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News

Week of October 13, 2014 - Core Plus Fixed Income

The DoubleLine Core Plus Fixed Income Strategy ("the Strategy") maintains an objective to outperform the Barclays U.S. Aggregate Bond Index by blending bottom-up security selection with active sector allocation across fixed income securities. Allocation decisions are made by the DoubleLine Fixed Income Asset Allocation Committee (FIAA) led by Jeffrey Gundlach which includes senior portfolio managers from each asset class who on average have worked over 17 years together. The long-standing tenure of the committee members provides consistent managerial expertise which can be instrumental when navigating through different interest rate environments. The FIAA Committee seeks to manage the Strategy by adjusting asset weightings based on the analysis of sector fundamentals and relative valuation in fixed income markets. The result is a diversified, multi-sector Strategy that has generally been able to outperform the benchmark returns.

The Strategy does not use derivatives or futures and does not take unidirectional interest rate or credit bets, unlike many of its larger competitors in the Intermediate-term bond category. All securities have a CUSIP. Furthermore, the Strategy has a high Sherman Ratio1 which investors can use to measure return expectations per unit of interest rate risk. As of August 30, 2014 the Strategy had a Sherman Ratio of 0.94 which is more than twice that of the Barclays U.S. Aggregate Bond Index.

For more information about the DoubleLine Core Plus Fixed Income Strategy please click here

Strategy SEC Yield2 Duration3 Sharpe Ratio4 Sherman Ratio1
DoubleLine Core Plus Fixed Income 4.03% 4.3 2.32 0.94
Barclays U.S. Aggregate Bond Index5 2.22% 5.6 1.37 0.40

DoubleLine Core Plus Fixed Income Strategy
Representative Account, as of September 30, 2014


1 Named after DoubleLine portfolio manager Jeff Sherman, the “Sherman Ratio” calculates the expected return (yield) per unit of interest rate risk (duration). Calculated by dividing the SEC Yield by Duration.

2 SEC Yield calculation is based on a 30-day period ending on the last day of the previous month. It is computed by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period.

3 Duration is a commonly used measure of the potential volatility of the price of a debt securities, prior to maturity. Securities with a longer duration generally have more volatile prices than securities of comparable quality with shorter duration.

4 Sharpe ratio is a reward-to-variability ratio and a measure of the excess return (or Risk Premium) per unit of risk in an investment asset or a trading strategy.

5 Barclays U.S. Aggregate yield metric represents the index Yield to Worst.

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Archived Strategy News

New DoubleLine Videos

Articles & Video about DoubleLine

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Jeffrey Gundlach
8-15-14 CNBC "DoubleLine's Gundlach: Could see U.S. 10-year yields go to 2.2%"
Click here to view video
02-12-14 "Gundlach: QE will not end in 2014"
http://video.cnbc.com/gallery/?video=3000245159
02-12-14 "Gundlach: Market has discounted tapering" http://video.cnbc.com/gallery/?video=3000245506

Vincent Fiorillo
04-14-14 "Housing Finance Reform"
http://video.cnbc.com/gallery/?video=3000265427

Information presented was current as of the date the material was prepared by an outside party. DoubleLine assumes no duty to update this information.

Events

Click here for DoubleLine's 2014 Webcast Schedule

Thursday, September 11, 2014 at 1:15 pm PT / 4:15 pm ET
"Opportunistic CMBS/CRE Strategy Launch"
No replay available.

Tuesday, January 14, 2014 at 1:15 pm PT / 4:15 pm ET
Jeffrey Gundlach "Let the Race Begin! 2014 Markets: Year of the Horse"
Click Here for Replay
Click here for Webcast Recap (pdf)

Thursday, June 27, 2013 at 1:15 pm PDT / 4:15 pm EDT
Jeffrey Gundlach "What in the World is Going On?" (Redux)
Click here for replay
Click here for Webcast Recap (pdf)

Tuesday, January 8, 2013
Jeffrey Gundlach "2013 Market Outlook: Year of the Snake"
Click here for Webcast Recap (pdf)

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