Floating Rate Bond Fund

Class - N

OVERVIEW

Fund Objective


The Fund seeks to provide a high level of current income, with capital appreciation as a secondary goal.

Sub-Adviser Background


PineBridge Investments LLC (PineBridge) PineBridge is a global asset manager with experience in emerging and developed markets, and investment capabilities in multi-asset, fixed income, equities and alternatives. PineBridge is differentiated by the integration of on-the-ground investment teams of approximately 200 professionals, providing investors with the combined benefits of global fundamental perspectives and analytical insights. PineBridge manages over $80 billion for a global client base that includes institutions, insurance companies, and intermediaries.

Tickers & Cusips


Ticker DNFRX
Cusip 265458414
Share Class N-Shares
Fund Code 118

Fund Information


Dividend Frequency Monthly
Capital Gains Paid December*
Fund Inception 11/1/2013
FISCAL Year-End October
* If applicable

Minimum Investments


There is no minimum initial investment on a per Fund basis for Class N shares. However, the minimum initial investment in Class N shares of the Dunham Funds, on an aggregate basis, is $100,000 for taxable accounts and $50,000 for tax-deferred accounts ("MIN"). The MIN can be waived if the investor has, in the opinion of the Adviser, adequate intent and availability of assets to reach a future level of investment among the Funds that is equal to or greater than the MIN. The MIN can also be waived by the Adviser for shareholders investing through a wrap program or similar arrangement. There is no minimum subsequent investment amount for Class N shares. If a Class N shareholder's investment in the Dunham Funds falls below the MIN for reasons other than depreciation of the investment, the investor may receive a notice from the Adviser and will be given a reasonable amount of time to cure the deficiency. If the deficiency is not cured within such time, the Adviser reserves the right to convert the account to Class A shares (on a load waived basis) or take other appropriate measures.

PRICE/PERFORMANCE

Price & YTD Total Return (2/22/2024)


Net Asset Value (NAV): NAV Change: NAV Percentage Change:
$8.78 $0.01 0.11 %
Net Asset Value (NAV): $8.78
NAV Change: $0.01
NAV Percentage Change: 0.11 %
YTD Return at NAV:
1.40 %
YTD Return at NAV: 1.40 %

Performance Inception Date (As of 11/1/2013)


Most recent
month-end (as of 1/31/2024)
1 Yr 3 Yr 5 Yr 10 Yrs Since
Inception
Fund Performance 11.25 % 4.78 % 4.04 % 3.20 % 3.19 %
Average Annual
Total Return (as of 12/31/2023)
1 Yr 3 Yr 5 Yr 10 Yrs Since
Inception
Fund Performance 13.33 % 4.73 % 4.33 % 3.14 % 3.11 %
Most recent
month-end (as of 1/31/2024)
Fund
Performance
1 Yr 11.25 %
3 Yr 4.78 %
5 Yr 4.04 %
10 Yrs 3.20 %
Since Inception 3.19 %
Average Annual Total Return
(as of 12/31/2023)
Fund
Performance
1 Yr 13.33 %
3 Yr 4.73 %
5 Yr 4.33 %
10 Yrs 3.14 %
Since Inception 3.11 %
Per prospectus dated 3/1/2023
Expense Ratio: 1.05 %
Per prospectus dated 3/1/2023
Expense Ratio:
1.05 %
As of 1/31/2024
Annualized 30 Day SEC Yield at NAV: 9.26 %
As of 1/31/2024
Annualized 30 Day SEC Yield at NAV:
9.26 %

Prices and returns quoted represent past results and are no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than their original cost.

Distribution


Date $/Share Type
1/31/2024 $0.06 Dividend
12/27/2023 $0.08 Dividend
11/30/2023 $0.06 Dividend
10/31/2023 $0.07 Dividend
9/29/2023 $0.07 Dividend
8/31/2023 $0.08 Dividend
7/31/2023 $0.07 Dividend
6/30/2023 $0.08 Dividend
5/31/2023 $0.06 Dividend
4/28/2023 $0.06 Dividend
3/31/2023 $0.08 Dividend
2/28/2023 $0.05 Dividend
1/31/2023 $0.04 Dividend
12/28/2022 $0.09 Dividend
11/30/2022 $0.06 Dividend
10/31/2022 $0.05 Dividend
9/30/2022 $0.05 Dividend
8/31/2022 $0.05 Dividend
7/29/2022 $0.04 Dividend
6/30/2022 $0.04 Dividend
5/31/2022 $0.03 Dividend
4/29/2022 $0.03 Dividend
3/31/2022 $0.03 Dividend
2/28/2022 $0.03 Dividend
1/31/2022 $0.03 Dividend
12/29/2021 $0.04 Dividend
11/30/2021 $0.02 Dividend
10/29/2021 $0.03 Dividend
9/30/2021 $0.02 Dividend
8/31/2021 $0.02 Dividend
7/30/2021 $0.02 Dividend
6/30/2021 $0.03 Dividend
5/28/2021 $0.02 Dividend
4/30/2021 $0.03 Dividend
3/31/2021 $0.02 Dividend
2/26/2021 $0.02 Dividend
1/29/2021 $0.02 Dividend
12/30/2020 $0.04 Dividend
11/30/2020 $0.02 Dividend
10/30/2020 $0.02 Dividend
9/30/2020 $0.02 Dividend
8/31/2020 $0.02 Dividend
7/31/2020 $0.02 Dividend
6/30/2020 $0.03 Dividend
5/29/2020 $0.03 Dividend
4/30/2020 $0.03 Dividend
3/31/2020 $0.03 Dividend
2/28/2020 $0.03 Dividend
1/31/2020 $0.04 Dividend
12/31/2019 $0.04 Dividend
11/29/2019 $0.03 Dividend
10/31/2019 $0.03 Dividend
9/30/2019 $0.04 Dividend
8/30/2019 $0.04 Dividend
7/31/2019 $0.04 Dividend
6/28/2019 $0.04 Dividend
5/31/2019 $0.04 Dividend
4/30/2019 $0.04 Dividend
3/29/2019 $0.03 Dividend
2/28/2019 $0.03 Dividend
1/31/2019 $0.04 Dividend
12/31/2018 $0.06 Dividend
11/30/2018 $0.03 Dividend
10/31/2018 $0.04 Dividend
9/28/2018 $0.04 Dividend
8/31/2018 $0.04 Dividend
7/31/2018 $0.04 Dividend
6/29/2018 $0.04 Dividend
5/31/2018 $0.04 Dividend
4/30/2018 $0.03 Dividend
3/29/2018 $0.03 Dividend
2/28/2018 $0.02 Dividend
1/31/2018 $0.02 Dividend
12/29/2017 $0.04 Dividend
11/30/2017 $0.03 Dividend
10/31/2017 $0.02 Dividend
9/29/2017 $0.02 Dividend
8/31/2017 $0.03 Dividend
7/31/2017 $0.02 Dividend
6/30/2017 $0.03 Dividend
5/31/2017 $0.03 Dividend
4/28/2017 $0.03 Dividend
3/31/2017 $0.03 Dividend
2/28/2017 $0.04 Dividend
1/31/2017 $0.03 Dividend
12/30/2016 $0.04 Dividend
11/30/2016 $0.03 Dividend
10/31/2016 $0.02 Dividend
9/30/2016 $0.03 Dividend
8/31/2016 $0.03 Dividend
7/29/2016 $0.03 Dividend
6/30/2016 $0.03 Dividend
5/31/2016 $0.03 Dividend
4/29/2016 $0.03 Dividend
3/31/2016 $0.02 Dividend
2/29/2016 $0.02 Dividend
1/29/2016 $0.02 Dividend
12/31/2015 $0.03 Dividend
11/30/2015 $0.03 Dividend
10/30/2015 $0.02 Dividend
9/30/2015 $0.02 Dividend
8/31/2015 $0.03 Dividend
7/31/2015 $0.02 Dividend
6/30/2015 $0.03 Dividend
5/29/2015 $0.03 Dividend
4/30/2015 $0.03 Dividend
3/31/2015 $0.03 Dividend
2/27/2015 $0.03 Dividend
1/30/2015 $0.02 Dividend
12/31/2014 $0.04 Dividend
11/28/2014 $0.03 Dividend
10/31/2014 $0.03 Dividend
9/30/2014 $0.03 Dividend
8/29/2014 $0.03 Dividend
7/31/2014 $0.02 Dividend
6/30/2014 $0.03 Dividend
5/30/2014 $0.02 Dividend
4/30/2014 $0.02 Dividend
3/31/2014 $0.03 Dividend
2/28/2014 $0.03 Dividend
1/31/2014 $0.02 Dividend
12/31/2013 $0.01 Dividend
11/29/2013 $0.00 Dividend

Year-End Distribution


Mutual funds typically distribute taxable capital gains to shareholders each December. Click below to view the year-end distribution factors (per share) for the Dunham Funds.

HOLDINGS

Top 10 Holdings (As of 1/31/2024)


Security % of Net Assets
Benefit Street Partners Clo XII Ltd. 11.99% 10/30 1.73 %
THL Credit Wind River 2019-3 Clo Ltd. 12.33% 4/31 1.35 %
Atrium IX 12.10% 5/30 1.33 %
Apidos CLO XX 11.28% 7/31 1.28 %
Wok Holdings Inc. 11.78% 3/26 1.27 %
Groupe Solmax Inc. 10.22% 7/28 1.19 %
Pegasus Bidco BV 9.63% 5/29 1.19 %
Aimbridge Acquisition Company Inc. 9.22% 2/26 1.12 %
LBM Acquisition LLC 9.21% 12/27 1.12 %
Goldentree Loan Management US Clo 2 Ltd. 10.28% 11/30 1.11 %

Fund Sector Allocation (As of 1/31/2024)


B2 (40.38%)
B1 (13.33%)
B3 (12.33%)
Ba3 (9.61%)
NR (8.73%)
Cash (5.69%)
Ba2 (3.72%)
Caa1 (2.97%)
Ba1 (1.72%)
Caa2 (0.87%)
Caa3 (0.65%)

Investors should consider the investment objectives, risk factors, charges, and expenses of the Dunham Funds carefully before investing. This and other important information is contained in the Dunham Funds’ summary prospectus and/or prospectus, which may be obtained by contacting your financial advisor, or by calling toll free (800) 442‐4358. Please read prospectus materials carefully before investing or sending money. Investing involves risk, including possible loss of principal.

Dunham Funds are distributed by Dunham & Associates Investment Counsel, Inc., a Registered Investment Adviser and Broker/Dealer. Member FINRA / SIPC.

Returns for Class A Shares include the maximum sales charge (5.75% for equity funds and 4.50% for fixed income funds). Net Asset Value (NAV) returns exclude these charges, which would have reduced returns.

Average annual total return is the annual compound return for the indicated period. It reflects the change in share price and the reinvestment of all dividends and capital gains. Returns for periods of less than one year are cumulative total returns.

Senior Bank Loans Risk - Senior loans are subject to the risk that a court could subordinate a senior loan, which typically holds the most senior position in the issuer’s capital structure, to presently existing or future indebtedness or take other action detrimental to the holders of senior loans. Senior loans settle on a delayed basis, potentially leading to the sale proceeds of such loans not being available to meet redemptions for a substantial period of time after the sale of the senior loans. The market prices of floating rate loans are generally less sensitive to interest rate changes than are the market prices for securities with fixed interest rates. Certain senior loans may not be considered “securities,” and purchasers, such as the Fund, therefore, may not be entitled to rely on the protections of federal securities laws, including anti-fraud provisions.

CLO Risk - Negative economic trends nationally as well as in specific geographic areas of the United States could result in an increase in loan defaults and delinquencies. There is a material possibility that economic activity will be volatile or will slow significantly, and the CLO performance will likely be significantly and negatively impacted by such conditions. Such effects may include an inability for Obligors to obtain refinancing of their debt obligations. A decreased ability of Obligors to obtain refinancing may cause a deterioration in loan performance generally and for CLOs. It is not possible to determine whether or when such trends will improve or worsen in the future. CLOs may include underlying securities, which are investments in foreign countries. These factors could detract from CLO’s performance.

Lower-Rated Securities Risk - Securities rated below investment-grade, sometimes called "high-yield" or "junk" bonds, are speculative investments that generally have more credit risk than higher-rated securities. Companies issuing high-yield fixed-income securities are not as strong financially as those issuing securities with higher credit ratings and are more likely to encounter financial difficulties. Lower rated issuers are more likely to default and their securities could become worthless.

LIBOR Risk - Certain of the Fund’s investments and payment obligations may be based on floating interest rates, such as the London Interbank Offered Rate (“LIBOR”). In 2017, the head of the United Kingdom’s Financial Conduct Authority announced a desire to phase out the use of LIBOR by the end of 2021. There remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement reference rate. As such, the potential effect of a transition away from LIBOR on the Fund or the financial instruments in which the Fund may invest cannot yet be determined.

Changing Fixed Income Market Conditions Risk - During periods of sustained rising rates, fixed income risks will be amplified. If the U.S. Federal Reserve’s Federal Open Market Committee (“FOMC”) raises the federal funds interest rate target, interest rates across the U.S. financial system may rise. Rising rates tend to decrease liquidity, increase trading costs, and increase volatility, all of which make portfolio management more difficult and costly to the Fund and its shareholders.

Credit Risk - Issuers of debt securities may suffer from a reduced ability to repay their interest and principal obligations. They may even default on interest and/or principal payments due to the Fund. An increase in credit risk or a default will cause the value of Fund debt securities to decline. Issuers with lower credit quality are more susceptible to economic or industry downturns and are more likely to default.

Foreign Investing Risk - Investments in foreign countries are subject to currency risk and country-specific risks such as political, diplomatic, regional conflicts, terrorism, war, social and economic instability, and policies that have the effect of decreasing the value of foreign securities. Foreign countries may be subject to different trading settlement practices, less government supervision, less publicly available information, limited trading markets and greater volatility than U.S. investments.

Call or Redemption Risk - If interest rates decline, issuers of debt securities may exercise redemption or call provisions. This may force the Fund to reinvest redemption or call proceeds in securities with lower yields, which may reduce Fund performance.

Interest Rate Risk - In general, the price of a debt security falls when interest rates rise. Debt securities have varying levels of sensitivity to changes in interest rates. Securities with longer maturities may be more sensitive to interest rate changes.

Natural Disaster / Endemic Risk - Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis, and other severe weather-related phenomena generally, and widespread disease and illness, including pandemics and epidemics (such as the novel coronavirus), have been and can be highly disruptive to economies and markets.

Liquidity Risk - Some securities may have few market-makers and low trading volume, which tend to increase transaction costs and may make it impossible for the Fund to dispose of a security position at all or at a price which represents current or fair market value.

Management Risk - The Fund is subject to management risk because it is an actively managed investment portfolio. The Sub-Adviser will apply its investment techniques and risk analyses in making investment decisions for the Fund, but there is no guarantee that its decisions will produce the intended result. The successful use of hedging and risk management techniques may be adversely affected by imperfect correlation between movements in the price of the hedging vehicles and the securities being hedged.

Securities Lending Risk - The risk of securities lending is that the financial institution that borrows securities from the Fund could go bankrupt or otherwise default on its commitment under the securities lending agreement and the Fund might not be able to recover the loaned securities or their value.