The new Dunham Alternative Dividend Fund combines long‐short investing with dividend investing
San Diego, CA – Dunham & Associates Investment Counsel announces the launch of its
16th mutual fund,
the Dunham Alternative Dividend Fund. The fund will begin trading on Thursday, Sept. 1.
The fund offers something different in that it is Dunham’s only pure equity dividend paying strategy.
It focuses on generating income for clients while employing strategies to lower volatility. This fits
in with Dunham’s overall commitment to low volatility investment strategies.
“Funds, and our sub‐advisers who manage them, offer financial advisors and their investors a
unique way to invest with professional investment managers,” said Jeffrey Dunham, founder, chairman
and CEO of Dunham & Associates. “Our funds are all sub‐advised and rather than being paid a
fee based on the percentage of the assets [regardless of the mutual fund’s performance], our sub‐advisers are
all compensated in line with their performance. The Dunham Alternative Dividend Fund continues that
tradition,” he said.
The fund is sub‐advised by Sungarden Fund Management of Weston, FL and Guilford, CT, a sister company to
Sungarden Investment Research, which manages and advises over $165mm in assets for private clients and financial
advisors. Based on the historic success of Sungarden’s Hedged Dividend strategy, The Dunham Alternative Dividend
Fund combines individual stock selection with hedging mechanisms designed to help stem losses caused by major
stock market declines. Until now, this strategy was available only in separate account form.
Rob Isbitts, Sungarden founder and the lead manager of the fund, said “Initially we saw our
hedged dividend strategy as a way to address the concerns of risk‐adverse, income‐oriented investors who were
retired or nearing retirement. But over the past four‐and‐a‐half years, it became obvious to us that it can be
applied to a wide range of investment objectives where the bottom line is long‐term total return. I am now
excited to offer this strategy as a pooled vehicle.”
Sungarden managing partner Vince Esposito and analyst Mark Jakupcik, who built much of the
firm’s equity research system, are co‐managers to the fund.
“This is an exciting new milestone for Sungarden, Dunham, and each of our
firm’s existing clients,” Vince said. “It also provides a
compelling and convenient way for many other investors to access our approach to long‐short investing.
Dunham & Associates Investment Counsel, Inc.
(“Dunham” or DAIC) is a San
Diego‐based registered investment adviser and advisor to the Dunham Mutual Funds that has been in business
since 1985. With the addition of the Dunham Alternative Dividend Fund, Dunham’s family of
mutual funds comprises of 16 funds with approximately $1.1 billion assets under management.
All of Dunham’s mutual funds are sub‐advised. It is distinguished among mutual fund companies
in that its sub‐advisers are compensated for their work via a “Fulcrum Fee”
in which the sub‐adviser is paid based on how the specific fund performs. Most other mutual fund managers and
sub‐advisers are paid a fee based upon the percentage of assets, regardless of the mutual fund’s
Sungarden Investment Research (Sungarden) is an investment management firm that takes an alternative,
dividend‐focused, research‐oriented approach to portfolio management. The firm’s principals
have devoted over 100,000 hours to the investment business over the past three decades, and lead a team that
prioritizes avoiding major losses, producing predictable investment income and carefully pursuing
long‐term growth through a long‐short investment process. Firm founder Rob Isbitts, is also a popular
columnist for Marketwatch.com, and Sungarden’s Managing Partner Vincent Esposito was the
founder of the investment industry’s first online social network. The
firm’s background, investment philosophy and unique communication approach is on display at
Investors should consider the investment objectives, risk factors, charges, and expenses of the Dunham Alternative
Dividend Fund 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 & Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer. Member
FINRA / SIPC.