Portfolio Managers Ken Shinoda and Vitaliy Liberman on May 31, 2023, discuss the DoubleLine Mortgage ETF (DMBS), which actively invests in high-quality residential mortgage-backed securities, allocating between Agency mortgage-backed securities and non-Agency MBS. “Bonds are volatility dampeners,” DMBS Portfolio Manager Ken Shinoda says. Mixed with stocks, bonds lower portfolio volatility. Mortgage-backed securities “have the lowest volatility of all the highest quality parts of the fixed income market. Lower volatility than Treasuries, lower volatility than investment grade corporate bonds. They also have a really low correlation to equities. So they're a true diversifier in your portfolio. And today they’re the cheapest they've been in over 10 years.”
Vitaliy Liberman points out that most funds investing in MBS “passively invest into the mortgage index.” With DMBS, he says, “we offer an active management approach whereby we can select various type securities that don't necessarily belong to the index. All of those securities are either government guaranteed or of non-Agency variety and investment grade quality.” Via DMBS “investors get to buy securities that are not necessarily actively invested by the rest of the world, and we can be choosy and can select securities that offer advantages” unavailable in an indexed portfolio.
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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.
Mr. Liberman joined DoubleLine in 2009. He is part of the Portfolio Management and Trading team, specializing in trading mortgages and mortgage credit securities. Mr. Liberman is also a permanent member of the Fixed Income Asset Allocation Committee. Prior to DoubleLine, he was a Vice President at TCW, where he worked in portfolio management and trading. Mr. Liberman holds a BS from California State University at Northridge as well as an M.S. in Applied Mathematics. He is a CFA® charterholder.
