introduction to the global bond fund€¦ · u.s dollar index peaked in march 2015 source:...

Live Webcast Hosted By:

Jeffrey GundlachCEO/CIO

Global Bond Fund(DBLGX/DLGBX)

January 19, 2016

Introduction to the Global Bond Fund

DoubleLine Global Fixed Income Webcast 1-19-2016 1

Fund Offerings

Retail and Institutional ClassNo Load Mutual Fund

Retail Inst.N-share I-share

Ticker DLGBX DBLGXMin Investment $2,000 $100,000Min IRA Investment $500 $5,000Gross Expense Ratio 1.17% 0.92%Net Expense Ratio* 0.96% 0.71%

Global Bond Fund

The funds’ investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectuses contain this and other important information about the investment company, and may be obtained by calling 1 (877) 354-6311/1 (877) DLine11, or visiting www.doublelinefunds.com. Read carefully before investing.Mutual fund investing involves risk; Principal loss is possible. Investments in debt securities typically decrease 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 including credit risk, prepayment risk, possible liquidity and default as well as increased susceptibility to adverse economic developments. Investments in foreign securities, which involve political, economic, and currency risks, greater volatility, and differences in accounting methods. These risks are greater for investments in emerging markets. The Fund may use certain types of exchange traded funds or 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 risks 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. ETF investments involve additional risks such as the market price trading at a discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a fund's ability to sell its shares. The Fund may use leverage which may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the fund to be more volatile than if leverage was not used.Opinions expressed are subject to change at any time, are not forecasts and should not be considered investment advice.Fund holdings and sector allocations are subject to change and are not a recommendation to buy or sell any security.*The Advisor has contractually agreed to waive fees and reimburse expenses through November 29, 2016. Diversification does not assure a profit or protect against loss in a declining market.DoubleLine Funds are distributed by Quasar Distributors, LLC.While the Funds are no-load, management fees and other expenses still apply. Please refer to the prospectus for further details.


Announcements

Jeffrey Gundlach – “Just Markets”The “Just Markets” 2016 Outlook Webcast is available now for replayPlease visit www.doubleline.com

Jeffrey Sherman – February 9, 2016Shiller Enhanced CAPE® WebcastGo to www.doublelinefunds.com, Home page under “Events” 2016 Webcast Schedule to register1:15 pm PDT/4:15 pm EDT

Jeffrey Gundlach – March 8, 2016Total Return Bond Fund WebcastGo to www.doublelinefunds.com, Home page under “Events”2016 Webcast Schedule to register1:15 pm PDT/4:15 pm EDT

To Receive Presentation Slides:You can email [email protected]

http://www.doublelinefund.com/

http://www.doublelinefunds.com/

mailto:[email protected]


TAB IGlobal Bond Team


Global Bond MarketsGlobal Bond Investment Team

Portfolio Manager

Jeffery GundlachCIO, CEO

Luz Padilla Michael Schroeder

Vishal Shah

Valerie Ho, CFA

William Campbell

Investment Team

Team Based Decisions

Su Fei Koo

Mark Christensen

Gregory Whiteley

Updated as of November 2015


TAB IIGlobal Bond Markets


Global Bond MarketsFederal Reserve Fed Funds Rate Projections (December 2015)

Source: Federal Reserve Open Markets Committee (FOMC) meeting December 15-16, DoublelineFOMC participants’ assessments of appropriate monetary policy: Midpoint of target range or target level for the federal funds rate.


Global Bond MarketsU.S Dollar Index Spot

U.S dollar Index peaked in March 2015

Source: BloombergU.S. Dollar Index as measured by DXY DXY is the US Dollar Index (USDX) indicates the general value of the US Dollar. Average exchange rates between the US dollar and six major world currencies.An investment cannot be made directly in an index.


Global Bond MarketsWorld GDP Growth Forecasts As of December 31, 2015 Projected 2016

Source: Bianco ResearchGDP = Gross Domestic Product is the monetary value for all the finished goods and services produced within a given country.


Global Bond MarketsU.S. Dollar During Fed Hiking Cycles

SourceL JPMorgan JPM USD Index are investable versions of trade-weighted indices produced by JPMorgans Economics since the 1970s. TCIs /Tradable Currency Indices are available for 17 countries in the G-10 and emerging markets. An investment cannot be made directly in an index.


Global Bond Markets Developed Market Bonds vs. Emerging Market Bonds

Source: Citi World Government Bond Index, Bloomberg, Doubleline as of 1/11/2016.JP Morgan Global Bond – Emerging Markets Global Composite Unhedged in USD, Bloomberg, Doubleline

Citi World Government Bond Index vs. J.P. Morgan GBI-EM Performance


Global Bond Markets Investment Rationale for Global Bonds

• Broad and deep markets

• Diversified sources of potential return

• Potential to capture a higher yield relative to U.S. bond market

• Diversification across different regions, countries and asset classes

• Participation in non-U.S. country specific developments


Global Bond Markets Broad and Deep Markets

49.0%

38.6%

51.0%

61.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2001 Mkt Cap.$33.3trn

2014 Mkt Cap.$90.6trn

Composition of Global Bond Market

U.S. Non - U.S.

Growing Global Bond Market• Globalization has led to widespread issuance of non U.S.-government, agency, and corporate

debt securities. The non-U.S. bond market has grown substantially, and is currently larger thanthe U.S. bond market.

Source: Bank of International Settlements quarterly Review, Q42014. Data as of June 2014 and June 2001.


Global Bond Markets Diversified Sources of Return

Diversification across asset classes• Historically, global bonds have had low correlation to other traditional asset classes.

00.10.20.30.40.50.60.70.80.9

1

Barclays US Aggregate

Barclays US Corporate High

Yield

S&P 500 MSCI EAFE

Low Correlation to Citi Non-US WGBI

Monthly data from 12/31/1990. Source: Bloomberg.Source: BloombergMonthly data from December 31, 1990 through October 31, 2015Please see appendix for index definitions. One cannot invest directly in an index.


Global Bond Markets Participation in Non-U.S. Specific Developments

Diversification across regions, countries and asset classesInvestors can participate in countries who may be in different points in their business cycles which offer opportunity for diversified returns.

Idiosyncratic opportunitiesIndependent sources of return that are uncorrelated to general macro trends:

• Election cycles

• Natural resource discoveries

• Geopolitical events

• Trade agreements

• Demographic trends


TAB IIIGlobal Bond Strategy Process


DoubleLine Global Bond Strategy Investment Process

Investment Process subject to change without notice.

Global Macro ResearchGlobal Asset Allocation led by

Jeffrey Gundlach

Sovereign ResearchIn-depth sovereign research

Active Risk Management

Daily monitoringActive research updates

Portfolio Construction

Country selectionDuration positioningSecurity valuations

DoubleLine Global Bond Strategy

Interest RatesCurrency

USD Sovereign


Global Macro Research



Jeffrey Gundlach





Country selectionDuration positioningSecurity valuations



USD Sovereign


Sovereign Research



Jeffrey Gundlach





Country SelectionDuration PositioningSecurity Valuations



USD Sovereign





Jeffrey Gundlach








USD Sovereign


TAB IVGlobal Fund Characteristics


DoubleLine Global Bond Characteristics

Characteristics are estimates and may be altered without notice based on economic, market or other conditions. Please see Appendix for Index Definitions. An Investment cannot be made directly in an index.

• Core holdings will consist of sovereign government bonds denominated in local currency

• The Fund will primarily invest in investment grade rated securities, but may hold up to 25% in below investment grade issuers

• The Fund will opportunistically hedge currencies and take currency overlay positions as opportunities arise.

• The Fund will opportunistically hold dollar sovereign bonds and corporate credit bonds to take advantage of opportunities as they arise.


Global Bond FundCredit Quality Breakdown – As of January 15, 2016

Credit distribution is determine from the highest available credit rating from any Nationally Recognized Statistical Rating Agency (“NRSRO”, generally S&P, Moodysand Fitch). DoubleLine Chooses to display credit ratings using S&P’s rating convention, although the rating itself might be sourced from another NRSRO.

Cash & Accrued

5.7%

AAA63.8%

AA1.4%

A17.3%

BBB10.4%

BB1.4%

Not Rated0.0%

Global Bond Fund


Global Bond FundRegion Distribution – As of January 15, 2016

CEEMEA = Central Eastern Europe Middle East & Africa

Portfolio Region Distribution

(% of Portfolio) DBLGX WGBI

Americas 44.7% 35.7%

Europe 18.4% 38.9%

CEEMEA 11.6% 0.9%

Asia 19.5% 24.4%


Global Bond FundDuration Breakdown – As of January 15, 2016

Less than 15.7% 1 to 3 years

3.2%

3 to 5 years19.0%

5 to 7 years29.9%

7 to 10 years42.2%

Global Bond Fund

Live Webcast Hosted By:

Jeffrey GundlachCEO/CIO

Global Bond Fund(DBLGX/DLGBX)

January 19, 2016

Introduction to the Global Bond Fund


Announcements









DefinitionsJP Morgan Emerging Markets Government Bond Index (GBI-EM/JGENBDUU) – This index is the first comprehensive, global local Emerging Markets index, and consists of regularly traded, liquid fixed-rate, domestic currency government bonds to which international investors can gain exposure. Citi World Government Bond Index– This is an index of fixed-rate local currency, investment grade sovereign bonds that comprises sovereign debt from over 20 countries. DXY – the U.S. Dollar (USD) Index indicates the general international value of the USD by averaging the exchange rates between the USD and major world currencies. Standard Deviation - A measure of the variation or dispersion of a set of data from its mean or expected/budgeted value. A low standard deviation indicates that the data points tend to be very close to the mean, whereas a high standard deviation indicates that the data is spread out over a large range of values. A measure of an investment's volatility.Market Price - The weighted average of the prices of the fund’s portfolio holdings. While market price is a component of the fund’s Net Asset Value (NAV), it should not be confused with the fund’s NAV.Duration - A measure of the sensitivity of the price of a fixed income investment to a change in interest rates, expressed as a number of years.Average Life - The average number of years that each dollar of unpaid principal due on the mortgage remains outstanding. Average life is computed as the weighted average time to the receipt of all the future cash flows, using as the weights the dollar amounts of the principal paydowns.Effective Exchange Rate - The effective exchange rate is a measure of the value of a currency against a ‘basket’ of other currencies, relative to a base date. It is calculated as a weighted geometric average of the exchange rates, expressed in the form of an index. The weights used are designed to measure, for an individual country, the relative importance or each of the other countries as a competitor to its manufacturing sector and reflect aggregate trade flows in manufactured goods.Correlation - A statistical measurement of the relationship between two variables. Possible correlations range from +1 to -1. A zero correlation indicates that there is no relationship between the variables. A correlation of -1 indicates a perfect negative correlation and +1 indicates a perfect positive correlation.Barclays U.S. Aggregate Bond Index - An index that represents securities that are SEC-registered, taxable, and dollar denominated. The index 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. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.S&P 500 - A capitalized-weighted index of 500 stocks chosen for market size, liquidity an dindustry grouping, among other factors. This index is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.Morgan Stanley Capital International EAFE Index (MSCI-EAFE) - A market-capitalization weighted stock market index designed to measure equity market performance of developed markets outside of the U.S. and Canada. This index includes a selection of stocks from 21 developed markets, excluding the U.S. and Canada.Barclays U.S. Corporate High Yield Index - An index that covers the universe of fixed rate, non-investment grade debt. Eurobonds and debt issuer from countries designated as emerging markets (e.g. Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian and global bonds (SEC registered) of issuers in non-EMG countries are included. Original issue zeros, step-up coupon structures, 144-As and pay-in-kind (PIK, as of October 1, 2009) are also included.Below Investment Grade - A term indicating that a security is rated below investment grade. These securities are seen as having higher default risk or other adverse credit events, but typically pay higher yields than better quality bonds in order to make them attractive. They are less likely to pay back 100 cents on the dollar.Investment Grade - A level of credit rating for stocks regarded as carrying a minimal risk to investors. Ratings are based on corporate bond model. The higher the rating the more likely the bond will pay back par/100 cents on the dollar.


Disclaimer

Important Information Regarding This ReportThis report was prepared as a private communication and was not intended for public circulation. Clients or prospects may authorize distribution to their consultants or other agents.

Issue selection processes and tools illustrated throughout this presentation are samples and may be modified periodically. Such charts are not the only tools used by the investment teams, are extremely sophisticated, may not always produce the intended results and are not intended for use by non-professionals.

DoubleLine has no obligation to provide revised assessments in the event of changed circumstances. While we have gathered this information from sources believed to be reliable, DoubleLine cannot guarantee the accuracy of the information provided. Securities discussed are not recommendations and are presented as examples of issue selection or portfolio management processes. They have been picked for comparison or illustration purposes only. No security presented within is either offered for sale or purchase. DoubleLine reserves the right to change its investment perspective and outlook without notice as market conditions dictate or as additional information becomes available. This material may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to a client’s account, or market or regulatory developments.

Important Information Regarding Risk FactorsInvestment strategies may not achieve the desired results due to implementation lag, other timing factors, portfolio management decision-making, economic or market conditions or other unanticipated factors. The views and forecasts expressed in this material are as of the date indicated, are subject to change without notice, may not come to pass and do not represent a recommendation or offer of any particular security, strategy, or investment. Past performance is no guarantee of future results.

Important Information Regarding DoubleLineIn preparing the client reports (and in managing the portfolios), DoubleLine and its vendors price separate account portfolio securities using various sources, including independent pricing services and fair value processes such as benchmarking.

To receive a complimentary copy of DoubleLine’s current Form ADV (which contains important additional disclosure information), a copy of the DoubleLine’sproxy voting policies and procedures, or to obtain additional information on DoubleLine’s proxy voting decisions, please contact DoubleLine’s Client Services.


Important Information Regarding DoubleLine’s Investment StyleDoubleLine seeks to maximize investment results consistent with our interpretation of client guidelines and investment mandate. While DoubleLine seeks to maximize returns for our clients consistent with guidelines, DoubleLine cannot guarantee that DoubleLine will outperform a client's specified benchmark or the market or that DoubleLine’s risk management techniques will successfully mitigate losses. Additionally, the nature of portfolio diversification implies that certain holdings and sectors in a client's portfolio may be rising in price while others are falling; or, that some issues and sectors are outperforming while others are underperforming. Such out or underperformance can be the result of many factors, such as but not limited to duration/interest rate exposure, yield curve exposure, bond sector exposure, or news or rumors specific to a single name.DoubleLine is an active manager and will adjust the composition of client’s portfolios consistent with our investment team’s judgment concerning market conditions and any particular sector or security. The construction of DoubleLine portfolios may differ substantially from the construction of any of a variety of bond market indices. As such, a DoubleLine portfolio has the potential to underperform or outperform a bond market index. Since markets can remain inefficiently priced for long periods, DoubleLine’s performance is properly assessed over a full multi-year market cycle.

Important Information Regarding Client ResponsibilitiesClients are requested to carefully review all portfolio holdings and strategies, including by comparing the custodial statement to any statements received from DoubleLine. Clients should promptly inform DoubleLine of any potential or perceived policy or guideline inconsistencies. In particular, DoubleLine understands that guideline enabling language is subject to interpretation and DoubleLine strongly encourages clients to express any contrasting interpretation as soon as practical. Clients are also requested to notify DoubleLine of any updates to Client’s organization, such as (but not limited to) adding affiliates (including broker dealer affiliates), issuing additional securities, name changes, mergers or other alterations to Client’s legal structure.

DoubleLine® is a registered trademark of DoubleLine Capital LP.

© 2016 DoubleLine Capital LP

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introduction to the global bond fund€¦ · u.s dollar index peaked in march 2015 source:...

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