How is the DoubleLine Total Return Strategy similar to the Benchmark? Why does the team prefer mortgage credit?
When Mr. Gundlach started the Total Return Strategy over 30 years ago*, it came as a result of observing that it was potentially possible to have the same or higher income with the same or lower risk than that of a standard index fund or the Benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index (“Agg/Aggregate”), which is the most common index used in the intermediate-term fixed income category. We looked at the historical performance and yields of the various major fixed income sectors and the data was powerfully convincing that the Agency mortgage market had lower volatility than the Aggregate market index and about the same return.