DoubleLine Portfolio Manager Ken Shinoda on March 11, 2025, provides an in-depth analysis of the DoubleLine Total Return Bond Fund's performance and strategy, ticker DBLTX. He highlights that the fund's excess return for 2024 is primarily driven by carry, with 176 basis points attributed to earning more coupon and yield. Shinoda notes, "It is a great year for its return in 2024," emphasizing the significant spread tightening and benefits from a steepening interest rate curve. He also mentions that securitized assets like agency mortgage-backed securities (MBS) and commercial mortgage-backed securities (CMBS) lagged in 2023 but caught up in 2024, with credit performing exceptionally well.
Looking ahead to 2025, Shinoda points out that as of February 28, the fund is slightly ahead of the index, with notable returns from spread tightening and carry. He states, "Agencies are finally catching up as rates fall," reflecting the positive outlook for agency MBS. The fund maintains a high credit quality with an A+ average rating and a diversified portfolio, including 51% in agency MBS and 43% in credit. Shinoda concludes by highlighting the attractive valuations of the fund's holdings, stating, "These attractive valuations are compelling for investors," underscoring the fund's strategic positioning to navigate the current market environment.
Past performance does not guarantee future results.
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DoubleLine Funds are distributed by Quasar Distributors, LLC.
Mr. Shinoda joined DoubleLine at inception in 2009. He is Chairman of the Structured Products Committee and oversees the non-Agency RMBS team specializing in investing in non-Agency mortgage-backed securities, residential whole loans and other mortgage-related opportunities. Mr. Shinoda is co-Portfolio Manager on the Total Return, Opportunistic Income, Income, Opportunistic MBS and Strategic MBS strategies. He is also lead Portfolio Manager overseeing the Mortgage Opportunities private funds. Mr. Shinoda is also a permanent member of the Fixed Income Asset Allocation Committee, as well as, participating in the Global Asset Allocation Committee. In addition, he hosts DoubleLine’s “Channel 11 News” (Twitter @DLineChannel11, dline11@doubleline.com), a webcast series that provides market insights and commentary with peers and industry experts. Prior to DoubleLine, Mr. Shinoda was Vice President at TCW where he worked in portfolio management and trading. He holds a B.S. in Business Administration from the University of Southern California and is a CFA® charterholder.
