http://www.sec.gov/Archives/edgar/data/1420040/000091047214001296/lcg497.htm
497 1 lcg497.htm 497
DUNHAM FUNDS
Dunham Large Cap Growth Fund
Class A (DALGX
Class C (DCLGX)
Class N (DNLGX)
Supplement dated March 25, 2014 to the Summary Prospectus dated February 28, 2014
Effective the close of business on March 28, 2014, the Fund will no longer sell shares to new investors or existing shareholders, including through exchanges into the Fund from other funds of Dunham Funds. The Fund will be liquidated on or about April 29, 2014, although this date may be changed without notice.
Investors Should Retain This Supplement For Future Reference
DUNHAM FUNDS
Dunham Large Cap Growth Fund
Class A (DALGX
Class C (DCLGX)
Class N (DNLGX)
Supplement dated March 25, 2014
to the Prospectus dated February 28, 2014 (the “Prospectus”)
This Supplement updates and supersedes any contrary information contained in the Prospectus
The Board of Trustees of the Dunham Funds (the “Trust”) has approved a Plan of Liquidation for the Dunham Large Cap Growth Fund (the “Fund”) pursuant to which the Fund will be liquidated (the “Liquidation”) on or about April 29, 2014 (“Liquidation Date”). This date may be changed without notice at the discretion of the Trust’s officers.
Suspension of Sales. Effective the close of business on March 28, 2014, the Fund will no longer sell shares to new investors or existing shareholders, including through exchanges into the Fund from other Dunham Funds. Also, as of March 28, 2014, the Fund will no longer pursue its investment objective and will invest in cash equivalents such as money market funds until all shares have been redeemed.
Mechanics. In connection with the Liquidation, any shares of the Fund outstanding on the Liquidation Date will be automatically redeemed as of the close of business on the Liquidation Date. The proceeds of any such redemption will be equal to the net asset value of such shares after the Fund has paid or provided for all of its charges, taxes, expenses and liabilities. The distribution to shareholders of these liquidation proceeds will occur as soon as practicable, and will be made to all shareholders of the Fund of record at the time of the Liquidation. Additionally, the Fund must declare and distribute to shareholders any realized capital gains and all net investment income no later than the final Liquidation distribution. Dunham & Associates Investment Counsel, Inc., the Fund’s investment adviser (the “Adviser”), intends to distribute substantially all of the Fund’s net investment income prior to the Liquidation. The Adviser will bear all expenses in connection with the Liquidation to the extent such expenses exceed the amount of the Fund’s normal and customary fees and expenses accrued by the Fund through the Liquidation Date, provided that such accrued amounts are first applied to pay for the Fund’s normal and customary fees and expenses.
Other Alternatives. At any time prior to the Liquidation Date, shareholders of the Fund may redeem their shares of the Fund and receive the net asset value thereof, pursuant to the procedures set forth under “HOW TO REDEEM SHARES” in the Prospectus. Shareholders may also exchange their Fund shares for shares of the same class of any other Dunham Fund, as described in and subject to any restrictions set forth under “HOW TO EXCHANGE SHARES” in the Prospectus.
U.S. Federal Income Tax Matters. Although the Liquidation is not expected to be a taxable event for the Fund, for shares held in a taxable account, the automatic redemption of shares of the Fund on the Liquidation Date will generally be treated as any other redemption of shares (i.e., as a sale that may result in gain or loss for federal income tax purposes). Instead of waiting until the Liquidation Date, a shareholder may voluntarily redeem his or her shares prior to the Liquidation Date to the extent that the shareholder wishes to realize any such gains or losses prior thereto. See “TAX STATUS, DIVIDENDS AND DISTRIBUTIONS” in the Prospectus. Shareholders should consult their tax advisors regarding the tax treatment of the Liquidation.
If you have any questions regarding the Liquidation, please contact the Fund at (888) 3DUNHAM (338-6426).
Investors Should Retain This Supplement For Future Reference

FYI:
Regards,
Ted
http://blogs.marketwatch.com/thetell/2014/03/25/river-of-money-will-flow-from-biotech-to-these-hot-sectors-strategist/tab/print/

FYI: Copy & Paste Barron's 3/25/14: Teresa Rivas
Regards,
Ted
The JPMorgan Value Advantage Select Fund (ticker: JVASX) has outperformed Warren Buffett since its inception nearly nine years ago, a streak that portfolio manager Jonathan Simon would very much like to keep alive.
Though Simon has not been in the game quite as long as the Oracle, he's got more than a quarter of a century of stock-picking under his belt. He has displayed a conservative bent and a penchant for companies with quality management teams focused on growing underlying value. The Value Advantage Select Fund earns a five-star rating from Morningstar and falls into the highest and second-highest percentile of its category for the past five- and seven-year periods, respectively, as well as since its 2005 inception. While the rising tide has lifted all boats over the past five years, Simon's stock-picking has added significant value: The fund has returned an annualized 28.5%, compared with a 23.8% gain for the Standard & Poor's 500, and a 22.4% average return for its pee
.
Today, Simon has some contrarian picks among retailers and a space once anathema to value investo
Simon: There is one particular area of the portfolio that's been doing really badly recently and is quite contrarian: the specialty retailers. On the one hand, it's the area causing me the most pain because that's where we've suffered the biggest losses recently. But on the other hand, it could be the biggest opportunity. The holiday season was not great for anybody, except for maybe Michael Kors (KORS), and there were fewer shopping days between Thanksgiving and Christmas than there were the year before. The weather was probably a factor, and I suspect we are in for some more bad news there. But that's fine; we'll recover from that. A really disappointing one has been Bed Bath & Beyond (BBBY), but it is a company that has always proven itself long term. They've had a temporary setback, but they'll figure out how to [improve] themselves. They have a very strong entrenched real-estate position, with cash flow on the balance sheet and merchandising expertise, so Bed Bath & Beyond is probably going to be fine over the long run.
Q: There are a number of large health-care names in your top 10 holdings.
A: A few years ago Pfizer (PFE) became a big holding because the management team really started to understand that they had to simplify the businesses, focus their research and development on really promising pharmaceutical development — as opposed to just spending lots of money — and spin off peripheral businesses. So Pfizer has been a big holding because management has focused the company, and they've spun off the animal health business, Zoetis (ZTS), in a very tax-efficient way. Now Merck (MRK) is going down a similar path; its management team is going to use very similar strategy and there is opportunity there. Finally Johnson & Johnson (JNJ), on the pharmaceutical side has one of the more promising pipelines of new products. With J&J there is more diversification, with the medical technology business and the consumer business. So really those three names are almost sort of core of the health-care weighting in the portfolio: We probably have 6% or 7% of the portfolio in those three names. All obviously have good dividend yields, they trade at low- to mid-teens earnings multiples, and we think that the management teams are doing a great
.
Q: The fund has a lot of financial exposure, and names like Capital One Financial (COF) and Wells Fargo (WFC) are among your top holdings.
A: Wells Fargo has been doing what it is supposed to, which is to be the big, high-quality blue chip of the banking sector. I still think Wells Fargo has significant earnings power over the next three years, particularly as interest rates normalize. There has been concern about all the money they made on mortgage originations when there was the massive [refinancing] boom, as that is not happening anymore. But I think there are enough other levers in the Wells Fargo arsenal to offset the decline in mortgage-related earnings. I like Wells Fargo a lot. It is still a core holding. It is still a massive overweight top 10 holding.
Capital One is a bit different. I'd say it has taken a bit of a breather recently. Capital One to me has a great combination of a high-yielding loan portfolio, because of credit cards and auto-related loans, combined with cheap deposits both through the branch system and also through the online deposit [business] they acquired from ING. To me that is a very powerful business model that Rich Fairbank, the CEO, has put together over the last two years; he really took advantage of the distress in the downturn. People get concerned that Capital One is not growing its loan portfolio at the moment. But really they've bulked up so much that they are really shrinking down to a more solid core, and I think the story is going to be a lot about stock buybacks and dividends.
We have other regional banks, and one of the laggards has been M&T Bank (MTB), which has been trying to buy Hudson City Bancorp (HCBK). The regulators keep making them jump through more and more hoops on the compliance side of things, and it's taking forever. My belief is that they will ultimately close that transaction, and there will be a lot of benefits to M&T. The stock has been out of favor now for about a year. But as you know I'm patient, so that's a name that I think is going to generate strong returns for the firm over the next two years.
.
Q: Any other relatively new names you wanted to mention?
A: One timber REIT called Rayonier (RYN) is a contrarian pick. The company made an announcement toward the end of last year about its expansion. It was spending a lot of money in expanding one of its manufacturing facilities down in Georgia, and we were a little worried that maybe they were adding too much capacity to the global market. Lo and behold, they said yes, they expected their pricing and margins to be under pressure for the next year or so -- the stock was punished pretty badly. We did an analysis, and we thought that in the long term it would work out and so built it into a decent size position. It has a real-estate section although it is partly forest products as well, and they announced at the beginning of this year they were going to split the company in two. The stock went down a little bit on the announcement. But we still think there is great value there, so it is a name we are going to hang on to. We think that sum of the parts will be greater than you have at the moment. The other oddball thing I did this year -- I actually invested in an airline. I missed the big run-up, but we started to accumulate Delta Air Lines (DAL). So that's highly unusual, but things have really changed in the domestic airline industry. It has really consolidated down into three or four main players: American Airlines (AAL), United Continental (UAL) and Delta, and then Southwest Airlines (LUV) as well and JetBlue Airways (JBLU), which is quite a bit smaller. I think those companies are maybe not delivering the greatest customer experience, but they are delivering good value and much better service. That is translating into much better returns and profit margins for the industry. And as long as they remain disciplined, I think that the stock is relatively inexpensive still, relative to earnings. So even though I missed the first leg or so, there is still more to come.
Q: Thanks.
M* Snapshot Of JVASX: http://quotes.morningstar.com/fund/f?t=JVASX&region=usa&culture=en-US
.

FYI:
Regards,
Ted
http://www.kiplinger.com/printstory.php?pid=12263

I find it hypocritical that he is complaining about pay while his fund carries a 1.63% expense ratio for the institutional share class and 1.85% for the investor class.

?Time to tilt the portfolio away from small caps and in favor of large caps?
Morningstar says that DIA has a forward P/E of 15.01; S & P 500 forward P/E: 16.0
Russell 2000 forward P/E: 18.94

>>"Nothing comes close to MFLDX record over the last 3 and 5 years."
I just compared BPLEX and MFLDX at M* for the 5 year and 3 year periods ending yesterday (3/24/2014).
For the past 3 years, MFLDX beats BPLEX:
$10K invested on 3/24/2011 would have grown to the following amounts on 3/24/2014:
BPLEX: $12,514.96
MFLDX: $13,483.03
Long/Short Equity: $11,321.27
S&P: $15,210.64
For the past 5 years, BPLEX handily beats MFLDX.
$10K invested on 3/24/2009 would have grown to the following amounts on 3/24/2014:
BPLEX: $29,384.83
MFLDX: $21,123.45
Long/Short Equity: $13,448.10
S&P: $25,755.32
I'm curious to see what happens in the next substantial (10%+) downturn.

Hi David,
I regret that you are presently confronted with this delicate and sensitive investment issue. Indeed, with age, investment options vanish and emotions are high. We all are forced to address this issue at some point.
This problem is surely not in my competence wheelhouse. Also. I mightily resist making specific investment recommendations. However, my wife recently acted on this challenge, and even today, she is helping a daughter-in-law chase down some elder care options. So, currently, we are haunted by a similar problem with some tough choices.
As an initial step, I propose you assess a realistic life expectancy to scope the timeframe. Using recent social security tables, an 87 year old male has a current 12.4 % likelihood of passing away this year, and a projected additional life expectancy of 5.02 years. The 87 year old statistics for a female is 9.5 % and 6.03 years, respectively. So there is indeed a small probability that one member of the family could survive for a decade.
Based on these limited experiences and the life expectancy tables, I suggest you consider a short term corporate bond fund. Given their low costs in all categories, you might want to throw the Vanguard Short Term Investment Grade Admiral mutual fund (VFSUX) into the candidate hopper.
That fund, over timeframes of 1 to 15 years, has recorded a positive Sharpe ratio so it consistently delivers returns over government Bills and also outdistances inflation.
Over 1 year to 15 year time-spans it has registered standard deviations that are about one-half of its returns for each measurement period (data from Morningstar). That translates to a less than 5 % likelihood that the fund will generate negative returns for any single year. This low likelihood and low volatility should lessen the worries from older folks.
The low 0.10 % expense ratio for the admiral shares ( $ 50 K minimum) is attractive as is dealing with Vanguard’s management stability. A customer has easy and immediate access to the fund. This fund option is worth a moment or two of reflection.
I wish you good luck and success in addressing this emotionally charged matter.
Best Regards.

GO bonds
http://www.bondbuyer.com/issues/123_55/california-gos-different-226128-and-stronger-226128-than-detroits-1060904-1.html

wheat/russia ETF
http://www.etf.com/sections/weekly-etf-returns/21587-weekly-returns-wheat-russia-etfs-up.html
time to buy russia?
http://www.nasdaq.com/article/is-it-time-to-flee-russian-etfs-etf-news-and-commentary-cm337687
slv - ? silver bottom?
http://seekingalpha.com/article/2104383-has-silver-bottomed-down?source=google_news
glass half full
http://blogs.barrons.com/emergingmarketsdaily/2014/03/24/em-power-ranking-em-pared-losses-glass-half-full/
EM read - business wk
http://www.businessweek.com/news/2014-03-21/emerging-stocks-rise-as-valuations-reach-2004-low-micex-drops

@Ted: "This was joke played on members of the M* Mutual Fund Discussion by some jerk named Chang. I hope Kenster1_Global Growth has learned his lesson and doesn't bring any more of that crap from M* Board over to the number one Mutual Fund Discussion Board anywhere on the web."

---Ted, I'll gladly leave this board and will do so right now Life is too good to enjoy people who walk around like they have a permanent sour pickle stuck up their ass and happen to think they're so big after finding a Sheriff badge in a gumball machine.
You're the one with the issues following me over on M* with weird posts:
http://socialize.morningstar.com/NewSocialize/forums/p/336401/3523851.aspx#3523851
http://socialize.morningstar.com/NewSocialize/ViewPost.aspx?apptype=0&PostID=3522700
So Ted - look at yourself and learn your lesson too in not bringing over your crap including trying to call me out because you don't like my forum 'handle' and trying to bring it up as an issue. Stop being childish and go create your own sandbox and throw sand at someone else.

A couple points that might be worth mentioning in the bigger picture. Regardless as to how you determine funding for care keep these assets out of the facility's management. If the couple chose to move to another facility they will be able to do this without tying up the assets with the previous facility. Since they are a couple, make sure they are both equally represented on documents. Understand all aspects of elder care by seeking out an elder care lawyer. One designation to ask about is if the elder care lawyer is designated as a National Academy of Elder Law Attorneys (NAELA). These professional usually charge a nominal fee to initially meet and discuss matters. They are very well versed in all the moving parts...Medicaid, State support, trusts, inheritance, tax issues, etc. I'm sure they will have a better idea as to how to achieve the goals related to the protection of assets.
Here's an article I found from bloomberg:
businessweek.com/magazine/content/09_28/b4139074385496.htm

If it were anyone else except for Mr. Aronstein running the fund, we would probably have sold it, given the huge asset base. He insists the size will not hurt their performance. Keep in mind that long-short funds are designed to participate some in bull markets, but to shine in bear markets. We have not seen a bear market since 2007-08, and the fund held up well when it was launched at the end of 2007. Investors who expect it to keep pace with the S&P 500 in a long-run bull market have bought it for the wrong reasons. Have they actually READ the prospectus?
We would be comfortable if Aronstein would decide to do a hard close to new assets, and we would also like to see a lower expense ratio, given the large asset base. But until long-term performance becomes an issue (and it has not), we will hold the fund. Nothing comes close to MFLDX record over the last 3 and 5 years. PIMCO is up 22% in the last 12 months compared to MFLDX 8%. But PIMCO has no track record in bear markets, and I am very uncomfortable with the PIMCO hocus-pocus, not to mention the in-house political strife there. Wasatch has a good long-short offering, but they have tended to be long-long-long-short, with not much on the short side. IN the meantime, Aronstein and his team have made some very good calls over the last 2 years or so.

FYI: I will be watching IBB very carefully, especially at the open. I have a big stake in FBTCX and may take profits before the close of the day. I will also be watching the general healthcare sector movement today, and might cut back on PRHSX.
Regards,
Ted
http://www.thestreet.com/print/story/12539820.html

Given the choice of Fido and/or TIAA-CREF in my 403b, I opted for Fido ten years ago. Some of the Spartan funds seemed off-limits initially, but I think they are now available. Made some money in New Markets Income and quite a bit more in FBIOX, but was surprised to receive a "Personnal and Confidential" envelope this month advising me that I had been detected violating their frequent trading rules by buying FBIOX with 1% of my total Fido investment, then selling some FBIOX that equalled 2% of my total Fido investment a month later. Admittedly, I sold 25% of my FBIOX holdings when it seemed too frothy, but it was a trivial amount of their fund and not much of my total.
When I protested that it seemed irrelevant in view of the size of the fund and my total Fido holdings, I received an email largely restating the warning letter, after the initial "we appreciate your business" boilerplate. Apparently $1000 will trigger their restrictions. It appears I will be allowed to liquidate my holding in a fund while on suspension, so I won't be forced to ride a market meltdown, but my suggestion that they adjust their software to higher percentages and higher amounts before imposing their frequent trading proscriptions either fell on deaf ears or were addressed by someone too far down the food chain to engender a reasoned response, even though I mentioned that I was not an airline pilot with excess time on my hands.
I don't know if a letter or email campaign will attract their notice, but I encourage anyone holding Fido to suggest that they raise their thresholds for frequent trading amounts to see if we have any impact.

NAFAX. ER too big, and a 5.75% front-load. Thanks, but no thanks.

Howdy folks,
Apparently, this is an ETF that invests in the 'S&P 500 Aristocrats. These consist of companies that have not only paid but increased their dividends over the past 25 years.
Any thoughts? There are other vehicles than NOBL. I would think this might be a nice core type holding for an income portfolio.
peace,
rono

This has been my main US "small cap" fund for many years....exactly how many is clouded by trimmings that have occurred during annual portfolio rebalancings and by a change in share class I made along the way. Fidelity currently offers it NTF under WEMMX. The fund held up well during the downturn of 2007 to 2009. It declined "only" 37% from 07/01/07 to 02/28/99 vs. 54% for the M* small cap index and 49% for the SP500. Since 2/28/09 it has slightly lagged that small cap index but has keep pace with the SP500. The fund tends to go to cash when the market looks rich. Cash was at 25%+ on 12/31/13 per M*. For me, the "high" fee is offset by the funds positive attributes. Its a good "sleep well" small cap fund.