—		—			3,816

i. Offsetting of Financial Assets & Liabilities and Derivative Assets & Liabilities – Monthly Distribution, International Opportunity Bond, Dynamic Macro and Appreciation & Income 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, 2018, Monthly Distribution and Appreciation & Income are subject to a master netting arrangement for swaps. The following table shows additional information regarding the offsetting of assets and liabilities at October 31, 2018.

Floating Rate Bond
										Gross Amounts Not Offset in the
Liabilities:										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	Counterparty	Liabilities			& Liabilities		Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Securities Loaned	US Bank	$	(2,835,975	)	$	—	$	(2,835,975	)	$	2,835,975	$	—	$	—
Total		$	(2,835,975	)	$	—	$	(2,835,975	)	$	2,835,975	$	—	$	—

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

101

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

Corporate/Government Bond
										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	Counterparty	Liabilities			& Liabilities		Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Securities Loaned	US Bank	$	(4,848,756	)	$	—	$	(4,848,756	)	$	4,848,756	$	—	$	—
Total		$	(4,848,756	)	$	—	$	(4,848,756	)	$	4,848,756	$	—	$	—
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	Counterparty	Assets			& Liabilities		Assets & Liabilities			Instruments		Received		Net Amount
Purchased Options	JP Morgan	$	1,701,720		$	—	$	1,701,720		$	—	$	—	$	1,701,720
Total		$	1,701,720		$	—	$	1,701,720		$	—	$	—	$	1,701,720
										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	Counterparty	Liabilities			& Liabilities		Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Written Options	JP Morgan	$	(186,543	)	$	—	$	(186,543	)	$	—	$	186,543	$	—
Securities Loaned	US Bank		(13,208,219	)		—		(13,208,219	)		13,208,219		—		—
Total		$	(13,394,762	)	$	—	$	(13,394,762	)	$	13,208,219	$	186,543	$	—
Dynamic Macro
										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	Counterparty	Assets			& Liabilities		Assets & Liabilities			Instruments		Received		Net Amount
Futures Contracts	Goldman Sachs	$	36,868		$	—	$	36,868		$	—	$	—	$	36,868
Purchased Options ^			2,791,624			—		2,791,624			—		—		2,791,624
Total		$	2,828,492		$	—	$	2,828,492		$	—	$	—	$	2,828,492
										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	Counterparty	Liabilities			& Liabilities		Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Futures Contracts	Goldman Sachs	$	(729,477	)	$	—	$	(729,477	)	$	36,868	$	692,609	$	—
Written Options	Morgan Stanley		(48,480	)		—		(48,480	)		—		48,480		—
Securities Loaned	US Bank		(13,226,350	)		—		(13,226,350	)		13,226,350		—		—
Total		$	(14,004,307	)	$	—	$	(14,004,307	)	$	13,263,218	$	741,089	$	—

^ Counterparties used: Goldman Sachs and Morgan Stanley.

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

102

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

High-Yield Bond
										Gross Amounts Not Offset in the
Liabilities:										Statement of Assets & Liabilities
					Gross Amounts		Net Amounts of
		Gross Amounts			Offset in the		Liabilities Presented						Cash
		of Recognized			Statement of		in the Statement of			Financial			Collateral
Description	Counterparty	Liabilities			Assets & Liabilities		Assets & Liabilities			Instruments			Pledged (1)		Net Amount
Securities Loaned	US Bank	$	(15,645,300	)	$	—	$	(15,645,300	)	$	15,645,300		$	—	$	—
Total		$	(15,645,300	)	$	—	$	(15,645,300	)	$	15,645,300		$	—	$	—
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	Counterparty	Assets			& Liabilities		Assets & Liabilities			Instruments			Received		Net Amount
Purchased Options	Pershing	$	1,162,575		$	—	$	1,162,575		$	—		$	—	$	1,162,575
Total		$	1,162,575		$	—	$	1,162,575		$	—		$	—	$	1,162,575
										Gross Amounts Not Offset in the
Liabilities:										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	Counterparty	Assets			& Liabilities		Assets & Liabilities			Instruments			Pledged (1)		Net Amount
Securities Loaned	US Bank	$	(15,186,887	)	$	—	$	(15,186,887	)	$	15,186,887		$	—	$	—
Total		$	(15,186,887	)	$	—	$	(15,186,887	)	$	15,186,887		$	—	$	—
International Opportunity Bond
										Gross Amounts Not Offset in
										the Statement of Assets &
Assets:										Liabilities
					Gross
					Amounts
		Gross			Offset in the		Net Amounts of
		Amounts of			Statement of		Assets Presented in						Cash
		Recognized			Assets &		the Statement of			Financial			Collateral
Description	Counterparty	Assets			Liabilities		Assets & Liabilities			Instruments			Received		Net Amount
Forward Foreign
Currency Contracts ^		$	236,581		$	—	$	236,581		$	(154,386	)	$	—	$	82,195
Futures Contracts	Credit Suisse		6,515			—		6,515			(6,515	)		—		—
Total		$	243,096		$	—	$	243,096		$	(160,901	)	$	—	$	82,195
										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		in the Statement of			Financial			Collateral
Description	Counterparty	Liabilities			Assets & Liabilities		Assets & Liabilities			Instruments			Pledged (1)		Net Amount
Forward Foreign
Currency Contracts ^		$	(154,386	)	$	—	$	(154,386	)	$	154,386		$	—	$	—
Futures Contracts	Credit Suisse		(12,119	)		—		(12,119	)		6,515			5,604		—
Total		$	(166,505	)	$	—	$	(166,505	)	$	160,901		$	5,604	$	—

^ Counterparties used: Barclays and Citigroup.

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

103

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

Appreciation & Income
											Gross Amounts Not Offset in the
Assets:											Statement of Assets & Liabilities
					Gross Amounts			Net Amounts of
		Gross Amounts of			Offset in the			Assets Presented in
		Recognized			Statement of Assets			the Statement of			Financial		Cash Collateral
Description	Counterparty	Assets			& Liabilities			Assets & Liabilities			Instruments		Received		Net Amount
Futures	HSBC	$	122,157		$	—		$	122,157		$	—	$	—		122,157
Credit Default Swaps	JP Morgan		16,830			(13,014	)		3,816			—		—		3,816
Total		$	138,987		$	(13,014	)	$	125,973		$	—	$	—	$	125,973
											Gross Amounts Not Offset in the
Liabilities:											Statement of Assets & Liabilities
					Gross Amounts			Net Amounts of
		Gross Amounts of			Offset in the			Liabilities Presented
		Recognized			Statement of Assets			in the Statement of			Financial		Cash Collateral
Description	Counterparty	Liabilities			& Liabilities			Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Securities Loaned	US Bank	$	(11,938,479	)	$	—		$	(11,938,479	)	$	11,938,479	$	—	$	—
Total		$	(11,938,479	)	$	—		$	(11,938,479	)	$	11,938,479	$	—	$	—
Large Cap Value
											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	Counterparty	Liabilities			& Liabilities			Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Securities Loaned	US Bank	$	(5,248,049	)	$	—		$	(5,248,049	)	$	5,248,049	$	—	$	—
Total		$	(5,248,049	)	$	—		$	(5,248,049	)	$	5,248,049	$	—	$	—
Focused Large Cap Growth
											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	Counterparty	Liabilities			& Liabilities			Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Securities Loaned	US Bank	$	(10,151,601	)	$	—		$	(10,151,601	)	$	10,151,601	$	—	$	—
Total		$	(10,151,601	)	$	—		$	(10,151,601	)	$	10,151,601	$	—	$	—
International Stock
											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	Counterparty	Liabilities			& Liabilities			Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Securities Loaned	US Bank	$	(4,306,692	)	$	—		$	(4,306,692	)	$	4,306,692	$	—	$	—
Total		$	(4,306,692	)	$	—		$	(4,306,692	)	$	4,306,692	$	—	$	—

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

104

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

Real Estate Stock
										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	Counterparty	Liabilities			& Liabilities		Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Securities Loaned	US Bank	$	(8,953,610	)	$	—	$	(8,953,610	)	$	8,953,610	$	—	$	—
Total		$	(8,953,610	)	$	—	$	(8,953,610	)	$	8,953,610	$	—	$	—
Small Cap Value
										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	Counterparty	Liabilities			& Liabilities		Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Securities Loaned	US Bank	$	(13,055,943	)	$	—	$	(13,055,943	)	$	13,055,943	$	—	$	—
Total		$	(13,055,943	)	$	—	$	(13,055,943	)	$	13,055,943	$	—	$	—
Emerging Markets
										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	Counterparty	Liabilities			& Liabilities		Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Securities Loaned	US Bank	$	(3,261,189	)	$	—	$	(3,261,189	)	$	3,261,189	$	—	$	—
Total		$	(3,261,189	)	$	—	$	(3,261,189	)	$	3,261,189	$	—	$	—
Small Cap Growth
										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	Counterparty	Liabilities			& Liabilities		Assets & Liabilities			Instruments		Pledged (1)		Net Amount
Securities Loaned	US Bank	$	(14,957,666	)	$	—	$	(14,957,666	)	$	14,957,666	$	—	$	—
Total		$	(14,957,666	)	$	—	$	(14,957,666	)	$	14,957,666	$	—	$	—

(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 that the respective Fund, using reasonable diligence, becomes aware of

105

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

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.

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 2015 to 2017 and expected to be taken in tax year 2018 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 jurisdiction 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, Appreciation & Income, Floating Rate Bond and International Opportunity Bond which will distribute their respective net investment income, if any, monthly. For Alternative Dividend 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.

106

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

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.

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 *	0.87% – 1.63%	0.65%	0.22% – 0.98%
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**	0.70% – 1.80%	0.65%	0.05% – 1.15%
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, 2018 the Sub-Adviser’s portion for Monthly Distribution was 0.25%-1.05% and the Management Fee was 0.90%-1.70%. **Prior to July 1, 2018, the Sub-Adviser’s portion for Appreciation & Income was 0.20%-0.60% and the Management Fee was 0.85%-1.25%.

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, with the exception of High Yield Bond which is in its initial year of a new Fulcrum Fee arrangement, are calculating Performance Fees on a rolling 12-month basis as of October 31, 2018.

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.

107

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

By virtue of using average daily net assets over a “rolling” 12-month period for purposes of calculating the Performance Fee while using average daily net assets for the most recent month for purposes of calculating the Base Fee, the actual total Fulcrum Fee paid by the Fund to the Sub-Adviser may be higher or lower than the maximum or minimum annual rates described above if the average daily net assets do not remain constant during the rolling 12-month period. If the Fund is significantly underperforming versus the Index and the Fund’s net assets have declined significantly, the monthly total Fulcrum Fee can be a negative number (although the performance fee rate can never be negative, the Performance Fee can be negative). In such instances, if the negative Fulcrum Fee is not earned back or offset the following month, the Sub-Adviser must reimburse the Fund the amount of the negative Fulcrum Fee within an agreed upon time. Likewise, in the case where the Fund has significantly underperformed versus the Index but net assets have increased significantly, the monthly total Fulcrum Fee can be positive although the performance fee rate may be 0.00%. In such instances, the Fund will pay the Sub-Adviser the monthly Fulcrum Fee.

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 Total Return Index	0.60%	+/-0.00%	0.22%	0.98%
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%
A lternative Dividend	Sungarden Fund Management, LLC	Dow Jones Moderately Conservative Index	0.60%	+/- 0.00%	0.30%	0.90%
International Opportunity Bond	Allianz Global Investors U.S. LLC	Barclays Global ex US Aggregate Bond Index	0.45%	+/- 0.00%	0.20%	0.70%
Appreciation & Income**	Logan Circ le Partners, L.P.	BofA Merrill Lynch US 3-month Treasury Bill Index PLUS 300 bps (3.00%)	0.60%	+/- 0.00%	0.05%	1.15%
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, LLC	FTSE NAREIT All REITs Index	0.40%	+/- 0.00%	0.10%	0.70%
Small Cap Value	Piermont Capital Management, Inc.	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%

* Effective April 1, 2018, IQ Hedge Market Neutral Total Return Index replaced IQ Hedge Market Neutral Beta Index as the benchmark to Monthly Distribution. Monthly Distribution had a Base fee of 0.65%, a Minimum Fee of 0.25%, and a Maximum Fee of 1.05% prior to the change.

** Effective July 1, 2018, Logan Circle Partners, L.P. replaced PENN Capital Management Company, Inc as the sub-adviser to Appreciation & Income. PENN Capital Management Company, Inc. had a Base Fee of 0.40%, a Minimum Fee of 0.20%, and a Maximum Fee of 0.60%. The Benchmark utilized was Bank of America Merrill Lynch All Convertibles All Qualities Index.

b. Administration, Fund Accounting and Transfer Agency Fees – Gemini Fund Services, LLC (“GFS” or the “Administrator”) serves as the administrator, fund accountant and transfer agent for the Funds. For providing administration services, 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 July 1, 2017, 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 a minimum annual fee of $200,000. Pursuant to the terms of a Custody Administration Agreement, Monthly Distribution pays GFS a monthly fee of $300.

108

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

Blu Giant, LLC, (“Blu Giant”), 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. An individual from GFS serves as an officer for the Trust and receives no additional compensation from the Trust for serving in that role.

c. Distributor – The Distributor of the Funds is Dunham & Associates (the “Distributor”). The Funds have adopted an Amended and Restated Rule 12b-1 Plan (the “Plan”) in accordance with Rule 12b-1 under the 1940 Act for Class A and Class C shares. The Plan for Class A shares authorizes the Funds to pay distribution fees to the Distributor or other entities on a monthly basis at an annualized rate of up to 0.25% of the average daily net assets attributable to Class A shares. The Plan for Class C shares authorizes the Funds to pay distribution fees at the annualized rate of 0.75% for the equity Funds and 0.50% for the fixed income Funds and shareholder servicing fees at the annualized rate of 0.25% to the Distributor or other entities on a monthly basis based on the average daily net assets attributable to Class C shares. Class N shares do not pay distribution fees 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, 2018, certain Funds had portfolio trades executed with a certain broker pursuant to a commission recapture agreement under which the broker returned a portion of the Fund’s brokerage commissions on the Fund’s behalf. Such amounts, under such commission recapture agreement, are included in fees paid indirectly in the Funds’ Statements of Operations and were paid directly by the broker to the Administrator. For the year ended October 31, 2018, the amounts received by the Administrator on behalf of certain participating Funds under this arrangement were: Large Cap Value – $2,180, Focused Large Cap Growth - $3,204, International Stock – $2,807 and Small Cap Growth - $5,148.

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, 2018 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	$	165,890,104	$	146,766,977	$	—	$	—
Corporate/Government Bond		27,135,745		40,377,221		27,717,358		32,547,628
Monthly Distribution		1,439,891,258		1,244,260,754		—		—
Dynamic Macro		6,162,882		2,682,625		—		—
High-Yield Bond		114,086,267		114,270,815		—		—
Alternative Dividend		381,330,408		373,150,958		—		—
International Opportunity Bond		17,828,172		16,097,948		—		—
Appreciation & Income		48,559,127		49,676,426		—		—
Large Cap Value		34,265,839		33,399,151		—		—
Focused Large Cap Growth		20,998,892		30,114,764		—		—
International Stock		142,581,411		131,615,336		—		—
Real Estate Stock		49,301,431		37,177,062		—		—
Small Cap Value		54,955,692		37,569,649		—		—
Emerging Markets Stock		63,031,408		44,007,508		—		—
Small Cap Growth		82,710,394		76,196,734		—		—

109

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

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, 2018, were as follows:

			Gross		Gross			Net Unrealized
	Tax		Unrealized		Unrealized			Appreciation/
	Cost		Appreciation		Depreciation			(Depreciation)
Floating Rate Bond	$	196,270,800	$	691,995	$	(2,193,310	)	$	(1,501,315	)
Corporate/Government Bond		54,958,423		262,634		(1,576,104	)		(1,313,470	)
Monthly Distribution		305,181,664		11,538,223		(22,256,900	)		(10,718,677	)
Dynamic Macro		53,828,541		4,654,134		(805,148	)		3,848,986
High-Yield Bond		133,011,132		567,817		(4,675,527	)		(4,107,710	)
Alternative Dividend		76,803,348		1,495,347		(704,182	)		791,165
International Opportunity Bond		37,066,072		553,350		(1,650,507	)		(1,097,157	)
Appreciation & Income		56,111,202		106,681		(288,154	)		(181,473	)
Large Cap Value		64,829,009		14,042,895		(2,541,366	)		11,501,529
Focused Large Cap Growth		58,516,983		34,232,762		(1,270,347	)		32,962,415
International Stock		116,827,660		7,683,051		(7,656,156	)		26,895
Real Estate Stock		58,713,697		5,385,541		(1,729,195	)		3,656,346
Small Cap Value		61,395,702		2,596,357		(3,621,044	)		(1,024,687	)
Emerging Markets Stock		72,548,238		4,506,915		(7,998,464	)		(3,491,549	)
Small Cap Growth		60,387,289		5,373,663		(2,839,415	)		2,534,248

6. SHARES OF BENEFICIAL INTEREST

Following is a summary of shareholder transactions for each Fund for the year ended October 31, 2018 and the year ended October 31, 2017, respectively:

For the year ended October 31, 2018:

	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		5,544,126		680,867		(5,269,356	)		955,637			990,916		73,952		(632,403	)		432,465
Corporate/Government Bond		1,912,073		104,386		(3,405,957	)		(1,389,498	)		204,083		10,399		(260,731	)		(46,249	)
Monthly Distribution		2,204,120		268,595		(2,471,857	)		858			484,297		54,294		(418,482	)		120,109
Dynamic Macro		1,045,881		—		(854,490	)		191,391			424,021		—		(201,583	)		222,438
High-Yield Bond		2,859,505		516,584		(3,764,538	)		(388,449	)		541,122		55,424		(489,836	)		106,710
Alternative Dividend		3,485,952		171,666		(1,766,371	)		1,891,247			175,648		7,198		(12,284	)		170,562
International Opportunity Bond		918,537		3,921		(838,505	)		83,953			194,919		376		(86,308	)		108,987
Appreciation & Income		2,695,549		41,172		(304,528	)		2,432,193			544,088		6,854		(228,544	)		322,398
Large Cap Value		774,929		70,716		(831,786	)		13,859			412,732		11,986		(258,513	)		166,205
Focused Large Cap Growth		652,409		27,172		(953,801	)		(274,220	)		281,769		6,227		(286,311	)		1,685
International Stock		1,185,724		219,814		(823,998	)		581,540			538,029		38,097		(289,098	)		287,028
Real Estate Stock		1,215,646		34,637		(625,212	)		625,071			292,170		4,939		(131,144	)		165,965
Small Cap Value		1,077,210		144,058		(151,459	)		1,069,809			284,243		27,980		(70,164	)		242,059
Emerging Markets Stock		1,385,394		31,305		(495,926	)		920,773			412,227		4,193		(176,092	)		240,328
Small Cap Growth		574,078		186,952		(303,103	)		457,927			273,170		54,752		(124,818	)		203,104

110

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

	Class C Shares
								Net Increase
			Distributions					(Decrease)
Fund	Issued		Reinvested		Redeemed			in Shares
Floating Rate Bond		263,265		23,134		(172,957	)		113,442
Corporate/Government Bond		58,106		4,299		(82,611	)		(20,206	)
Monthly Distribution		355,558		62,509		(322,392	)		95,675
Dynamic Macro		56,142		—		(70,500	)		(14,358	)
High-Yield Bond		135,855		31,188		(164,632	)		2,411
Alternative Dividend		20,513		3,425		(54,278	)		(30,340	)
International Opportunity Bond		48,016		177		(36,571	)		11,622
Appreciation & Income		110,059		4,514		(83,122	)		31,451
Large Cap Value		55,368		3,842		(93,744	)		(34,534	)
Focused Large Cap Growth		54,856		3,483		(102,259	)		(43,920	)
International Stock		76,579		15,569		(95,633	)		(3,485	)
Real Estate Stock		38,155		1,286		(45,238	)		(5,797	)
Small Cap Value		30,003		18,626		(60,317	)		(11,688	)
Emerging Markets Stock		77,471		891		(46,538	)		31,824
Small Cap Growth		28,475		32,629		(48,775	)		12,329

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	)

	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	)

111

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

7. DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL

The tax character of dividends paid during the year or period ended October 31, 2018 and October 31, 2017 was as follows:

	For the year or period ended October 31, 2018										For the year or period ended October 31, 2017
	Ordinary		Long-Term		Return of		Tax-Exempt				Ordinary		Long-Term		Return of		Tax-Exempt
Fund	Income		Capital Gains		Capital		Income		Total		Income		Capital Gains		Capital		Income		Total
Floating Rate Bond	$	7,558,793	$	—	$	—	$	—	$	7,558,793	$	4,705,002	$	—	$	—	$	—	$	4,705,002
Corporate/Government Bond		1,586,252		—		21,031		—		1,607,283		1,264,680		—		24,527		59,502		1,348,709
Monthly Distribution		2,716,635		—		11,318,712		—		14,035,347		—		—		10,191,212		—		10,191,212
Dynamic Macro		—		—		—		—		—		—		—		—		—		—
High-Yield Bond		5,523,745		—		—		—		5,523,725		4,756,447		—		—		—		4,756,447
Alternative Dividend		2,732,576		—		—		—		2,732,576		1,715,265		—		33,747		—		1,749,012
International Opportunity Bond		—		42,342		—		—		42,342		—		281,876		—		—		281,876
Appreciation & Income		479,171		—		—		—		479,171		689,953		—		—		—		689,953
Large Cap Value		557,584		713,265		—		—		1,270,849		953,600		—		—		—		953,600
Focused Large Cap Growth		—		722,085		—		—		722,085		—		—		—		—		—
International Stock		1,605,505		3,151,817		—		—		4,757,322		—		—		—		—		—
Real Estate Stock		344,955		300,608		—		—		645,563		1,820,717		3,749,295		—		—		5,570,012
Small Cap Value		1,593,661		1,586,225		—		—		3,179,886		1,012,034		144,516		—		—		1,156,550
Emerging Markets Stock *		824,337		—		—		—		824,337		1,153,950		—		—		—		1,153,950
Small Cap Growth		1,842,122		3,242,312		—		—		5,084,434		—		—		—		—		—

* The difference between ordinary distributions paid from book and ordinary distributions paid from tax for the Emerging Markets Fund relates to allowable foreign tax credits of $232,938 for fiscal year ended October 31, 2018, and $222,500 for the fiscal year ended October 31, 2017, which have been passed through to the Fund’s underlying shareholders and are deemed dividends for tax purposes.

** Differences in distributions between the Statement of Changes paid from book and tax on the income funds relate to the adjustments for dividends payable for tax purposes.

Permanent book and tax differences, primarily attributable to the reclass of net operating losses and fund distributions, resulted in reclassification for the tax year ended October 31, 2018 as follows:

	Paid
	In			Accumulated
Fund	Capital			Earnings (Loss)
Floating Rate Bond	$	—		$	—
Corporate/Government Bond		(21,031	)		21,031
Monthly Distribution		44,493			(44,493	)
Dynamic Macro		—			—
High-Yield Bond		—			—
Alternative Dividend		(24,397	)		24,397
International Opportunity Bond		—			—
Appreciation & Income		—			—
Large Cap Value		—			—
Focused Large Cap Growth		(176,944	)		176,944
International Stock		—			—
Real Estate Stock		—			—
Small Cap Value		—			—
Emerging Markets Stock		—			—
Small Cap Growth		(1	)		1

Net assets were unaffected by the above reclassifications.

112

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

As of each of the Fund’s tax year-ended October 31, 2018, 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	$	203,858	$	—	$	—		$	(2,952,242	)	$	(3,616	)	$	(1,501,315	)	$	(4,253,315	)
Corporate/Government Bond		—		—		—			(3,242,763	)		(930	)		(1,313,470	)		(4,557,163	)
Monthly Distribution		—		—		—			—			(144,337	)		(10,950,174	)		(11,094,511	)
Dynamic Macro		462,652		—		—			(5,443,173	)		—			3,857,364			(1,123,157	)
High-Yield Bond		116,902		—		—			(5,560,146	)		(8,085	)		(4,107,710	)		(9,559,039	)
Alternative Dividend		26,815		—		—			(7,148,632	)		(133,780	)		791,165			(6,464,432	)
International Opportunity Bond		78,557		50,420		—			—			—			(1,104,613	)		(975,636	)
Appreciation & Income		463,415		—		—			(66,482	)		(472	)		(181,473	)		214,988
Large Cap Value		817,314		2,475,117		—			—			—			11,501,529			14,793,960
Focused Large Cap Growth		—		6,221,713		(838,442	)		—			—			32,962,415			38,345,686
International Stock		1,148,335		6,332,594		—			—			—			16,996			7,497,925
Real Estate Stock		650,188		—		—			(12,145	)		—			3,656,346			4,294,389
Small Cap Value		1,842,665		3,196,559		—			—			—			(1,024,687	)		4,014,537
Emerging Markets Stock		1,023,407		—		—			(1,129,268	)		—			(3,492,341	)		(3,598,202	)
Small Cap Growth		3,935,267		5,086,997		—			—			—			2,534,248			11,556,512

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, perpetual bonds, 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		—
Dynamic Macro		—
High-Yield Bond		—
Alternative Dividend		—
International Opportunity Bond		—
Appreciation & Income		—
Large Cap Value		—
Focused Large Cap Growth		838,442
International Stock		—
Real Estate Stock		—
Small Cap Value		—
Emerging Markets Stock		—
Small Cap Growth		—

113

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

At October 31, 2018, 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 Utilized
Floating Rate Bond	$	—	$	784,995	$	2,167,247	$	2,952,242	$	—
Corporate/Government Bond		—		1,274,459		1,968,304		3,242,763		—
Monthly Distribution		—		—		—		—		6,585,099
Dynamic Macro		152,059		2,371,512		2,919,602		5,443,173		—
High-Yield Bond		—		3,224,149		2,335,997		5,560,146		—
Alternative Dividend		—		6,047,576		1,101,056		7,148,632		—
International Opportunity Bond		—		—		—		—		—
Appreciation & Income		—		—		66,482		66,482		2,170,783
Large Cap Value		—		—		—		—		—
Focused Large Cap Growth		—		—		—		—		—
International Stock		—		—		—		—		—
Real Estate Stock		—		12,145		—		12,145		—
Small Cap Value		—		—		—		—		—
Emerging Markets Stock		351,019		778,249		—		1,129,268		1,377,534
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, 2018, Corporate/Government Bond, Monthly Distribution, High-Yield Bond, International Opportunity Bond, Focused Large Cap Growth, International Stock, Small Cap Value, Emerging Markets Stock and Small Cap Growth accessed the line of credit based only on the days borrowed and the average amount of borrowings outstanding were $2,918,800, $9,903,267, $2,483,000, $290,857, $2,629,000, $373,438, $43,500, $1,000,000, $887,000, respectively. The interest expense for all of the Funds listed above is immaterial. As of October 31, 2018, all of the Funds listed above had no outstanding borrowings under the Credit Agreement.

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. The following funds are below the 102% threshold due to market fluctuation, Monthly Distribution, Dynamic Macro, High Yield Bond, Large Cap Value, Focused Large Cap Growth, International Stock, Emerging Markets, and Small Cap Growth. 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 Funds’ Statements of Operations. Although risk is mitigated by the collateral, the Funds could experience a delay in recovering their 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. The remaining contractual maturity of all securities lending transactions are overnight and continuous.

114

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

The following table presents financial instruments that are subject to enforceable netting arrangements as of October 31, 2018.

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)	$	2,757,563	$	2,757,563		0.08	%
Corporate/Government Bond		4,725,852		4,725,852		0.46	%
Monthly Distribution *		13,073,633		13,073,633		0.71	%
Dynamic Macro *		13,066,387		13,066,387		5.64	%
High-Yield Bond *		15,148,897		15,148,897		1.18	%
Alternative Dividend		14,766,803		14,766,803		0.91	%
International Opportunity Bond		—		—		0.00	%
Appreciation & Income		11,698,510		11,698,510		1.13	%
Large Cap Value (3)*		5,157,171		5,157,171		0.97	%
Focused Large Cap Growth *		10,474,437		10,474,437		8.74	%
International Stock *		4,260,072		4,260,072		0.54	%
Real Estate Stock (4)		8,551,531		8,551,531		0.80	%
Small Cap Value		12,766,484		12,766,484		2.66	%
Emerging Markets Stock *		3,224,650		3,224,650		0.69	%
Small Cap Growth (5) *		15,072,952		15,072,952		26.47	%

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

(2) Securities loaned with a value of $2,001,870 have been sold and are pending settlement.

(3) Securities loaned with a value of $163,602 have been sold and are pending settlement.

(4) Securities loaned with a value of $39,209 have been sold and are pending settlement.

(5) Securities loaned with a value of $576,938 have been sold and are pending settlement.

* Securities collateralized below 102%. 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%.

10. UNDERLYING INVESTMENTS IN OTHER INVESTMENT COMPANIES

The Funds invest in other investment companies. Each underlying fund, including each ETF, is subject to specific risks, depending on the nature of the underlying fund. These risks could include liquidity risk, sector risk, foreign and related currency risk and high yield risk. Investors in the Funds will indirectly bear fees and expenses charged by the underlying investment companies in which the Funds invest in addition to the Funds’ direct fees and expenses. All the Funds may invest in investment companies. Such investments would subject the Funds to similar risks.

The performance of the Alternative Dividend Fund and the Monthly Distribution Fund will be directly affected by the performance of the Invesco Short-Term Investments Trust Treasury Portfolio – Institutional Class and the Fidelity Investments Money Market Fund – Class I, Respectively. The financial statements of these Funds, including the portfolio of investments, can be found at the Securities and Exchange Commission’s (“SEC”) website www.sec.gov and should be read in conjunction with the Alternative Dividend Fund’s and Monthly Distribution Fund’s financial statements. As of October 31, 2018, the percentage of the Alternative Dividend Fund’s net assets invested in the Invesco Short-Term Investments Trust Treasury Portfolio – Institutional Class was 35.7% and the percentage of the Monthly Distribution Fund invested in the Fidelity Investments Money Market Fund- Class I was 41.3%.

11. RECENT ACCOUNTING PRONOUNCEMENTS

In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount; which continues to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management is currently evaluating the impact, if any, of applying this provision.

115

NOTES TO FINANCIAL STATEMENTS

October 31, 2018

In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-13, which changes certain fair value measurement disclosure requirements. The new ASU, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the policy for the timing of transfers between levels. For investment companies, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is allowed. At this time, management is evaluating the implications of the ASU and any impact on the financial statement disclosures.

In September 2018, the Securities and Exchange Commission adopted amendments to certain disclosure requirements under Regulation S-X to conform to US GAAP, including: (i) an amendment to require presentation of the total, rather than the components, of distributable earnings on the Statement of Assets and Liabilities; and (ii) an amendment to require presentation of the total, rather than the components, of distributions to shareholders, except for tax return of capital distributions, if any, on the Statement of Changes in Net Assets. The amendments also removed the requirement for parenthetical disclosure of undistributed net investment income on the Statement of Changes in Net Assets.

12. 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 determined that no events or transactions occurred requiring adjustment or disclosure in the financial statements.

116

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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

Opinion on the Financial Statements

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, 2018, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended and the financial highlights as noted in the table below, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of October 31, 2018, and the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended and their financial highlights as noted in the table below, in conformity with accounting principles generally accepted in the United States of America.

	Financial Highlights
Dunham Floating Rate Bond Fund	For each of the years in the five-year period ended October 31, 2018
Dunham Corporate/Government Bond Fund	For each of the years in the five-year period ended October 31, 2018
Dunham Monthly Distribution Fund	For each of the years in the five-year period ended October 31, 2018
Dunham Dynamic Macro Fund	For each of the years in the five-year period ended October 31, 2018
Dunham High-Yield Bond Fund	For each of the years in the five-year period ended October 31, 2018
Dunham Alternative Dividend Fund	For the period August 31, 2016 (commencement of operations) to October 31, 2016 and for each of the years in the two-year period ended October 31, 2018
Dunham International Opportunity Bond Fund	For each of the years in the five-year period ended October 31, 2018
Dunham Appreciation & Income Fund	For each of the years in the five-year period ended October 31, 2018
Dunham Large Cap Value Fund	For each of the years in the five-year period ended October 31, 2018
Dunham Focused Large Cap Growth Fund	For each of the years in the five-year period ended October 31, 2018
Dunham International Stock Fund	For each of the years in the five-year period ended October 31, 2018
Dunham Real Estate Stock Fund	For each of the years in the five-year period ended October 31, 2018
Dunham Small Cap Value Fund	For each of the years in the five-year period ended October 31, 2018
Dunham Emerging Markets Stock Fund	For each of the years in the five-year period ended October 31, 2018
Dunham Small Cap Growth Fund	For each of the years in the five-year period ended October 31, 2018

117

Basis for Opinion

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities law and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits include performing procedures to assess the risk of material misstatement of those financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2018 by correspondence with the custodian, agent banks, and brokers, or by other appropriate auditing procedures where replies from agent banks and/or brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

BBD, LLP

We have served as the auditor of one or more of the Funds in the Dunham Funds since 2007.

Philadelphia, Pennsylvania

December 28, 2018

118

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 c/o Gemini Fund Services, LLC, 17605 Wright Street, Suite #2, Omaha, NE 68130 Age:78	Trustee	Since January 2008	Retired; Accountant, Considine & Considine (certified public accountant), 1960-2016.	15	HomeFed Corp., 1992- present
Henry R. Goldstein c/o Gemini Fund Services, LLC, 17605 Wright Street, Suite #2, Omaha, NE 68130 Age:87	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 c/o Gemini Fund Services, LLC, 17605 Wright Street, Suite #2, Omaha, NE 68130 Age: 71	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: 57	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: 59	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: 36	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).

119

ADDITIONAL INFORMATION (Unaudited)

Meeting of the Board of Trustees Held on June 26, 2018

On June 26, 2018, the Board of Trustees (the “Board”) of Dunham Funds (the “Trust”), a Delaware business trust, met to consider, among other things, the approval of a new sub-advisory agreement (the “Sub-Advisory Agreement”) with Logan Circle Partners, L.P. (“Logan Circle”) as sub-adviser to the Dunham Appreciation & Income Fund (the “Fund”).

The Independent Trustees had reviewed materials provided by Logan Circle prior to the Board meeting. Representatives from Dunham & Associates Investment Counsel, Inc. (the “Adviser”) attended the Board meeting in-person and representatives from Logan Circle participated in the Board meeting by telephone and responded to questions from the Trustees. The Trustees reviewed a memorandum from Fund counsel that reviewed their fiduciary duties pertaining to the approval of the Sub-Advisory Agreement and the factors they should consider in their evaluation of the Sub-Advisory Agreement.

Among other information, the Adviser and Logan Circle provided information to assist the Independent Trustees in assessing the nature, extent and quality of services to be provided, information comparing the investment performance, advisory fees and operating expense ratio of the Fund to other funds, information about estimated profitability and/or financial condition and compliance and regulatory matters. The Board determined that, given the totality of the information provided with respect to the Sub-Advisory Agreement, the Board had received sufficient information to approve the Sub-Advisory Agreement.

Based upon its review, the Board concluded that it was in the best interests of the Fund that the Sub-Advisory Agreement be approved. In considering the approval of the Sub-Advisory Agreement, the Board did not identify any single factor or group of factors as all-important or controlling, and considered a variety of factors in its analysis, including those discussed below. The Board did not allot a particular weight to any one factor or group of factors:

Nature, Extent and Quality of Services. In considering the approval of the Sub-Advisory Agreement, the Board considered the nature, extent and quality of services Logan Circle would provide under the Sub-Advisory Agreement. The Board reviewed the services Logan Circle would provide, the background of the investment professionals that would service the Fund, and Logan Circle’s reputation, resources and investment approach. The Board also reviewed information provided regarding the structure of portfolio manager compensation, trading and brokerage practices, soft dollar usage, risk management and compliance matters.

The Board reviewed the nature of Logan Circle’s operations and the experience of its key professional personnel in managing a long-short credit strategy. The Board reviewed Logan Circle’s methodology, research and analysis for selecting investments. The Board considered the various methods utilized by Logan Circle to seek to generate consistent returns and for managing risk. The Board also noted that Logan Circle is a MetLife affiliate and considered that Logan Circle has thorough compliance policies and procedures and a comprehensive compliance program. The Board concluded that Logan Circle had the experience and resources necessary for managing the Fund.

Performance. With respect to performance, the Board reviewed performance information of a composite of accounts constructed by Logan Circle with a strategy similar to the Fund’s strategy

120

ADDITIONAL INFORMATION (Unaudited) (Continued)

over various time periods as compared to that of the average of a peer group within the Morningstar Long-Short Credit Category (the “Peer Group”). The Board noted that the composite managed by Logan Circle generally outperformed the Peer Group for nearly all the time periods presented. The Board concluded that Logan’s Circle’s investment performance for the Fund should be satisfactory.

Sub-Advisory Fees and Economies of Scale. The Board considered the Fund’s sub-advisory fee schedule and noted the fees charged to comparable portfolios, if any, that the sub-adviser managed. The Board considered that the fee schedule was negotiated between the Adviser and Logan Circle, an unaffiliated third party.

The Board noted that the Fund will pay Logan Circle a fulcrum fee rate consisting of a base fee of 0.60% annually and a performance fee component at a rate that will vary by +/- 0.55% 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 0.05% to 1.15%. The Board took into account that the minimum fee rate of 0.05% is low and that at the maximum level, which Logan Circle would only earn if the Fund performed well, 1.15% to be charged to the Fund was lower than fees charged to other accounts managed by Logan Circle.

The Board concluded that the sub-advisory fee schedule was a reasonable fee rate, which they found appropriate to reward or penalize outperformance or underperformance, respectively. The Board also took into account that the Fund pays the Adviser a fixed fee of 0.65% of daily net assets and noted that the various duties of the Adviser and Logan Circle were not duplicative.

The Board next considered the relevance of economies of scale in the context of Logan Circle receiving a performance based fee. The Board considered the sub-advisory fee schedule, and concluded that reductions based on asset growth, when coupled with the possibility of fee reductions based on poor performance, implementing breakpoints with Logan Circle would not be in the best interests of Fund shareholders at this time.

Profitability and Fallout Benefits. The Board considered information provided regarding Logan Circle’s estimated profitability from providing sub-advisory services to the Fund. The Board noted that the sub-advisory fee schedule was negotiated between the Adviser and Logan Circle, an unaffiliated third party. The Board reviewed materials provided as to any additional benefits Logan Circle may receive.

Conclusion. Based on all of the information considered and the conclusions reached, the Board determined that the terms of the Sub-Advisory Agreement for the Fund are fair and reasonable, and that the approval of the Sub-Advisory Agreement is in the best interests of the Fund.

121

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	5/1/18	10/31/18	Period*	10/31/18	Period*
Class N:
Floating Rate Bond Fund	0.99%	$1,000.00	$1,015.40	$5.03	$1,020.21	$5.04
Corporate/Government Bond Fund	1.20%	$1,000.00	$993.80	$6.03	$1,019.16	$6.10
Monthly Distribution Fund	1.50%	$1,000.00	$1,018.30	$7.63	$1,017.64	$7.63
Dynamic Macro Fund	1.82%	$1,000.00	$965.60	$9.02	$1,016.03	$9.25
High-Yield Bond Fund	1.16%	$1,000.00	$1,003.10	$5.86	$1,019.36	$5.90
Alternative Dividend Fund	1.32%	$1,000.00	$962.40	$6.53	$1,018.55	$6.72
International Opportunity Bond Fund	1.35%	$1,000.00	$934.10	$6.60	$1,018.38	$6.89
Appreciation & Income Fund	1.41%	$1,000.00	$1,063.80	$7.33	$1,018.10	$7.17
Large Cap Value Fund	1.30%	$1,000.00	$993.00	$6.53	$1,018.66	$6.61
Focused Large Cap Growth Fund	1.29%	$1,000.00	$1,053.90	$6.68	$1,018.70	$6.56
International Stock Fund	1.67%	$1,000.00	$891.50	$7.96	$1,016.79	$8.49
Real Estate Stock Fund	1.10%	$1,000.00	$1,037.20	$5.65	$1,019.66	$5.60
Small Cap Value Fund	1.54%	$1,000.00	$1,006.40	$7.81	$1,017.42	$7.85
Emerging Markets Stock Fund	1.19%	$1,000.00	$805.60	$5.42	$1,019.20	$6.06
Small Cap Growth Fund	1.92%	$1,000.00	$1,067.90	$10.01	$1,015.53	$9.75
Class A:
Floating Rate Bond Fund	1.23%	$1,000.00	$1,014.20	$6.24	$1,019.00	$6.26
Corporate/Government Bond Fund	1.45%	$1,000.00	$992.50	$7.29	$1,017.89	$7.39
Monthly Distribution Fund	1.76%	$1,000.00	$1,017.10	$8.95	$1,016.33	$8.94
Dynamic Macro Fund	2.07%	$1,000.00	$964.30	$10.24	$1,014.78	$10.50
High-Yield Bond Fund	1.41%	$1,000.00	$1,001.80	$7.11	$1,018.10	$7.17
Alternative Dividend Fund	1.60%	$1,000.00	$961.50	$7.91	$1,017.14	$8.13
International Opportunity Bond Fund	1.60%	$1,000.00	$932.60	$7.80	$1,017.13	$8.14
Appreciation & Income Fund	1.66%	$1,000.00	$1,061.80	$8.63	$1,016.84	$8.44
Large Cap Value Fund	1.55%	$1,000.00	$992.30	$7.78	$1,017.39	$7.88
Focused Large Cap Growth Fund	1.55%	$1,000.00	$1,052.90	$8.02	$1,017.39	$7.88
International Stock Fund	1.92%	$1,000.00	$890.20	$9.13	$1,015.55	$9.73
Real Estate Stock Fund	1.34%	$1,000.00	$1,036.20	$6.88	$1,018.45	$6.82
Small Cap Value Fund	1.79%	$1,000.00	$1005.20	$9.06	$1,016.17	$9.11
Emerging Markets Stock Fund	1.44%	$1,000.00	$805.10	$6.55	$1,017.95	$7.32
Small Cap Growth Fund	2.16%	$1,000.00	$1,066.40	$11.25	$1,014.32	$10.97

122

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	5/1/18	10/31/18	Period*	10/31/18	Period*
Class C:
Floating Rate Bond Fund	1.73%	$1,000.00	$1,010.50	$8.77	$1,016.48	$8.79
Corporate/Government Bond Fund	1.95%	$1,000.00	$989.90	$9.80	$1,015.36	$9.92
Monthly Distribution Fund	2.51%	$1,000.00	$1,013.50	$12.74	$1,012.55	$12.73
Dynamic Macro Fund	2.82%	$1,000.00	$960.60	$13.95	$1,010.98	$14.30
High-Yield Bond Fund	1.91%	$1,000.00	$999.20	$9.62	$1,015.58	$9.70
Alternative Dividend Fund	2.32%	$1,000.00	$958.00	$11.45	$1,013.51	$11.77
International Opportunity Bond Fund	2.10%	$1,000.00	$931.20	$10.23	$1,014.61	$10.68
Appreciation & Income Fund	2.42%	$1,000.00	$1,056.74	$12.55	$1,013.01	$12.28
Large Cap Value Fund	2.30%	$1,000.00	$988.20	$11.55	$1,013.59	$11.70
Focused Large Cap Growth Fund	2.29%	$1,000.00	$1,049.00	$11.83	$1,013.66	$11.62
International Stock Fund	2.67%	$1,000.00	$887.00	$12.72	$1,011.72	$13.56
Real Estate Stock Fund	2.10%	$1,000.00	$1,031.90	$10.76	$1,014.62	$10.66
Small Cap Value Fund	2.54%	$1,000.00	$1,001.50	$12.81	$1,012.40	$12.88
Emerging Markets Stock Fund	2.19%	$1,000.00	$801.80	$9.96	$1,014.14	$11.14
Small Cap Growth Fund	2.92%	$1,000.00	$1,063.10	$15.18	$1,010.49	$14.80

* 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, 2018).

123

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

124

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

125

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 Commision’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).

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 2018	$186,000
FY 2017	$186,000

(b) Audit-Related Fees

FY 2018	$0
FY 2017	$0

Nature of the fees:

(c) Tax Fees

FY 2018	$30,000
FY 2017	$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 2018	$0	$0
FY 2017	$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 2018	$30,000	$ None
FY 2017	$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 1/9/19

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 1/9/19

By (Signature and Title)

/s/Denise Iverson

Denise Iverson, Treasurer

Date 1/9/19