DoubleLine Core Fixed Income Fund Reaches 5-Year Anniversary
LOS ANGELES, July 7, 2015 /PRNewswire/ -- The DoubleLine Core Fixed Income Fund ("the Fund"), which launched on June 1, 2010, recently reached its five-year track record. The Fund marked that milestone with excess total return and superior risk-adjusted return as measured by Sharpe ratio versus the benchmark Barclays US Aggregate Bond Index and the average fund in Morningstar's intermediate-term bond fund category ("peer funds").
DoubleLine Capital LP, investment adviser for the DoubleLine Core Fixed Income Fund ("the Fund"), was founded December 14, 2009. The portfolio management of the $4.4 billion DoubleLine Core Fixed Income Fund ("the Fund") is headed by Jeffrey Gundlach, CEO and chief investment officer of DoubleLine Capital LP. Supporting Mr. Gundlach in the management of the Fund are asset allocation specialists and portfolio managers specialized in different sectors of the fixed income universe.
Five-Year Total Return
For the five-year period ended June 30, 2015, the Fund (I shares) delivered an annualized total return of 6.30%. The Fund's benchmark, the Barclays U.S. Aggregate Bond Index ("Barclays Aggregate"), had an annualized total return of 3.35%. The average annualized total return for the I Shares of the funds in Morningstar's intermediate-term bond fund category was 3.95%. Total return represents a fund or asset's generation of income plus its capital appreciation (or minus its capital depreciation), expressed as a percentage of invested principal.
| Quarter End June 30, 2015 |
2Q 2015 |
1-Year |
3-Year Annualized |
5-Year Annualized |
Since Inception Annualized
(6-1-10 to 6-30-15)
|
| I-share |
-0.83% |
2.77% |
3.50% |
6.30% |
6.60% |
| N-share |
-0.98% |
2.42% |
3.21% |
6.03% |
6.33% |
| Morningstar Intermediate Term Bond Fund Category Average |
-1.46% |
1.25% |
2.47% |
3.95% |
4.18% |
| Barclays U.S. Aggregate Index |
-1.68% |
1.86% |
1.83% |
3.35% |
3.61% |
| As of June 30, 2015 |
I-Share |
N-Share |
| Gross Expense Ratio |
0.52% |
0.77% |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling 213-633-8200 or by visiting www.doublelinefunds.com.
Volatility and Risk-Adjusted Return
For the five-year period ended June 30, 2015, the Fund delivered the previously referenced 6.30% annualized total return with volatility, as measured by standard deviation, of 3.05%, resulting in a Sharpe ratio of 2.01.
The Sharpe ratio is a measure of the excess return per unit of risk for an investment asset or a portfolio. By comparison, the Barclays Aggregate had a standard deviation of 2.82%, resulting in a Sharpe ratio of 1.16. The average standard deviation for the Morningstar peer funds category was 2.92%, resulting in a Sharpe ratio of 1.33.
Maximum Drawdown
Over the same five-year period, the Fund had a maximum drawdown of -4.54%. Maximum drawdown is an asset or fund's largest peak-to-trough decline over a given time period, calculated as the percentage from peak to trough. By comparison, Barclays Aggregate had a maximum drawdown of -3.67% while Morningstar peer fund category averaged a maximum drawdown -3.94%.
| July 1, 2010 – June 30, 2015 |
Total Return Annualized |
Standard Deviation |
Sharpe Ratio |
Maximum Drawdown |
| I-share |
6.30% |
3.05% |
2.01 |
-4.54% |
| Barclays U.S. Aggregate Index |
3.35% |
2.82% |
1.16 |
-3.67% |
| Morningstar Intermediate Term Bond Fund Category Average |
3.95% |
2.92% |
1.33 |
-3.94% |
| Past performance is not a guarantee of future results |
||||
Investment Teams
DoubleLine Capital LP, including affiliates, has 142 full-time employees and managed $77 billion1 in assets as of the June 30 end of the second quarter of 2015. DoubleLine has investment professionals specialized in mortgage-backed securities, U.S. government securities, municipal bonds, developed markets corporate and sovereign debt, emerging markets corporate and sovereign debt, commodities and equities, as well as cross-asset class allocation. Investment vehicles managed by DoubleLine include various mutual, exchanged-traded and closed-end funds; separate accounts; hedge funds; variable annuities; and other vehicles.
The DoubleLine Core Fixed Income Fund is an open-end intermediate-term bond fund that invests in different sectors of the fixed income universe, including corporate securities, bank debt, collateralized loan obligations, emerging markets debt, residential and commercial mortgage-backed securities and Treasuries. Portfolio management is the result of active sector allocation and individual security selection. Mr. Gundlach typically decides the sector weightings in monthly meetings of the DoubleLine Fixed Income Allocation Committee. Security selection for each sector is carried out by the investment team specialized in that sector.
Fund Webcast
Mr. Gundlach will hold a webcast at 4:15 pm Eastern/1:15 pm Pacific today (Tuesday July 7) on the DoubleLine Core Fixed Income Fund and the DoubleLine Flexible Income Fund. To register for the webcast, please click here: https://event.webcasts.com/starthere.jsp?ei=1051155
For more information on the Fund's portfolio composition and characteristics, please access the Fund's Statistics page at following web address:
http://doublelinefunds.com/funds/core_fixed_income/statistics.html
Share Class Information
DBLFX (I shares): Minimum initial investment is $100,000 for regular accounts and $5,000 for Individual Retirement Accounts (IRAs). There is no annual 12b-1 fee.
DLFNX (N shares): Minimum initial investment is $2,000 for regular accounts and $500 for IRAs. There is an annual 12b-1 fee of 0.25%.
About DoubleLine Capital LP
DoubleLine Capital LP, a registered investment adviser under the Investment Advisers Act of 1940, acts as the investment adviser for the Fund. DoubleLine and its affiliates managed $66 billion in assets held in closed- and open-end 1940 Act fund, separate account, hedge fund, variable annuity and UCIT vehicles as of the June 30 end of the second quarter of 2015. DoubleLine's headquarters is in Los Angeles, CA. Its offices can be reached by telephone at (213) 633-8200 or by e-mail at [email protected]. Media can reach DoubleLine by e-mail at [email protected]. DoubleLine® is a registered trademark of DoubleLine Capital LP.
Disclosures:
The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contains this and other important information about the fund and may be obtained by calling 1 (877) 354-6311 / 1 (877) DLINE11 or visiting www.doublelinefunds.com. Please read the prospectus carefully before investing.
Mutual fund investing involves risk; Principal loss is possible.
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Investments in Asset-Backed and Mortgage-Backed Securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
The Fund may use certain types of investment derivatives. Derivatives involve risks different from, and in certain cases, greater than the risks presented by more traditional investments. Derivatives may involve certain costs and risk such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The Fund may also invest in securities related to real estate, which may decline in value as a result of factors affecting the real estate industry.
The DoubleLine Total Return Bond Fund intends to invest more than 50% of its net assets in mortgage-backed securities of any maturity or type. The Fund therefore, potentially is more likely to react to any volatility or changes in the mortgage-backed securities marketplace. These risks are greater for investments in emerging markets.
Standard Deviation is a statistical measure that is used by investors as a gauge for the amount of expected volatility.
Maximum Drawdown is an indicator of the risk of a portfolio chosen based on a certain strategy. It measures the largest single drop from peak to bottom in the value of a portfolio.
Sharpe Ratio is a measure that indicates the average return minus the risk-free return divided by the standard deviation of return on an investment.
Morningstar Intermediate-Term Bond Fund Category Average represents a universe of funds with similar investment objectives.
The Barclays Aggregate Bond Index is an index that covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities and asset-backed securities.
One may not directly invest in an index.
Credit distribution is determined from the highest available credit rating from any Nationally Recognized Statistical Rating Organization (NRSRO) generally S&P, Moody's and Fitch. DoubleLine chooses to display credit ratings using S&P's rating convention, although the rating itself might be sourced from another NRSRO.
DoubleLine Capital, LP is the Advisor to the DoubleLine Funds which are distributed by Quasar Distributors, LLC.
1 Numbers are preliminary.
SOURCE DoubleLine
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