Active managers in fixed income, as reported in the S&P Global SPIVA Scorecard, have a superior track record in outperforming markets versus their counterparts in active equities investment. “An edge in fixed income,” DoubleLine Deputy Chief Investment Officer Jeffrey Sherman writes, “has rarely been more critical than today.” In addition to risks and opportunities unfolding over interest-rate, credit and inflation cycles, Mr. Sherman notes that fiscal imbalances of sovereign debt issuers, including the U.S. Treasury, complicate the case for passive allocations to traditional safe haven assets. Fortunately, DoubleLine ETFs offer active alternatives to “naïve indexation” in fixed income.
“DoubleLine’s suite of exchange-traded funds includes five actively managed fixed-income ETFs,” Jeffrey Sherman writes in the accompanying presentation. “I believe a combination of these can help achieve robust, diversified structured-product and corporate-credit exposures designed to meet the traditional goals of generating income and offsetting equity and high yield risk while managing government securities exposure with a weather eye to sovereign issuers’ fiscal and monetary trajectories.”
DoubleLine’s active fixed income ETFs offer asset allocators the choice between a turnkey approach to the broad fixed-income universe (DBND) or ETFs targeting specific markets (DMBS, DCRE, DABS, DMX). All are managed by seasoned investment teams in securitized credit, corporate credit, U.S. government securities, government-guaranteed securities and international debt.
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.
