12-9-14 this time - jeg webcast slides - final for distribution

8/10/2019 12-9-14 This Time - JEG Webcast Slides - FINAL for Distribution

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ThisTimeItsDifferent


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PerformanceDoubleLineTotalReturnBondFund QuarterEndingSeptember30,2014

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults. Theinvestmentreturn

andprincipalvalueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthanthe

originalcost.Currentperformanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrenttothe

most

recent

month

end

may

be

obtained

by

calling

213

633

8200

or

by

visiting

www.doublelinefunds.com.

BarclaysUSAggregateIndexrepresentssecuritiesthatareSECregistered,taxable,anddollardenominated.Theindexcoversthe USinvestmentgradefixedrate

bondmarket,withindexcomponentsforgovernmentandcorporatesecurities,mortgagepassthroughsecurities,andassetbackedsecurities.Thesemajor

sectorsaresubdividedintomorespecificindicesthatarecalculatedandreportedonaregularbasis.Itisnotpossibletoinvestinanindex.

PastPerformancedoesnotguaranteefutureresults.Indexperformanceisnotillustrativeoffundperformance.

*IfaFundinvestedinanaffiliateFundsponsoredbytheAdviserduringtheperiodcoveredbythisreporttheAdviseragreed to notchargeamanagementfeetotheFundinanamountequaltothe

investmentadvisoryfeespaidbytheaffiliatedFundinrespectoftheFundsinvestmentintheaffiliatedfundtoavoidduplicatechargeoftheinvestmentadvisoryfeestotheinvestors.

QuarterEnd

September 30,2014

3Q

2014 1Year

3YearAnnualized

SinceInceptionAnnualized

(4610to93014)

Ishare 0.75% 4.99% 4.96% 8.92%

Nshare 0.59% 4.72% 4.68% 8.65%

BarclaysU.S.

AggregateIndex 0.17% 3.96% 2.43% 4.27%


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Performance

DoubleLineCoreFixedIncomeFund QuarterEndingSeptember30,2014

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults. Theinvestmentreturn

andprincipalvalueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthanthe

original

cost.

Current

performance

of

the

fund

may

be

lower

or

higher

than

the

performance

quoted.

Performance

data

current

to

the

mostrecentmonthendmaybeobtainedbycalling2136338200orbyvisitingwww.doublelinefunds.com. PastPerformancedoesnotguaranteefutureresults.Indexperformanceisnotillustrativeoffundperformance.

*IfaFundinvestedinanaffiliateFundsponsoredbytheAdviserduringtheperiodcoveredbythisreporttheAdviseragreed to notchargeamanagementfeetotheFundinanamountequaltothe

investmentadvisoryfeespaidbytheaffiliatedFundinrespectoftheFundsinvestmentintheaffiliatedfundtoavoidduplicatechargeoftheinvestmentadvisoryfeestotheinvestors.

AsofSeptember30, 2014 IShare NShare

GrossExpenseRatio 0.52% 0.77%


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Announcements

NewFund

Long

Duration

Total

Return

WebcastJeffreyGundlach January13,2015

MarketOutlook

Gotowww.doubleline.com,HomepageunderEvents

2015Webcast

Schedule

will

be

available

shortly

1:15pmPDT/4:15pmEDT

ToReceivePresentationSlides:

Youcanemail

[email protected]


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0%

1%

2%

3%

4%

5%

6%

7%

Jan

93

Jan

94

Jan

95

Jan

96

Jan

97

Jan

98

Jan

99

Jan

00

Jan

01

Jan

02

Jan

03

Jan

04

Jan

05

Jan

06

Jan

07

Jan

08

Jan

09

Jan

10

Jan

11

Jan

12

Jan

13

Jan

14

FederalFundsTargetRate(%)

December31,1

992

December5,2014

FederalFundsTargetRate

February4,1994

June 30,1999

June 30,2004

CurrentTargetRange:

0%to0.25%

PastFedTighteningCyclesDecember31,1992 December5,2014

Source:ValueWalk,TakingaLessonFromTwoDecadesofFedRateHikesbyClaytonBrown,July1,2014

February 4, 1994

March 25, 1997

June 30, 1999

June 30, 2004

CurrentTargetRange:

0%to0.25%


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FedFundsTargetRateandUSRecessions


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FedHikingCyclesandEconomicCyclesAsof10/31/14

*Note:June2015ratehikebasedonBloomberganalystsurveys.RecessionsaccordingtoNationalBureauofEconomicResearch(NBER).

Source:Bloomberg;DoubleLine;CreditSuisse

Bps=basispoints


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CurrentEconomicCyclevs.PreviousCyclesAsof11/30/14

Note:EconomicexpansionsandcontractionsareaccordingtoNationalBureauofEconomicResearch(NBER).

Source:Bloomberg;DoubleLine

65months

andcounting

17.5

21.618.2

11.1

18.0

38.7

26.6

35.0

58.4

0

10

20

30

40

50

60

70

18542009

(33cycles)

18541919

(16cycles)

19191945

(6cycles)

19452009

(11cycles)

CurrentCycle

NumberofM

onths

LengthofEconommicCycles

ContractionandExpansions

Conraction

Expansion


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MarketImpliedRatesvs.FED

Source:Bloomberg


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U.S.Rates:FedFundsForwardCurve

Source:StateStreet

FedFundprojectionsannually.EachcoloredlinerepresentstheconsensusopinionprojectionsgiveneachFedmeeting.

Anticipating a Fed rate hike is like waiting for a friend who

never shows up Dan Loeb


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US,UKandEuroSeemFarFromHiking

Notes:Asof9/10/14

Source:GoldmanSachs,GlobalEconomicsWeekly

GDP=GrossDomesticProduct.Themonetaryvalueofallthefinishedgoodsandservicesproducedwithinacountry'sbordersina specifictimeperiod,thoughGDPis

usuallycalculatedonanannualbasis


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GDPForecastsJanuary1,2004through2016Estimates

Source:DoubleLine,Bloomberg

GDP=GrossDomesticProduct.Themonetaryvalueofallthefinishedgoodsandservicesproducedwithinacountry'sbordersina specifictimeperiod,thoughGDPisusuallycalculatedon

anannualbasis.GDPYOY=GDPYearOverYear.EHGDUSYIndex=USRealGDP.ECFC=EconomicForecasts.Youcannotinvestdirectlyinanindex.

3.80%3.30%

2.70%

1.80%

0.30%

2.80%

2.50%

1.60%

2.30%2.20%

2.20%3.00% 2.90%

4%

3%

2%

1%

0%

1%

2%

3%

4%

5%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

USRealGDP(YoY%)


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MedianEconomistForecastsofU.S.Real

GDPAnnuallythroughDecember4,2014


GDP=GrossDomesticProduct.Themonetaryvalueofallthefinishedgoodsandservicesproducedwithinacountry'sbordersina specifictimeperiod,thoughGDPisusuallycalculatedon

anannualbasis.ECGDUS14index=USGDPEconomicForecastsquarteroverquarterandyearoveryear.Youcannotinvestdirectlyinanindex.

1.5

1.7

1.9

2.1

2.3

2.5

2.7

2.9

3.1

3.3

3.5

520 480 440 400 360 320 280 240 200 160 120 80 40 0

MedianEconomistForecastforRealGDPatYearE

nd

MedianEconomistForecastofUSRealGDPatYearEnd(byyear)

2011

2012

2013

2014

Days LeadingUptoForecast

(TradingDays)


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RevisionstoChinaGrowthExpectationsJanuary1,2010throughNovember19,2014

Source:Bloomberg

GDP=ThegrossdomesticproductisThemonetaryvalueofallthefinishedgoodsandservicesproducedwithinacountry'sbordersinaspecifictimeperiod,thoughGDP

isusuallycalculatedonanannualbasis.Youcannotinvestdirectlyinanindex.

7

7.5

8

8.5

9

9.5

10

10.5

520 480 440 400 360 320 280 240 200 160 120 80 40 0

MedianRealG

DPForecast(%)

MedianForecastofChinaRealGDP(byyear)

2010

2011

2012

2013

2014

Thelast

3 years

have

beenastoryof

downwardrevisionsto

growthinChina.

Days LeadingUptoForecast

(TradingDays)


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10year

U.S.

Treasury

Yield

Forecast

for

YearEnd2014 July11,2013throughDecember4,2014

Notes:MedianeconomistforecastsarebasedonBloombergsurveydataasof11/14/14.


2.50%

2.23%

%

MedianEconomist

Forecast2014

10yUSTYield

Median

Economist

Forecast2015 3.24%

2.1

2.3

2.5

2.7

2.9

3.1

3.3

3.5

3.7

BloombergMedianEconomistForecastforYearEnd2014and

Actual10yUSTYields


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GlobalBondYieldChangeYearToDate(YTD)2014through12/4/14

Source:Bloomberg;Doubleline

Bps=Basispoints.YTD=yeartodate

B

asisPoints

79 85

54

116

37 22

103

152

116

211 209226

94118

152177

250

2135

20

86

267

300

200

100

0

100

200

300

ChangeinGlobal10yBondYTD(BPS)


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GermanBundsvs.U.S.TreasuriesDecember31,1999throughDecember5,2014

Source:Bloomberg

USGG10YIndex=Generic10yearU.S.Treasury.GDBR10Index=GermanBund10yeargeneric10yrtreasuryrates.Youcannotinvestdirectlyinanindex.

0%

1%

2%

3%

4%

5%

6%

7%

Yield

(%)

December31,1999

December5,2014

10YearUSTreasuryYield

10Year

German

Bund

Yield


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30YearU.S.TreasuryTotalReturnsJanuary1,1974throughNovember30,2014

30-Year Treasury Year-To-Date Total ReturnsEvery Year Since 1974

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

0 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 252 264

# Of Trading Days Since Jan 1

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

2009

1986 1995

2014

2008

1985

Ret ur n Su bs eq uent Year

1994 -11.99% 34.14%1999 -14.78% 20.22%

2013 -15.07% 25.21%

Bad Years

Return Subsequent Year

1989 20.07% 4.39%1993 20.01% -11.99%

1995 34.14% -4.32%

2000 20.22% 4.21%

2008 41.85% -25.91%

2011 35.31% 2.69%

2014 YTD 24.06% ???

Good Years


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WhatHappenedto10yearU.S.Treasury

RatesDuringthe20042006RateHike

Cycle?August1,2003throughSeptember30,2007


USGG10YRIndex=Generic10yearUSTreasuryyields.FederalFundsTargetRates=federalfundsrateis"theinterestrate"[1] atwhichdepositoryinstitutionsactivelytradebalancesheldat

theFederalReserve,calledfederalfunds,witheachother,usuallyovernight,onanuncollateralized basis.Youcannotinvestdirectlyinanindex.

0%

1%

2%

3%

4%

5%

6%

Percent(%)


FederalFundsTargetRate


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U.S.InterestRates:

U.S.Treasury2yearvs.10yearSpreadAugust8,2004throughDecember5,2014


USGG10YRIndex=Generic10yearUSTreasuryyields.Youcannotinvestdirectlyinanindex.

0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%


minus2YearUSTreasury

YieldAugust8,2004

December5,2014

10Year

US

Treasury

Yield

2Year

US

Treasury

Yield


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U.S.CorePCE

CorePCE=PersonalConsumptionExpendituresmeasurespricespaidbyconsumersforgoodsandserviceswithoutthevolatilitycausedbymovementsinfoodand

energy.YoY =yearoveryear.Youcannotinvestdirectlyinanindex.

0%

2%

4%

6%

8%

10%

12%

Percent(%)

12/31/1964

10/31/2014

FEDLongTermGoal(2%)

Core

PCE

Deflator

(YoY)


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PriceStats vs.CPI

for

U.S.

AsofDecember4,2014

CPI=ConsumerPriceIndexproducesmonthlydataonchangesinthepricespaidbyurbanconsumersforarepresentativebasket of goodsandservices.

PriceStat Index=CPIdataavailableonline.YoY =yearoveryear.Youcannotinvestdirectlyinanindex.


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U.S.CPIInflation

Source: Minack Advisors,GlobalOutllook Backtonormal?:October2014

CPI=ConsumerPriceIndexproducesmonthlydataonchangesinthepricespaidbyurbanconsumersforarepresentativebasket of goodsandservices.Inflation=A

generalincreaseinpricesandfallinthepurchasingvalueofmoney.

Youcannotinvestdirectlyinanindex.


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NominalWages

Source: Bloomberg,DoubleLine

YoY =Yearoveryear

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

NominalHo

urlyWageGrowth(YoY%

)

January31,1965

November30,2014

NominalHourlyWageGrowth(YoY%)


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InflationAdjustedAverageHourlyEarningsJanuary1,2007throughJune30,2014

Source:EconomicPolicyInstitute,WallStreetJournal,Bianco Research

Inflation=Ageneralincreaseinpricesandfallinthepurchasingvalueofmoney.


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MinimumWageHasDeclinedinRealTerms


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Eurozone2year

Yields

October1,2013throughDecember4,2014



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U.S.BreakevenTreasuryRatesSeptember1,2011throughDecember4,2014

Source: DoubleLine,Bloomberg

Breakeven=Thedifferencebetweena3.5.7,10,20and30yearTreasurybondyieldsandthatofa3,5,7,10,20and30yearTreasuryinflationprotectedsecurity(TIPS).


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QEand

Inflation

Expectations

January1,2008throughDecember4,2014


Inflation=Ageneralincreaseinpricesandfallinthepurchasingvalueofmoney.QE=QuantitativeEasing.


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U.S.CommoditiesLast5YearsDecember4,2009throughDecember8,2014

Source:Bloomberg

CRYIndex=CRBexcessreturnindexisanarithmeticaverageofcommodityfuturespriceswithmonthlyrebalancing.Youcannotinvestdirectlyinanindex.


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Commodities:YTD

Performance

January1,2014throughDecember4,2014

Source:Bloomberg

DJUBS=DowJonesIndicesrepresentinggrainsector,energy,commoditiesasageneralbasket,andmetals.YTD=yeartodate.Youcannotinvestdirectlyinanindex.


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U.S.CPI

and

WTI

October14,2004throughDecember4,2014


CPI=CorePriceIndexproducesmonthlydataonchangesinthepricespaidbyurbanconsumersforarepresentativebasketofgoodsandservices.WTI=West

TexasIntermediate isagradeofcrudeoildescribedaslightduetolowdensity.

RHS=RightHandSideofthechartaxis.YoY =yearoveryear.Youcannotinvestdirectlyinanindex.

100

50

0

50

100

150

3

2

1

0

1

2

3

4

5

6

WTIYoY%

CPIYoY%

USCPIandWTI

USCPI

WTIYOY

%

(RHS)


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U.S.Breakevens and

Oil

December31,2011throughDecember5,2014


WTI=WestTexasIntermediate isagradeofcrudeoildescribedaslightduetolowdensity.2year=2yearU.S.Treasurybreakeven.

LHS=lefthandside.RHS=righthandside.Youcannotinvestdirectlyinanindex.

0.35%

0.85%

1.35%

1.85%

2.35%

$60

$70

$80

$90

$100

$110

$120

US2Yea

rBreakevenRate(%)

12/31

/2011

12/5/2014

W

TICrudePrice

12/31

/2011

12/5/2014

WTICrudePrice(LHS)

US2YearBreakevenRate(RHS)


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BreakevenOil

Prices

AsofJune30,2014

BrentCrude =NorthSeanbrent crudeisatypeofoilsourcedfortheNorthSea.Itsalightsweetcrude.


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PrimaryOilImporters

Source:HellenicShippingNews,EIA:ChinaMarketOverview

http://www.hellenicshippingnews.com/d5bc7b9c66dc41518d48eb12e97dd716/


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InterestingSlides


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FederalReserve

is

the

Largest

Holder

of

USDebt

http://www.ritholtz.com/blog/2013/10/allholdersofustreasurydebt/

Source:BarryRitholtz,TheBigPicture,AllHoldersofUSDebt,October11,2013


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WhoOwnsUSGovernmentDebt

Source:FactCheck.org


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Mandatoryvs.

Discretionary

Spending2013

Source:CongressionalBudgetOffice

(Numbers in Billions of Dollars)


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DriversofUSDebt

Source:CongressionalBudgetOffice


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U.S.Government

Revenue

vs.

Expenditures

Source:Congressiona lBudget Office


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DebtStormandGlobalRates

Source:DeutscheBank,GFD,Haver

G7=EconomicalliancebetweenCanada,France,Germany.GreatBritain,Italy,Japanand

theU.S.


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BKLNSharesOutstanding

Source:Bloomberg

BKLN=Powershares SeniorLoanPortfolioSharesOutstandingIndexrepresentsthecurrentindexsharesoutstanding.


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MajorU.S.

Financial

Institutions

LeverageRatios

Source:GrantWilliams;ThingsThatMakeyouGoHmmm.AsofSeptember30,2014

DoubleLine TotalReturnBondFundandCoreFixedIncomeFundown0%inBearStearns,GoldmanSachs,MerrillLynch,LehmanBrothers,andMorganStanleyasofNovember30,2014.


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U.S.Single

Adults

Rising

6/1/1975through9/30/2014

Years(6/1/1975 9/30/2014)


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AnAgingPopulation

Source:AsofJune30,2014


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Wherethe

Wealthiest

Live

Source:CreditSuisse,GlobalWealthReport2014,October2014


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FundOverview


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PortfoliocompositionasofNovember28,2014.Subjecttochangewithoutnotice.

Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity.

Cash = Thevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketable securities,suchasgovernmentbonds,banker'sacceptances, cashequivalentsonbalance

sheetsthatmayincludesecuritiesthatmaturewithin90days.

Government U.S.treasurysecurities.

Agency=Mortgagesecurities whoseprincipalandinterestguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC).

NonAgency =ResidentialMortgagesBondSecuritiesareatypeofbondbackedbyresidentialmortgages. NonAgencymeanstheywereissuedbyaprivateissuer.

CMBS=CommercialMortgageBackedSecurities.Securitizedloansmade oncommercialratherthanresidentialproperty.

CLO=Collateralized MortgageObligations

TotalReturn

Bond

Fund

Portfolio

Composition BySecurityTypeCash

12.1%

Government

5.1%

Agency

45.4%

NonAgency

25.5%

CMBS

6.4%

CLO

4.8%Other

0.6%


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PortfoliocompositionasofAugust31,2014.Subjecttochangewithoutnotice.


Cash = Thevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketable securities,suchasgovernmentbonds,banker'sacceptances, cashequivalentsonbalance

sheetsthatmayincludesecuritiesthatmaturewithin90days.

PassThrough=Mortgagepassthroughsecurities whoseprincipalandinterestguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC)ornon

agency

private

issue

with

no

government

guarantee.CMOCurrent=CollateralizedMortgageObligation(CMO)isafinancialdebtvehicle/special purposeentitycalledapool.Investorsbuybondsissuedbytheentityandreceivepayments

accordingtoadefinedsetofrules.Themortgagesthemselves arethecollateral,thebondsarethetranches(alsocalledclasses),andthesetofrulesthatdictateshowmoneyisreceived

fromthecollateralwillbedistributediscalledthestructure. Thelegalentity,collateralandstructurearecollectively referredtoasthedeal.

IO=InterestOnlymortgagepoolsinwhichtheborrowersmonthlypaymentisonlytowardtheinterestontheloan.Anonamortizedloan.

InverseFloater=Amortgagepoolthathasayieldthatisinverselyrelatedtointerestrates.

IOCurrentpay=Loansthatarecurrentlyreceivingprincipalpayments.

LockedOut/CMOLockedOut=Loansthatforasetperiodoftime willnotreceiveprincipalpayments.

Total

Return

Bond

Fund

Portfolio

Composition ByAgencyCollateralize

MortgageObligation(CMO)SecurityType

Cash

12.1%

InverseFloater

1.2%

PassThrough

24.1%

CMOCurrent

10.3%

CMOLocked

9.0%

IOCurrent

0.8%


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Portfoliocompositionandcreditratingsasofsecurityorigination.Portfoliocompositionissubjecttochangewithoutnotice.TherearesomenonratedsecuritiesintheFundasshownin

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

Investment

Grade

=

Securities

rated

AAA

to

BBB

are

considered

to

be

investment

grade.

A

bond

is

considered

investment

grade

if

its

credit rating

is

BBB

or

higher

by

Standard

&

PoorsorBaa3byMoodys.Ratingsbasedoncorporatebondmodel.Thehighertherating,themorelikelythebondistopayback atpar/$100centsonthedollar.AAAisconsideredthe

highestqualityand thelowestdegreeofrisk.Theyareconsideredtobeextremelystableanddependable.

BelowInvestment Grade=AlsoknownasjunkbondisasecurityratedbelowinvestmentgradehavingaratingofBBBorbelow.Thesebondsareseenashavinghigherdefaultriskor

otheradversecreditevents,buttypicallypayhigheryieldsthanbetterqualitybondsinordertomakethemattractive.Theyarelesslikelytopaybackatpar/$100centsonthedollar.

NR=NotRated.Securities thatarenotratedbythethreeratingagencies.

CreditqualitymaybeassessedbydifferentagenciesfordifferentbondsforreasonsbeyondthecontroloftheFund.

Source:DoubleLineCapitalLPasofNovember28,2014.

TotalReturn

Bond

Fund

Portfolio

NonAgencyResidentialMortgageBackedSecurities

(RMBS)BreakdownByOriginalRating

AAA

81%

BBB

2%

BB

1%NR

16%


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Total

Return

Bond

Fund

Portfolio

NonAgencyRMBSBreakdownByCurrent

CreditQuality

PortfoliocompositionasofNovember28,2014.Portfoliocompositionissubjecttochangewithoutnotice.Therearesomenonratedsecurities intheportfolioasshowninthechart

above.CreditdistributionisdeterminedfromthehighestavailablecreditratingfromanyNationally RecognizedStatisticalRatingOrganization (S&P,Moodys,andFitch).

Investment Grade=SecuritiesratedAAAtoBBB(showninblueabove)areconsideredtobeinvestmentgrade. AbondisconsideredinvestmentgradeifitscreditratingisBBBof

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

AAAis

considered

the

highest

quality

and

the

lowest

degree

of

risk.

They

are

considered

to

be

extremely

stable

and

dependable.

BelowInvestment Grade=Alsoknownasjunkbond(showningreyabove)isasecurityratedbelowinvestmentgradehavingaratingofBBBorbelow.Thesebondsareseenas

havinghigherdefaultriskorotheradversecreditevents,buttypicallypayhigheryieldsthanbetterqualitybondsinorder to makethemattractive.Theyarelesslikelytopaybackat

par/$100centsonthedollar.


NR=NotRated.Securities thatarenotratedbythethreeratingagencies.RMBS=ResidentialMortgageBackedSecurities.

Source:DoubleLineCapitalLP

AAA

1%AA

1%

A+

1%A

1%

BBB+

1%BB

1%

BB

1%

B+

1%B

3%B

5%

CCC+

6%

CCC19%

CCC

14%

CC

8%

D

19%

NR16%


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TotalReturn

Bond

Fund

Portfolio

NonAgencyRMBSBreakdownByPrice

PortfoliopricecompositionasofAugust31,2014.Subjecttochangewithoutnotice.


DollarPrice

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

%


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63

CoreFixed

Income

Fund

Portfolio

Statistics

PortfoliostatisticsasofNovember30,2014basedonmarketweightedaverages.Subjecttochangewithoutnotice.

Averageprice

=A

measure

of

the

weighted

average

price

paid

for

the

securities

calculated

by

taking

the

prices

and

dividing by the

number

of

securities

and

does

not

include

cash.

Averagepriceshouldnotbeconfusedwithnetassetvalue.

AverageDuration=Durationisusedasariskmeasure.Itmeasuresthepricevolatilityofasecuritygivenachangeininterest ratemovements.

AverageLife=Theaveragenumberofyearsthateachdollarofunpaidprincipaldueonthemortgageremainsoutstanding.Average lifeiscomputedastheweightedaveragetimeto

thereceiptofallfuturecashflows,usingastheweightsthedollaramountsoftheprincipalpaydowns.

Source:DoubleLineCapitalLP

CoreFixed

Income

FundBarclays

Capital

U.SAggregate

Index

AveragePrice $101.55 $106.01

Duration 4.53 5.55

Average Life 6.87 7.69


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PortfoliocompositionasofNovember30,2014.Subjecttochangewithoutnotice.

BankLoans=Adebtfinancingobligationissuedbyabankorsimilarfinancialinstitutiontoacompany. CommercialMortgageBackedSecurities(CMBS)=CommercialMortgageBacked

Securities.Securitizedloansmade oncommercialratherthanresidentialproperty.CollateralizedLoanObligations(CLOs)=Aformofsecuritization wherepaymentsfrommultiplemiddle

sizedandlargebusinessloansarepooledtogetherandpassedontodifferentclassedofownersinvarioustranches.Cash = Cashholdingincludethevalueofassetsthatcanbeconverted

intocashimmediately. Canincludemarketable securities,suchasgovernmentbonds,banker'sacceptances, cashequivalentson balancesheetsthatmayincludesecurities thatmature

within90days.Government=Governmentdebt(alsoknownaspublicdebtornationaldebt)ismoney(orcredit)owedbyanylevelofgovernment;eithercentralgovernment,federal

government,municipalgovernmentorlocalgovernment. MortgageBackedSecurities(MBS)=Amortgagebackedsecurity(MBS)isanassetbackedsecurityordebtobligationthat

representsaclaimonthecashflowsfrommortgageloans,mostcommonlyonresidentialproperty.EmergingMarketsFixedIncome=Emergingmarketdebt(EMD)isatermusedto

encompassbondsissuedbylessdevelopedcountries.Investment Grade(IG)andHighYieldCorporates(HY)=Investmentgradeandnoninvestmentgradecorporatecredit.Bondsissuedby

corporationstoraisemoneyinordertoexpanditsbusiness.Creditdistributionisdeterminedfromthehighestavailablecredit ratingfromanyNationallyRecognizedStatisticalRating

Organization (S&P,Moodys,andFitch).AbondratedBBBorhigherwouldbeconsideredInvestmentGrade.AnybondratedBBBorbelowwouldbeHighYield.


CoreFixed

Income

Fund

PortfolioComposition

Cash,

9.15%

Govt,17.73%

MBS,29.65%EM,13.38%

IGCorporate,

10.19%

CMBS,6.58%

BankLoans,

5.02%

HYCorporate,

4.46%

CLO,3.85%


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PortfoliocompositionandcreditratingsasofNovember28,2014.Portfoliocompositionissubjecttochangewithoutnotice.Creditdistributionisdeterminedfromthehighestavailable

creditratingfromanyNationallyRecognizedStatisticalRatingOrganization(S&P,Moodys,andFitch).

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

sheetsthatmayincludesecurities thatmaturewithin90days.Government=Governmentdebt(alsoknownaspublicdebtornationaldebt)ismoney(orcredit)owedbyanylevelof

government;eithercentralgovernment,federalgovernment,municipalgovernmentorlocalgovernment.Agency=Mortgagesecurities whoseprincipalandinterestareeffectively

guaranteed

by

the

U.S.

Government

agency

including

Fannie

Mae

(FNMA)

or

Freddie

Mac

(FHLMC).

Investment

Grade

=

A

bond

is

considered

investment

grade

if

its

credit

rating

is

BBB

of

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

BelowInvestment Grade (BelowIG)=Alsoknownasjunkbondisasecurityratedbelowinvestment grade.Thesebondsareseenashavinghigherdefaultriskorotheradversecredit

events,buttypicallypayhigheryieldsthanbetterqualitybondsinordertomakethemattractive.Theyarelesslikelytopaybackatpar/$100centsonthedollar.


NR=NotRated.Securities thatarenotratedbythethreeratingagencies.

Source:DoubleLineCapitalLP.

CoreFixed

Income

Fund

PortfolioCreditQualityBreakdown

Cash,

9.15%

Govt,17.73%

Agency,

17.98%

Investment

Grade,

25.31%

BelowIG,

28.23%

Unrated,

1.61%


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IndexDescriptions

iShares JPMUSDEmergingMarketsBnd ETF JPMorganUSDEmergingMarketsBondETFinanexchangetradedfundincorporatedintheUSA.Itseeks

investmentresultsthatcorrespondtothepriceandyieldoftheJPMorganEmergingMarketsBondIndex.

SPDRLehmanHighYieldBondFundETF(JNK) IsanexchangetradedfundincorporatedintheUSAseekingtoinvestmentresultsthatcorrespondtotheprice

andyieldoftheBarlcays HighYieldVeryLiquidBondIndex.

iSharesiBoxx InvestmentGradeCorporateBondFundETF(LQD) isanexchangetradedfundincorporatedintheUSA.Itseeksinvestmentresultsthattracksthe

investmentresultsofanindexcomposedofU.S.dollardenominated,investmentgradecorporatebonds.

PowerShares SeniorLoanPortfolioETF(BKLN) isanexchangetradedfundtradedintheUSA.Itseeksinvestmentresultsthatcorrespondgenerallytotheprice

andyield

of

the

S&P/LSTA

US

Leveraged

Loan

100

Index..


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12-9-14 this time - jeg webcast slides - final for distribution

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