DoubleLine Total Return Bond Fund

Class Inst (DBLTX)
Scorecard
5 / 5 Stars
Lipper
5 5 5 4 1
Zacks Investment Research
2 (Buy)
Standard & Poor's
5 / 5 Stars
TheStreet.com
A+ (Buy)

#1 in Intermediate-Term Bond

U.S. News evaluated 273 Intermediate-Term Bond Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Performance

The fund has returned 4.87 percent over the past year.

Trailing Returns Updated 06.30.2014
Year to date 4.5%
1 Year 4.9%
3 Years (Annualized) 6.1%
5 Years (Annualized) N/A
10 Years (Annualized) N/A

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Summary

DoubleLine Total Return is a rapidly growing fund with an experienced management team. 

As of July 03, 2014, the fund has assets totaling almost $33.50 billion invested in 1,579 different holdings. Its portfolio consists of a variety of fixed-income investments.

In late 2009, TCW fired star manager Jeffrey Gundlach amid allegations that he was planning to break away from the firm and bring TCW clients and managers with him. Ironically, soon after the firing, Gundlach succeeding in doing just that; just months after his departure, he launched DoubleLine, which has competed with TCW for investors and talent. Notably, Philip Barach, who co-manages this fund, left TCW to join DoubleLine. Despite being around for only a year, the fund already has nearly $8 billion in assets. Meanwhile, its returns have been nothing short of impressive. Through May, it was up 5 percent year-to-date. So far, Gundlach has maintained a barbell-shaped portfolio. While he has loaded up on AAA bonds, he is also heavily invested in bonds that are rated below B. As a result, the fund's average credit quality is BB (junk status). As of the end of April, three-quarters of the fund's fixed-income holdings were tied to mortgages. The fund has returned 4.87 percent over the past year.

Investment Strategy

Gundlach is pursuing an approach similar to the one he took at TCW Total Return. According to the fund's prospectus: "The Fund intends to invest more than 50% of its net assets in mortgage-backed securities of any maturity or type. ..." Gundlach is willing to take on a fair amount of credit risk to achieve the fund's goals.

Role in Portfolio

Morningstar calls the fund a "core" holding.

Management

Jeffrey Gundlach and Philip Barach manage the fund.

Fees

DoubleLine Total Return Bond Fund has an expense ratio of 0.48 percent.

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Risk

This fund's approach can come with a fair amount of risk.

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 1 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-06-11

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 3 for one year and 1 for five years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-06-11

The fund's Value Line Risk Rank, a measure of volatility, is 2 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-06-11

Morningstar gives this fund a stewardship rating of C on a scale of A to F.

Morningstar 2011-06-12

Morningstar gives this fund a stewardship rating of C on a scale of A to F.

Morningstar 2011-06-12