asset allocation core flex webcast slides

7/24/2019 Asset Allocation Core Flex Webcast Slides

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333S.GrandAve.,18thFloor||LosAngeles,CA90071||213.633.8200

LiveWebcasthostedby:

JeffreyGundlach

ChiefExecutiveOfficer

November

17,

2015

AssetAllocation

Webcast


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111715AssetAllocationWebcast2

PerformanceDoubleLineCoreFixedIncomeFund QuarterEndingSeptember30,2015

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults. Theinvestmentreturnandprincipal

valueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthantheoriginalcost.Current

performanceof

the

fund

may

be

lower

or

higher

than

the

performance

quoted.

Performance

data

current

to

the

most

recent

month

end

may

be

obtainedbycalling2136338200orbyvisitingwww.doublelinefunds.com.

PastPerformancedoesnotguaranteefutureresults.Indexperformanceisnotillustrativeoffundperformance.

BarclaysUSAggregateIndexrepresentssecuritiesthatareSECregistered,taxable,anddollardenominated.Theindexcoversthe USinvestmentgradefixedrate

bondmarket,withindexcomponentsforgovernmentandcorporatesecurities,mortgagepassthroughsecurities,andassetbackedsecurities.Thesemajorsectors

aresubdividedintomorespecificindicesthatarecalculatedandreportedonaregularbasis.Itisnotpossibletoinvestinanindex.

*IfaFundinvestedinanaffiliateFundsponsoredbytheAdviserduringtheperiodcoveredbythisreporttheAdviseragreed to notchargeamanagementfeeto

theFundinanamountequaltotheinvestmentadvisoryfeespaidbytheaffiliatedFundinrespectoftheFundsinvestmentintheaffiliatedfundtoavoidduplicate

chargeoftheinvestmentadvisoryfeestotheinvestors.

QuarterEnd

September30,2015

3Q

2015

YeartoDate

2015 1Year

3Year

Annualized

5Year

Annualized

SinceInception

Annualized

(6110to930

15)

Ishare 0.37% 1.49% 2.79% 2.63% 5.32% 6.35%

Nshare 0.40% 1.31% 2.54% 2.40% 5.07% 6.10%

BarclaysU.S.

AggregateIndex 1.23% 1.13% 2.94% 1.71% 3.10% 3.67%

Asof September30,2015 IShare NShare

BarclaysU.S.

Aggregate

Index

1YrStd Deviation 2.51% 2.59% 3.06%

GrossExpense

Ratio 0.50% 0.75%

Asof September30,

2015 IShare NShare

GrossSEC30DayYield 3.91% 3.66%

NetSEC30DayYield* 3.92% 3.67%


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Performance

DoubleLine

Flexible

Income

Fund

Quarter

Ending

September

30,

2015

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults. Theinvestmentreturnandprincipal

valueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthantheoriginalcost.Current

performanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrenttothemostrecentmonthendmaybe

obtainedbycalling2136338200orbyvisitingwww.doublelinefunds.com.

LondonInterbankOfferingRate(LIBOR)isanindicativeaverageinterestrateatwhichaselectionofbanksknownasthepanelbanksarepreparedtolendone

anotherunsecuredfundsontheLondonmoneymarket.

PastPerformancedoesnotguaranteefutureresults.Indexperformanceisnotillustrativeoffundperformance.

*IfaFund

invested

in

an

affiliate

Fund

sponsored

by

the

Adviser

during

the

period

covered

by

this

report

the

Adviser

agreed to not

charge

amanagement

fee

to

the

Fund

in

an

amountequaltotheinvestmentadvisoryfeespaidbytheaffiliatedFundinrespectoftheFundsinvestmentintheaffiliatedfundtoavoidduplicatechargeoftheinvestment

advisoryfeestotheinvestors.


GrossExpenseRatio 1.35% 1.60%

NetExpense Ratio 0.84% 1.09%


GrossSEC30DayYield 4.64% 4.39%

NetSEC30DayYield* 4.71% 4.46%

QuarterEnd

September30,2015

3Q

2015 1Year

SinceInceptionAnnualized

(4714to93015)

Ishare 1.18% 1.65% 2.48%

Nshare 1.24% 1.40% 2.26%

LIBORUSD3Month 0.08% 0.27% 0.27%


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UpcomingWebcastAnnouncements

JeffreyGundlach December8,2015

TotalReturnBondFund

Gotowww.doublelinefunds.com,HomepageunderEvents

2015WebcastScheduletoregister

1:15pm

PDT/4:15

pm

EDT

2016WebcastScheduleAvailableSoonondoubleline.comordoublelinefunds.com,homepage

underEvents

ToReceivePresentationSlides:

Youcanemail

[email protected]


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TABI

GlobalOverview


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ProbabilityofRateHikeFebruary2,2015throughNovember9,2015

Source:DoubleLine,Bloomberg

Youcannotinvestdirectlyinanindex.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2/3/2015

2/10/2015

2/18/2015

2/25/2015

3/4/2015

3/11/2015

3/18/2015

3/25/2015

4/1/2015

4/8/2015

4/15/2015

4/22/2015

4/29/2015

5/6/2015

5/13/2015

5/20/2015

5/28/2015

6/4/2015

6/11/2015

6/18/2015

6/25/2015

7/2/2015

7/10/2015

7/17/2015

7/24/2015

7/31/2015

8/7/2015

8/14/2015

8/21/2015

8/28/2015

9/4/2015

9/11/2015

9/18/2015

9/25/2015

10/2/2015

10/9/2015

10/16/2015

10/23/2015

10/30/2015

11/6/2015

ProbabilityofRateHike*basedonFedFundFutures

Dec

Mar

Jun


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Sweden/Riksbank FlipFlopDecember31,2007throughNovember7,2015

Source:BloombergFinancialServices,DoubleLineCapitalLP

Aninvestmentcannotbemadedirectlyinanindex.


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CentralBankPolicyRates

January1,2006 throughMay31,2015

Source:Minack

NZ=New

Zealand


%


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Source:Bloomberg,

DoubleLine

QE=QuantitativeEasing.bps=basispoints.GDP=grossdomesticproductorthenumberofgoodsandservicesproducedwithina givencountry.YoY =yearoveryear.EU=Eurozonewhichiscomprisedof27

countriesacrossEurope.Youcannotinvestdirectlyinanindex.

TheDifferenceBetweenHikingandQEInfinity50bpsof

GDP?

2.00%

1.50%

1.5%

1.0%

0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

GD

PYear

overYear%Change

Decemb

er31

,2010

September3

0,

2015

USRealGDPYoY

EURealGDPYoY


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U.S.IndustrialProduction(YoY)


YoY =yearoveryear.Youcannotinvestdirectlyinanindex.

20.0%

15.0%

10.0%

5.0%

0.0%

5.0%

10.0%

YearoverYear%Change

December3

1,

1999

September30

,2015

USIndustrialProductionYoY


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USCoreCPIandCorePCE(YoY)December31,2005throughOctober29,2015

Source:DoubleLine,Bianco,Bloomberg

U.S.PersonalConsumptionExpenditureCorePriceIndex(PCE)=personalconsumptionexpendituresistheprimarymeasureofconsumerspendingongoodsandservicesintheU.S.economy.

U.S.CPI UrbanConsumersLessFoodandEnergy=ConsumerPriceindex measurestheweightedaveragepricesofthebasketofconsumergoodsandservicesexcludingfoodandenergy.YoY =year

overyear.Youcannotinvestdirectlyinanindex


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PriceStats U.S.CPI(YoY%)November13,2011throughNovember13,2015

Source:DoubleLine,Bianco,Bloomberg

CPI=ConsumerPriceindex measurestheweightedaveragepricesofthebasketofconsumergoodsandservices.YoY =yearoveryear.Youcannotinvestdirectlyinanindex


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US,UKandEUHeadlineInflations(EurozoneMethod)

January1,

2005

through

June

30,

2015

Source:BiancoResearch

CPI=ConsumerPriceindex measurestheweightedaveragepricesofthebasketofconsumergoodsandservices.YoY =yearoveryear.Eurozonemethoddoesnotincludeshelter.Youcannotinvestdirectlyinanindex


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WhyHikeNow?U.S.Dollar

IndexSpotDecember31,2007throughNovember16,2015

Source:Bloomberg

Financial

Services,

DoubleLine

Capital

LP

DXY=DXYistheUSDollarIndex(USDX)indicatesthegeneralvalueoftheUSdollar.AverageexchangeratesbetweentheUSdollarandsixmajorworldcurrencies.Aninvestmentcannotbemadedirectlyinan

index.


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GlobalNominalGDP(YoY)January1,1981throughSeptember30,2015

GDP=grossdomesticproductorthenumberofgoodsandservicesproducedwithinagivencountry. NominalGDPdoesnotincludeinflation.YoY =yearoveryearYoucannotinvestdirectlyinanindex.


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GSFinancialConditionsIndexNovember16,2005toNovember16,2015

Source:DoubleLine,

Bloomberg

GS=GoldmanSachsFinancialConditionsIndextrackschangesininterestrates,creditspreads,equityprices,andthevalueofthedollarinordertomeasuretheoveralleconomicstrengthorweakness

oftheU.S.economy. Youcannotinvestdirectlyinanindex.


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WhyHikeNow? CommodityPricesNovember16,2005toNovember16,2015


CRY=Thompson/Rueters CRBExcessReturnIndexisanarithmeticaverageofcommodityfuturesprocesswithmonthlyrebalancing.Youcannotinvestdirectlyin an index.


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S&P500SpotPrice 1YearNovember17,2014throughNovember16,2015

Source:Bloomberg.S&P500Indexisdesignedtomeasureperformanceofthebroaddomesticeconomythroughchangesintheaggregatemarketvalueof500stocksrepresentingallmajor

industries. Youcannotinvestdirectlyin anindex.


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S&P50012MonthTrailingEarningsPerShare(EPS)November5,2000throughNovember13,2015

Source:Bloomberg.

S&P

500

Index

is

designed

to

measure

performance

of

the

broad

domestic

economy

through

changes

in

the

aggregate

market

value

of

500

stocks

representing

all

major

industries.



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S&P500NetProfitMarginJanuary1,1973throughMarch31,2015

Source: S&P500Indexisdesignedtomeasureperformanceofthebroaddomesticeconomythroughchangesintheaggregatemarketvalueof500stocksrepresentingallmajorindustries.Youcannot

investdirectlyinanindex.


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TABII

FixedIncomeOverview


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ChangeinGlobal10yBondYieldsYTD Asof11/16/15

Source:Bloomberg;Doubleline

10yearyieldsontreasurybondsforthecountrieslisted.YTD=yeartodate.BPS=basispoints.Youcannotinvestdirectlyin anindex.

9

15

27

319

16

1

63

183

117

32

19

260

1

7 5 16

184

47

25 34

63

20

85

300

250

200

150

100

50

0

50

100

150

200

Change

in

Global

10y

Bond

YTD(BPS)


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BofA/MerrillFixedIncomeIndexReturns

DataSource:

BofA/Merrill

Lynch

Indices

through

year

end

December

31,

2014

and

November

16,

2015

for

the

respective

years

indicated.

PleaseseetheAppendixforindexdefinitions.Aninvestmentcannotbemadedirectlyinanindex.

0.66%

1.22%

0.69%

0.22%

1.64%

1.57%

0.27%

5.88%

6.07%

8.11%

7.51%

7.31%

2.45%

9.97%

Government(G0A0)

Mortgages(MOAO)

InternationalDeveloped(NOGO)

Corporate(COAO)

InternationalEmerging(IGOV)

HighYield(JOAO)

Convertibles

(VOSO)

Grey=Year2014

Blue=YearToDate2015


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BofA/MerrillFixedIncomeIndexReturns

0.52%

0.49%

1.08%

2.08%

0.86%

8.31%

9.43%

7.37%

7.70%

1.28%

5.34%

3.36%

AAARated

Credit

(COA1)

ARatedCredit(COA3)

BBBRated

Credit

(COA4)

BRatedHighYield(JOA2)

BBRated

High

Yield

Credit

(JOA1)

CCCRatedHighYield(JOA3)

Investment Grade=IndicesratedAAAtoBBB(shownabove)areconsideredtobeinvestmentgrade. AbondisconsideredinvestmentgradeifitscreditratingisBBBorhigherbyStandard&

PoorsorBaa3byMoodys.Thehighertherating,themorelikelythebondistopaybackatpar/$100centsonthedollar.AAAisconsideredthehighestqualityand thelowestdegreeofrisk.They

areconsideredtobestableanddependable.

BelowInvestmentGrade=Alsoknownasjunkbond(shownabove)isasecurityratedbelowinvestmentgradehavingaratingofBBBorbelow.Thesebondsareseenashavinghigherdefault

riskorotheradversecreditevents,buttypicallypayhigheryieldsthanbetterqualitybondsinordertomakethemattractive. Theyarelesslikelytopaybackatpar/$100centsonthedollar.

CreditdistributionfromthehighestavailablecreditratingfromanyNationallyRecognizesStatisticalRatingOrganization(S&P,Moodys,andFitch).

Source:

BofA/Merrill

Lynch

Indices

as

of

December

31,

2014

and

November

16,

2015

and

for

their

respective

years

indicated.PleaseseeappendixforIndexdefinitions

Aninvestmentcannotbemadedirectlyinanindex.

Grey

=

Year

2014Blue=YearToDate2015


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U.S.2YearTreasuryNovember17,2010throughNovember16,2015


GT02=US

2Year

Treasury

Bond.

You

cannot

invest

directly

in

an

index.


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Source:Bloomberg

Financial

Services,

DoubleLine

Capital

LP

GT5=US5YearTreasuryBond. Youcannotinvestdirectlyinanindex.

U.S.5YearTreasury

November

17,

2010

through

November

16,

2015


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GT10=US

10

Year

Treasury

Bond.

You

cannot

invest

directly

in

an

index.



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GT30=US

30

Year

Treasury

Bond.

You

cannot

invest

directly

in

an

index.

Past

performance

is

no

guarantee

of

future

results.



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5

0

5

10

15

20

25

1947

1948

1950

1952

1953

1955

1957

1958

1960

1962

1963

1965

1967

1968

1970

1972

1973

1975

1977

1978

1980

1982

1983

1985

1987

1988

1990

1992

1993

1995

1997

1998

2000

2002

2003

2005

2007

2008

2010

2012

2013

2015

U.S.GDPNominalDollarsYoYSA

10yU.S.TreasuryBondYield

Source:Bloomberg,DoubleLine

GDP=Gross

Domestic

Product.

The

monetary

value

of

goods

and

services

produced

within

acountrys

borders.

Nominal

GDP

is

not

adjusted

for

inflation.

YoY

=Year

over

Year.

SA

=Seasonally

adjusted.Youcannotinvestdirectlyinanindex.

U.S.NominalGDP(YoY)%Changevs.10yearU.S.

TreasuryYieldsMarch31,1947throughSeptember30,2015

%


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0.90

0.95

1.00

1.05

1.10

1.15

RelativeGrowthRate

(December31,1985

October21,

201

5)

Trend 1SigmaRelativetoTrend 2SigmasRelativetoTrend Mortgage/T reasury

RelativeGrowthofMerrillMortgageIndexto

MerrillTreasuryIndex

DataSource:

Merrill

Lynch

(M0A0;

GOQO)

Please

see

definitions

in

the

Appendix.

Monthly

data

with

most

recent

observation

appended.

You

cannot

invest

directly

in

an

index.

Standarddeviation=Ameasureofthedispersionofasetofdatafromitsmean.Themorespreadapartthedata,thehigherthedeviation.Sigma=Mathematical sum.


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0.50

0.60

0.70

0.80

0.90

1.00

1.10

1.20

1.30

1.40

1.50

RelativeGrowthRate

(December31,

1997

October21,

2015)

Trend 1Sigma

Relative

to

Trend 2

Sigmas

Relative

to

Trend C MBS/Treas ury

RelativeGrowthofMerrillCMBSIndexto

Merrill

Treasury

Index

DataSource:

Merrill

Lynch

(CMA0;

G0Q0)

Please

see

definitions

in

the

Appendix.

Monthly

data

with

most

recent

observation

appended.

You

cannot

invest

directly

in

an

index.

Standarddeviation=Ameasureofthedispersionofasetofdatafromitsmean.Themorespreadapartthedata,thehigherthedeviation.Sigma=Mathematicalsum.


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0.80

0.90

1.00

1.10

1.20

1.30

1.40

RelativeG

rowthRate

(December31,

198

5

October21,

2015

)

Trend 1SigmaRelativetoTrend 2SigmasRelativetoTrend Corporate/Treasury

RelativeGrowthofMerrillCorporateIndexto


Data

Source:

Merrill

Lynch

(C0A0;

G0Q0)

Please

see

definitions

in

the

Appendix.

Monthly

data

with

most

recent

observation

appended.

You

cannot

invest

directly

in

an

index.Standarddeviation=Ameasureofthedispersionofasetofdatafromitsmean.Themorespreadapartthedata,thehigherthedeviation.Sigma=Mathematicalsum.


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BorrowingCostsHaveRisenintheU.S.September22,2010toSeptember22,2015

LHS=left

hand

side.

RHS

=right

hand

side.

S&P

500

Index

is

designed

to

measure

performance

of

the

broad

domestic

economy

through

changes

in

the

aggregate

market

value

of

500

stocks

representingallmajorindustries.Youcannotinvestdirectlyinanindex.


36/71


iSharesiBoxx InvestmentGradeCorporateBondETFNovember17,2014throughNovember16,2015

DataSource:Bloomberg.iShares Iboxx InvestmentGradeCorporateBondETFisanexchangetradedfundincorporatedintheUSA.TheETFseekstotracktheinvestmentresultsofanindexcomposedof

U.S.dollardenominated,investmentgradecorporatebonds.


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0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

RelativeGrowthRate

(December31,

1985

October21,2

015)

Trend 1SigmaRelativetoTrend 2SigmasRelativetoTrend HighYield/Treasury

RelativeGrowthofMerrillHighYieldCashPayIndexto

Merrill15+YearTreasuriesIndex

DataSource:

Merrill

Lynch

(J0A0;

G802)

Please

see

definitions

in

the

Appendix.

Monthly

data

with

most

recent

observation

appended.

You

cannot

invest

directly

in

an

index.



38/71


0.50

0.60

0.70

0.80

0.90

1.00

1.10

1.20

1.30

1.40

1.50

RelativeGrowthRate

(January01,1

999

October21,

20

15)

Trend 1Sigma

Relative

to

Trend

2SigmasRelativetoTrend S&P/LSTALeveragedLoan/MerrillLynch13

RelativeGrowthofS&P/LSTALeveragedLoanIndex

toMerrillTreasury13YearIndex

Data

Source:

S&P/LSTA

(SPBDAL);

Merrill

Lynch

(G102)

Please

see

definitions

in

the

Appendix.

Weekly

data

with

most

recent

observation

appended.

You

cannot

invest

directly

in

an

index.Standarddeviation=Ameasureofthedispersionofasetofdatafromitsmean.Themorespreadapartthedata,thehigherthedeviation.Sigma=Mathematicalsum.


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BarclaysUSCorporateHYSpreadNovember17,2006throughNovember13,2015


LF98OASIndex

=Barclays

U.S.

Corporate

High

Yield

Average

option

adjusted

spreads

(OAS)

Index

measures

the

spread

of

U.S.

Corporate

High

Yield

securities

and

the

risk

free

rate

of

return

which

is

adjusted

totakeintoaccountanembeddedoption..Youcannotinvestdirectlyinanindex.


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WhyHikeNow? JunkBondsNovember17,2010toNovember16,2015


JNK=SPDR

Barclays

High

Yield

Bond

ETF

in

an

exchange

traded

incorporated

in

the

U.S.

It

seeks

investment

results

that

correspond

to

the

price

and

yield

of

the

Barclays

High

Yield

Very

Liquid

Bond

Index.

Pleaseseetheappendixforprospectuslink,description,expenses,etc.forJNK. Youcannotinvestdirectlyin an index.


41/71


LeveragedLoansAveragePriceNovember15,2014throughNovember16,2015

DataSource:Bloomberg.SPBDLLBIndex=S&P/LSTAUSLeveragedLoan100Indexisdesignedtoreflecttheperformanceofthelargestfacilitiesintheleveragedloanmarket.Youcannotinvestdirectly

inan

index.


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0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

D

efaultRate

(December31,1

981

September30,

2015)

DefaultRate

CorporateDefaultRates

DataSource:

JP

Morgan

Default

Monitor.

Trailing

12

month

Par

Weighted

High

Yield

Corporate

Bond

Default

Rate.

You cannot invest directly in an index.

Current: 2.3%

Average: 3.7%


43/71


U.S.SpeculativeGradeDefaultRateandDistressedRate

DataSource:

Moodys


0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Di

stressedRate

(December3

1,

1996

May31,

201

5)

USS

pecGradeRate

(December3

1,

1996

May31,

201

5)

USSpecGradeDefaultRate

DistressedRateDefaultRate: 2.5%

DistressedRate:17.3%

Hi h Yi ld L t 12 M th U d t D d R ti


44/71


HighYieldLast12MonthsUpgradetoDowngradeRatioDecember31,1995throughOctober15,2015

Oct15

0.89

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Dec

95

Dec

96

Dec

97

Dec

98

Dec

99

Dec

00

Dec

01

Dec

02

Dec

03

Dec

04

Dec

05

Dec

06

Dec

07

Dec

08

Dec

09

Dec

10

Dec

11

Dec

12

Dec

13

Dec

14

LTM

upgra

de

to

downgradera

tio

Source:JPMorgan

LTM=Last

twelve

months.

You

cannot

invest

directly

in

an

index.

WTI C d Oil HY E S d


45/71


WTICrudeOilvsHYEnergySpreads

Source:BAML;Bloomberg,Doubleline

WTI=West

Texas

Intermediate,

agrade

of

crude

oil.

LHS

=left

hand

side.

OAS=

Option

adjusted

spread.

Libor

=London

Interbank Offered

Rate

is

the

average

interest

rate

estimated

by

lending

bank

inLondon.Youcannotinvestdirectlyinanindex.

200

300

400

500

600

700

800

900

1000

1100

120020

30

40

50

60

70

80

90

100

110

120

OAStoLibor(InvertedScale)

October1

,2012

October29

,2015

WTIActiveContractPriceUSD

October1,

2012

October29

,2015

WTIActiveContractPrice(LHS)

BofAMLHighYieldEnergyIndexOAStoLibor(RHS)

U S Crude Oil Inventories


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U.S.CrudeOilInventoriesDecember31,1982throughNovember6,2015

Source:Bloomberg

SMAV=Moving

average

for

the

period

indicated:

50,

100

or

200

days.

DOESCRUD

=DOE

Crude

oil

total

inventory

data

is

updated every

Wednesday.

Information

is

provided

by

the

Energy

Information

Administrationaspartoftheirweeklypetroleumstatusreport.Youcannotinvestdirectlyinanindex.

U S Crude Oil Inventories by Year


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U.S.CrudeOilInventoriesbyYear

250,000

300,000

350,000

400,000

450,000

500,000

550,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53

Weeks

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source:Bloomberg

.2015

is

through

October

31,

2015

DOESCRUD=DOECrudeoiltotalinventorydataisupdatedeveryWednesday.InformationisprovidedbytheEnergyInformationAdministrationaspartoftheirweeklypetroleumstatusreport.


R l ti G th f M ill US M i i l I d t M ill 10 15


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0.70

0.75

0.80

0.85

0.90

0.95

1.00

1.05

1.10

RelativeGrowthRate

(December31,1

996

October21,

2015)

Trend 1SigmaRelativetoTrend 2SigmasRelativetoTrend Mun icipal/1015yrTreasury

RelativeGrowthofMerrillUSMunicipalIndextoMerrill1015

YearTreasuryIndex

DataSource:MerrillLynch(UOAO;G7O2)PleaseseedefinitionsintheAppendix.Monthlydatawithmostrecentobservationappended.Youcannotinvestdirectlyinanindex.

Standarddeviation

=A

measure

of

the

dispersion

of

aset

of

data

from

its

mean.

The

more

spread

apart

the

data,

the

higher

the

deviation.

Sigma

=Mathematical

sum.

R l ti G th f M ill US I fl ti Li k d T i I d


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0.6

0.7

0.8

0.9

1

1.1

1.2

1.3

Relativ

eGrowthRate

(February28,1

997

October21,

2015

)

InflationLinke d/T re asur y A ver ag e

RelativeGrowthofMerrillUSInflationLinkedTreasuriesIndex

toMerrillTreasuryIndex

DataSource:MerrillLynch(GOQI;G0Q0)PleaseseedefinitionsintheAppendix.Monthlydatawithmostrecentobservationappended.Youcannotinvestdirectlyinanindex.

Standarddeviation

=A

measure

of

the

dispersion

of

aset

of

data

from

its

mean.

The

more

spread

apart

the

data,

the

higher

the

deviation.

Sigma

=Mathematical

sum.

Relative Growth of Merrill Emerging Market Index to


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0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Rela

tiveGrowthRate

(December31

,1991

October21,20

15)

Trend 1SigmaRelativetoTrend 2SigmasRelativetoTrend EmergingMarket/Treasury

RelativeGrowthofMerrillEmergingMarketIndexto


DataSource:

Merrill

Lynch

(IGOV;

GOQO)

Please

see

definitions

in

the

Appendix.

Monthly

data

with

most

recent

observation

appended.

You

cannot

invest

directly

in

an

index.


JPMorgan EMBIGlobalSpread


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g pAugust31,2000toNovember16,2015

Source:Bloomberg.

JP

Morgan

EMBI

Global

is

an

index

that

tracks

total

returns

for

U.S.

dollar

denominated

debt

instruments

issued

by

emerging

market

sovereign

and

quasi

sovereign

entities.

You

cannot

investdirectlyin anindex.

USDDenominatedEmergingMarkets


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Bondsvs.LocalCurrencyEmerging

MarketsBonds

November17,

2014

through

November

16,

2015

Source:BloombergFinancialServices,DoubleLineCapitalLP.

BLCNTRUUIndex=BarclaysEmergingMarketLocalCurrencyCoreNetTotalReturnUnhedgedIndexisdesignedtoprovideabroadmeasureoftheperformanceoflocalcurrencyEmergingMarketsdebt.

Marketsizeandinvestability areusedtodetermineindexeligibility.BEMC=BloombergUSDEmergingMarketsCorporateIndexisarulesbased,marketweightedindexengineeredtomeasurecorporate

bondperformanceofUSDfixedratecorporatebondsofissuersinemergingmarketsasdefinedbyBloomberg.BEMS=BloombergUSDEmergingMarketsSovereignBondIndexisrulesbased,market

valueweighted

index

engineered

to

measure

USD

fixed

rate

securities

of

sovereign

issuers

in

emerging

markets

as

identified

by

Bloomberg.

An

investment

cannot

be

made

directly

in

an

index.


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DoubleLineFunds

Overview

TABIII

Core Fixed Income Fund Portfolio Statistics


54/71


CoreFixedIncomeFundPortfolioStatistics

PortfoliostatisticsasofOctober30,2015basedonmarketweightedaverages.Subjecttochangewithoutnotice.

Averageprice=Ameasure oftheweightedaveragepricepaidforthesecuritiescalculatedbytakingthepricesanddividingbythenumber of securitiesanddoesnotincludecash.

Averagepriceshouldnotbeconfusedwithnetassetvalue.

AverageDuration=Durationisusedasariskmeasure.Itmeasuresthepricevolatilityofasecuritygivenachangeininterestratemovements.

AverageLife=Theaveragenumberofyearsthateachdollarofunpaidprincipaldueonthemortgageremainsoutstanding.Averagelifeiscomputedastheweightedaveragetimeto

thereceiptofallfuturecashflows,usingastheweightsthedollaramountsoftheprincipalpaydowns.

Source:DoubleLine

Capital

LP

CoreFixedIncome

Fund

BarclaysCapitalU.S

Aggregate

IndexAveragePrice $100.85 $104.23

Duration 4.90 5.64

Average Life 7.13 7.91

CoreFixedIncomeFundPortfolioComposition


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PortfoliocompositionasofOctober30,2015.Subjecttochangewithoutnotice.

BankLoans=Adebtfinancingobligationissuedbyabankorsimilarfinancialinstitutiontoacompany.

CommercialMortgageBackedSecurities(CMBS)=CommercialMortgageBackedSecurities.Securitizedloansmade oncommercialratherthanresidentialproperty.

CollateralizedLoanObligations(CLOs)=Aformofsecuritizationwherepaymentsfrommultiplemiddlesizedandlargebusinessloansarepooledtogetherandpassedontodifferentclassed

ofowners

in

various

tranches

Cash = Cashholdingincludethevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketablesecurities,suchasgovernmentbonds,banker'sacceptances,cash

equivalentsonbalancesheetsthatmayincludesecuritiesthatmaturewithin90days.

Government=Governmentdebt(alsoknownaspublicdebtornationaldebt)ismoney(orcredit)owedbyanylevelofgovernment;eithercentralgovernment,federalgovernment,

municipalgovernmentorlocalgovernment.

MortgageBackedSecurities(MBS)=Amortgagebackedsecurity(MBS)isanassetbackedsecurityordebtobligationthatrepresentsaclaimonthecashflowsfrom mortgageloans,most

commonlyonresidentialproperty

EmergingMarketsFixedIncome=Emergingmarketdebt(EMD)isatermusedtoencompassbondsissuedbylessdevelopedcountries.

InvestmentGrade(IG)andHighYieldCorporates(HY)=Investmentgradeandnoninvestmentgradecorporatecredit.Bondsissuedbycorporationstoraisemoneyinordertoexpandits

business.CreditdistributionisdeterminedfromthehighestavailablecreditratingfromanyNationallyRecognizedStatisticalRatingOrganization(S&P,Moodys,andFitch).Abondrated

BBBor

higher

would

be

considered

Investment

Grade.

Any

bond

rated

BBB

or

below

would

be

High

Yield.

Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity.

Cash

6%

Govt

19%

MUNI

4%

MBS

30%

EM

12%

IGCorporate

14%

CMBS

5%

BankLoan

3%

HYCorporate

3%

Infrastructure

0.30%

CLO

4%

CoreFixedIncomeFund

P tf li C dit Q lit B kd


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PortfoliocompositionandcreditratingsasofOctober30,2015.Portfoliocompositionissubjecttochangewithoutnotice.Creditdistributionisdeterminedfromthehighestavailable

creditratingfromanyNationallyRecognizedStatisticalRatingOrganization(S&P,Moodys,andFitch).

Cash

=The

value

of

assets

that

can

be

converted

into

cash

immediately.

Can

include

marketable

securities,

such

as

government

bonds, banker's

acceptances,

cash

equivalents

on

balance

sheetsthatmayincludesecuritiesthatmaturewithin90days.

Government=Governmentdebt(alsoknownaspublicdebtornationaldebt)ismoney(orcredit)owedbyanylevelofgovernment;eithercentralgovernment,federalgovernment,

municipalgovernmentorlocalgovernment.

Agency=MortgagesecuritieswhoseprincipalandinterestareeffectivelyguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC).

InvestmentGrade=AbondisconsideredinvestmentgradeifitscreditratingisBBBofhigherbyStandard&PoorsorBaa3byMoodys.Ratingsbasedoncorporatebondmodel.The

highertherating,themorelikelythebondistopaybackatpar/$100centsonthedollar.

BelowInvestmentGrade (BelowIG)=Alsoknownasjunkbondisasecurityratedbelowinvestmentgrade.Thesebondsareseenashavinghigherdefaultriskor otheradversecredit

events,buttypicallypayhigheryieldsthanbetterqualitybondsinordertomakethemattractive.Theyarelesslikelytopaybackatpar/$100centsonthedollar.

CreditqualitymaybeassessedbydifferentagenciesfordifferentbondsforreasonsbeyondthecontroloftheFund.

NR=Not

Rated

.Securities

that

are

not

rated

by

the

three

rating

agencies.

Source:DoubleLineCapitalLP.

PortfolioCreditQualityBreakdown

Cash5.6%

Govt

19.5%

Agency

19.9%

Investment

Grade

35.5%

BelowIG

16.0%

Unrated3.5%

FlexibleIncomeFundPortfolioStatistics


57/71


PortfoliostatisticsasofOctober30,2015basedonmarketweightedaverages.Subjecttochangewithoutnotice.

Averageprice=Ameasureoftheweightedaveragepricepaidforthesecuritiescalculatedbytakingthepricesanddividingbythenumberofsecuritiesanddoesnotincludecash.

Averagepriceshouldnotbeconfusedwithnetassetvalue.

AverageDuration=Durationisusedasariskmeasure.Itmeasuresthepricevolatilityofasecuritygivenachangeininterestratemovements.

AverageLife=Theaveragenumberofyearsthateachdollarofunpaidprincipaldueonthemortgageremainsoutstanding.Averagelifeiscomputedastheweightedaveragetimeto

thereceiptofallfuturecashflows,usingastheweightsthedollaramountsoftheprincipalpaydowns.

Source:DoubleLine

Capital

LP

FlexibleIncome

Fund

BarclaysCapitalU.S.

Aggregate

IndexAveragePrice $98.35 $104.23

Duration 2.02 5.64

Average Life 5.02 7.91

FlexibleIncomeFundPortfolioComposition


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PortfoliocompositionasofOctober30,2015.Subjecttochangewithoutnotice.

Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity.

Cash = Thevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketablesecurities,suchasgovernmentbonds,banker'sacceptances,cashequivalentsonbalance

sheetsthatmayincludesecuritiesthatmaturewithin90days.

Government U.S.treasurysecurities.

Agency=MortgagesecuritieswhoseprincipalandinterestguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC).

NonAgency =ResidentialMortgagesBondSecuritiesareatypeofbondbackedbyresidentialmortgages.NonAgencymeanstheywereissuedby aprivateissuer.

CMBS=CommercialMortgageBackedSecurities.Securitizedloansmade oncommercialratherthanresidentialproperty.

CLO=CollateralizedMortgageObligations

BySecurityTypeCash

5.4%

AgencyRMBS

2.3%

NonAgency

RMBS

22.6%

HYCorporate

5.1%

CMBS

11.2%

CLO

19.2%

BankLoan

8.5%

International

Emerging

19.5%

FlexibleIncomeFundPortfolio


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BreakdownByCurrentCreditQuality

Portfoliocomposition

as

of

October

30,

2015.

Portfolio

composition

is

subject

to

change

without

notice.

There

are

some

non

rated

securities

in

the

portfolio

as

shown

in

the

chart

above.CreditdistributionisdeterminedfromthehighestavailablecreditratingfromanyNationallyRecognizedStatisticalRatingOrganization(S&P,Moodys,andFitch).

InvestmentGrade=SecuritiesratedAAAtoBBB(showninblueabove)areconsideredtobeinvestmentgrade. AbondisconsideredinvestmentgradeifitscreditratingisBBBof

higherbyStandard&PoorsorBaa3byMoodys.Ratingsbasedoncorporatebondmodel.Thehighertherating,themorelikely thebondistopaybackatpar/$100centsonthedollar.

AAAisconsideredthehighestqualityand thelowestdegreeofrisk.Theyareconsideredtobeextremelystableanddependable.

BelowInvestmentGrade=Alsoknownasjunkbond(showningreyabove)isasecurityratedbelowinvestmentgradehavingaratingofBBBorbelow.Thesebondsareseenas

havinghigherdefaultriskorotheradversecreditevents,buttypicallypayhigheryieldsthanbetterqualitybondsinorder to makethemattractive.Theyarelesslikelytopaybackat

par/$100centsonthedollar.

CreditqualitymaybeassessedbydifferentagenciesfordifferentbondsforreasonsbeyondthecontroloftheFund.

NR=NotRated.Securitiesthatarenotratedbythethreeratingagencies.

RMBS=Residential

Mortgage

Backed

Securities.

Source:DoubleLineCapitalLP

Cash

5.4%

Agency

2.3%

InvestmentGrade

42.6%

BelowInvestment

Grade

37.8%

Unrated

5.6%


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Appendix

TABIV

Asset Allocation Webcast


61/71

333S.GrandAve.,18thFloor||LosAngeles,CA90071||213.633.8200


JeffreyGundlach


November17,2015

AssetAllocationWebcast

iShares iBoxx $InvestmentGradeCorporateBond

ETF(LQD)


62/71


ETF(LQD)

InvestmentObjective&SummaryTheinvestmentobjectiveoftheiShares Iboxx $InvestmentGradeCorporateBondETFseekstotracktheinvestmentresultsofanindex

composedofU.S.dollardenominated,investmentgradecorporatebonds.

TheFundseekstotracktheinvestmentresultsoftheMarkit iBoxx USDLiquidInvestmentGradeIndexwhichisarulesbasedindexconsistingofliquid,U.S.dollardenominated,

investmentgradecorporatebondsforsaleintheUnitedStates,asdeterminedbytheindexprovider.Theindexisamodifiedmarketvalueweightedindexwithacaponeach

issuerof3%.NolimittothenumberofissuersasofDecember31,2014itincluded1,290constituents.

ImportantRiskInformation Ingeneral,ETFscanbeexpectedtomoveupordowninvaluewiththevalueoftheapplicableindex.AlthoughETFsharesmaybeboughtandsoldonthe

exchangethroughanybrokerageaccount,ETFsharesarenotindividuallyredeemablefromtheFund.InvestorsmayacquireETFsand tenderthemforredemptionthroughtheFundin

CreationUnitAggregationsonly.Pleaseseetheprospectusformoredetails.

Bondfundscontaininterestraterisk(asinterestratesrisebondpricesusuallyfall);theriskofissuerdefault;issuercreditrisk;liquidityrisk;andinflationrisk.

Investingininvestmentgradefixedincomesecuritiesisconsideredspeculativeandinvolvesriskoflossofprincipalandinterest.Thesehigherqualitydebtsecuritiesinvolveriskof

downgrades,defaultorpricechangeduetopotentialchangesinthecreditqualityoftheissuer.

TheFundinvestsbysamplingtheIndex,holdingarangeofsecuritiesthat,intheaggregate,approximatesthefullIndexintermsofkeyriskfactorsandothercharacteristicswhichmay

causethe

fund

to

experience

tracking

errors

relative

to

performance

of

the

Index.

Distributor:BlackRockInvestments,LLC(togetherwithitsaffiliatesBlackRock).

Beforeinvesting,considerthefunds'investmentobjectives,risks,chargesandexpenses.Toobtaina

prospectusorsummaryprospectuswhichcontainsthisandotherinformation,call18004742737or

talktoyourfinancialadvisor.Readitcarefullybeforeinvesting.LQDisdistributedbyBlackRockInvestments,LLC


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Disclaimer


69/71


ImportantInformationRegardingDoubleLines InvestmentStyleDoubleLineseekstomaximizeinvestmentresultsconsistentwithourinterpretationofclientguidelinesandinvestmentmandate.WhileDoubleLineseeksto

maximizereturnsforourclientsconsistentwithguidelines,DoubleLinecannotguaranteethatDoubleLinewilloutperformaclient'sspecifiedbenchmarkorthe

marketorthatDoubleLines riskmanagementtechniqueswillsuccessfullymitigatelosses. Additionally,thenatureofportfoliodiversificationimpliesthatcertain

holdingsandsectorsinaclient'sportfoliomayberisinginpricewhileothersarefalling;or,thatsomeissuesandsectorsareoutperformingwhileothersare

underperforming.Suchoutorunderperformancecanbetheresultofmanyfactors,suchasbutnotlimitedtoduration/interest rateexposure,yieldcurve

exposure,bondsectorexposure,ornewsorrumorsspecifictoasinglename.

DoubleLineisanactivemanagerandwilladjustthecompositionofclientsportfoliosconsistentwithourinvestmentteamsjudgmentconcerningmarket

conditionsand

any

particular

sector

or

security.

The

construction

of

DoubleLine

portfolios

may

differ

substantially

from

the construction

of

any

of

avariety

of

bondmarketindices.Assuch,aDoubleLineportfoliohasthepotentialtounderperformoroutperformabondmarketindex.Sincemarketscanremain

inefficientlypricedforlongperiods,DoubleLines performanceisproperlyassessedoverafullmultiyearmarketcycle.

ImportantInformationRegarding ClientResponsibilitiesClientsarerequestedtocarefullyreviewallportfolioholdingsandstrategies,includingbycomparingthecustodialstatementtoanystatementsreceivedfrom

DoubleLine.Clientsshould promptlyinformDoubleLineofanypotentialorperceivedpolicyorguidelineinconsistencies.Inparticular,DoubleLineunderstands

thatguidelineenablinglanguageissubjecttointerpretationandDoubleLinestronglyencouragesclientstoexpressanycontrastinginterpretationassoonas

practical.ClientsarealsorequestedtonotifyDoubleLineofanyupdatestoClientsorganization,suchas(butnotlimitedto) addingaffiliates(includingbroker

dealeraffiliates),

issuing

additional

securities,

name

changes,

mergers

or

other

alterations

to

Clients

legal

structure.

DoubleLineisaregisteredtrademarkofDoubleLineCapitalLP.

2015DoubleLineCapitalLP

Asset Allocation Webcast


70/71

333S.

Grand

Ave.,

18th

Floor

||Los

Angeles,

CA

90071

||213.633.8200


JeffreyGundlach


November17,2015

AssetAllocationWebcast

UpcomingWebcastAnnouncements


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JeffreyGundlach December8,2015

TotalReturnBondFund

Gotowww.doublelinefunds.com,HomepageunderEvents

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1:15pmPDT/4:15pmEDT

2016WebcastScheduleAvailableSoonondoubleline.comordoublelinefunds.com,homepage

underEvents

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