Bonnie N. Baha, CFA, CIC
Director, Global Developed Credit
Portfolio Manager, DoubleLine Core Fixed Income Fund
What is the investment objective of DoubleLine’s Core Fixed Income Fund?
The DoubleLine Core Fixed Income Fund seeks to maximize current income and total return through both income and price appreciation. DoubleLine seeks to accomplish this objective with an emphasis on the preservation of capital and prudent risk management within the context of a highly diversified portfolio.1
Why consider investing in DoubleLine’s Core Fixed Income Fund?
Our team, our process, and our performance. Although DoubleLine was founded in 2009, the senior members of the Core Fixed Income team2 have worked together on average for two decades. Over that time, the team members have successfully navigated several market cycles, including the Asian currency crisis in 1998 and the global credit meltdown in 2008. The longevity and stability of the team distinguish DoubleLine from other multi-sector fixed income teams with less experience working together and/or more turnover among key decision makers.
DoubleLine’s Fixed Income Asset Allocation (FIAA) Committee utilizes a dynamic process to develop a distinct fundamental market outlook during the course of its monthly formal meeting. These meetings incorporate discussions of relevant macroeconomic factors such as interest rates, currencies, credit spreads and the yield curve. Research and analysis performed by the sector teams are presented and discussed with the goal of discerning the relative attractiveness of the various bond market sectors following the consideration of fundamental and technical valuation metrics. The FIAA Committee also reviews these data in light of historical asset class spreads and relative return trends. The ultimate outcome is to affirm or change portfolio weightings to the different sectors of the fixed income universe. Upon implementation, the team consistently reviews the portfolio for sector risks relative to the market and portfolio objectives.
How does DoubleLine manage the Core Fixed Income Fund in rising versus falling interest-rate environments?
The Fund is designed to be an intermediate-term bond strategy. Therefore the strategy should have a duration that is in line with the broad market and the Barclays U.S. Aggregate Bond Index. The duration is managed via asset allocation among the various sectors of the global fixed income universe and typically is within 1.5 years (shorter or longer) of the Barclays U.S. Aggregate Bond Index. As a general rule, we avoid positioning the portfolio based on unidirectional interest rate forecasts, and we manage the strategy’s duration as a function of the risk-adjusted opportunities which we see in the market.
1Diversification does not assure a profit nor protect
against loss in a declining market.
2Senior members include Jeffrey Gundlach, Philip Barach, Bonnie Baha, Luz Padilla, and Greg Whiteley.
All investments have different risk profiles, which should be considered when investing. All investments contain risk and may lose value. The DoubleLine Core Fixed Income Fund is an open end mutual funds. It’s objective seeks to maximize current income and total return. The Core Fixed Income Fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. Please see the Prospectus for the Core Fixed Income Fund at doublelinefunds.com for a detailed description of the risks of investing in each Fund.