Dunham U.S. Enhanced Market Fund Class A (DASPX)

Overview

The investment strategy focuses on capitalizing on the U.S. equity market's potential for growth while aiming to mitigate risks during downturns. By allocating at least 80% of its assets towards U.S. equity securities and government debt, the fund is strategically positioned to partake in the advancement of the U.S. stock market. Its investment approach involves a mix of derivatives and U.S. Treasuries to provide upside participation with an eye towards reducing losses when market conditions are unfavorable. Notably, this fund operates with a non-diversified status, potentially concentrating its investments more than a diversified fund would, thereby aiming for meaningful exposure to its targeted assets.

Products and Services

• Equity Securities of U.S. Companies:

  This focal area entails investing in equity securities, such as stocks, of U.S. companies which are selected based on the fund's strategic aim to capture growth from the U.S. stock market's upside potential. By investing in a broad array of U.S. companies, the fund seeks not only to partake in the growth of these entities but also to potentially benefit from the diversity of the American corporate landscape.

• Debt Securities of the U.S. Government:

  Another cornerstone of the fund's investment strategy is the allocation towards debt securities issued by the U.S. government, such as U.S. Treasuries. These securities provide a layer of safety and predictable income, serving as a counterbalance to the more volatile equity investments. The use of U.S. government debt is integral to the fund's approach of risk management, aiming to mitigate potential losses during stock market declines.

• Derivative Investments:

  In seeking to accomplish its investment objective, the fund engages in the trading of derivatives, including options and futures, related to equity securities and U.S. Treasuries. These financial instruments play a key role in the fund's strategy to manage risk and leverage opportunities in the stock and debt markets. Specifically, derivatives enable the fund to hedge against downturns and strategically position itself to benefit from market movements without the need to directly hold the underlying assets.