The Dunham Monthly Distribution Fund is a mutual fund designed to deliver regular income through twelve monthly distributions each year. Its primary function is to provide positive returns in both rising and falling market conditions by employing a diverse set of absolute-return strategies. These strategies include short selling, option writing, merger arbitrage, and positions across a broad spectrum of event-driven opportunities, such as corporate actions, restructurings, and atypical market events. The fund invests in a diversified array of equity and credit securities, with a notable allocation to sectors like industrials, telecommunications, information technology, health care, consumer staples, and materials. A significant portion of assets may also be held in cash to mitigate risk and support tactical positioning. By focusing on event-driven strategies, the Dunham Monthly Distribution Fund seeks to generate returns that are less correlated with traditional equity or bond markets, making it a potential diversifier within a broader portfolio. The fund’s monthly payout structure is particularly suited to investors seeking steady cash flow from their investments.
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