It steps in when emotions run high
The algorithm quietly reduces equity exposure when the market looks overheated, and increases it when prices fall.
DunhamDC: Buy Fear, Sell Greed
Markets have a way of pulling investors in the wrong direction. When stocks are flying, people often pile in at the top. When markets crash, fear takes over and they sell at the worst time. DunhamDC flips that.
Using our proprietary Dykmans Curve algorithm, it automatically adjusts your portfolio - buying when panic is in the air and trimming back when greed is everywhere. It’s a disciplined, unemotional way to stay invested without second-guessing every market move.
Mitigates Sequence Risk
By selling during peaks, DunhamDC addresses sequence risk — one of the biggest threats for retirees.
It looks for faster recovery
Owning more stocks at lower prices can help portfolios rebound sooner after downturns.
It simplifies the process
You don’t have to time the market or track every swing. The strategy adjusts automatically based on rules, not emotions.
How DunhamDC Works
“Be fearful when others are greedy, and greedy when others are fearful.”
The idea comes from Benjamin Graham’s “Mr. Market” concept — the emotional investor who shows up every day offering crazy prices based on his mood — and Warren Buffett’s famous advice:
President and CIO, Ryan Dykmans, CFA, built the Dykmans Curve to put that wisdom into practice.
- At market highs, equity allocation drops to reduce risk.
- At market lows, equity allocation rises to capture opportunity.
For example: A balanced 40/60 portfolio might hold as little as 13% stocks at the top of a bull market, and as much as 67% stocks at the bottom of a bear market.
20% DUNHAM CORE EQUITY | 80% DUNHAM CORE FIXED INCOME
DC 20 - 11.2022 to 12.2025*
DC 20 - 11.2022 to 12.2025*
SOLD Equities
BOUGHT Equities
Market Growth
The percentages above represent the Dunham Core Equity ratio of the DC 20 portfolio at the time shown. The remaining portion is allocated in Dunham Core Fixed Income.
Traditional Investing vs. DunhamDC
Understand the Strategy Behind DunhamDC
We’ve created two resources to help you understand the importance of DunhamDC
Ready to Talk?
DunhamDC is about turning market emotions into an investing advantage. If you’d like to see how it could work in your portfolio, schedule a consultation with a DunhamDC advisor.
Disclosures
This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation. Any investment products or services named herein are for illustrative purposes only, and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance.
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 Fund's summary prospectus and/or prospectus, which may be obtained by calling (800) 442-4358. Please read prospectus materials carefully before investing or sending money. Investing involves risk, including possible loss of principal.
Past performance may not be indicative of future results.
No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. There may be economic times where all investments are unfavorable and depreciate in value.
DunhamDC is a proprietary algorithm of Dunham & Associates Investment Counsel, Inc. (“Dunham”) that seeks to mitigate sequence risk, which poses a threat to an investor's returns due to the timing of withdrawals. The algorithm employs what Dunham considers to be a pragmatic strategy, generally making incremental increases to the equity allocation when global stock market prices decrease and decreasing it when global stock prices increase. This approach is objective, unemotional, and systematic. Rebalancing is initiated based on the investment criteria set forth in the investors application and is further influenced by the DunhamDC algorithm.
Due to the large deviation in equity to fixed income ratio at any given time, investor participating in DunhamDC understands that a large deviation in equity to fixed income ratio can have significant implications for the risk and return profile of the account. Accordingly, during periods of strong market growth the account may underperform accounts that do not have the DunhamDC feature. Conversely, during periods of strong market declines, the account may also be underperforming, as the account continues to decline, due to the higher exposure in equities. Similarly, if the fixed income investments underperform the equity investments, it is possible that the accounts using the DunhamDC feature may underperform accounts that do not have the DunhamDC feature, even though they may have adjusted the exposure to equity investment before a decline. Therefore, the investor must be willing to accept the highest risk tolerance and investment objective the account can range for the selected strategy. Please see the Account Application for the various ranges.
DunhamDC uses an unemotional, objective, systematic approach. The algorithm does not use complex formulas and is designed to create a consistent process with limited assumptions based on historical data.
DunhamDC may make frequent purchases and redemptions at times which may result in a taxable event in the account and may cause undesired tax-related consequences.
Trade signals for DunhamDC are received at the end of each trading day with the implementation of the trades not occurring until the next business day, which means that there is a one-day lag that may result in adverse prices.
DunhamDC operates within predefined parameters and rules, some or all of which may not be available to review. While this approach can reduce emotional biases and enhance consistency, it may limit adaptability to changing market conditions, economic considerations, or unforeseen events. Extreme conditions may require deviations from the program’s prescribed approach, and such adaptability may be challenging to incorporate. The DunhamDC algorithm is programmed based on specific criteria and rules, it may not capture certain qualitative or contextual factors that can impact investment decisions or movement in the markets. Beyond the initial assumptions used to develop the algorithm, it lacks other inputs or considerations that human judgement and discretion may be necessary to evaluate. DunhamDC may utilize historical data, statistical analysis, and predefined rules. It does not make any predictions and may add to certain investments before they perform poorly or may divest from other investments before they perform well. Dunham makes no predictions, representations, or warranties as to the future performance of any account.
Accounts invested in DunhamDC are subject to a quarterly rebalance to its target allocation at the time based on DunhamDC in addition to the signals provided by DunhamDC at any given time.
If the variance between any Dunham Mutual Fund’s target percentage of the total account value compared to the current percentage of the account value is greater than 1.00% at the time of the trigger point, the account in DunhamDC will be updated to the new target allocation.
Accounts invested in DunhamDC may contain non-Dunham Mutual Funds, which may materially impact if the account is being rebalanced at the trigger point.
Dunham makes no representation that the program will meet its intended objective. Market conditions and factors that influence investment outcomes are subject to change, and no program can fully account for all variables and events. The program requires making investment decisions based on factors and conditions that are beyond the Account Owner’s and Dunham’s control.
DunhamDC is NOT A GUARANTEE against market loss or declines in the value of the account or a timing strategy. Investor may lose money.
Asset allocation models are subject to general market risk and risks related to economic conditions.
DunhamDC has a limited track record, with an inception date of November 30, 2022.
DunhamDC US has a limited track record, with an inception date of July 31, 2024.
Risk Disclosures. An investment in the strategies and the Dunham Funds involves risks. For the Primary Risks of the Dunham Funds, please see:
https://dunham.com/disclosures/dunhamfundsrisks.pdfDunhamFundsRisks.pdf
As the Distributor/ Adviser of the Dunham Funds, Dunham & Associates Investment Counsel, Inc. receives a separate fee.
Dunham & Associates Investment Counsel, Inc. is an independent investment adviser and broker/dealer registered under the Investment Advisers Act of 1940. Registration does not imply a certain level of skill or training.