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DoubleLine Total Return As A Core Bond Holding

beebee
in Fund Discussions
"Doubleline has been in the right places at the right times over the last several years. However, that doesn’t make them infallible to an incorrect call on interest rates or underperformance as bond market trends change. As with any active strategy, it’s important to regularly monitor the fund’s performance versus its peer group and benchmark to ascertain that they are achieving returns in line with your goals and realistic expectations."
Article:
fmdcapital.com/why-i-still-like-doubleline-total-return-as-a-core-bond-holding/

Comments

  • VintageFreakVintageFreak
    After the Gross PIMCO fiasco, I was thinking this fund will become the staple bond fund in 401k plans. Wonder if that's happening.
  • wxman123
    "However, you simply can’t find this unique bond strategy in an ETF at this time, which is why we have continued to stick with the marginally more expensive mutual fund strategy. "

    Doubleline has an ETF, TOTL.
  • Tony
    The mutual fund and the ETF are different enough so that the total 6-month daily returns to date are TOTL: -0.04% and DBLTX: 0.97%, according to StockCharts.com.
  • msf
    edited November 2015
    That's solid evidence that the ETF isn't a clone of the open end fund. But it doesn't say a lot about whether the ETF uses the same or different strategy.

    As I recall (I haven't bothered to check the details on any of this), PIMCO's ETF follows the same strategy as its open end fund, but the ETF is more constrained in how it may apply that strategy. On the other hand, perhaps because the ETF started from scratch (much smaller) it did much better than its sibling fund out of the gate.

    Even if my memory is off, the point is still valid - two funds can use the same strategy (even by the same manager) and achieve significantly different results for a variety of reasons.
  • davidrmorandavidrmoran
    Again suggest using etf instead of caps, since the auto-algor here turns that into something Aberdeen....
  • Tony
    Here is the ETF.com description of TOTL:http://www.etf.com/TOTL
    Here is DoubleLine's description of DBLTX:http://www.doublelinefunds.com/funds/total_return/overview.html
  • wxman123
    The ETF is more diverse and includes EM debt, for example. Assuming Gundlach adds value (as I do) the ETF should be a good bet for Doubleline fans, just not at this precise moment. Over the long run I'd expect TOTL to be a reasonable proxy for the performance of Total Return.
  • msf
    wxman123 said:

    "However, you simply can’t find this unique bond strategy in an ETF at this time, which is why we have continued to stick with the marginally more expensive mutual fund strategy. "

    Doubleline has an ETF, TOTL.

    TOTL ER = 0.65% (0.55% after temporary waiver)
    BOND ER = 0.55%
    DBLTX ER = 0.47%

    DBLTX is marginally more expensive than what etf exactly?
  • heezsafe
    edited November 2015
    Quite a bit of difference in maturity profiles as well. No way these are going to move in tandem over time.
    And I see that TOTL has been trading priced at a slight premium to NAV, for most of its lifetime. I didn't think ETFs were supposed to do that.:)
  • soaring
    JG talks about the difference between TOTL and DBLTX.
    IBD: What are the similarities and differences between the Total Return Fund and TOTL, the ETF?

    Gundlach: They're not the same.

    The interest-rate risk in TOTL is the same

    Read more: http://www.nasdaq.com/article/is-doublelines-jeffrey-gundlach-the-new-bond-king-cm505054#ixzz3rNvBpyY9
  • AndyJ
    soaring said:

    JG talks about the difference between TOTL and DBLTX.



    Good, clear interview. When TOTL first came out, JG said that it would be essentially the DBLFX universe of FI asset classes with the duration of DBLTX and the barbell approach that both oef's follow. From the description provided in the interview, apparently that basic strategy hasn't changed.

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