In this quarterly portfolio update, DoubleLine Portfolio Manager Andrew Hsu reviews the DoubleLine Total Return Bond Fund’s performance through April 30, 2026. Mr. Hsu discusses the Fund’s positive year-to-date return and outperformance versus the Bloomberg US Aggregate Bond Index. The Fund’s performance has been driven by securitized credit exposure across non-Agency mortgages, CMBS, RMBS and CLOs, which have benefited from spread compression and lower duration. He outlines the Fund’s defensive architecture, with government-guaranteed securities comprising over 50% of the portfolio, a steepener bias favoring the front end of the U.S. Treasury curve and duration close to that of the index. Mr. Hsu also details recent portfolio rotations into higher-coupon mortgages and fixed-rate product and highlights the continued relative value of structured finance versus corporate credit.
On the macroeconomic front, he examines labor market softness, rising consumer delinquencies, commercial real estate trends and CLO credit quality while identifying reduced rate volatility and renewed bank buying as potential catalysts for further mortgage spread compression. With high-quality liquid assets, senior credit positioning and disciplined risk management, the DoubleLine Total Return Bond Fund is positioned to navigate shifting macro conditions while seeking durable income and risk-adjusted returns.
Past performance does not guarantee future results. Investing involves risk including the risk of principal loss. For Important Information about the fund, click here
Link to the Prospectus
DoubleLine Funds are distributed by Quasar Distributors, LLC.
Mr. Hsu joined DoubleLine at its inception in 2009. He is a Portfolio Manager for the DoubleLine Total Return and ABS/Infrastructure Income strategies. Mr. Hsu is a permanent member of the Fixed Income Asset Allocation and Structured Products Committees. Prior to that, he was responsible for analysis and trading of structured products, where his focus included residential MBS and ABS transactions. Mr. Hsu’s responsibilities have also included structuring and negotiating terms on new-issue transactions and forming strategic partnerships with issuing entities in order to participate in key transactions. Prior to DoubleLine, he worked at TCW from 2002, where he focused on credit analysis for structured product securities and co-managed two structured product funds centered on debt and equity investments. During that time, Mr. Hsu was actively involved with portfolio management decisions and investment analysis, including reverse engineering complex CDO/CLO structures. He holds a BS in Finance from the University of Southern California and is a CFA® charterholder.
