TAMPA, Fla., Dec. 3, 2024 /PRNewswire/ – The DoubleLine Multi-Sector Income ETF (Ticker Symbol: DMX), an actively managed exchange-traded fund (ETF) invested primarily in corporate and securitized credit, began trading today on the NYSE Arca exchange.
Leading the team managing the DoubleLine Multi-Sector Income ETF (or “the Fund”) are its Portfolio Managers: Robert Cohen, Director of DoubleLine’s Global Developed Credit team, which invests in investment grade and high yield corporate fixed-income securities, and bank debt; and Ken Shinoda, Chairman of the firm’s Structured Products Committee and lead Portfolio Manager on the non‑Agency Residential Mortgage-Backed Securities (RMBS) team. Integrated into the investment and risk management program of the Fund are credit teams comprising 71 investment professionals.
Messrs. Cohen and Shinoda noted the Fund will seek to deliver its investment objectives of income and capital appreciation principally through bottom-up security selection and credit underwriting as well as top-down sector allocation.
“Through individual security selection across credit markets,” Mr. Cohen said, “we aim to build a portfolio that provides attractive yields and income with potentially lower volatility than one composed solely of high yield corporates.”
Portfolio Managers Cohen and Shinoda see several investment roles for the Fund, including as an alternative to equities given stretched stock valuations or as a complement to core fixed-income holdings.
“The investment process begins with bottom-up credit underwriting and ends with portfolio construction,” Mr. Shinoda said. “The latter takes into consideration relative value among the different sectors and builds an asset allocation based on our outlook on the economic cycle. Specialized investment teams conduct fundamental research on their respective sectors of the fixed income universe and security-level analysis. Portfolio managers construct the portfolio in an effort to contain complementary and diversified risk factors and sources of return. Security and sector exposures are repositioned through time to manage evolving risks over a market cycle.”
For the DoubleLine Multi-Sector Income ETF prospectus, please click on the following link: https://pex.broadridge.com/summary.asp?doctype=pros&cid=dbline&fid=25861R709
The DoubleLine Multi-Sector Income ETF focuses on targeting securities that generate high current income. The Fund seeks to achieve its investment objectives by active asset allocation among various sectors within the fixed income markets and security selection within the selected sectors. These sectors may include, for example, corporate debt securities, bank loans, RMBS, commercial mortgage-backed securities (CMBS), asset-backed securities (ABS) and collateralized loan obligations (CLOs).
DoubleLine ETF Adviser LP, adviser to the Fund, has broad flexibility to use various investment strategies and invest in a wide variety of fixed income instruments. The Fund expects to invest significantly in one or more sectors and may at times invest primarily in a single sector. The Fund may invest in securities of any credit quality, including without limit in securities rated below investment grade.
Robert Cohen became DoubleLine’s Director of Global Developed Credit in September 2016 and has been a Portfolio Manager since July 2012. He oversees investment teams managing investment grade and high yield corporate credit, as well as bank loans. Mr. Cohen is a permanent member of the Fixed Income Asset Allocation Committee and is a CFA® charterholder.
Ken Shinoda joined DoubleLine at the firm’s founding in 2009. He is the Chairman of the Structured Products Committee and the lead Portfolio Manager overseeing the non‑Agency RMBS team. He is a permanent member of the Fixed Income Asset Allocation Committee. He is a CFA® charterholder.
The DoubleLine Multi-Sector Income ETF brings the number of DoubleLine ETFs to seven. The other six are fixed income funds DoubleLine Opportunistic Bond ETF (ticker DBND), DoubleLine Mortgage ETF (DMBS) and DoubleLine Commercial Real Estate ETF (DCRE); equity funds DoubleLine Shiller CAPE® U.S. Equities ETF (CAPE) and DoubleLine Fortune 500 Equal Weight ETF (DFVE); and DoubleLine Commodity Strategy ETF (DCMT).
“We continue to expand our ETF product suite with thoughtful investment solutions that offer our clients unique access to valuable segments of the market,” DoubleLine President Ron Redell said.
For information on all DoubleLine ETFs, please visit the following web page: https://doubleline.com/doubleline-exchange-traded-funds/#products
For the PDF version of this News Release, click here.
About DoubleLine
DoubleLine ETF Adviser LP, adviser to the DoubleLine Multi-Sector Income ETF, is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine’s offices can be reached by telephone at (813) 791-7333 or by email at ETFinfo@doubleline.com. Media can reach DoubleLine by email at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.
A fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The statutory prospectus and summary prospectus (if available) contain this and other important information about the fund and may be obtained by clicking here. In addition, a free hard copy is available by calling (855) 937-0772. Please read the prospectus carefully before investing.
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 ABS and MBS 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.
Investments in floating rate securities include additional risks that investors should be aware of such as credit risk, interest rate risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
The fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets.
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.
Derivatives involve special risks including correlation, counterparty, liquidity, operational, accounting and tax risks. These risks, in certain cases, may be greater than the risks presented by more traditional investments.
Investing in ETFs involves additional risks such as the market price of the shares may trade at a discount to its net asset value ("NAV"), 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.
Yield to maturity (YTM) does not represent return. YTM provides a summary measurement of an investment’s cash flows, including principal received at maturity based on a given price. Actual yields may fluctuate due to a number of factors such as the holding period, changes in reinvestment rates as cash flows are received and redeployed, receipt of timely income and principal payments. DoubleLine views YTM as a characteristic of a portfolio of holdings often used, along with other risk measures such as duration and spread, to determine the relative attractiveness of an investment.
DoubleLine ETFs are distributed by Foreside Fund Services, LLC.
DoubleLine Mortgage ETF Management Fee Lowered to 39 Basis Points from 49 BPS
TAMPA, Fla., Sept. 3, 2024 /PRNewswire/ – DoubleLine ETF Adviser LP, adviser to the DoubleLine Mortgage ETF (NYSE Arca exchange symbol: DMBS), has reduced the fund’s management fee to 39 basis points (bps) of the fund’s average daily net asset value, down from a previous 49 bps. A basis point equals one hundredth of 1 percent or 0.01%.
DoubleLine Mortgage ETF (or “Mortgage ETF”) is an exchange-traded fund actively invested by DoubleLine primarily in residential mortgage-backed securities. The fund’s objective is to seek total return (capital appreciation and current income) which exceeds the total return of its benchmark, the Bloomberg US Mortgage-Backed Securities Index, over a full market cycle.
“With the Mortgage ETF’s growth in net assets since the fund’s launch in 2023,” DoubleLine President Ron Redell said, “the team at DoubleLine is pleased to pass on part of the resulting operating efficiencies to fund investors.”
The Mortgage ETF invests primarily in high-quality residential mortgage-backed securities (RMBS), allocating between government-backed Agency mortgage-backed securities (MBS) and non-Agency MBS. Interest rate, credit and prepayment risks are managed with the goal of delivering enhanced risk-adjusted returns through changing interest-rate and economic environments.
Portfolio managers of the Mortgage ETF are Jeffrey Gundlach, founder, Chief Executive Officer and Chief Investment Officer of DoubleLine; Vitaliy Liberman, Portfolio Manager overseeing DoubleLine’s Agency MBS team; Ken Shinoda, Chairman of the firm’s Structured Products Committee and Portfolio Manager overseeing the non-Agency RMBS team.
Although under normal circumstances the Mortgage ETF invests primarily in residential mortgage securities deemed to be rated investment grade (i.e., securities rated Baa3/BBB- or higher) at the time of purchase, the Mortgage ETF may also invest in certain other fixed income securities, including derivatives, U.S. government securities, and other cash and cash equivalents.
DoubleLine has broad discretion to manage the Mortgage ETF’s portfolio duration; however, the investment team expects normally to construct an investment portfolio with a U.S. dollar-weighted average effective duration within two years (plus or minus) of the benchmark. Duration is a measure of the expected life of a fixed income instrument that is used to determine the sensitivity of a security’s price to changes in interest rates. Effective duration is a measure of a duration adjusted for the anticipated effect of interest rate changes on bond and mortgage prepayment rates as determined by DoubleLine.
For more information on the Mortgage ETF, please visit this page: https://doubleline.com/funds/mortgage-etf/ For information on all the DoubleLine ETFs, please visit the following web page: https://doubleline.com/doubleline-exchange-traded-funds/#products
To download the News Release as a PDF, click here
DoubleLine ETF Adviser LP, adviser to the DoubleLine Mortgage ETF, is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine’s offices can be reached by telephone at (813) 791-7333 or by email at ETFinfo@doubleline.com. Media can reach DoubleLine by email at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.
The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contain this and other important information about the investment company and may be obtained by calling (855) 937-0772 or visiting www.doubleline.com. Read them carefully before investing.
Risk Disclosure
Investing involves risk. Principal loss is possible. Equities may decline in value due to both real and perceived general market, economic and industry conditions.
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.
Investments in debt securities change in value because of changes in interest rates. The value of an instrument with a longer duration (whether positive or negative) will be more sensitive to changes in interest rates than a similar instrument with a shorter duration. There is the risk that the Fund may be unable to sell a portfolio investment at a desirable time or at the value the Fund has placed on the investment. Illiquidity may be the result of, for example, low trading volume, lack of a market maker, or contractual or legal restrictions that limit or prevent the Fund from selling securities or closing derivative positions. There is risk that borrowers may default on their mortgage obligations or the guarantees underlying the mortgage-backed securities will default or otherwise fail and that, during periods of falling interest rates, mortgage-backed securities will be called or prepaid, which may result in the Fund having to reinvest proceeds in other investments at a lower interest rate. Derivatives involve special risks including correlation, counterparty, liquidity, operational, accounting and tax risks. These risks, in certain cases, may be greater than the risks presented by more traditional investments.
The Fund is a “non-diversified” investment company and therefore may invest a greater percentage of its assets in the securities of a single issuer or a limited number of issuers than funds that are “diversified.” Accordingly, the Fund is more susceptible to risks associated with a single economic political or regulatory occurrence than a diversified fund might be.
DoubleLine ETFs are distributed by Foreside Fund Distributors, LLC. DoubleLine® is a registered trademark of DoubleLine Capital LP.
TAMPA, Fla. July 22, 2024 /PRNewswire/– The DoubleLine Low Duration Emerging Markets Fixed Income Fund (or “the Fund”) recently marked its first decade of active investment management. The mutual fund is distributed via I-share (DBLLX) and N-share (DELNX) classes.
The Fund seeks to construct an investment portfolio in emerging markets sovereign, quasi-sovereign and private (non-government) fixed income securities with a U.S. dollar-weighted average effective duration of three years or less. (As of June 30, 2024, the Fund had a duration of 2.03 years.) The Fund employs a value-seeking investment approach using bottom-up research linking credit fundamentals, market valuations and portfolio strategy. Securities held in the Fund portfolio are dollar-denominated.
The Fund is managed by a 15-member investment team of portfolio managers, analysts and traders devoted to emerging markets debt led by Portfolio Managers Luz Padilla, Director of International Fixed Income at DoubleLine; Mark Christensen; and Su Fei Koo.
Download a PDF version of the article by clicking here.
Ten-Year Total Return
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 current to the most recent month-end may be obtained by calling (213) 633-8200 or by visiting www.doubleline.com.
For the 10 years ended June 30, 2024, the Fund I shares (DBLLX) delivered an annualized total return of 2.46%, versus 3.13% for its benchmark, the J.P. Morgan CEMBI Broad Diversified Maturity 1-3 Year Index, and 1.34% for the Bloomberg U.S. Aggregate 1-3 Years Index (or the “Aggregate 1-3 Years”). DoubleLine plans to add the Aggregate 1-3 Years as a second benchmark in the Fund’s prospectus, effective July 26, 2024. It is not possible to invest directly in an index. For standardized performance, including quarter-end returns, please visit this page.
The Adviser has contractually agreed to waive fees and reimburse expenses through August 1, 2024.
Risk-Adjusted Return For the same 10-year period, the Fund’s I-share class delivered a Sharpe ratio of 0.26 versus 0.39 for the J.P. Morgan CEMBI Broad Diversified Maturity 1-3 Year Index and negative 0.13 for the Bloomberg U.S. Aggregate 1-3 Years Index. The Sharpe ratio is a measure of the excess return per unit of risk (as measured by volatility) for an investment asset or a portfolio. A higher Sharpe ratio indicates better risk-adjusted performance than a lower Sharpe ratio.
Fund History and Roles Portfolio Managers Luz Padilla, Mark Christensen and Su Fei Koo have worked together for 29 years, investing in emerging markets credit. Their 15-member team provides active investment strategies to bring the improving-credit story of emerging markets debt to investors and their advisers. The DoubleLine Low Duration Emerging Markets Fixed Income Fund was launched April 7, 2014, after Ms. Padilla took note of the performance of the emerging markets sleeve of the multisector portfolio of a DoubleLine low-duration strategy, including during the “taper tantrum,” a surge in interest rates in 2014 on fears of quantitative tightening and rate hikes by the Federal Reserve.
In addition to implementing the Fund’s low-duration mandate and all-dollar-denominated portfolio holdings, the investment team has managed the portfolio with a higher percentage of securities rated investment grade (IG) than in the J.P. Morgan CEMBI Broad Diversified Maturity 1-3 Year Index.
The reduced allocation to below-IG bonds, Ms. Padilla said, has meant giving up some of the yield available in emerging markets debt in exchange for a portfolio of higher credit quality. “We designed the investment strategy and actively manage the fund,” she said, “to give investors access to the asset class with less volatility due to increases in U.S. Treasury yields, emerging markets credit spreads or both.”
From the Fund’s April 7, 2014, inception, through June 30, 2024, securities rated investment grade have comprised on average 77.1% of the portfolio’s holdings, including cash, vs. an average IG composition of 61.3% for the J.P. Morgan CEMBI Broad Diversified Maturity 1-3 Year Index.
DoubleLine President Ron Redell sees two possible roles for the Fund. “On one hand, the Fund is worthy of consideration by those who regard EM fixed income as an asset class offering diversification benefits and undergoing a secular evolution of improving credit quality, but they seek their exposure actively managed to lower duration and with bottom-up credit underwriting. On the other hand, the Fund might appeal to other investors who are seeking the potential for a yield pickup in their short-duration allocations.”
Definitions Bloomberg U.S. Aggregate 1-3 Years Index. This index tracks the one- to three-year component of the Bloomberg US Aggregate Bond Index, which represents securities that are SEC registered, taxable and dollar denominated in the U.S. investment grade, fixed-rate bond market.
J.P. Morgan CEMBI Broad Diversified Maturity 1-3 Year Index. This index tracks corporate bonds with a maturity of one to three years and includes smaller issues and a wider array of bonds than the CEMBI, which is a market capitalization-weighted index consisting of U.S. dollar-denominated corporate bonds from emerging markets. The CEMBI is a liquid global corporate benchmark representing Asia, Latin America, Europe and the Middle East/Africa.
Maximum Drawdown. The maximum peak-to-trough decline during a specific period for an investment, trading account or fund. A drawdown is usually quoted as the percentage between the peak and the subsequent trough.
Sharpe Ratio. This metric is used to help investors understand the return of an investment compared to its risk. The ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Volatility is a measure of the price fluctuations of an asset or portfolio. Subtracting the risk-free rate from the mean return allows an investor to better isolate the profits associated with risk-taking activities. The risk-free rate of return is the return on an investment with zero risk, meaning it’s the return investors could expect for taking no risk. The yield for a U.S. Treasury bond, for example, could be used as the risk-free rate.
Standard Deviation. 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.
About DoubleLine Capital LP DoubleLine Capital is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine’s offices can be reached by telephone at (813) 791-7333 or by email at info@doubleline.com. Media can reach DoubleLine by email at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.
The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contain this and other important information about the investment company, and may be obtained by calling (877) 354-6311 / (877) DLINE11, or visiting www.doubleline.com. Read them carefully before investing.
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. The Fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. Derivatives involve special risks including correlation, counterparty, liquidity, operational, accounting and tax risks. These risks, in certain cases, may be greater than the risks presented by more traditional investments. Investing in ETFs involve additional risks such as the market price of the shares may trade at a discount to its net asset value ("NAV"), 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 Funds ability to sell its shares.
While the Fund is no-load, management fees and other expenses still apply. Please refer to the prospectus for further details.
DoubleLine Funds are distributed by Quasar Distributors, LLC. DoubleLine® is a registered trademark of DoubleLine Capital LP.
© 2024 DoubleLine Capital LP
TAMPA, Fla., March 1, 2024 /PRNewswire/ – Seth Coulson, CFA, has joined DoubleLine Capital as a Relationship Manager for institutional investors and investment consulting firms in the Midwestern United States.
Mr. Coulson is based at DoubleLine’s Los Angeles offices and reports to Ryan Hart, Director, Institutional, Global Relationship Management.
From July 2008 to joining DoubleLine, Mr. Coulson was a Vice President at Pacific Investment Management Co. (PIMCO) in Newport Beach, Calif., where he was responsible for coverage and sales generation from many of PIMCO’s largest institutional prospects and clients across the Western and Central U.S., including corporate, public, nonprofit and multi-employer clients.
Prior to PIMCO, Mr. Coulson worked at State Street IMS in Irvine, Calif., where he led the allocations process for PIMCO’s Agency mortgage-backed securities trades.
Mr. Coulson holds a Master of Business Administration, University of Southern California Marshall School of Business, Los Angeles, and a Bachelor of Science in Business Administration, Finance Major/Spanish Minor, University of Wisconsin-La Crosse.
To download a PDF version, click here
DoubleLine Capital LP is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine’s offices can be reached by telephone at (813) 791-7333 or by email at info@doubleline.com. Media can reach DoubleLine by email at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.
TAMPA, Fla., Feb. 1, 2024 /PRNewswire/ – The DoubleLine Fortune 500 Equal Weight ETF (ticker symbol DFVE) and the DoubleLine Commodity Strategy ETF (DCMT) began trading today on the NYSE Arca exchange.
For the prospectus for the two exchange-traded funds, please click on the following link: https://doubleline.com/wp-content/uploads/DoubleLine-ETF-Prospectus-DCMT-DFVE.pdf
The launches of the DoubleLine Fortune 500 Equal Weight ETF and the DoubleLine Commodity Strategy ETF bring to six the number of DoubleLine ETFs. The other four exchange-traded funds are the DoubleLine Shiller CAPE U.S. Equities ETF[1], the DoubleLine Opportunistic Bond ETF, the DoubleLine Mortgage ETF and the DoubleLine Commercial Real Estate ETF. For more information on the DoubleLine ETFs, please visit the following page: https://doubleline.com/doubleline-exchange-traded-funds/
[1] This ETF is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example:
The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF’s performance. If other traders are able to copy or predict the ETF’s investment strategy, however, this may hurt the ETF’s performance.
DoubleLine Fortune 500 Equal Weight ETF
The investment objective of the DoubleLine Fortune 500 Equal Weight ETF (the “Fund” or “DFVE”) is to seek to track the investment results (before fees and expenses) of the Barclays Fortune 500 Equal Weighted Total Return Index (or the “Underlying Index”). Unlike most equity indices, which are weighted according to the market capitalizations of their component companies, the constituents of the Underlying Index are equally weighted, which means that the Underlying Index assigns each constituent the same weight at each annual reconstitution and quarterly rebalance, regardless of such constituent’s market capitalization.
DFVE under normal circumstances will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities that comprise the Underlying Index, or derivatives transactions that provide investment exposure to the Underlying Index or securities that comprise the Underlying Index. DFVE will not necessarily employ a “full replication” methodology in seeking to track the Underlying Index, meaning that the Fund will not necessarily invest in all of the securities comprising the Underlying Index in proportion to their weightings in the Underlying Index. Instead, DFVE’s investment adviser, DoubleLine ETF Adviser LP, may seek to cause DFVE to hold a representative sample of the securities in the Underlying Index that have aggregate characteristics similar to that of the entire Underlying Index.
The portfolio managers of DFVE are Jeffrey Gundlach, CEO and Chief Investment Officer of DoubleLine, and Jeffrey Sherman, Deputy Chief Investment Officer of DoubleLine.
DoubleLine Commodity Strategy ETF
The investment objective of the DoubleLine Commodity Strategy ETF (the “Fund” or “DCMT”) is to seek total return (capital appreciation and current income). DCMT expects to gain broad commodity exposures consistent with the Barclays Backwardation Tilt Multi-Strategy Index (the “Barclays Index”) by entering
into total and excess return swaps, futures contracts, options on futures and/or forward contracts the performance of which is based on the performance of the Barclays Index.
Within its broad commodity universe, the Barclays Index, which consists of futures contracts, generally favors maintaining higher weightings to commodities that exhibit backwardation in the term structures of their futures contracts (i.e., where prices of the contracts with shorter-term expirations will be higher than for contracts with longer-term expirations). For each commodity, the Barclays Index seeks to provide exposure to the most attractive futures contract (i.e., contract selection) based on a variety of factors including carry, seasonality, and momentum:
The Barclays Index seeks to capture two sources of potential outperformance in commodity futures markets. The first source of potential outperformance comes through selecting, for each relevant commodity, the eligible futures contract that is expected to offer the best outperformance relative to the front-month contract rolling exposure used by the Bloomberg Commodity Index. This is achieved through the use of certain futures contract selection methodologies referred to together as “Multi-Strategy.” These Multi-Strategy methodologies select a futures contract for each commodity that may differ from the futures contract selected by the Bloomberg Commodity Index, based on the factors described above including carry, seasonality and momentum. The second source of potential outperformance comes through overweighting (relative to the weightings in the Bloomberg Commodity Index) the exposure of the Barclays Index to the futures contracts of commodities that exhibit the highest degree of backwardation in the term structures of their futures contracts, while simultaneously underweighting the exposure to the futures contracts of commodities that exhibit a lower degree of backwardation. Historically, the commodities with a higher degree of backwardation have generally had better historical average performance than the commodities with a lower degree of backwardation.
DCMT expects to obtain its commodities exposures using derivatives that allow the Fund to achieve those exposures without significant investment of cash. As a result, DCMT expects to have available cash assets to invest in debt securities managed by DCMT’s investment adviser, DoubleLine Alternatives LP (“DoubleLine Alternatives”), in order to seek to provide additional total return over a full market cycle. Under normal circumstances, the Fund’s portfolio of fixed income investments is expected to include primarily fixed income instruments rated investment grade and unrated securities considered by DoubleLine Alternatives to be of comparable credit quality.
The portfolio managers of DCMT are Jeffrey Sherman, Samuel Lau and Jeffrey Mayberry.
TO DOWNLOAD THIS NEWS RELEASE AS A PDF, CLICK HERE
DoubleLine ETF Adviser LP, adviser to the DoubleLine Fortune 500 Equal Weight ETF, is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine Alternatives LP, adviser to the DoubleLine Commodity Strategy ETF, is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine’s offices can be reached by telephone at (813) 791-7333 or by email at ETFinfo@doubleline.com. Media can reach DoubleLine by email at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.
Risk Disclosures
Investments in commodities or commodity related instruments may subject to the Fund to greater risks and volatility as commodity prices may be influenced by a variety of factors including unfavorable weather, environmental factors, and changes in government regulations. 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. Derivatives involve special risks including correlation, counterparty, liquidity, operational, accounting and tax risks. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.
The Funds are a “non-diversified” investment company and therefore may invest a greater percentage of its assets in the securities of a single issuer or a limited number of issuers than funds that are “diversified.” Accordingly, the Funds are more susceptible to risks associated with a single economic, political or regulatory occurrence than a diversified fund might be.
Barclays Bank PLC Disclaimer
Barclays Bank PLC and its affiliates (“Barclays”) is not the issuer, sponsor or promoter of the DoubleLine Commodity Strategy ETF or the DoubleLine Fortune 500 Equal Weight ETF (in this paragraph, each a “Fund”) and Barclays has no responsibilities, obligations or duties to investors in the Funds. The Barclays Backwardation Tilt Multi-Strategy Index and the Barclays Fortune 500 Equal Weighted Total Return Index (each an “Index”) consist of the respective trademarks of Barclays Bank PLC and trademarks owned by or licensed to Barclays Bank PLC and that are licensed for use by the DoubleLine ETF Trust as the Issuer of the Funds. Barclays’ only relationship with the Issuer in respect of the Indices is the licensing of these trademarks and the Indices which are determined, composed and calculated by Barclays without regard to the Issuer or the Funds or the owners of the Funds. Additionally, DoubleLine Alternatives LP or DoubleLine ETF Adviser LP may for any Fund execute transaction(s) with Barclays in or relating to the respective Fund’s Index and investors neither acquire any interest in that Fund’s Index nor enter into any relationship of any kind whatsoever with Barclays upon making an investment in the Fund. The Funds are not sponsored, endorsed, sold or promoted by Barclays. Barclays does not make any representation or warranty, express or implied regarding the advisability of investing in the Funds or the advisability of investing in securities generally or the ability of any Index to track corresponding or relative market performance. Barclays has not passed on the legality or suitability of the Funds’ names or the Indices with respect to any person or entity. Barclays is not responsible for and has not participated in the determination of the timing of, prices of, or quantities of the shares of the Funds to be issued. Barclays has no obligation to take the needs of the Issuer or the owners of the Funds or any other third party into consideration in determining, composing or calculating the Indices. Barclays has no obligation or liability in connection with administration, marketing or trading of the Funds. The licensing agreement between DoubleLine ETF Trust and Barclays is solely for the benefit of the Funds and Barclays and not for the benefit of the owners of the Funds, investors or other third parties.
Bloomberg Disclaimer
“Bloomberg®” and “Bloomberg Commodities IndexSM” are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by Barclays Bank PLC (“Barclays”).
The Commodity Strategy ETF is not sponsored, endorsed, sold or promoted by Bloomberg. Bloomberg does not make any representation or warranty, express or implied, to the owners of or counterparties to the Commodity Strategy ETF or any member of the public regarding the advisability of investing in securities or commodities generally or in the Commodity Strategy ETF particularly. The only relationship of Bloomberg to the Licensee is the licensing of certain trademarks, trade names and service marks and of the Bloomberg Commodities IndexSM, which is determined, composed and calculated by BISL without regard to Barclays or the Commodity Strategy ETF. Bloomberg has no obligation to take the needs of Barclays or the owners of the Commodity Strategy ETF into consideration in determining, composing or calculating Bloomberg Commodities IndexSM. Bloomberg is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of shares of the Commodity Strategy ETF to be issued or in the determination or calculation of the equation by which shares of the Commodity Strategy ETF are to be converted into cash. Bloomberg shall not have any obligation or liability, including, without limitation, to Commodity Strategy ETF customers, in connection with the administration, marketing or trading of the Commodity Strategy ETF.
Fortune Disclaimer
Fortune and Fortune 500 are registered trademarks of Fortune Media IP limited (“Fortune IP”, together with its affiliate Fortune Media (U.S.A) corporation, the “Fortune Group”) used under license. Fortune Group is not affiliated with and does not endorse products or services of Barclays Bank PLC or DoubleLine. Fortune Group and Fortune are not investment advisors or broker dealers and do not guarantee the adequacy, accuracy, timeliness and/or the completeness of the Fortune indices or any data related thereto or any communication (including but not limited to, oral or written communication (including electronic communications)) with respect thereto. Neither Fortune Group nor Fortune shall be subject to any damages or liability for any errors, omissions, or delays therein. Fortune Group and Fortune make no warranties, express or implied, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use or as to results to be obtained by Barclays Bank plc, DoubleLine, owners of the securities, or any other person or entity from the use of the Fortune indices or with respect to any data related thereto. Without limiting any of the foregoing, in no event whatsoever shall Fortune Group or Fortune be liable for any indirect, special, incidental, punitive, or consequential damages including but not limited to, loss of profits, trading losses, lost time or goodwill, even if they have been advised of the possibility of such damages, whether in contract, tort, strict liability, or otherwise. There are no third-party beneficiaries of any agreements or arrangements between Fortune Group and Fortune and Barclays Bank plc, other than as the licensees of Fortune Group.
TAMPA, Fla., Jan. 18, 2024 /PRNewswire/ – Effective Feb. 1, 2024, the ticker symbol of the actively managed DoubleLine Commercial Real Estate ETF, which trades on the NYSE Arca exchange, will change to DCRE from DCMB.
The objective of the DoubleLine Commercial Real Estate ETF (the “Fund” or “Commercial Real Estate ETF”) is to seek current income and capital preservation. As a secondary objective, the Fund seeks long-term capital appreciation. The Fund invests in senior commercial real estate debt through investment grade commercial mortgage-backed securities (CMBS) and employs active management through security selection across commercial real estate (CRE) property types and subsectors while maintaining a low level of interest rate risk. The investment universe includes high-quality CRE debt across Agency CMBS, non-Agency CMBS and commercial real estate collateralized loan obligations (CRE CLOs). DoubleLine’s experienced, long-tenured CRE specialists are responsible for security selection within their sector based on in-depth, fundamental research and granular property-level analysis.
Portfolio managers of the Commercial Real Estate ETF are Morris Chen, who heads DoubleLine’s Commercial Mortgage-Backed Securities and Commercial Real Estate Debt team; Mark Cho, Portfolio Manager responsible for the team’s CMBS credit platform; and Robert Stanbrook, Portfolio Manager responsible for the team’s CRE loan platform as well as its investments in CRE CLOs.
The CMBS and CRE Debt team expects to invest the Commercial Real Estate ETF primarily in instruments rated AAA to A- by S&P, at the time of purchase, or the equivalent by any other nationally recognized statistical rating organization.
Under normal market conditions, the portfolio managers seek to construct an investment portfolio with a dollar-weighted average effective duration of three years or less.
Download this News Release as a PDF
DoubleLine ETF Adviser LP, adviser to the Commercial Real Estate ETF, is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine’s offices can be reached by telephone at (813) 791-7333 or by email at ETFinfo@doubleline.com. Media can reach DoubleLine by email at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.
The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contain this and other important information about the investment company, and may be obtained by calling (855) 937-0772, or visiting www.doubleline.com. Read them carefully before investing.
TAMPA, Fla., June 19, 2023 /PRNewswire/ – Rudy Garza, CFA, who has a strong record of providing business development and institutional investor relations for several asset managers, has joined DoubleLine Capital as a Relationship Manager for institutional investors in the western United States.
Rudy Garza, Relationship Manager
Mr. Garza is based at DoubleLine’s Los Angeles offices and reports to Ryan Hart, Director, Institutional, Global Relationship Management. “Rudy brings a great depth of experience working with institutional clients across a wide variety of investment strategies,” Mr. Hart said. “All of us at DoubleLine are excited to have him onboard to help expand our institutional client base.”
From 2021 until joining DoubleLine, Mr. Garza worked in business development and consultant relations in the western U.S. at Polar Capital, an investment firm based in the United Kingdom. In 2014-2021, he performed similar roles for Royce Investment Partners, a New York-based asset manager.
Mr. Garza served two periods with PIMCO at the firm’s Newport Beach, CA, headquarters, working as an account manager to corporate investors (2010-2014) and client service associate (1999-2004). He also has worked in institutional client service at Pasadena, CA-based Western Asset Management Company/Legg Mason (2005-2010) and Santa Monica, CA-based Wilshire Associates (2004-2005).
DoubleLine Capital is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine's offices can be reached by telephone at (813) 791-7333 or by e-mail at info@doubleline.com. Media can reach DoubleLine by e-mail at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.
TAMPA, Fla., April 4, 2023 /PRNewswire/ – The DoubleLine Mortgage ETF (Symbol: DMBS) and the DoubleLine Commercial Real Estate ETF (DCMB), exchange-traded funds invested in fixed income securities actively managed by DoubleLine, began trading today on the NYSE Arca exchange.
“We are pleased to deliver these two unique exchange-traded funds to the marketplace as DoubleLine continues to broaden our ETF offerings to our valued clients,” DoubleLine President Ron Redell said. For information on the DoubleLine ETFs, please visit this web page: https://doubleline.com/doubleline-exchange-traded-funds/#products
DoubleLine Mortgage ETF
The objective of the DoubleLine Mortgage ETF (or “Mortgage ETF”) is to seek total return (capital appreciation and current income) that exceeds the total return of its benchmark, the Bloomberg US Mortgage-Backed Securities Index, over a full market cycle. The Mortgage ETF invests primarily in high-quality residential mortgage-backed securities (RMBS), allocating between government-backed Agency mortgage-backed securities (MBS) and non-Agency MBS. Interest rate, credit and prepayment risks are managed with the goal of delivering enhanced risk-adjusted returns through changing interest-rate and economic environments.
Although under normal circumstances the Mortgage ETF intends to invest primarily in residential mortgage securities deemed to be rated investment grade (i.e., securities rated Baa3/BBB- or higher) at the time of purchase, the Fund may also invest in certain other fixed income securities, including derivatives, U.S. government securities, and other cash and cash equivalents.
“Thirty years ago, thinking about the relative risks and rewards of fixed income sectors,” Mr. Gundlach said, “I realized that Agency mortgage-backed securities offered superior characteristics versus U.S. Treasury bonds or corporate securities. Through active management, the MBS team and I have worked to make the most of those advantages. As the mortgage market evolved, we developed loan-level analysis to refine security selection and dynamic allocation within and between Agency and non-Agency MBS. The aim of these integrated tools is to manage risk through interest rate and credit cycles and to enhance returns. The Mortgage ETF delivers this time-tested investment framework in the vehicle of a DoubleLine exchange-traded fund.”
DoubleLine Commercial Real Estate ETF
The objective of the DoubleLine Commercial Real Estate ETF (or “Commercial Real Estate ETF”) is to seek current income and capital preservation. As a secondary objective, the fund seeks long-term capital appreciation. The fund invests in senior commercial real estate debt through investment grade commercial mortgage-backed securities (CMBS) and employs active management through security selection across commercial real estate (CRE) property types and subsectors while maintaining a low level of interest rate risk. The investment universe includes high-quality CRE debt across Agency CMBS, non-Agency CMBS and commercial real estate collateralized loan obligations (CRE CLOs). DoubleLine’s experienced, long-tenured CRE specialists are responsible for security selection within their sector based on in-depth, fundamental research and granular property-level analysis.
Portfolio managers of the Commercial Real Estate ETF are Morris Chen, who heads DoubleLine’s Commercial Mortgage-Backed Securities and Commercial Real Estate Debt team; Mark Cho, Portfolio Manager responsible for the team’s CMBS credit platform; Robert Stanbrook, Portfolio Manager responsible for the team’s CRE loan platform as well as its investments in CRE CLOs.
Under normal market conditions, the portfolio managers intend to seek to construct an investment portfolio with a dollar-weighted average effective duration of three years or less.
“The commercial mortgage-backed securities market has adapted over the past decade with the evolution of underlying commercial real estate trends and government regulation. In more recent years, commercial real estate finance investments have repriced,” Mr. Chen said. “This asset class diversifies from corporate credit and has structural enhancements that provide attractive relative values. The team employs granular underwriting of loan, borrower, property and market fundamentals while incorporating DoubleLine’s macroeconomic views into portfolio construction. I’m pleased to see this investment approach, managed by my team in separate accounts and allocations in commingled vehicles such as mutual funds, available in the Commercial Real Estate ETF.”
DoubleLine ETF Adviser LP, adviser to the Mortgage ETF and the Commercial Mortgage ETF, is an investment adviser under the Investment Advisers Act of 1940. DoubleLine was founded in 2009 by Jeffrey Gundlach and 45 other partners. As of Dec. 31, 2022, DoubleLine had $92 billion in assets under management and 283 employees, including 109 investment professionals. DoubleLine’s portfolio managers have 22 years of industry experience on average and have worked together on average for 16 years (including prior to the firm’s founding).
DoubleLine’s offices can be reached by telephone at (813) 791-7333 or by email at ETFinfo@doubleline.com. Media can reach DoubleLine by email at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.
A Fund’s investment objectives, risk, charges and expense must be considered carefully before investing. The statutory prospectus contains this and other important about the investment company, and may be obtained by calling (877)-354-6311/(877)DLINE11, or visiting www.doubleline.com
Read them carefully before investing.
Bloomberg US Mortgage-Backed Securities (MBS) Index - This index measures the performance of investment grade, fixed-rate, mortgage-backed, pass-through securities of the government-sponsored enterprises (GSEs): Federal Home Loan Mortgage Corp. (Freddie Mac), Federal National Mortgage Association (Fannie Mae) and Government National Mortgage Association (Ginnie Mae).
Doubleline ETFs are distributed by Foreside Fund Services, LLC
TAMPA, March 31, 2022 – Scott Thomson, who previously served as an ETF Capital Markets and Fixed Income Strategist with PIMCO, has joined DoubleLine as an ETF Specialist.
The DoubleLine ETF Trust’s first two exchanged-traded funds, the actively managed DoubleLine Opportunistic Bond ETF (Symbol: DBND) and the DoubleLine Shiller CAPE® U.S. Equities ETF (Symbol: DCPE), will begin trading Tuesday April 5, 2022, on the NYSE Arca.
Mr. Thomson is a member of DoubleLine’s Macro Asset Allocation team, headed by DoubleLine Deputy Chief Investment Officer Jeffrey Sherman. His responsibilities include managing the creation and launch of DoubleLine’s ETF capital markets function and oversight of the firm’s ETF business.
“Entry into the ETF business is a natural extension of DoubleLine’s existing business lines and gives investors another vehicle to access our investment services via the ETF wrapper,” Mr. Sherman said. “Scott Thomson not only brings significant experience within the fixed income and equity markets, his role as a capital markets specialist also provides DoubleLine with significant depth within the inner workings of the ETF ecosystem and support for clients seeking ETF solutions.”
Mr. Thomson worked at PIMCO in Newport Beach, CA, from May 2011 until January 2022 when he joined DoubleLine. His duties at PIMCO included managing relationships with ETF liquidity providers (authorized participants, market makers) and other institutions in the ETF marketplace, as well as oversight of primary market and secondary market activity in the firm’s U.S. and Canadian ETFs. Previously, Mr. Thomson was a Mergers & Acquisitions Analyst at Harvey & Company. He holds a B.A. in Economics and a B.S. in Business Administration from Chapman University. Mr. Thomson is a CFA® charterholder and a Chartered Alternative Investment Analyst.
ETFs in the U.S. represented $7.23 trillion in assets as of Dec. 31, 2021, of which $6.9 trillion was held in passive strategies, versus $295 billion (or 4%) in actively managed ETFs. That $295 billion mark is a significant increase since 2018, when actively managed ETFs represented $67 billion (or 2%) of ETF assets.
In the last two calendar years, actively managed ETFs attracted record net inflows of $57.7 billion in 2020 and $83.8 billion in 2021, according to the research firm Morningstar, Inc. ]This occurred amid a boom in active ETF launches. Last year, 294 active ETFs were launched, raising $60 billion versus 184 passive ETFs launched, raising $10 billion, according to data compiled by FactSet.
DoubleLine provides its services through investment advisers registered under the Investment Advisers Act of 1940. As of the Dec. 31 close of the fourth quarter of 2021, DoubleLine managed $134 billion in assets across all vehicles, including open-end mutual funds, collective investment trusts, closed-end funds, exchange-traded funds, hedge funds, variable annuities, UCITS and separate accounts. DoubleLine's offices can be reached by telephone at (213) 633-8200 or by e-mail at info@doubleline.com. News media can reach DoubleLine by e-mail at media@doubleline.com. For information on the DoubleLine exchange-traded funds, telephone (855) 937-0772 or e-mail ETFinfo@doubleline.com.
DoubleLine® is a registered trademark of DoubleLine Capital LP.
Two Actively Managed Bond and Equities ETFs to Begin Trading April 5, 2022
TAMPA, March 31, 2022 – DoubleLine today announced the establishment of the DoubleLine ETF Trust (the “Trust”), DoubleLine ETF Adviser LP and the planned launch of the Trust’s first two exchange-traded funds (ETFs).
The DoubleLine Opportunistic Bond ETF (Symbol: DBND) and DoubleLine Shiller CAPE® U.S. Equities ETF (Symbol: DCPE), both actively managed by DoubleLine, will begin trading Tuesday, April 5, 2022, on the NYSE Arca. DoubleLine CEO Jeffrey Gundlach and Deputy Chief Investment Officer Jeffrey Sherman will hold a webcast on the two funds at 4:15 p.m. Eastern/1:15 p.m. Pacific on Tuesday April 26, 2022.
The DoubleLine Shiller CAPE® ETF is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example: • You may have to pay more money to trade the ETF’s shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information. • The price you pay to buy ETF shares on an exchange may not match the value of the ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders. • These additional risks may be even greater in bad or uncertain market conditions. The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF’s performance. If other traders are able to copy or predict the ETF’s investment strategy, however, this may hurt the ETF’s performance.
“As steward of our clients’ investment capital, DoubleLine has diversified its distribution channels to match the preferences of investors and their intermediaries,” DoubleLine President Ron Redell said. “We are devoted to the clients who count on our existing investment vehicles, including mutual funds, other pooled-capital vehicles and separate accounts, while remaining open to new vehicles that win public endorsement. Actively managed ETFs are no longer a niche option among ’40 Act funds. In fact, active ETFs are well on their way to becoming a mainstay for many investors and advisors. We have formed the DoubleLine ETF Trust to serve them with a suite of actively managed ETFs, starting with DBND and DCPE.”
DoubleLine Opportunistic Bond ETF provides traditional daily transparency into the assets held in its portfolio. DoubleLine Shiller CAPE® U.S. Equities ETF uses the ActiveShares semitransparent structure. The prospectus for these exchange-traded funds can be downloaded from this landing page: https://doubleline.com/documents/fund-documents/?page=1&sort=DESC&ppp=10&fnd=6898,6901,4607,4606&ct=prospectus
DoubleLine Opportunistic Bond ETF (Symbol: DBND)
The objective of the DoubleLine Opportunistic Bond ETF (or “Opportunistic Bond ETF”) is to maximize current income and total return by, under normal circumstances, investing at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in fixed income instruments or other investments with economic characteristics similar to fixed income instruments. The Opportunistic Bond ETF can invest across the credit spectrum, including up to 50% in below-investment-grade bonds, and across the capital structure throughout the sectors of the global fixed income universe. Under normal market conditions, the portfolio managers intend to construct an investment portfolio with an average effective duration of no less than two years and no more than eight years. Messrs. Gundlach and Sherman are portfolio managers of Opportunistic Bond ETF.
Collaborating under the portfolio managers’ leadership are their fellow permanent members of DoubleLine’s Fixed Income Asset Allocation (FIAA) Committee and the asset allocation and fixed income sector teams at DoubleLine.
Top-down and bottom-up investment approaches are integrated into portfolio construction and ongoing portfolio management. At the top-down level, the FIAA Committee meets monthly to form a macroeconomic outlook while assessing potential opportunities and risks across the fixed income landscape. This informs committee decisions on portfolio characteristics, including weightings in the different sectors of the fixed income universe, credit exposure and duration. The permanent FIAA Committee members are Mr. Gundlach, committee chairman; Mr. Sherman, who heads the Macro Asset Allocation team; and the heads of the investment teams focused on the different sectors of the fixed income universe. At the bottom-up level, investment teams dedicated to their respective markets conduct fundamental analysis and research, determine relative values and decide security selection. Each step in the process is aimed at finding the most-attractive reward-to-risk and relative-value opportunities.
The sector-focused investment teams and directors are: Agency Mortgage-Backed Securities (MBS) (Vitaliy Liberman); Non-Agency MBS (Ken Shinoda); Commercial MBS/Commercial Real Estate (Morris Chen); Global Developed Credit (Robert Cohen), including teams dedicated to investment grade and high yield bonds and bank loans; Asset-Backed Securities and Infrastructure Debt (Andrew Hsu); Collateralized Loan Obligations (Sam Garza); Government Securities (Greg Whiteley); and International Fixed Income (Luz Padilla).
The FIAA Committee members on average have 23 years of investment industry experience and have worked together on average 15 years.
"After four decades of debt-financed deficits throughout the developed world, fixed income markets stand on the cusp of a sovereign default disaster, an episode that will pose great challenges in risk management but also commensurate opportunities,” Mr. Gundlach said. “Already we are seeing forerunners of the next era. These include the reversal of benign interest-rate and inflation regimes, the reordering of productive economic leadership in favor of economies outside the G-7, and notwithstanding the recent strength of the U.S. dollar, mounting challenges to its primacy as reserve currency. Broad flexibility in managing portfolio exposures – by duration, credit, sector, geography, currency and other variables – will be the sine qua non to maximization of current income and total return. I believe the investment team at DoubleLine has the experience and expertise to successfully exploit that flexibility, a latitude afforded by the investment guidelines of the Opportunistic Bond ETF.”
DoubleLine Shiller CAPE® U.S. Equities ETF (Symbol: DCPE)
The investment objective of the DoubleLine Shiller CAPE® U.S. Equities ETF (the “Equities ETF”) is to seek total return that exceeds the total return of the S&P 500 Index by managing the portfolio to approximate the return of the Shiller Barclays CAPE® U.S. Sector TR USD Index (or “the Index”). The Index incorporates the principles of long-term investing distilled by Dr. Robert Shiller and expressed through the CAPE® (Cyclically Adjusted Price Earnings) ratio (the “CAPE® Ratio”).
Messrs. Gundlach and Sherman are portfolio managers of the Equities ETF. They are supported by the analysts, traders and portfolio managers of DoubleLine’s Macro Asset Allocation team headed by Mr. Sherman.
Under normal circumstances, the Equities ETF invests at least 80% of its net assets in U.S. equity securities, including exchange-listed common stocks and exchange-traded investment companies such as exchange-traded funds and exchange-traded notes, to obtain exposure to U.S. equity securities.
Sterling Professor of Economics at Yale University and Professor of Finance at Yale School of Management, Dr. Shiller has conducted research on financial markets, asset prices and macroeconomics. His work includes breakthrough findings on the relationship of stock price volatility to long-term returns. In 1981, Dr. Shiller set the stage for the classic or absolute CAPE® Ratio in his paper “Do Stock Prices Move Too Much to Be Justified by Subsequent Movements in Dividends?” (American Economic Review, vol.71 (3) 1981: 421-36). With co-author John Campbell, Dr. Shiller extended this research in “Stock Prices, Earnings, and Expected Dividends” (Journal of Finance, 43:3, 661-76, 1988). The concepts originated in these papers formed the basis of Dr. Shiller's New York Times bestseller Irrational Exuberance (Princeton University Press, 2000).
The classic CAPE® Ratio assesses equity market prices relative to the 10-year average of inflation-adjusted earnings to account for business and market cycles. Traditional valuation measures, such as the price-to-earnings (P/E) ratio, by contrast, typically rely on earnings information from only the past year. The Index uses a relative version of the classic CAPE® Ratio to identify undervalued sectors while also seeking to exclude a sector that might appear undervalued, but which might have also had recent relative price underperformance due to fundamental issues with the sector that might negatively affect the sector's long-term total return.
The Index's composition is determined monthly. Each month, the Index's methodology ranks 11 U.S. sectors based on a modified CAPE® Ratio (a "value" factor) and a 12-month momentum factor (based on total return). The 11 sectors that may be selected by the Index methodology include Communication Services, Consumer Discretionary, Consumer Staples, Energy, Financials, Healthcare, Industrials, Materials, Technology, Utilities and Real Estate. Each sector is represented by a sector ETF that tracks a sector index, which is an ETF in the family of Select Sector SPDR Funds or, in the case of the real estate sector, the iShares Dow Jones U.S. Real Estate Index Fund.
The Index methodology selects the five sectors with the lowest modified CAPE® Ratio – the sectors that are the most undervalued according to the CAPE® Ratio. Only four of these five sectors, however, end up in the Index for a given month, as the sector with the worst 12-month total return among the five selected sectors is eliminated. The Index methodology allocates an equally weighted long (i.e., investment) exposure to each of the four remaining sectors. The Index is rebalanced on a monthly basis.
“Our 8½-year collaboration with Dr. Shiller and Barclays has helped DoubleLine’s clients navigate a challenging equity environment by applying principles gleaned from five decades of the professor’s pioneering research into market returns,” Mr. Sherman said. “The Equities ETF is a natural extension of our shared franchise, offering investors another vehicle to access this sector-rotation strategy. With the ETF’s April 5 launch, investors can allocate their core or differentiated equity exposures to this strategy while reaping the benefits of the ETF structure.”
Dr. Shiller commented, “I am delighted to continue my longstanding partnership with DoubleLine in the launch of the DoubleLine Shiller CAPE® U.S. Equities ETF. The CAPE ratio has shown its effectiveness as a long-term value metric, and I think it is as relevant as ever in today’s macro environment.”
Terms and Definitions
Duration is a measure of the expected life of a fixed income instrument that is used to determine the sensitivity of a security’s price to changes in interest rates. Effective duration is a measure of a fund’s portfolio duration adjusted for the anticipated effect of interest rate changes on bond and mortgage prepayment rates as determined by the adviser.
G-7 (Group of Seven) is a forum of the seven countries with the world’s largest developed economies whose government leaders meet annually on international economic and monetary issues. The member countries are: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
The Investment Companies Act of 1940 (or ’40 Act) is the primary statute governing the U.S. public investment fund industry. Investment vehicles such as mutual funds, ETFs, closed-end funds and business development companies are all subject to the requirements of the ’40 Act and the rules promulgated thereunder.
The S&P 500® Index is a widely followed gauge of large-cap U.S. equities. The index includes 500 leading companies and captures approximately 80% coverage of the U.S. stock market capitalization.
Total return is the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realized over a period.
Transparent ETF refers to those registered ETFs that are regulated by Rule 6c-11 under the ’40 Act, which, among other items, requires that the ETF publicly disclose its portfolio holdings on a daily basis. The majority of U.S. ETFs are transparent.
Semitransparent ETFs are a subset of registered ETFs that have obtained an exemption from the Securities and Exchange Commission to rely on a structure that only discloses a portion of their portfolios to the public or discloses a set of portfolio metrics to the public in lieu of disclosing portfolio holdings. There are several such models that have obtained an exemption from the SEC, including the ActiveShares model, which DoubleLine has licensed.
DoubleLine ETF Adviser LP is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine's offices can be reached by telephone at (813) 791-7333 or by e-mail at info@doubleline.com.
TAMPA, April 2022 – DoubleLine and Barclays have entered a strategic partnership, bringing together the investment and trading expertise of DoubleLine and the resources of Barclays in the marketing and distribution of exchange-traded funds (ETF) under Doubleline ETF Adviser LP (the “Adviser”), the firms announced today.
“Barclays was an early and successful pioneer in the development and distribution of exchange-traded products,” DoubleLine CEO Jeffrey Gundlach said. “The pairing of our complementary skill sets and resources in the ETF space will write, I’m sure, a productive new chapter in our now decade-long collaboration.”
“We are pleased to be bringing our structuring and funds expertise to this partnership with DoubleLine and are excited to be helping launch these new ETFs,” said C.S. Venkatakrishnan, Group Chief Executive, Barclays. “Through our long-standing partnership with Professor Robert Shiller, these new products will drive further development of the ETF landscape and enable more investors to use these products to assist in achieving their financial goals.”
In a news release last month, DoubleLine announced the establishment of the DoubleLine ETF Trust (the “Trust”) and the Adviser” and the April 5, 2022, launch of the Trust’s first two exchange-traded funds (ETFs), the DoubleLine Opportunistic Bond ETF (Symbol: DBND) and DoubleLine Shiller CAPE® U.S. Equities ETF (Symbol: DCPE), on NYSE Arca.
As DoubleLine Group President Ron Redell explained at the time, the DoubleLine ETF platform was formed to serve investors and advisors with a preference for exchange-traded funds among ’40 Act funds, with a suite of ETFs, starting with DoubleLine Opportunistic Bond ETF and DoubleLine Shiller CAPE® U.S. Equities ETF. Click here for that news release.
Mr. Gundlach and Jeffrey Sherman, Deputy Chief Investment of DoubleLine and President of the Adviser, are portfolio managers of the DoubleLine Opportunistic Bond ETF and DoubleLine Shiller CAPE® U.S. Equities ETF.
Messrs. Gundlach and Sherman will hold a webcast on the two ETFs at 4:15 p.m. Eastern/1:15 p.m. Pacific on Tuesday April 26, 2022. Click here to register for the webcast.
DoubleLine ETF Adviser LP is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine's offices can be reached by telephone at (813) 791-7333 or by e-mail at info@doubleline.com. Media can reach DoubleLine by e-mail at media@doubleline.com. For information on the DoubleLine exchange-traded funds, telephone (855) 937-0772 or e-mail ETFinfo@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.
TAMPA, May 12, 2022 – At the open of trading on May 25, the DoubleLine Shiller CAPE® U.S. Equities ETF (or the “Equities ETF”) will begin trading under the ticker symbol “CAPE.” The Equities ETF was launched April 5 on the NYSE Arca under the ticker symbol “DCPE.” Until recently, “CAPE” was the ticker symbol for the iPath Shiller CAPE exchange-traded note issued by Barclays.
DoubleLine Shiller CAPE® U.S. Equities ETF seeks total return that exceeds the total return of the S&P 500 Index by managing the portfolio to approximate the return of the Shiller Barclays CAPE® U.S. Sector TR USD Index (or “the Index”). The Index incorporates the principles of long-term investing distilled by Dr. Robert Shiller and expressed through the CAPE® (Cyclically Adjusted Price Earnings) ratio (the “CAPE® Ratio”).
Jeffrey Gundlach, CEO and Chief Investment Officer of DoubleLine Capital LP, and Jeffrey Sherman, Deputy Chief Investment Officer, are the portfolio managers of the Equities ETF. They are supported by the analysts, traders and portfolio managers of DoubleLine’s Macro Asset Allocation team headed by Mr. Sherman.
Under normal circumstances, the Equities ETF invests at least 80% of its net assets in U.S. equity securities, including exchange-listed common stocks and exchange-traded investment companies, such as exchange-traded funds and listed closed-end investment companies, to obtain exposure to U.S. equity securities.
The classic CAPE® Ratio assesses equity market prices relative to the 10-year average of inflation-adjusted earnings to account for business and market cycles. Traditional valuation measures, such as the price-to-earnings (P/E) ratio, by contrast, typically rely on earnings information from only the past year. The Index uses a relative version of the classic CAPE® Ratio to identify undervalued sectors while also seeking to exclude a sector that might appear undervalued, but which might have also had recent relative price underperformance due to fundamental issues with the sector that might negatively affect the sector’s long-term total return.
The Index’s composition is determined monthly. Each month, the Index’s methodology ranks 11 U.S. sectors based on a modified CAPE® Ratio (a “value” factor) and a 12-month momentum factor (based on total return). The 11 sectors that may be selected by the Index methodology include Communication Services, Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, Materials, Technology, Utilities and Real Estate. Each sector is represented by a sector ETF that tracks a sector index, which is an ETF in the family of Select Sector SPDR Funds or, in the case of the real estate sector, the iShares Dow Jones U.S. Real Estate Index Fund.
The Index methodology selects the five sectors with the lowest modified CAPE® Ratio – the sectors that are the most undervalued according to the CAPE® Ratio. Only four of these five sectors, however, end up in the Index for a given month, as the sector with the worst 12-month total return among the five selected sectors is eliminated. The Index methodology allocates an equally weighted long (i.e., investment) exposure to each of the four remaining sectors. The Index is rebalanced on a monthly basis.
The prospectus for the Equities ETF can be downloaded from this landing page: https://doubleline.com/documents/fund-documents/?page=1&sort=DESC&ppp=10&fnd=6898,6901,4607,4606&ct=prospectus
