Small Cap Value Fund

Class - C

OVERVIEW

Fund Objective


The Fund seeks to maximize total return from capital appreciation and income.

Sub-Advisor Background


Ziegler Capital Management, LLC (Ziegler) founded in 1991, is a wholly-owned subsidiary of Stifel Corporation. Ziegler provides asset management services for institutional investors, including: Public, Corporate and Taft-Hartley Pension Funds, Endowments, Foundations and Insurance Companies.

Tickers & Cusips


Ticker DCSVX
Cusip 265458760
Share Class C-Shares
Fund Code 207

Fund Information


Dividend Frequency Annual*
Capital Gains Paid December*
Fund Inception 12/10/2004
FISCAL Year-End October
* If applicable

Minimum Investments


For Class C shares, the initial minimum investment amount for regular accounts is $5,000, and for taxdeferred and certain tax efficient accounts (such as Roth IRAs) is $2,000. The minimum subsequent investment is $100. An account fee of $15 annually will be charged for all non-retirement accounts with a balance below $2,500. The account fee will not be charged if the balance falls below $2,500 due solely to depreciation of the investment. The fee is waived if your total investment amount in all Funds combined is $50,000 or more. There is no minimum initial investment for employee benefit plans, mutual fund platform platforms, supermarket programs, associations, and individual retirement accounts. The minimum subsequent investment in the Trust is $100 and there is no minimum subsequent investment for any Fund. The Trust reserves the right at any time to vary the initial and subsequent investment minimums.

PRICE/PERFORMANCE

Price & YTD Total Return (7/10/2020)


Net Asset Value (NAV): NAV Change: NAV Percentage Change:
$9.48 $0.28 3.04 %
Net Asset Value (NAV): $9.48
NAV Change: $0.28
NAV Percentage Change: 3.04 %
YTD Return at NAV:
-26.45 %
YTD Return at NAV: -26.45 %

Performance Inception Date (As of 12/10/2004)


Most recent
month-end (as of 6/30/2020)
1 Yr 3 Yr 5 Yr 10 Yrs Since
Inception
Fund Performance -18.99 % -4.22 % 0.32 % 6.35 % 3.11 %
Average Annual
Total Return (as of 6/30/2020)
1 Yr 3 Yr 5 Yr 10 Yrs Since
Inception
Fund Performance -18.99 % -4.22 % 0.32 % 6.35 % 3.11 %
Most recent
month-end (as of 6/30/2020)
Fund
Performance
1 Yr -18.99 %
3 Yr -4.22 %
5 Yr 0.32 %
10 Yrs 6.35 %
Since Inception 3.11 %
Average Annual Total Return
(as of 6/30/2020)
Fund
Performance
1 Yr -18.99 %
3 Yr -4.22 %
5 Yr 0.32 %
10 Yrs 6.35 %
Since Inception 3.11 %
Per prospectus dated 2/28/2019
Expense Ratio: 2.54 %
Per prospectus dated 2/28/2019
Expense Ratio:
2.54 %

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
12/27/2018 $0.63 Short-Term Capital Gain
12/27/2018 $1.07 Long-Term Capital Gain
12/27/2017 $0.90 Short-Term Capital Gain
12/27/2017 $0.92 Long-Term Capital Gain
12/28/2016 $0.41 Short-Term Capital Gain
12/28/2016 $0.07 Long-Term Capital Gain
12/29/2015 $0.04 Short-Term Capital Gain
12/29/2015 $0.43 Long-Term Capital Gain
12/29/2014 $0.75 Short-Term Capital Gain
12/29/2014 $0.20 Long-Term Capital Gain
12/27/2013 $0.67 Long-Term Capital Gain
12/29/2009 $0.01 Dividend
12/27/2007 $0.30 Short-Term Capital Gain
12/27/2007 $0.04 Long-Term Capital Gain

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 5/29/2020)


Security % of Net Assets
Sonic Automotive Inc 1.66 %
Corporate Office Prop Trust 1.56 %
STAG Industrial Inc 1.43 %
Diodes Inc 1.42 %
Elf Beauty Inc 1.41 %
Flagstar Bancorp Inc 1.38 %
Williams-Sonoma Inc 1.36 %
PNM Resources 1.35 %
ePlus Inc 1.34 %
Regal-Beloit Corp 1.29 %

Fund Sector Allocation (As of 5/29/2020)


Financials (27.9%)
Consumer Discretionary (13.18%)
Industrials (11.45%)
Information Technology (11.42%)
Real Estate (10.51%)
Health Care (6.38%)
Utilities (6.28%)
Materials (4.37%)
Consumer Staples (4.14%)
Energy (3.88%)
Telecommunication Services (0.7%)
Cash (-0.21%)

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.

Small Capitalization Risk - The Fund's investments in small cap companies carry more risks than investments in larger companies. Small cap companies often have narrower markets, fewer products, or services to offer and more limited managerial and financial resources than do larger, more established companies.

Stock Market Risk - Stock markets can be volatile. In other words, the prices of stocks can fall rapidly in response to developments affecting a specific company or industry, or to changing economic, political or market conditions. The Fund’s investments may decline in value if the stock markets perform poorly. There is also a risk that the Fund’s investments will underperform either the securities markets generally or particular segments of the securities markets.

Financials Sector Risk - Companies in the financials sector of an economy are subject to extensive governmental regulation and intervention, which may adversely affect the scope of their activities, the prices they can charge, the amount of capital they must maintain and, potentially, their size. The extent to which the Fund may invest in a company that engages in securities-related activities or banking is limited by applicable law. Governmental regulation may change frequently and may have significant adverse consequences for companies in the financials sector, including effects not intended by such regulation. Recently enacted legislation in the U.S. has relaxed capital requirements and other regulatory burdens on certain U.S. banks. While the effect of the legislation may benefit certain companies in the financials sector, increased risk taking by affected banks may also result in greater overall risk in the financials sector. The impact of changes in capital requirements, or recent or future regulation in various countries, on any individual financial company or on the financials sector as a whole cannot be predicted. Certain risks may impact the value of investments in the financials sector more severely than those of investments outside this sector, including the risks associated with companies that operate with substantial financial leverage. Companies in the financials sector may also be adversely affected by increases in interest rates and loan losses, decreases in the availability of money or asset valuations, credit rating downgrades and adverse conditions in other related markets. Insurance companies, in particular, may be subject to severe price competition and/or rate regulation, which may have an adverse impact on their profitability. The financials sector is particularly sensitive to fluctuations in interest rates. The financials sector is also a target for cyber-attacks, and may experience technology malfunctions and failures have become increasingly frequent in this sector and have reportedly caused losses to companies in this sector, which may negatively impact the Fund.

Management Risk - Each Fund is subject to management risk because it is an actively managed investment portfolio. The Sub-Adviser’s judgments about the attractiveness and potential appreciation of a security, whether selected under a “value”, “growth” or other investment style, may prove to be inaccurate and may not produce the desired results. The Adviser and Sub-Adviser will apply its investment techniques and risk analyses in making investment decisions for the Funds, 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.

Foreign Investing Risk - Investing in foreign companies or ETFs which invest in foreign companies, may involve more risks than investing in U.S. companies. These risks can increase the potential for losses in the Fund and may include, among others, currency devaluations, currency risks (fluctuations in currency exchange rates), country risks (political, diplomatic, regional conflicts, terrorism, war, social and economic instability and policies that have the effect of limiting or restricting foreign investment or the movement of assets), different trading practices, less government supervision, less publicly available information, limited trading markets and greater volatility. Additionally, investments in securities denominated in foreign currencies are subject to the risk that those currencies will decline in value relative to the U.S. dollar. A decline in the value of foreign currencies relative to the U.S. dollar will reduce the value of securities held by the Fund and denominated in those currencies.

Portfolio Turnover Risk - The frequency of a Fund’s transactions will vary from year to year. Increased portfolio turnover may result in higher brokerage commissions, dealer mark-ups and other transaction costs and may result in taxable capital gains. Higher costs associated with increased portfolio turnover may offset gains in a Fund’s performance.

Liquidity Risk - Liquidity Risk: The markets for high-yield, convertible and certain lightly traded equity securities (particularly small cap issues) are often not as liquid as markets for higher-rated securities or large cap equity securities. For example, relatively few market makers characterize the secondary markets for high-yield debt securities, and the trading volume for high-yield debt securities is generally lower than that for higher-rated securities. Accordingly, these secondary markets (generally or for a particular security) could contract under real or perceived adverse market or economic conditions. These factors may have an adverse effect on the Fund’s ability to dispose of particular portfolio investments and may limit the ability of the Fund to obtain accurate market quotations for purposes of valuing securities and calculating net asset value. Less liquid secondary markets also may affect the Fund’s ability to sell securities at their fair value. The Fund may invest in illiquid securities, which are more difficult to value and to sell at fair value. If the secondary markets for lightly-traded securities contract due to adverse economic conditions or for other reasons, certain liquid securities in the Fund’s portfolio may become illiquid, and the proportion of the Fund’s assets invested in illiquid securities may increase.

Securities Lending Risk - Portfolio securities may be loaned to brokers, dealers and financial institutions to realize additional income under guidelines adopted by the Board of Trustees. A risk of lending portfolio securities, as with other extensions of credit, is the possible loss of rights in the collateral should the borrower fail financially. The Fund might not be able to recover the securities or their value. In determining whether to lend securities, the Adviser or its agent, will consider all relevant facts and circumstances, including the creditworthiness of the borrower.