Jeffrey Dunham founded Dunham & Associates Investment Counsel, Inc. (DAIC) in 1985 with
the uncommon idea at that time, 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-1990’s, Jeffrey was approached by other advisors wanting
to offer his performance based funds. This marked a watershed moment for DAIC, 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, DAIC 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 advisors.
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 typically led to deeper relationships, more quality
referrals, and the doors began opening to handle wealth management needs beyond just
As client demands increased, DAIC’s services grew to include
investments 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 piqued the interest of savvy
investors. This continued to fuel the growth of DAIC to roughly $300 million in assets by the end of 2002.
In December 2004, DAIC 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
over $600 million in assets through its Sub-Advisers funds 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 helping align 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 DAIC 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: Performance Counts. Wherever possible, DAIC ties the compensation of our Sub-Advisers to the performance of your portfolio. With the company’s track record,
extensive range of investments and services, Sub-Adviser relationships and the
like-minded industry leaders he’s assembled to work with him, we believe DAIC is well
on its way toward its goal of becoming the best, most trusted and admired wealth
management firm in the industry.
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 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 Trust Company is a 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. Dunham Trust Company and Dunham & Associates
Investment Counsel, Inc. are affiliated entities.
** Dunham & Associates Investment Counsel, Inc. may be paid a separate fee under a different type of fee structure.
Some Sub-Advisor's may receive a minimum fee even if the benchmark is not met.
Dunham & Associates Investment Counsel, Inc. is the adviser and distributor of the Dunham Funds, and as such, receives a separate fee.
Dunham & Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer. Member FINRA/SIPC.