Jeffrey Dunham founded Dunham & Associates Investment Counsel, Inc. (DAIC) in 1985 with
the uncommon idea that the fees his clients pay should be tied in some way to the
performance of the funds they own. Initially focusing on Del Mar, La Jolla and Rancho
Santa Fe regions of San Diego, he built his reputation and a successful investment
advisory firm on performance, with over $100 million in assets in 10 short years.
Naturally, as Jeffrey’s approach proved successful and the firm grew, the industry
began to take notice. By the mid-1990s, Jeffrey was approached by other advisors wanting
to offer his performance based funds. This marked a watershed moment for Dunham &
Associates, soon proving that distribution through other advisers and broker/dealers
was a great way to build a business far beyond the scope of an individual practice.
By 1999, Dunham & Associates had grown to manage over $200 million in assets through its
sub-advisers and added sales professionals throughout the U.S. to market to other advisers.
Even during the bull market of the late 90s, investors were drawn to the idea of aligning
sub-adviser compensation to the performance of their investments. Financial advisors learned
that offering a performance based alternative led to deeper relationships, more quality
referrals, and the doors began opening to handle wealth management needs beyond just
investments.
As client demands increased, Dunham & Associates’ services grew to include
investment management services, fixed income and cash management, asset protection and
ultimately wealth transfer strategies; leading to the birth of Dunham Trust Company (DTC)
in 1999. Headquartered in Reno, Nevada, DTC was built to help clients grow, protect
and transfer wealth; and establish a lasting legacy for future generations.
When the market turned bearish at the start of the 21st century and many investors
wondered what they were paying investment managers for in the face of significant
losses, the appeal of performance based funds really peaked the interest of savvy
investors. This continued to fuel the growth of Dunham & Associates to roughly
$300 million in assets by the end of 2002.
It’s said that “Price is only an issue in the absence of value,” and 2003
– 2004 proved that tenet by the inflow of assets that came to Dunham, climbing to $500
million under management by mid-2004.
In December 2004, Dunham launched public mutual funds based on tried and true performance
fee incentives similar to its private funds. These institutional sub-advised funds also
operate on performance fees, commonly known as fulcrum fees.* True to the principle on
which Jeffrey founded DAIC, when a sub-adviser outperforms the applicable benchmark,
compensation increases - if they underperform, they get less. Today, DAIC manages
approximately $600 million in assets through its sub-advised funds with total
company assets under administration nearing $1 billion and has scaled the company
to manage billions.
Much of the DAIC success story can be attributed to Jeffrey’s determination
to stand firm by the niche he’s created. His willingness to introduce
performance based fees and compensation as an integral component of aligning the
interests of all parties has resulted in establishing client and advisor relationships
that span generations. DAIC is built on leadership, not following the crowd or latest
trends. Jeffrey did not build DAIC to be a commodity business and has never tried
to be all things to all people.
As Dunham & Associates strives toward its goal of $5 billion in assets under
management and beyond, Jeffrey remains true to the tenet on which he founded his
company: When Performance Counts. Wherever possible, Dunham & Associates
Investment Counsel, Inc. ties the compensation of our sub-advisers and ourselves
to the performance of your portfolio. With the company’s track record,
extensive range of products and services, sub-adviser relationships and the
like-minded industry leaders he’s assembled to work with him, DAIC is well
on its way toward its goal of becoming the best, most trusted and admired wealth
management firm in the industry.
*DAIC receives a separate fee as the adviser to the funds. Depending on the program,
DAIC may receive a flat or performance-based fee.
DAIC serves as Adviser to and Distributor of The Dunham Funds. The Dunham Funds have
Sub-Adviser performance-based management fee that adjusts upward or downward based on the
Fund’s performance relative to an established benchmark index over a performance measurement
period. Some Sub-Advisers may receive a minimum fee regardless of whether or not a performance
benchmark is met or exceeded.
Carefully consider the funds' investment objectives, risk factors, charges and expenses
before investing. This and other information can be found in the Fund prospectus, which
may be obtained by calling us at (800) 442-4358. Read the prospectus carefully before
investing. Investing involves risk, including possible loss of principal.
Dunham Trust Company is an independent, privately held trust company founded in August, 1999.
It is licensed and regulated by the State of Nevada, Department of Business and Industry,
Financial Institutions Division.
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