Dunham & Associates Celebrates Its 25th Anniversary of Service to Investors

Jan 04, 2010, 06:00 ET from Dunham & Associates Investment Counsel, Inc.

SAN DIEGO, Jan. 4 /PRNewswire/ -- Twenty-five years ago, Jeffrey Dunham began a financial services company that dared to enter an area where not many firms had gone before - fees paid based upon the actual performance the investor receives. As Dunham & Associates Investment Counsel, Inc. (DAIC) begins to celebrate its 25th anniversary, it still stands as one of the only firms of its kind.

"When Dunham & Associates began in 1985, it was my vision to create what I believe is a fairer way for wealthy individual investors to pay fees," said Jeffrey Dunham, CEO and Founder of Dunham & Associates. "My model, which consists of paying institutional portfolio managers (Sub-Advisers) based on their ability to outperform their benchmark and the financial advisor having the option to charge fees only when their investors make money is still, to this day, what I consider unique. I am not aware of any other firm that incorporates these two principles into one offering for their investors."

Dunham & Associates' mutual fund family, the Dunham Funds, is the only mutual fund company the firm is aware of where all of the institutional Sub-Advisers are paid based upon their ability to outperform their established benchmarks. These funds, which are distributed through financial advisors and brokers, are also part of a Dunham turn-key mutual fund wrap program where the financial advisor has the option to choose to charge fees only when their client makes money.(1)

"From the beginning, Jeffrey Dunham was confident that the inherent fairness of the model would build trust with individual investors, which is the cornerstone of an enduring advisor/client relationship," said Denise Iverson, Chief Financial Officer and over 10 year veteran of Dunham & Associates.

"In my view," Ms. Iverson continued, "this model stands out as one of the more innovative investment models in the industry. It fosters an accountability that I simply do not see in a majority of firms. With most firms, the portfolio managers get paid regardless of their results. In essence I believe they are mostly paid for attendance, not performance."

When Dunham & Associates began in 1985, much of its early success was local to the general Southern California area. It was not until about 10 years ago that the firm began to look north and east to extend its reach and build a distribution company which is now national in scope.

"Today our funds are offered by over 400 broker/dealers and Registered Investment Advisers including some of the major wirehouses. We are also available on most major mutual fund platforms," said Salvatore M. Capizzi, Chief Sales & Marketing Officer for Dunham & Associates. "As more financial advisors offer the performance-based fee of Dunham Funds and wrap programs, and as the awareness of this type of fee structure continues to grow, it is my belief that you will see an increased demand from investors for the fairness and accountability that we believe this fee structure provides."

In addition to the mutual funds and the turn-key mutual fund wrap platform, Dunham & Associates Holdings, Inc. also owns the Dunham Trust Company, a Nevada-based trust company located in Reno, Nevada. In 2009, Dunham Trust Company marked its 10th anniversary and also purchased the Adagio Trust Company. "Dunham & Associates will continue to balance its growth through acquisition and internal growth," said Tamara Wendoll, Chief Operations Officer of Dunham & Associates. "In addition to Dunham Trust Company's acquisition of the Adagio Trust Company in 2009, DAIC also acquired the Kelmoore Strategy funds in 2008. We are pleased with how we integrated the Kelmoore Strategy funds and the Adagio Trust Company into the Dunham organization's culture."

"Dunham & Associates looks forward to continue serving investors," said Mr. Dunham. "We look forward to the next 25 years of preserving what I believe are two of America's highly regarded values - trust and accountability."

About Us

Founded in 1985, Dunham & Associates Investment Counsel, Inc. (DAIC) is a Registered Investment Adviser and Broker/Dealer. DAIC offers mutual funds in which Sub-Advisers' compensation is tied to performance as measured against an established benchmark. DAIC has specialized in providing investment programs for institutions, foundations, and high-net-worth individuals for over two decades. Consolidated, Dunham & Associates Holdings, Inc., parent company for DAIC and Dunham Trust Company, has over $1.1 billion in fee-generating assets as of December 31, 2009. For more information about Dunham & Associates Investment Counsel, Inc. and its investments and services, visit www.dunham.com or call (800) 442-4358.

Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund prospectus, which may be obtained by calling us at (800) 442-4358. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.

Some Sub-Advisers receive a minimum fee regardless of performance and whether that benchmark is met or not.

Dunham & Associates Investment Counsel, Inc. serves as adviser and distributor of the Dunham Funds, and as such, receives a separate fee. Member FINRA/SIPC.

Dunham Trust Company is an independent, privately held trust company founded in August, 1999. It is licensed and regulated by the State of Nevada, Department of Business and Industry, Financial Institutions Division.

(1) Available to a qualified investor defined as a natural person who or a company that has at least $750,000 under the management of the investment adviser or has a net worth (together, in the case of a natural person, with assets held jointly with a spouse) of more than $1,500,000.

Each time a fee is paid, a new high water mark is established and the financial advisor does not receive additional fees until the account value exceeds the high water mark.

Dunham & Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer.


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