In an interview with Barron's published July 1, 2026, Jeffrey Sherman charts a cautious course for fixed income portfolios through a time of economic boom and optimistic corporate underwriting amid building sovereign fiscal imbalances, untamed headline hazards and AI overinvestment risk. DoubleLine, he tells the magazine, is steering prudent passage by seeking yield in a diversified mix of high-grade securities outside the corporate capex boom. This portfolio composition includes collateralized loan obligations (also attractive for their floating-rate mechanism against scenarios of Fed interest-rate hikes), non-Agency residential mortgage-backed securities and asset-backed securities backed by short-term consumer loans. At the time of interview, Mr. Sherman sees no safe on-ramp for risk-averse bondholders onto the AI capex boom. That time probably will come, he says, but after bond prices correct. "Then you can diversify into a sector, and you have a cushion to offset losers. Today that doesn't exist with AI. So, if you want to participate, why not buy the equity so at least you can participate on the upside?" For fixed income portfolios, however, he stays cautious on credit. Even in one of DoubleLine’s high yield mandates, he notes, the portfolio allocates less than 20% to below investment grade.
Low Duration Bond Fund and Flexible Income Fund Prospectus
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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 (877) 354-6311 or by visiting www.doubleline.com.
Class I2 shares of the Fund commenced operations on November 3, 2025. Performance shown prior to that inception date is that of Class I shares (which invest in the same portfolio of securities as Class I2 shares), reduced by an estimate of the additional annual operating expenses that would have applied to Class I2 shares prior to November 3, 2025. The actual additional expenses incurred had Class I2 shares begun operations earlier may have been greater or less than that estimate.
Class R6 shares were not available for purchase until July 31, 2019. The performance shown prior to that date is that of the Class I share of the Fund. Annual returns of Class R6 shares would have differed from that shown for the period prior to the share class inception only to the extent that the share classes have different expenses.
The performance information shown assumes the reinvestment of all dividends and distributions. Returns of less than one year are not annualized. While the fund is no-load, management fees and other expenses still apply. Index returns reflect no deduction for fees, expenses or taxes. Please refer to the prospectus for further details.
Jeffrey Sherman, DoubleLine’s Deputy Chief Investment Officer, is a thought leader, portfolio manager and public speaker in the industry. Mr. Sherman is a member of DoubleLine’s Fixed Income and Global Asset Allocation committees, and he serves as lead portfolio manager for the firm’s multi-sector and derivative-based strategies. In his role, Mr. Sherman guides the investment teams in developing top-down macro views and collaborative asset allocation processes throughout a market cycle. Additionally, he is a member of DoubleLine’s Executive Management Committee. In 2018, Money Management Executive named Mr. Sherman as one of “10 Fund Managers to Watch” in its yearly special report. Prior to joining DoubleLine in 2009, Mr. Sherman was a Senior Vice President at TCW, where he worked as a portfolio manager and quantitative analyst focused on fixed income and real-asset portfolios. Prior to that, he was a statistics and mathematics instructor at the University of the Pacific and Florida State University. Mr. Sherman taught Quantitative Methods for Level I candidates in the USC/CFALA CFA® Review Program for many years. He holds a B.S. in Applied Mathematics from the University of the Pacific and an M.S. in Financial Engineering from Claremont Graduate University. Mr. Sherman is a CFA® charterholder.
