# EDGAR Filing Document

**Accession Number:** 0001420040
**File Stem:** 0001580642-23-001666
**Filing Date:** 2023-3
**Character Count:** 24798
**Document Hash:** 004e6c92a81403b15788a9b0f0938876
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001580642-23-001666.hdr.sgml**: 20230323

**ACCESSION NUMBER**: 0001580642-23-001666

**CONFORMED SUBMISSION TYPE**: 497

**PUBLIC DOCUMENT COUNT**: 14

**FILED AS OF DATE**: 20230323

**DATE AS OF CHANGE**: 20230322

**EFFECTIVENESS DATE**: 20230323

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Dunham Funds
- **CENTRAL INDEX KEY:** 0001420040
- **IRS NUMBER:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 497
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-147999
- **FILM NUMBER:** 23753972

**BUSINESS ADDRESS:**
- **STREET 1:** 10251 VISTA SORRENTO PARKWAY
- **STREET 2:** SUITE 200
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92121
- **BUSINESS PHONE:** 858-964-0500

**MAIL ADDRESS:**
- **STREET 1:** 10251 VISTA SORRENTO PARKWAY
- **STREET 2:** SUITE 200
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92121

## Series and Classes Contracts Data

### Dunham Real Estate Stock Fund (Series ID: S000020971)

---

|  |  |  |
|:---|:---|:---|
| Class Name                            | Ticker Symbol | Class ID   |
| Dunham Real Estate Stock Fund Class A | DAREX         | C000059508 |
| Dunham Real Estate Stock Fund Class C | DCREX         | C000059509 |
| Dunham Real Estate Stock Fund Class N | DNREX         | C000059510 |

---

### Dunham Large Cap Value Fund (Series ID: S000020972)

---

|  |  |  |
|:---|:---|:---|
| Class Name                          | Ticker Symbol | Class ID   |
| Dunham Large Cap Value Fund Class A | DALVX         | C000059511 |
| Dunham Large Cap Value Fund Class C | DCLVX         | C000059512 |
| Dunham Large Cap Value Fund Class N | DNLVX         | C000059513 |

---

### Dunham Small Cap Growth Fund (Series ID: S000020973)

---

|  |  |  |
|:---|:---|:---|
| Class Name                           | Ticker Symbol | Class ID   |
| Dunham Small Cap Growth Fund Class A | DADGX         | C000059514 |
| Dunham Small Cap Growth Fund Class C | DCDGX         | C000059515 |
| Dunham Small Cap Growth Fund Class N | DNDGX         | C000059516 |

---

### Dunham Small Cap Value Fund (Series ID: S000020974)

---

|  |  |  |
|:---|:---|:---|
| Class Name                          | Ticker Symbol | Class ID   |
| Dunham Small Cap Value Fund Class A | DASVX         | C000059517 |
| Dunham Small Cap Value Fund Class C | DCSVX         | C000059518 |
| Dunham Small Cap Value Fund Class N | DNSVX         | C000059519 |

---

### Dunham Long/Short Credit Fund (Series ID: S000020975)

---

|  |  |  |
|:---|:---|:---|
| Class Name                            | Ticker Symbol | Class ID   |
| Dunham Long/Short Credit Fund Class A | DAAIX         | C000059520 |
| Dunham Long/Short Credit Fund Class C | DCAIX         | C000059521 |
| Dunham Long/Short Credit Fund Class N | DNAIX         | C000059522 |

---

### Dunham Corporate/Government Bond Fund (Series ID: S000020976)

---

|  |  |  |
|:---|:---|:---|
| Class Name                                    | Ticker Symbol | Class ID   |
| Dunham Corporate/Government Bond Fund Class A | DACGX         | C000059523 |
| Dunham Corporate/Government Bond Fund Class C | DCCGX         | C000059524 |
| Dunham Corporate/Government Bond Fund Class N | DNCGX         | C000059525 |

---

### Dunham Emerging Markets Stock Fund (Series ID: S000020977)

---

|  |  |  |
|:---|:---|:---|
| Class Name                                 | Ticker Symbol | Class ID   |
| Dunham Emerging Markets Stock Fund Class A | DAEMX         | C000059526 |
| Dunham Emerging Markets Stock Fund Class C | DCEMX         | C000059527 |
| Dunham Emerging Markets Stock Fund Class N | DNEMX         | C000059528 |

---

### Dunham High Yield Bond Fund (Series ID: S000020978)

---

|  |  |  |
|:---|:---|:---|
| Class Name                          | Ticker Symbol | Class ID   |
| Dunham High Yield Bond Fund Class A | DAHYX         | C000059529 |
| Dunham High Yield Bond Fund Class C | DCHYX         | C000059530 |
| Dunham High Yield Bond Fund Class N | DNHYX         | C000059531 |

---

### Dunham International Stock Fund (Series ID: S000020979)

---

|  |  |  |
|:---|:---|:---|
| Class Name                              | Ticker Symbol | Class ID   |
| Dunham International Stock Fund Class A | DAINX         | C000059532 |
| Dunham International Stock Fund Class C | DCINX         | C000059533 |
| Dunham International Stock Fund Class N | DNINX         | C000059534 |

---

### Dunham Monthly Distribution Fund (Series ID: S000022888)

---

|  |  |  |
|:---|:---|:---|
| Class Name                               | Ticker Symbol | Class ID   |
| Dunham Monthly Distribution Fund Class A | DAMDX         | C000066378 |
| Dunham Monthly Distribution Fund Class C | DCMDX         | C000066379 |
| Dunham Monthly Distribution Fund Class N | DNMDX         | C000066380 |

---

### Dunham Dynamic Macro Fund (Series ID: S000028743)

---

|  |  |  |
|:---|:---|:---|
| Class Name                        | Ticker Symbol | Class ID   |
| Dunham Dynamic Macro Fund Class A | DAAVX         | C000087895 |
| Dunham Dynamic Macro Fund Class C | DCAVX         | C000087896 |
| Dunham Dynamic Macro Fund Class N | DNAVX         | C000087897 |

---

### Dunham Focused Large Cap Growth Fund (Series ID: S000034854)

---

|  |  |  |
|:---|:---|:---|
| Class Name                                   | Ticker Symbol | Class ID   |
| Dunham Focused Large Cap Growth Fund Class A | DAFGX         | C000107185 |
| Dunham Focused Large Cap Growth Fund Class C | DCFGX         | C000107186 |
| Dunham Focused Large Cap Growth Fund Class N | DNFGX         | C000107187 |

---

### Dunham International Opportunity Bond Fund (Series ID: S000042247)

---

|  |  |  |
|:---|:---|:---|
| Class Name                                         | Ticker Symbol | Class ID   |
| Dunham International Opportunity Bond Fund Class A | DAIOX         | C000131120 |
| Dunham International Opportunity Bond Fund Class C | DCIOX         | C000131121 |
| Dunham International Opportunity Bond Fund Class N | DNIOX         | C000131122 |

---

### Dunham Floating Rate Bond Fund (Series ID: S000042248)

---

|  |  |  |
|:---|:---|:---|
| Class Name                             | Ticker Symbol | Class ID   |
| Dunham Floating Rate Bond Fund Class A | DAFRX         | C000131123 |
| Dunham Floating Rate Bond Fund Class C | DCFRX         | C000131124 |
| Dunham Floating Rate Bond Fund Class N | DNFRX         | C000131125 |

---

## Series and Classes Contracts Data

### Dunham Real Estate Stock Fund (Series ID: S000020971)

| Class ID   | Class Name                            | Ticker Symbol   |
|:---|:---|:---|
| C000059508 | Dunham Real Estate Stock Fund Class A | DAREX           |
| C000059509 | Dunham Real Estate Stock Fund Class C | DCREX           |
| C000059510 | Dunham Real Estate Stock Fund Class N | DNREX           |

### Dunham Large Cap Value Fund (Series ID: S000020972)

| Class ID   | Class Name                          | Ticker Symbol   |
|:---|:---|:---|
| C000059511 | Dunham Large Cap Value Fund Class A | DALVX           |
| C000059512 | Dunham Large Cap Value Fund Class C | DCLVX           |
| C000059513 | Dunham Large Cap Value Fund Class N | DNLVX           |

### Dunham Small Cap Growth Fund (Series ID: S000020973)

| Class ID   | Class Name                           | Ticker Symbol   |
|:---|:---|:---|
| C000059514 | Dunham Small Cap Growth Fund Class A | DADGX           |
| C000059515 | Dunham Small Cap Growth Fund Class C | DCDGX           |
| C000059516 | Dunham Small Cap Growth Fund Class N | DNDGX           |

### Dunham Small Cap Value Fund (Series ID: S000020974)

| Class ID   | Class Name                          | Ticker Symbol   |
|:---|:---|:---|
| C000059517 | Dunham Small Cap Value Fund Class A | DASVX           |
| C000059518 | Dunham Small Cap Value Fund Class C | DCSVX           |
| C000059519 | Dunham Small Cap Value Fund Class N | DNSVX           |

### Dunham Long/Short Credit Fund (Series ID: S000020975)

| Class ID   | Class Name                            | Ticker Symbol   |
|:---|:---|:---|
| C000059520 | Dunham Long/Short Credit Fund Class A | DAAIX           |
| C000059521 | Dunham Long/Short Credit Fund Class C | DCAIX           |
| C000059522 | Dunham Long/Short Credit Fund Class N | DNAIX           |

### Dunham Corporate/Government Bond Fund (Series ID: S000020976)

| Class ID   | Class Name                                    | Ticker Symbol   |
|:---|:---|:---|
| C000059523 | Dunham Corporate/Government Bond Fund Class A | DACGX           |
| C000059524 | Dunham Corporate/Government Bond Fund Class C | DCCGX           |
| C000059525 | Dunham Corporate/Government Bond Fund Class N | DNCGX           |

### Dunham Emerging Markets Stock Fund (Series ID: S000020977)

| Class ID   | Class Name                                 | Ticker Symbol   |
|:---|:---|:---|
| C000059526 | Dunham Emerging Markets Stock Fund Class A | DAEMX           |
| C000059527 | Dunham Emerging Markets Stock Fund Class C | DCEMX           |
| C000059528 | Dunham Emerging Markets Stock Fund Class N | DNEMX           |

### Dunham High Yield Bond Fund (Series ID: S000020978)

| Class ID   | Class Name                          | Ticker Symbol   |
|:---|:---|:---|
| C000059529 | Dunham High Yield Bond Fund Class A | DAHYX           |
| C000059530 | Dunham High Yield Bond Fund Class C | DCHYX           |
| C000059531 | Dunham High Yield Bond Fund Class N | DNHYX           |

### Dunham International Stock Fund (Series ID: S000020979)

| Class ID   | Class Name                              | Ticker Symbol   |
|:---|:---|:---|
| C000059532 | Dunham International Stock Fund Class A | DAINX           |
| C000059533 | Dunham International Stock Fund Class C | DCINX           |
| C000059534 | Dunham International Stock Fund Class N | DNINX           |

### Dunham Monthly Distribution Fund (Series ID: S000022888)

| Class ID   | Class Name                               | Ticker Symbol   |
|:---|:---|:---|
| C000066378 | Dunham Monthly Distribution Fund Class A | DAMDX           |
| C000066379 | Dunham Monthly Distribution Fund Class C | DCMDX           |
| C000066380 | Dunham Monthly Distribution Fund Class N | DNMDX           |

### Dunham Dynamic Macro Fund (Series ID: S000028743)

| Class ID   | Class Name                        | Ticker Symbol   |
|:---|:---|:---|
| C000087895 | Dunham Dynamic Macro Fund Class A | DAAVX           |
| C000087896 | Dunham Dynamic Macro Fund Class C | DCAVX           |
| C000087897 | Dunham Dynamic Macro Fund Class N | DNAVX           |

### Dunham Focused Large Cap Growth Fund (Series ID: S000034854)

| Class ID   | Class Name                                   | Ticker Symbol   |
|:---|:---|:---|
| C000107185 | Dunham Focused Large Cap Growth Fund Class A | DAFGX           |
| C000107186 | Dunham Focused Large Cap Growth Fund Class C | DCFGX           |
| C000107187 | Dunham Focused Large Cap Growth Fund Class N | DNFGX           |

### Dunham International Opportunity Bond Fund (Series ID: S000042247)

| Class ID   | Class Name                                         | Ticker Symbol   |
|:---|:---|:---|
| C000131120 | Dunham International Opportunity Bond Fund Class A | DAIOX           |
| C000131121 | Dunham International Opportunity Bond Fund Class C | DCIOX           |
| C000131122 | Dunham International Opportunity Bond Fund Class N | DNIOX           |

### Dunham Floating Rate Bond Fund (Series ID: S000042248)

| Class ID   | Class Name                             | Ticker Symbol   |
|:---|:---|:---|
| C000131123 | Dunham Floating Rate Bond Fund Class A | DAFRX           |
| C000131124 | Dunham Floating Rate Bond Fund Class C | DCFRX           |
| C000131125 | Dunham Floating Rate Bond Fund Class N | DNFRX           |

?xml version="1.0" encoding="utf-8"?

**DUNHAM FUNDS**

**Supplement dated March 22, 2023 to the Statutory Prospectus dated March 1, 2023 (the "Prospectus")**

**This Supplement updates and supersedes any contrary information contained in the Prospectus.**

Effective March 1, 2023, the Benchmark Index of the Dunham Monthly Distribution Fund is the Credit Suisse Merger Arbitrage Liquid Index.

 

*Reference is made to the section entitled "Fees and Expenses of the Fund" beginning on page 56 of the Prospectus and page 1 of the Summary Prospectus of the Dunham Monthly Distribution Fund. The tables describing the expenses of the Fund are deleted in their entirety and replaced with the following:*

**Fees and Expenses of the Fund:** 

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A shares if you and your family invest, or agree to invest in the future, at least $50,000 in the Fund. More information about these and other discounts is available from your financial professional and in **How to Purchase Shares** on page 102 of the Fund's Prospectus and in **How to Buy and Sell Shares** on page 87 of the Fund's Statement of Additional Information.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; **Shareholder Fees**<br> **(fees paid directly from your investment)** | &nbsp;&nbsp;**Class A** | &nbsp;&nbsp;**Class C** | &nbsp;&nbsp;**Class N** |
| &nbsp;&nbsp; Maximum Sales Charge (Load) Imposed on Purchases<br> (as a % of offering price) | &nbsp;&nbsp;5.75% |  |  |
| &nbsp;&nbsp; Maximum Deferred Sales Charge (Load)<br> (as a % of the of the original purchase price for purchases of $1 million or more) | &nbsp;&nbsp;0.75% |  |  |
| &nbsp;&nbsp; Maximum Sales Charge (Load) Imposed<br> on Reinvested Dividends and other Distributions |  |  |  |
| &nbsp;&nbsp;Redemption Fee |  |  |  |
| &nbsp;&nbsp;Exchange Fee |  |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; **Annual Fund Operating Expenses**<br> **(expenses that you pay each year as a** <br> **percentage of the value of your investment)** |  |  |  |
| &nbsp;&nbsp;Management Fees<sup>(1)(2)</sup> | &nbsp;&nbsp;1.38% | &nbsp;&nbsp;1.38% | &nbsp;&nbsp;1.38% |
| &nbsp;&nbsp;Distribution and/or Service (12b-1) Fees | &nbsp;&nbsp;0.25% | &nbsp;&nbsp;1.00% | &nbsp;&nbsp;0.00% |
| &nbsp;&nbsp;Other Expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend Expense on Securities Sold Short&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | &nbsp;&nbsp;0.39% | &nbsp;&nbsp;0.39% | &nbsp;&nbsp;0.39% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remaining Other Expenses&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | &nbsp;&nbsp;0.15% | &nbsp;&nbsp;0.15% | &nbsp;&nbsp;0.15% |
| &nbsp;&nbsp;Acquired Fund Fees and Expenses<sup>(3)</sup> | &nbsp;&nbsp;0.01% | &nbsp;&nbsp;0.01% | &nbsp;&nbsp;0.01% |
| &nbsp;&nbsp;Total Annual Fund Operating Expenses | &nbsp;&nbsp;2.18% | &nbsp;&nbsp;2.93% | &nbsp;&nbsp;1.93% |

---

(1) Management
Fees have been restated to reflect a new benchmark index that is effective March 1, 2023. The Management fees assume the Sub-Adviser's
base fee. Actual Sub-Advisory fees may be higher or lower depending on Fund performance. The Sub-Advisory Fee is a fulcrum fee with a
base or fulcrum of 60 bps (0.60%) and can range from 0.22% to 0.98%, based on the Fund's performance relative to the Credit Suisse
Merger Arbitrage Liquid Index, the Fund's benchmark.

(2) The management fees above differ from the management fees reflected in the Fund's most recent Annual Report, which were used in the calculation of the expenses shown in the Fund's Financial Highlights. The management fees reflected in the Annual Report are calculated using the previous benchmark index. For the fiscal year ended October
31, 2022, the Sub-Adviser Fee shown in the Annual Report represents a significantly higher rate. This anomaly was caused by the nature/timing of the performance and the
average assets during the build-up period and that the build-up period crossed fiscal years. In a new Sub-Adviser Fulcrum Fee Agreement,
the build-up occurs over the first 12 months wherein only
the minimum fee is paid out on a monthly basis and any potential performance fee earned above the minimum fee is accrued on a daily basis
and paid out in a lump sum after it is finalized at the end of the twelfth month. The Fund underperformed its benchmark index by a meaningful
amount as of the end of the 2021 fiscal year, thus the accrued performance amount above the minimum fee was close to zero. After the
2022 fiscal year commenced, the Fund meaningfully outperformed its benchmark index, so the accrued amount above the minimum fee significantly
increased. The accrual shifted from near zero to the maximum amount, but since the shift occurred primarily in the 2022 fiscal year,
it was all reflected in five months of one fiscal period and not spread out over a twelve-month period (since the build-up period spanned
seven months in the 2021 fiscal year and five months in the 2022 fiscal year). After that point, the Sub-Adviser continued to outperform
so the Fund continued to accrue near the maximum fee rate.

(3) Acquired Fund Fees and Expenses
are the indirect costs of investing in other investment companies. The operating expenses in this fee table may not correlate to the expense
ratio in the Fund's financial highlights because the financial statements include only the direct operating expenses incurred by the Fund,
not the indirect costs of investing in other investment companies.

*The table under the sub-heading "Example" that describes the costs of investing in shares of the Fund on page 56 of the Prospectus and page 1 of the Summary Prospectus is deleted in its entirety and replaced with the following:*

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**<u>Class</u>** | &nbsp;&nbsp;**<u>1 Year</u>** | &nbsp;&nbsp;**<u>3 Years</u>** | &nbsp;&nbsp;**<u>5 Years</u>** | &nbsp;&nbsp;**<u>10 Years</u>** |
| &nbsp;&nbsp;Class A | &nbsp;&nbsp;$783 | &nbsp;&nbsp;$1218 | &nbsp;&nbsp;$1677 | &nbsp;&nbsp;$2944 |
| &nbsp;&nbsp;Class C | &nbsp;&nbsp;$296 | &nbsp;&nbsp;$907 | &nbsp;&nbsp;$1543 | &nbsp;&nbsp;$3252 |
| &nbsp;&nbsp;Class N | &nbsp;&nbsp;$196 | &nbsp;&nbsp;$606 | $1042 | &nbsp;&nbsp;$2254 |

---

*The information under the subheading "Performance—Average Annual Total Return" beginning on page 60 of the Prospectus and on page 5 of the Summary Prospectus is deleted in its entirety and replaced with the following:*

 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**For the periods ended December 31, 2022\*** | &nbsp;&nbsp;**1 Year** <sup>\*</sup> | &nbsp;&nbsp;**5 Years** <sup>\*</sup> | &nbsp;&nbsp;**10 Years** <sup>\*</sup> |
| &nbsp;&nbsp;**Class N Shares** |  |  |  |
| &nbsp;&nbsp;return before taxes | &nbsp;&nbsp;0.80% | &nbsp;&nbsp;1.26% | &nbsp;&nbsp;2.05% |
| &nbsp;&nbsp;return after taxes on distributions | &nbsp;&nbsp;0.15% | &nbsp;&nbsp;0.66% | &nbsp;&nbsp;1.09% |
| &nbsp;&nbsp;return after taxes on distributions and sale of Fund shares | &nbsp;&nbsp;0.68% | &nbsp;&nbsp;0.90% | &nbsp;&nbsp;1.32% |
| &nbsp;&nbsp;**Class C Shares** |  |  |  |
| &nbsp;&nbsp;return before taxes | &nbsp;&nbsp;-0.21% | &nbsp;&nbsp;0.26% | &nbsp;&nbsp;1.04% |
| &nbsp;&nbsp;**Class A Shares** |  |  |  |
| &nbsp;&nbsp;return before taxes | &nbsp;&nbsp;-5.23% | &nbsp;&nbsp;-0.17% | &nbsp;&nbsp;1.20% |
| &nbsp;&nbsp; **Credit Suisse Merger Arbitrage Liquid Index** \*\*<br> (reflects no deduction for fees, expenses, or taxes) | &nbsp;&nbsp;2.29% | &nbsp;&nbsp;3.83% | &nbsp;&nbsp;2.74% |
| &nbsp;&nbsp; **IQ Hedge Market Neutral Total Return Index**<br> (reflects no deduction for fees, expenses, or taxes) | &nbsp;&nbsp;-6.38% | &nbsp;&nbsp;0.80% | &nbsp;&nbsp;1.52% |
| &nbsp;&nbsp;**Morningstar Event Driven Category** (return before taxes)\*\*\* | &nbsp;&nbsp;-1.75% | &nbsp;&nbsp;3.60% | &nbsp;&nbsp;3.19% |

---

\* On April 1, 2021, the Fund's principal investment strategy was materially changed. Therefore, the Fund's performance prior to that date may have been different had the current principal investment strategy been in place.

\*\* Change in benchmark is due to the discontinuation of the IQ Hedge Market Neutral Total Return Index. As a result, the Fund's performance is compared to both indexes in the table above.

\*\*\* The Morningstar Event Driven Category is generally representative of mutual funds that primarily employ strategies that seek to profit from corporate actions, such as mergers and acquisitions. Mutual funds in this category typically focus on equity securities but can invest across the capital structure. However, they typically have low to moderate equity market sensitivity since company-specific developments tend to drive security prices.

*The corresponding information under the heading "Investment Adviser" beginning on page 91 of the Prospectus is deleted in its entirety and replaced with the following:*

---

| | | | |
|:---|:---|:---|:---|
| | <br>**Management Fee** | **Adviser's**<br>**Portion** | **Sub-Adviser's**<br>**Portion** |
| Corporate/Government Bond | 0.65% – 0.95% | 0.50% | 0.15% – 0.45% |
| Floating Rate Bond | 0.78% – 0.98% | 0.60% | 0.18% – 0.38% |
| High-Yield Bond | 0.82% – 1.02% | 0.60% | 0.22% – 0.42% |
| International Opportunity Bond | 0.80% – 1.30% | 0.60% | 0.20% – 0.70% |
| Large Cap Value | 0.75% – 1.15% | 0.65% | 0.10% – 0.50% |
| Small Cap Value | 0.75% – 1.45% | 0.65% | 0.10% – 0.80% |
| Focused Large Cap Growth | 0.85% – 1.15% | 0.65% | 0.20% – 0.50% |
| Small Cap Growth | 0.65% – 1.65% | 0.65% | 0.00% – 1.00% |
| Emerging Markets Stock | 0.70% – 1.50% | 0.65% | 0.05% – 0.85% |
| International Stock | 0.95% – 1.65% | 0.65% | 0.30% – 1.00% |
| Dynamic Macro\* | 0.90% – 1.60% | 0.65% | 0.25% – 0.95% |
| Long/Short Credit | 0.70% – 1.80% | 0.65% | 0.05% – 1.15% |
| Monthly Distribution | 0.87% – 1.63% | 0.65% | 0.22% – 0.98% |
| Real Estate Stock | &nbsp;&nbsp;&nbsp;&nbsp;0.80% – 1.40% | 0.65% | 0.15% – 0.75% |

---

\* Prior to January 31, 2023, the Sub-Adviser's portion for Dynamic Macro was 0.40% – 1.10% and the Management fee range was 1.05% – 1.75%.

If you have any questions, please contact the Fund at (888) 3DUNHAM (338-6426).

**Investors Should Retain This Supplement For Future Reference**

**DUNHAM FUNDS**

**Supplement dated March 22, 2023 to the Statement of Additional Information dated March 1, 2023 (the "SAI")**

**This Supplement updates and supersedes any contrary information contained in the SAI.**

Effective March 1, 2023, the Benchmark Index of the Dunham Monthly Distribution Fund is the Credit Suisse Merger Arbitrage Liquid Index.

 

*The corresponding information under the heading "The Fulcrum Fee Calculation Methodology for the Dunham Funds Sub-Advisers" beginning on page 54 of the SAI is deleted in its entirety and replaced with the following:*

 

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Fund Name** | &nbsp;&nbsp;**Benchmark** |
| &nbsp;&nbsp;Dunham Corporate / Government Bond Fund | &nbsp;&nbsp;Bloomberg Aggregate Bond Index |
| &nbsp;&nbsp;Dunham Floating Rate Bond Fund | &nbsp;&nbsp;Morningstar LSTA Leveraged Loan 100 Index |
| &nbsp;&nbsp;Dunham High-Yield Bond Fund | &nbsp;&nbsp;Bloomberg U.S. Corporate High-Yield Ba/B 2% Issuer Capped Index |
| &nbsp;&nbsp;Dunham International Opportunity Bond Fund | &nbsp;&nbsp;Bloomberg Global Aggregate Bond ex-US Index Hedged |
| &nbsp;&nbsp;Dunham Large Cap Value Fund | &nbsp;&nbsp;Russell 1000<sup>®</sup> Value Index |
| &nbsp;&nbsp;Dunham Small Cap Value Fund | &nbsp;&nbsp;Russell 2000<sup>®</sup> Value Index |
| &nbsp;&nbsp;Dunham Focused Large Cap Growth Fund | &nbsp;&nbsp;Russell 1000<sup>®</sup> Growth Index |
| &nbsp;&nbsp;Dunham Small Cap Growth Fund | &nbsp;&nbsp;Russell 2000<sup>®</sup> Growth Index |
| &nbsp;&nbsp;Dunham Emerging Markets Stock Fund | &nbsp;&nbsp;MSCI Emerging Markets Index (Net) |
| &nbsp;&nbsp;Dunham International Stock Fund | &nbsp;&nbsp;MSCI AC World ex US Index (Net) |
| &nbsp;&nbsp;Dunham Dynamic Macro Fund | &nbsp;&nbsp;Dow Jones Moderately Aggressive Portfolio Index |
| &nbsp;&nbsp;Dunham Long/Short Credit Fund | &nbsp;&nbsp;BofA Merrill Lynch U.S. 3-month Treasury Bill Index PLUS 300 bps (3.00%) |
| &nbsp;&nbsp;Dunham Monthly Distribution Fund | &nbsp;&nbsp;Credit Suisse Merger Arbitrage Liquid Index |
| &nbsp;&nbsp;Dunham Real Estate Stock Fund | &nbsp;&nbsp;Dow Jones U.S. Real Estate Total Return Index |

---

If you have any questions, please contact the Fund at (888) 3DUNHAM (338-6426).

**Investors Should Retain This Supplement For Future Reference**