TAMPA,
Fla., July 22, 2024 /PRNewswire/ -- The
DoubleLine Low Duration Emerging Markets Fixed Income Fund (or "the
Fund") recently marked its first decade of active investment
management. The mutual fund is distributed via I-share (DBLLX) and
N-share (DELNX) classes.
The Fund seeks to construct an investment portfolio in emerging
markets sovereign, quasi-sovereign and private (non-government)
fixed income securities with a U.S. dollar-weighted average
effective duration of three years or less. (As of June 30, 2024, the Fund had a duration of 2.03
years.) The Fund employs a value-seeking investment approach using
bottom-up research linking credit fundamentals, market valuations
and portfolio strategy. Securities held in the Fund portfolio are
dollar-denominated.
The Fund is managed by a 15-member investment team of portfolio
managers, analysts and traders devoted to emerging markets debt led
by Portfolio Managers Luz Padilla,
Director of International Fixed Income at DoubleLine; Mark Christensen; and Su
Fei Koo.
Ten-Year Total Return
DoubleLine Low
Duration Emerging Markets Fixed Income Fund
Performance
|
Month-End Returns as of
June 30, 2024
|
June
|
YTD
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
Since
Inception**
|
I Share
(DBLLX)
|
0.73
|
3.74
|
8.32
|
1.60
|
2.06
|
2.46
|
2.67
|
N Share
(DELNX)
|
0.82
|
3.61
|
8.04
|
1.33
|
1.80
|
2.22
|
2.43
|
J.P. Morgan CEMBI Broad
Diversified Maturity 1-3 Year Index (benchmark)
|
0.69
|
4.33
|
9.05
|
1.17
|
2.61
|
3.13
|
3.17
|
Bloomberg U.S.
Aggregate 1-3 Years Index*
|
0.56
|
1.41
|
4.92
|
0.56
|
1.20
|
1.34
|
1.33
|
*DoubleLine plans to
add the Aggregate 1-3 Years as a second benchmark in the
prospectus, effective July 26, 2024.
|
**Fund Inception April
7, 2014
|
|
|
|
|
|
|
|
Source: DoubleLine,
J.P. Morgan, Bloomberg
|
|
|
|
|
|
|
|
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 (213) 633-8200 or by
visiting www.doubleline.com.
For the 10 years ended June 30,
2024, the Fund I shares (DBLLX) delivered an annualized
total return of 2.46%, versus 3.13% for its benchmark, the J.P.
Morgan CEMBI Broad Diversified Maturity 1-3 Year Index, and 1.34%
for the Bloomberg U.S. Aggregate 1-3 Years Index (or the "Aggregate
1-3 Years"). DoubleLine plans to add the Aggregate 1-3 Years as a
second benchmark in the Fund's prospectus, effective July 26, 2024. It is not possible to invest
directly in an index. For standardized performance, including
quarter-end returns, please visit this page.
Expense
Ratio
|
|
I Share
(DBLLX)
|
N Share
(DLENX)
|
Gross Expense
Ratio
|
0.69 %
|
0.93 %
|
Net Expense
Ratio
|
0.59 %
|
0.84 %
|
Source:
DoubleLine
|
|
|
The Adviser has contractually agreed to waive fees and
reimburse expenses through August 1,
2024.
Risk-Adjusted Return
For the same 10-year period, the Fund's I-share class delivered
a Sharpe ratio of 0.26 versus 0.39 for the J.P. Morgan CEMBI Broad
Diversified Maturity 1-3 Year Index and negative 0.13 for the
Bloomberg U.S. Aggregate 1-3 Years Index. The Sharpe ratio is a
measure of the excess return per unit of risk (as measured by
volatility) for an investment asset or a portfolio. A higher Sharpe
ratio indicates better risk-adjusted performance than a lower
Sharpe ratio.
Risk-Adjusted
Performance, Trailing 10 Years Through June 30, 2024
|
|
Annualized
Return
|
Standard
Deviation
|
Sharpe
Ratio
|
Maximum
Drawdown
|
I Share
(DBLLX)
|
2.46 %
|
3.61 %
|
0.26
|
-9.38 %
|
N Share
(DELNX)
|
2.22 %
|
3.59 %
|
0.19
|
-9.54 %
|
J.P. Morgan CEMBI Broad
Diversified Maturity 1-3 Year Index
|
3.13 %
|
4.13 %
|
0.39
|
-12.04 %
|
Bloomberg Barclays U.S.
Aggregate Index 1-3 Years Index*
|
1.34 %
|
1.45 %
|
-0.13
|
-5.31 %
|
*DoubleLine plans to
add the Aggregate 1-3 Years as a benchmark in the Fund's
prospectus, effective July 26, 2024.
|
Source: DoubleLine,
J.P. Morgan, Bloomberg
|
|
|
|
|
Fund History and Roles
Portfolio Managers Luz Padilla,
Mark Christensen and Su Fei Koo have worked together for 29 years,
investing in emerging markets credit. Their 15-member team provides
active investment strategies to bring the improving-credit story of
emerging markets debt to investors and their advisers. The
DoubleLine Low Duration Emerging Markets Fixed Income Fund was
launched April 7, 2014, after Ms.
Padilla took note of the performance of the emerging markets sleeve
of the multisector portfolio of a DoubleLine low-duration strategy,
including during the "taper tantrum," a surge in interest rates in
2014 on fears of quantitative tightening and rate hikes by the
Federal Reserve.
In addition to implementing the Fund's low-duration mandate and
all-dollar-denominated portfolio holdings, the investment team has
managed the portfolio with a higher percentage of securities rated
investment grade (IG) than in the J.P. Morgan CEMBI Broad
Diversified Maturity 1-3 Year Index.
The reduced allocation to below-IG bonds, Ms. Padilla said, has
meant giving up some of the yield available in emerging markets
debt in exchange for a portfolio of higher credit quality. "We
designed the investment strategy and actively manage the fund," she
said, "to give investors access to the asset class with less
volatility due to increases in U.S. Treasury yields, emerging
markets credit spreads or both."
From the Fund's April 7, 2014,
inception, through June 30, 2024,
securities rated investment grade have comprised on average 77.1%
of the portfolio's holdings, including cash, vs. an average IG
composition of 61.3% for the J.P. Morgan CEMBI Broad Diversified
Maturity 1-3 Year Index.
Credit Quality
Breakdown
|
as of June 30,
2024
|
Credit
Rating
|
DoubleLine Low
Duration
Emerging Markets Fixed
Income Fund
|
J.P. Morgan
CEMBI Broad
Diversified
Maturity 1-3 Year
Index*
|
AAA (incl.
cash)
|
0.8 %
|
0.5 %
|
AA
|
0.2 %
|
8.5 %
|
A
|
11.8 %
|
25.5 %
|
BBB
|
49.2 %
|
26.0 %
|
BB
|
36.6 %
|
18.5 %
|
B
|
1.0 %
|
11.5 %
|
CCC
|
0.0 %
|
5.6 %
|
CC
|
0.0 %
|
0.5 %
|
C
|
0.0 %
|
0.5 %
|
D
|
0.0 %
|
0.0 %
|
Not Rated
|
0.3 %
|
2.7 %
|
IG
|
62.1 %
|
60.6 %
|
Below IG
|
37.9 %
|
39.4 %
|
* J.P. Morgan does not
make available credit quality
|
information for this
subindex. DoubleLine derived this
|
data using best
available rating.
|
|
Source: DoubleLine
Capital, J.P. Morgan
|
DoubleLine President Ron Redell sees two possible roles for
the Fund. "On one hand, the Fund is worthy of consideration by
those who regard EM fixed income as an asset class offering
diversification benefits and undergoing a secular evolution of
improving credit quality, but they seek their exposure actively
managed to lower duration and with bottom-up credit underwriting.
On the other hand, the Fund might appeal to other investors who are
seeking the potential for a yield pickup in their short-duration
allocations."
Definitions
Bloomberg U.S. Aggregate 1-3 Years Index. This index tracks the
one- to three-year component of the Bloomberg US Aggregate Bond
Index, which represents securities that are SEC registered, taxable
and dollar denominated in the U.S. investment grade, fixed-rate
bond market.
J.P. Morgan CEMBI Broad Diversified Maturity 1-3 Year Index.
This index tracks corporate bonds with a maturity of one to three
years and includes smaller issues and a wider array of bonds than
the CEMBI, which is a market capitalization-weighted index
consisting of U.S. dollar-denominated corporate bonds from emerging
markets. The CEMBI is a liquid global corporate benchmark
representing Asia, Latin America, Europe and the Middle East/Africa.
Maximum Drawdown. The maximum peak-to-trough decline during a
specific period for an investment, trading account or fund. A
drawdown is usually quoted as the percentage between the peak and
the subsequent trough.
Sharpe Ratio. This metric is used to help investors understand
the return of an investment compared to its risk. The ratio is the
average return earned in excess of the risk-free rate per unit of
volatility or total risk. Volatility is a measure of the price
fluctuations of an asset or portfolio. Subtracting the risk-free
rate from the mean return allows an investor to better isolate the
profits associated with risk-taking activities. The risk-free rate
of return is the return on an investment with zero risk, meaning
it's the return investors could expect for taking no risk. The
yield for a U.S. Treasury bond, for example, could be used as the
risk-free rate.
Standard Deviation. Measure of the variation or dispersion of a
set of data from its mean or expected/budgeted value. A low
standard deviation indicates that the data points tend to be very
close to the mean, whereas a high standard deviation indicates that
the data is spread out over a large range of values. A measure of
an investment's volatility.
About DoubleLine Capital LP
DoubleLine Capital is an investment adviser registered under the
Investment Advisers Act of 1940. DoubleLine's offices can be
reached by telephone at (813) 791-7333 or by email at
info@doubleline.com. Media can reach DoubleLine by email at
media@doubleline.com. DoubleLine® is a registered trademark of
DoubleLine Capital LP.
The Fund's investment objectives, risks, charges and expenses
must be considered carefully before investing. The statutory and
summary prospectus contain this and other important information
about the investment company, and may be obtained by calling (877)
354-6311 / (877) DLINE11, or visiting www.doubleline.com. Read
them carefully before investing.
Risk Disclosure
Investments in debt securities typically decrease in value when
interest rates rise. This risk is usually greater for longer-term
debt securities. Investments in lower-rated and non-rated
securities present a greater risk of loss to principal and interest
than higher-rated securities. The Fund invests in foreign
securities which involve greater volatility and political, economic
and currency risks and differences in accounting methods. These
risks are greater for investments in emerging markets. Derivatives
involve special risks including correlation, counterparty,
liquidity, operational, accounting and tax risks. These risks, in
certain cases, may be greater than the risks presented by more
traditional investments. Investing in ETFs involve additional risks
such as the market price of the shares may trade at a discount to
its net asset value ("NAV"), an active secondary trading market may
not develop or be maintained, or trading may be halted by the
exchange in which they trade, which may impact a Funds ability to
sell its shares.
While the Fund is no-load, management fees and other expenses
still apply. Please refer to the prospectus for further
details.
DoubleLine Funds are distributed by Quasar Distributors, LLC.
DoubleLine® is a registered trademark of DoubleLine Capital LP.
© 2024 DoubleLine Capital LP
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