Dunham Monthly Distribution Fund (DNMDX)

Overview

The fund operates as an investment vehicle, primarily targeting various credit-related instruments with the goal of achieving its investment objectives. With a specific focus on allocating at least 80% of its assets towards credit-related investments, the fund is designed for investors seeking exposure to a mix of debt and equity instruments. The fund's investment strategy encompasses a broad range of credit qualities, including the ability to invest in below investment grade assets, often known as "junk bonds". This approach allows for a diversified investment portfolio that seeks to balance risk and reward by investing in both high-yield, high-risk credit instruments and equity up to 20% of its total assets. Managed by a sub-adviser, the fund leverages expertise in credit analysis and market trends to navigate the complex landscape of credit-related investments.

Products and Services

• Credit-Related Instruments

  The fund primarily invests in a variety of credit-related instruments, defining its core investment strategy. These instruments include but are not limited to, corporate bonds, government debt, and other fixed-income securities. The focus is on allocating assets to opportunities that the sub-adviser deems with potential for profit while managing the associated risks, mainly through investments in below investment grade or "junk" bonds. This approach seeks to benefit from higher yield possibilities relative to investment-grade bonds, albeit with an increased risk profile.

• Equity Instruments

  Up to 20% of the fund's total assets may be invested in equity instruments. This includes direct investments in common stocks and other securities linked to the value of common stock, such as convertible bonds or equity derivatives. This component of the fund's portfolio provides the potential for capital appreciation, which can enhance overall returns. Investing in equity instruments allows the fund to participate in the growth of various sectors and companies, diversifying the investment strategy beyond purely credit-related instruments.