Professional Documents
Culture Documents
LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer
March8,2016
FundOfferings
TotalReturnBondFund
RetailandInstitutionalClass
NoLoadMutualFund
Retail
Nshare
Ticker
MinInvestment
MinIRAInvestment
GrossExpenseRatio
DLTNX
$2,000
$500
0.72%
Inst.
Ishare
DBLTX
$100,000
$5,000
0.47%
TheFundsinvestmentobjectives,risks,chargesandexpensesmustbeconsideredcarefullybeforeinvesting.The
statutoryprospectusandsummaryprospectus(ifavailable)containsthisandotherimportantinformationabout
theFunds,anditmaybeobtainedbycalling1(877)3546311/1(877)DLINE11,orvisiting
www.doublelinefunds.com.Readitcarefullybeforeinvesting.
Investmentsindebtsecuritiestypicallydecreaseinvaluewheninterestratesrise.Thisriskisusuallygreaterforlongertermdebtsecurities.Investmentsinlowerratedandnonratedsecuritiespresenta
greaterriskoflosstoprincipalandinterestthanhigherratedsecurities.InvestmentsinAssetBackedandMortgageBackedSecuritiesincludeadditionalrisksthatinvestorsshouldbeawareofsuchas
creditrisk,prepaymentrisk,possibleilliquidityanddefault,aswellasincreasedsusceptibilitytoadverseeconomicdevelopments.
TheFundmayusecertaintypesofinvestmentderivatives.Derivativesinvolverisksdifferentfrom,andincertaincases,greaterthantheriskspresentedbymoretraditionalinvestments.Derivativesmay
involvecertaincostsandrisksuchasliquidity,interestrate,market,credit,managementandtheriskthatapositioncouldnotbeclosedwhenmostadvantageous.Investinginderivativescouldlosemore
thantheamountinvested.TheFundmayalsoinvestinsecuritiesrelatedtorealestate,whichmaydeclineinvalueasaresultoffactorsaffectingtherealestateindustry.
TheDoubleLineTotalReturnBondFundintendstoinvestmorethan50%ofitsnetassetsinmortgagebackedsecuritiesofanymaturityortype.TheFundtherefore,potentiallyismorelikelytoreacttoany
volatilityorchangesinthemortgagebackedsecuritiesmarketplace.Theserisksaregreaterforinvestmentsinemergingmarkets.
Opinionsexpressedaresubjecttochangeatanytime,arenotforecastsandshouldnotbeconsideredinvestmentadvice.
DoubleLineFundsaredistributedbyQuasarDistributors,LLC.
WhiletheFundsarenoload,managementfeesandotherexpensesstillapply.Pleaserefertotheprospectusforfurtherdetails.
Fundholdingsandsectorallocationsaresubjecttochangeandarenotrecommendationstobuyorsellanysecurity.
Performance
DoubleLineTotalReturnBondFund QuarterEndingDecember31,2015
QuarterEnd
December31,2015
4Q
2015
YeartoDate
2015
1Year
Ishare
0.47%
2.32%
Nshare
0.53%
2.07%
BarclaysU.S.
AggregateIndex
0.57%
0.55%
Asof December31,2015
IShare NShare
BarclaysU.S.
AggregateIndex
1YrStd Deviation1
2.05%
2.13%
GrossExpenseRatio
0.47%
0.72%
SinceInception
3Year
5Year
Annualized
Annualized
Annualized
(4610to123115)
2.32%
2.99%
5.48%
7.60%
2.07%
2.73%
5.22%
7.34%
0.55%
1.44%
3.25%
3.75%
2.95%
Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturnandprincipal
valueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthantheoriginalcost.Current
performanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrenttothemostrecentmonthendmaybe
obtainedbycalling2136338200orbyvisitingwww.doublelinefunds.com.
1.Standarddeviationisameasureofthevariationordispersionofasetofdatafromitsmeanorexpected/budgetedvalue.Alowstandarddeviationindicatesthatthedatapointstendtobeverycloseto
themean,whereasahighstandarddeviationindicatesthatthedataisspreadoutoveralargerangeofvalues.Ameasureofaninvestment'svolatility.
BarclaysUSAggregateIndexrepresentssecuritiesthatareSECregistered,taxable,anddollardenominated.TheindexcoverstheUSinvestmentgradefixedrate
bondmarket,withindexcomponentsforgovernmentandcorporatesecurities,mortgagepassthroughsecurities,andassetbackedsecurities.Thesemajorsectors
aresubdividedintomorespecificindicesthatarecalculatedandreportedonaregularbasis.Itisnotpossibletoinvestinanindex.
PastPerformancedoesnotguaranteefutureresults.Indexperformanceisnotillustrativeoffundperformance.
UpcomingWebcastAnnouncements
RisingRatesWebcast March23,2016
PortfolioManagerswilldiscuss
LowDurationBondFund,LowDurationEmergingMarketsFundandFloatingRateFund
Gotowww.doublelinefunds.com,HomepageunderEvents
2016WebcastScheduletoregister
1:15pmPDT/4:15pmEDT
AssetAllocationWebcast April12,2016
JeffreyGundlachwilldiscuss
CoreFixedIncomeandFlexibleIncomeFunds
Gotowww.doublelinefunds.com,HomepageunderEvents
2016WebcastScheduletoregister
1:15pmPDT/4:15pmEDT
StrategicCommoditiesFundWebcast April26,2016
JeffreyShermanwillhost
StrategicCommodityFundwebcasttitledCommodities:TimetoRevisit?
Gotowww.doublelinefunds.com,HomepageunderEvents
2016WebcastScheduletoregister
1:15pmPDT/4:15pmEDT
ToReceivePresentationSlides:
Youcanemailfundinfo@doubleline.com
ConnecttheDots
LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer
March8,2016
TABI TheFed
FedsDotPlot
Source:foreXlive FOMCdotplotandcentraltendenciesDecember16,2015
FOMC=FederalOpenMarketCommittee
MarketImpliedCentralBankExpectations
Asof3/1/16
MarketImpliedCentralBankExpectations
30
20
10
BPS
0
10
Mar16
20
Jun16
Sep16
30
Dec16
40
50
Federal European Bankof Bankof Reserve Reserve Swiss Norges Riksbank Bankof
Reserve Central England Canada Bankof Bankof National Bank
Japan
Bank
Australia New
Bank
Zealand
Source:DoubleLine;MorganStanley
BPS=basispoint.
ProbabilityofAnotherHikebyMarchandJune2016
Asof3/1/16
ProbabilityofAnotherHikebyMar,Jun,SepandDec2016
100%
90%
80%
70%
60%
Mar16
50%
Jun16
40%
Sep16
30%
Dec16
20%
10%
0%
Source:Bloomberg;DoubleLine
WuXiaShadowFederalFundsRate
December1,2002toFebruary29,2016
Source:Bloomberg
WuXiaisamodelusedbytheFederalReservetomodelsshortterminterestratesisthemaximumoftheshadowfederalfundsrateanda lowerboundcalibratedtobe25basispointsonboth
requiredandexcessreservebalancesduringtheDecember16,2008toDecember15,2015,periodwhentheFederalOpenMarketCommittee(FOMC)setthetargetrangeforthefederalfundsrate
at0to24basispoints.Basispoint=onehundredthofonepercent.Youcannotinvestdirectlyinanindex.
WuXiaShadowFederalFundsRate
AsofFebruary29,2016
EffectiveFedFundsduringPreviousHikingCycles
(*20142016Hikingcycleproxied fromWuXiaShadowRate)
5
4
3
PCTChange
2
1
19941995
19992000
20042006
20142016
1
2
3
4
40
35
30
25
20
15
10
10
15
20
25
30
35
40
MonthsAroundFedTightening
Source:Bloomberg,DoubleLine
WuXiaisamodelusedbytheFederalReservetomodelsshortterminterestratesisthemaximumoftheshadowfederalfundsrateanda lowerboundcalibratedtobe25basispointsonboth
requiredandexcessreservebalancesduringtheDecember16,2008toDecember15,2015,periodwhentheFederalOpenMarketCommittee(FOMC)setthetargetrangeforthefederalfundsrate
at0to24basispoints.Basispoint=onehundredthofonepercent.PCT=percent.Youcannotinvestdirectlyinanindex.
10
U.S.GDP(YoY)December 31,1999toDecember31,2015
GDPYearoverYear%Change
December31,1999 December31,2015
10%
USNominalGDPYoY
USRealGDPYoY
8%
6%
4%
2%
0%
2%
4%
6%
Source:DoubleLine,Bloomberg,ReportedQuarterlyasofDecember31,2015
GDP=theamountofgoodsandserviceproducedwithinagivencountry/territory.NominalGDPdoesnotadjustforinflation.
Yoy =yearoveryear.Youcannotinvestdirectlyinanindex.
11
ISMManufacturingandNonManufacturingPMI
Asof2/29/16
65
ISMManufacturingandNonManufacturingPMI
60
55
50
45
Recession
Manufacturing
Services
40
35
30
Source:Bloomberg,DoubleLine
ISMManufacturingindexisbasedonsurveysofmorethan300manufacturingfirmsbytheinstituteofSupplyManagement.ISMNonManufacturingisanindexofmorethan400nonmanufacturingfirms
purchasingandsupplyexecutiveswithin60sectorsacrossthenation.SurveyconductedbytheInstituteofSupply&Management(ISM).NonManufacturingPMI=Acompositeindexcalculatedasan
indicatoroftheoveralleconomicconditionforthenonmanufacturingsectoroftheU.S.economy.PMI=PurchasingManagersIndextrackseconomicdata.Youcannotinvestdirectlyinanindex.
12
2s10sSpreadandFedHikingCycles
June30,1976throughJune30,2015
Source:BloombergFinancialServices,DoubleLineCapitalLP
2s=U.S.2YearTreasuryBond.10s=10yearU.S.Treasurybond.QETaper=quantitativeeasingtaperingorstoppingofthegovernmentbondbuyingprogram. Avg =average.
Youcannotinvestdirectlyinanindex.
13
RecessionIndicator:U.S.UnemploymentRateandthe
12monthMovingAverage March31,1949toFebruary22,2016
Source:AtlantaFed,Bloomberg,DoubleLine
USUnemploymentRate(USURTOT)=U3U.S.Unemploymentratetotalinlaborforceseasonallyadjustedtracksthenumberofunemployedpersonsasapercentageofthelaborforce.Thesefigures
generallycomefromhouseholdlaborforcesurvey.SMAVG=12monthmovingaverage.Youcannotinvestdirectlyinanindex.
14
TABII GlobalEconomy
15
GlobalGDPForecasts
YearEnd2015andForecastfor2016
Source:HandsonTurkish,G20TalksinTurkeyasofNovember19,2015
GDP=Theamountsofgoodandservicesproducedwithinagivencountry.UK=UnitedKingdom.Youcannotinvestdirectlyinan index.
16
QuantitativeEasingvs.QuantitativeTapering
December31,2008throughJanuary31,2016
17
U.S.andJapan2s10sandRecession
US2s10sandUSRecessions
%
10
Japan2s10sandJapanRecessions
%
9
8
8
7
6
6
5
4
3
2
2
1
0
NBERRecession
2s10s
10yUST
OECDJapanRecession
2s10s
9/1/15
9/1/14
9/1/13
9/1/12
9/1/11
9/1/10
9/1/09
9/1/08
9/1/07
9/1/06
9/1/05
9/1/04
9/1/03
9/1/02
9/1/01
9/1/00
9/1/99
9/1/98
9/1/97
9/1/96
9/1/95
9/1/94
9/1/93
9/1/92
9/1/91
9/1/90
9/1/15
9/1/14
9/1/13
9/1/12
9/1/11
9/1/10
9/1/09
9/1/08
9/1/07
9/1/06
9/1/05
9/1/04
9/1/03
9/1/02
9/1/01
9/1/00
9/1/99
9/1/98
9/1/97
9/1/96
9/1/95
9/1/94
9/1/93
9/1/92
9/1/91
9/1/90
10yJGB
Source:Bloomberg,DoubleLine
NBERRecession=Isamonthlyconceptthattakesaccountofanumberofmonthlyindicators,suchasemployment,personalincomeandindustrialproductionaswellasquarterlyGDPgrowth.2s10sisthe
spreadbetween2yearU.STreasuriesand10YearU.S.Treasuries.10yUST=10yearU.S.Treasurybonds.10yJGB=10yearJapanesebonds.OECD=OrganizationforEconomicCooperationand
Developmentisagroupof30countriesthatdiscussanddevelopeconomicandsocialpolicy.Youcannotinvestdirectlyinanindex.
18
ECBMonetaryPolicyAnnouncementsandUSDEUR
andEurostoxx 50Performance
(3monthsLeadingUptoand3monthsProceedingCentralBankAnnouncements)
USDEURPerformanceduringECBAnnouncements
Eurostoxx PerformanceduringECBAnnouncements
115
108
NormalizedtoCentralBankAnnouncements
NormalizedtoCentralBankAnnouncements
110
103
98
93
105
100
95
90
85
80
88
75
64 59 54 49 44 39 34 29 24 19 14 9 4 1 6 11 16 21 26 31 36 41 46 51 56 61
TradingDaystoAnnouncement
$EURECBQE(1/22/15)
$EURDraghiQEExt.(12/03/15)
64 59 54 49 44 39 34 29 24 19 14 9 4 1 6 11 16 21 26 31 36 41 46 51 56 61
TradingDaystoAnnouncement
EX5EECBQE(1/22/15)
EX5EDraghiQEExt.(12/03/15)
Source:Bloomberg;DoubleLine asofdateindicatedinchart.
USDEUR=USDollarvs.Euroexchangerate,ECB=EuropeanCentralBank,Eurostoxx =EuroStoxx 600(EXSE)IndexisasubsetoftheSTOXXGlobal1800Index.Itrepresents600large,midandsmall
capitalizationcompaniesacross18countriesoftheEuropeanregion:Austria,Belgium,CzechRepublic,Denmark,Finland,France, Germany,Greece,Ireland,Italy,Luxembourg,theNetherlands,Norway,
Portugal,Spain,Sweden,SwitzerlandandtheUnitedKingdom. $EUR ECBQE=EurospotpriceinU.S.dollarsminusEuropeancentralBankquantitativeeasing.EXSEECBQE=EuroStoxx 600minusECB
quantitativeeasing.EXSE Draghi QEExt=Eurostoxx 600minusDraghis extensionoftheQEprogramintheEuropeanUnion.Youcannotinvestdirectlyinanindex.
19
BankofJapanMonetaryPolicyAnnouncementsand
USDJPYandNikkeiPerformance
(3monthsLeadingUptoand3monthsProceedingCentralBankAnnouncements)
NikkeiPerformanceduringBOJAnnouncements
110
125
108
120
NormalizedtoCentralBankAnnouncements
NormalizedtoCentralBankAnnouncements
USDJPYPerformanceduringBOJAnnouncements
106
104
102
100
98
96
94
92
90
115
110
105
100
95
90
85
80
64 59 54 49 44 39 34 29 24 19 14 9 4 1 6 11 16 21 26 31 36 41 46 51 56 61
TradingDaystoAnnouncement
$JPYBOJQQE1(4/4/13)
$JPYBoJNeg.Rates(1/29/16)
$JPYBOJQQE2(10/31/14)
64 59 54 49 44 39 34 29 24 19 14 9 4 1 6 11 16 21 26 31 36 41 46 51 56 61
TradingDaystoAnnouncement
NKYBOJQQE1(4/4/13)
NKYBOJQQE2(10/31/14)
NKYBoJNeg.Rates(1/29/16)
Source:Bloomberg;DoubleLine
Source:Bloomberg;DoubleLine asofdateindicatedinchart.
USDJPY=JapaneseyenquotedinU.S.dollarterms.BoJ =BankofJapan.$JPY BOJQQE1=JapaneseyenspotpriceinU.S.dollarsminusBankofJapansquantitativeandqualitativeeasing1program.$JPY
BOJQQE2=JapaneseyenspotpriceinU.S.dollarsminusBankofJapansquantitativeandqualitativeeasing2program.$JPY BOJNeg Rates=JapaneseyenspotpriceinU.S.dollarsminusBankofJapans
negativeinterestrates.NKY=Nikkei225compositeistheleadingJapanesestockmarket.Itspriceweightedindexcomprised of Japanstop225bluechipcompaniesontheTokyoStockExchange.You
cannotinvestdirectlyinanindex.
20
ZeroLowerBoundStillExistsforEABankDeposits
*Shadedarearepresentstherangeofaverageovernight
depositratespaidbybanksacrosstheeuroarea
ECB=EuropeanCentralBank,EuroAreaO/Ndepo rate=EuroAreaovernightdepositrate
Youcannotinvestdirectlyinanindex.
21
SouthKoreaExports(YoY)
March9,1991toMarch2,2016
Source:Bloomberg.DoubleLine
YoY =yearoveryear.Youcannotinvestdirectlyinanindex.
22
ChinaExportsandImports(YoY)
March7,1996toMarch2,2016
Source:Bloomberg.DoubleLine
YoY =yearoveryear.USD=U.S.dollar.Youcannotinvestdirectlyinanindex.
23
ChinasBusinessActivity
October31,2011throughMarch1,2016
Source:Bloombergquarterlythrough12/31/2015
CNPRETLYIndex=ChinaIndustrialEnterprisesTotalProfitsyearoveryearprovidedbytheNationalBureauofStatisticsinChina.Ittracksthebusinessactivitiesoffirms,providingasummaryoftheir
financialcondition.Canincludeincomestatements,balancesheets,statementsofcashflows/retainedearnings,etc.Youcannotinvestdirectlyinanindex.
24
CNYTradeWeightedandCNYUSD(5yrs)
March2,2011toMarch2,2016
Source:Bloomberg;DoubleLine asofdateindicatedinchart.
CNY=ChineseRenminbi.MorganStanleyCNYisatradeweightedindexfortheChineseRenminbi indexedto100onJanuary1,2010.CNYUSDXRate=TheChineserenminbi (yuan)istheofficialcurrency
ofthePeoplesRepublicofChinaminustheU.S.Dollarexchangerate.Youcannotinvestdirectlyinanindex.
25
GlobalStocksHaveBeenMovingwithYuan
March9,2015throughMarch8,2016
Source:Bloomberg
MXWD=MSCIACWIIndexisafreefloatweightedglobalequityindex.Itincludesbothemerginganddevelopedworldmarkets.CNYUSDCurncy =TheChineserenminbi (yuan)istheofficialcurrencyofThe
PeoplesRepublicofChina.TheUSdollaristheofficialcurrencyoftheUnitedStatesofAmerica.
Youcannotinvestdirectlyinanindex.
26
GlobalStocksandInflation
March9,2015 March7,2016
Source:Bloomberg,DoubleLine
MXWDIndex=MSCIACWIIndexisafreefloatweightedequityindexincludesbothemerginganddevelopedmarkets.USGGBE10Index=10yearU.S.treasurybreakeveninflationratescalculatedby
subtractingtherealyieldoftheinflationlinkedmaturitycurvefromtheyieldoftheclosestnominalTreasurymaturity.Youcannotinvestdirectlyinanindex.
27
U.S.BreakevensandWTI
March2,2013toMarch2,2016
Source:Blooberg,DoubleLine
Breakevens =TheyarecalculatedbysubtractingtherealyieldoftheinflationlinkedmaturitycurveformtheyieldoftheclosestnominalTreasurymaturity.WTI=WestTexasCrudeoilspot
pricebasedonfutures.Youcannotinvestdirectlyinanindex.
28
HeadlineInflation
December31,1999 January31,2016
6.0%
HeadlineUSConsumerPriceIndex
HeadlineUSPersonalConsumptionExpenditureIndex
5.0%
YearoverYear%Change
December31,1999 January31,2016
4.0%
3.0%
55.9
2.0%
1.0%
0.0%
1.0%
2.0%
3.0%
Source:Bloomberg,DoubleLine
ConsumerPriceIndex(CPI)isthemeasurethatexaminestheweightedaverageofpricesofabasketofconsumergoodsandservices,suchastransportation,foodandmedicalcare.PersonalConsumption
Expenditure(PCE)istheprimarymeasureofconsumerspendingongodandservicesintheU.S.economy.Itaccountsforabout2/3 ofdomesticfinalspending,andthusitstheprimaryenginethatdrives
futureeconomicgrowth.Youcannotinvestdirectlyinanindex.
29
CoreInflation
December31,1999 January31,2016
3.5%
CoreUSConsumerPriceIndex
CoreUSPersonalConsumptionExpenditureIndex
YearoverYear%Change
December31,1999 January31,2016
3.0%
2.5%
55.9
2.0%
1.5%
1.0%
0.5%
0.0%
Source:Bloomberg,DoubleLine
CoreConsumerPriceIndex(CPI)isthemeasureofpersonalconsumptionexcludingfoodandenergyprices..CorePersonalConsumptionExpenditure(PCE)ispersonalconsumptionexpendituresprices
excludingfood&energyprices.Youcannotinvestdirectlyinanindex.
30
ComponentsofCoreCPIYoY
ComponentsofCoreCPIYoY
4
3
2
Core
CoreServices
CoreGoods
CorelessOER
FedTarget
5/1/15
10/1/15
7/1/14
12/1/14
2/1/14
9/1/13
4/1/13
6/1/12
11/1/12
1/1/12
8/1/11
3/1/11
10/1/10
5/1/10
12/1/09
7/1/09
2/1/09
9/1/08
4/1/08
11/1/07
6/1/07
1/1/07
8/1/06
3/1/06
5/1/05
10/1/05
7/1/04
12/1/04
2/1/04
9/1/03
4/1/03
6/1/02
11/1/02
1/1/02
8/1/01
3/1/01
10/1/00
5/1/00
12/1/99
Source:Bloomberg,DoubleLine
CoreConsumerPriceIndex(CPI)isthemeasureofpersonalconsumptionexcludingfoodandenergyprices.YoY =yearoveryear.OER=OwnerEquivalentRent.Youcannotinvestdirectlyinanindex.
31
TABIII
BloodlessVerdictofthe
Market
32
U.S.DollarIndexSpot
December31,2007throughMarch8,2016
Source:BloombergFinancialServices
DXY=DXYistheUSDollarIndex(USDX)indicatesthegeneralvalueoftheUSdollar.AverageexchangeratesbetweentheUSdollarandsixmajorworldcurrencies.
Aninvestmentcannotbemadedirectlyinanindex.
33
EmergingMarketEquities
March9,2005throughMarch7,2016
918
882
883
910
831
468
Source:DoubleLine,Bloomberg
EMEquities(MXEFIndex)=TheMSCIEmergingMarketsIndexisafreefloatweightedequityindex.Youcannotinvestdirectlyinanindex.
34
ShanghaiComposite
March9,2005throughMarch8,2016
Source:Bloomberg
SHCOMP=Shanghaicompositeindexisacapitalizedweightedindex.TheindextracksthedailypriceperformanceofallAsharesandBshareslistedontheShanghaiStockExchange.
Youcannotinvestdirectlyinanindex.
35
JunkBondsDecember31,2007toMarch8,2016
Source:DoubleLine,Bloomberg
JNK=SPDRBarclaysHighYieldBondETFinanexchangetradedincorporatedintheU.S.ItseeksinvestmentresultsthatcorrespondtothepriceandyieldoftheBarclaysHighYieldVeryLiquidBond
Index.Pleaseseetheappendixforprospectuslink,description,expenses,etc.forJNK.DoubleLine TotalReturnBondFundowns0%JNKasofMarch8,2016.Youcannotinvestdirectlyinanindex.
36
CommodityPrices
December30,1999toMarch8,2016
Source:Bloomberg
BCOMIndex=BloombergCommodityIndexiscalculatedonanexcessreturnbasisandreflectscommodityfuturespricemovements withmonthlyrebalancing.Youcannotinvestdirectlyinanindex..
37
CommoditySectorPerformance(1year)
March2,2015toMarch2,2016
Source:BloombergFinancialServices,DoubleLine
DJUBSCommodityindexiscalculatedonanexcessreturnbasisandreflectscommodityfuturespricemovements.OtherindicesreflectedaresubsetsoftheDJCommodityindexforthesectors
indicated.Youcannotinvestdirectlyinanindex.
38
GoldandGoldMiners
March9,2005throughMarch7,2016
Source:BloombergFinancialServices
GDX=MarketVectorsGoldMinersETFisanexchangetradedfundincorporatedintheUSA.IttrackstheperformanceoftheArca GoldMinersIndex.GLD=SPDRGoldSharesisaninvestmentfund
incorporatedintheUSA.TheobjectiveoftheTrustisfortheSharestoreflecttheperformanceofthepriceofgoldbullion,lesstheTrustsexpenses.DoubleLine TotalReturnBondFundholds0%of
GLDand0%ofGDXasofMarch8,2016.Youcannotinvestdirectlyinanindex.
39
BofA/MerrillFixedIncomeIndexReturns
Grey=Year2015
Blue=YearToDate2016
Convertibles(VOSO)4.45%
4.55%
HighYield(JOAO)
1.15%
1.70%
0.63%
InternationalEmerging(IGOV)
Corporate(COAO)
0.63%
InternationalDeveloped(NOGO)
Mortgages(MOAO)
Government(G0A0)
DataSource:BofA/MerrillLynchIndicesthroughyearendDecember31,2015andMarch7,2016fortherespectiveyearsindicated.
PleaseseetheAppendixforindexdefinitions.Aninvestmentcannotbemadedirectlyinanindex.
3.13%
1.23%
1.09%
3.67%
1.46%
1.44%
0.84%
2.33%
40
BofA/MerrillFixedIncomeIndexReturns
Grey=Year2015
Blue=YearToDate2016
CCCRatedHighYield(JOA3)
BBRatedHighYieldCredit(JOA1)
BRatedHighYield(JOA2)
BBBRatedCredit(COA4)
ARatedCredit(COA3)
AAARatedCredit(COA1)
15.01%
1.54%
1.04%
2.73%
5.08%
2.19%
1.41%
1.02%
0.62%
1.36%
0.57%
2.49%
41
U.S.2YearTreasury
March9,2010throughMarch8,2016
Source:BloombergFinancialServices,DoubleLineCapitalLP
GT02=US2YearTreasuryBond.Youcannotinvestdirectlyinanindex.
42
U.S.5YearTreasury
March9,2010throughMarch8,2016
Source:BloombergFinancialServices,DoubleLineCapitalLP
GT5=US5YearTreasuryBond.Youcannotinvestdirectlyinanindex.
43
U.S.10YearTreasury
March9,2010throughMarch8,2016
Source:BloombergFinancialServices,DoubleLineCapitalLP
GT10=US10YearTreasuryBond.Youcannotinvestdirectlyinanindex.
44
U.S.30YearTreasury
March9,2010throughMarch8,2016
Source:BloombergFinancialServices,DoubleLineCapitalLP
GT30=US30YearTreasuryBond.Youcannotinvestdirectlyinanindex.
45
TABIV
Credit&Energy
46
HighYieldvs.S&P500
March9,2007throughMarch7,2016
S&P500
HYCCC
andlower
HighYield
Source:Bloomberg
SPX=S&P500Indexiscomprisedofcapitalizedweightedindexof500stocks.J0A0=BofA/MerrillLynchUSCashPayHighYieldIndextrackstheperformanceofUSdollardenominatedbelowinvestment
gradecorporatedebt,currentlyinacouponpayingperiod,thatispubliclyissuedintheUSdomesticmarket.H0A3=BofA/MerrillLynchUSHighYieldindextracksperformanceofUSdollardenominated
belowinvestmentgradecorporatedebtpubliclyissuedintheUSdomesticmarketCCCandlower.
Youcannotinvestdirectlyinanindex.
47
PERatio
ShillerPERatioJanuary1,1890toMarch7,2016
Source:Multpl.com,RobertShillerIrrationalExuberancebookforhistoricalS&P500PERatios. PEratioisthepriceearningsratiowhichvaluesacompanythatmeasuresitscurrentshareprice
relativetoitspershareearnings.ShillerPERatio=ProfessorRobertShillerdevelopedacyclicallyadjustedPEratio(CAPEratio)whichtakesthecurrentequityshareprice/10yearinflationadjusted
averageearnings.SimilartotraditionalP/E(price/earnings)theCAPEratiocanbeappliedtoabroadbasedindex(S&P500) andnotjustasingleequityname.S&P500isacapitalizedweightedindex
of500stocks.Itsdesignedtomeasureperformanceofthebroaddomesticeconomythroughchangesintheaggregatemarketvalueof500stocksrepresentingallmajorindustries.Youcannotinvest
directlyinanindex.
48
S&P500NetProfitMargin
January1,1973throughMarch31,2015
49
S&P50012MonthTrailingEarningsPerShare(EPS)
November19,2000throughFebruary25,2016
Source:Bloomberg,DoubleLine
S&P500Indexisdesignedtomeasureperformanceofthebroaddomesticeconomythroughchangesintheaggregatemarketvalueof500stocksrepresentingallmajorindustries.EPS=earningper
share.Youcannotinvestdirectlyinanindex.
50
LeverageAtAllTimeHigh
December31,1998throughDecember31,2015
Source:BAML,TheHYWire,2016Outlook:Maytheoddsbeeverinyourfavor
HY=HighYield.Aninvestmentcannotbemadedirectlyinanindex.
51
LeverageAtAllTimeHigh
December31,1998throughDecember31,2015
Source:BAML,TheHYWire,2016Outlook:Maytheoddsbeeverinyourfavor
HY=HighYield.YoY =yearoveryear.ebita =earningsbeforeinterest,taxes,depreciationandamortization.Pct =%.Aninvestmentcannotbemadedirectlyinanindex.
52
LendingStandardsvs.U.S.DefaultRates
December31,1990toDecember31,2015
53
CreditBankruptcies
54
Trailing12moRatingDrift
January1,2011toDecember31,2015
55
Upgrade/DowngradeRatioforAllRatedBonds
December31,1990throughJune30.2015
56
InvestmentGrade&HighYieldBonds
March9,2015toMarch7,2016
Source:DoubleLine,Bloomberg
JNK=SPDRBarclaysHighYieldBondETFinanexchangetradedincorporatedintheU.S.ItseeksinvestmentresultsthatcorrespondtothepriceandyieldoftheBarclaysHighYieldVeryLiquid
BondIndex.LQD=iShares iBoxx Investmetn GradeCorporateBondETFisanexchangetradedfundseekingtotracktheinvestmentgraderesultsofanindexcomposedofU.S.dollar
denominatedinvestmentgradecorporatebonds.Pleaseseetheappendixforprospectuslink,description,expenses,etc.forJNK.DoubleLine TotalReturnBondFundowns0%JNKand0%LQD
asofMarch8,2016.Youcannotinvestdirectlyinanindex.
57
LeveragedLoansAveragePrice
March8,2014throughMarch7,2016
Source:Bloomberg
SPBLDALBIndex=S&P/LSTALeveragedLoanIndexPriceisthemarketvalueweightedindexthatmeasuresperformanceofU.S.LeveragedLoanmarket.SPBDLLBindex=S&P/LSTAUSLeverageLoan
100IndexPriceisdesignedtoreflecttheperformanceofthelargestfacilitiesintheleveragedloanmarket.Youcannotinvest directlyinanindex.
58
CLOIssuance
January1,2013toFebruary29,2016
Source:BankofAmericaMerrillLynch
CLO=CollateralizedLoanObligation.Youcannotinvestdirectlyinanindex.
59
U.S.CrudeOilInventories
August20,1982throughFebruary25,2016
Source:Bloomberg
CLO=CollateralizedLoanObligation.DOESCRUD=DOECrudeOilTotalInventorydate(excludingStrategicPetroleumReserve).You cannotinvestdirectlyinanindex.
60
U.S.CrudeOilInventoriesbyYear
USCrudeOilInventoriesbyYear
550,000
500,000
2005
2006
450,000
2007
2008
2009
400,000
2010
2011
2012
350,000
2013
2014
2015
300,000
2016
250,000
1
11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51
Weeks
Source:Bloomberg.2016isthroughFebruary19,2016
DOESCRUD=DOECrudeoiltotalinventorydataisupdatedeveryWednesday.InformationisprovidedbytheEnergyInformationAdministrationaspartoftheirweeklypetroleumstatusreport.
Youcannotinvestdirectlyinanindex.
61
EnergyMarketHasLargeOversupply
March31,2014toDecember31,2015
62
EnergyMarketHasLargeOversupply
January1,1997toDecember31,1999
Source:Bloomberg
OECD=OrganizationforEconomicDevelopment
63
U.S.CrudeSupplyandDemand
November30,1998throughJanuary 31,2016
Source:DoubleLine,Bloomberg
OPCBRTOTIndex=DataobtainedformtheEnergyIntelligenceGroupsmonthlyoilMarketIntelligencepublication.DataincludesestimatedOPECandNonOPECoilproductionstatisticsaswellas
globaloilsupply.OPCBTSUPIndex=DataobtainedfromEnergyGroupsmonthlyoilMarketIntelligenceepublicationoftotalsupplydata.Youcannotinvestdirectlyinanindex.
64
TABVII
DoubleLineTotalReturn
BondFund
65
Duration:DBLTXvs.BarclaysU.S.AggregateIndex
April1,2010throughFebruary29,2016
Source:DoubleLine,Barclays
BarclaysAGGDuration=BarclaysUSAggregateIndexduration.Durationisameasureofsensitivityofthepriceofafixedincomeinvestmenttoachangeininterestrates.Itsexpressedinyears
66
DBLTXDurationvs.10YearU.S.TreasuryYield
May31,2010throughFebruary29,2016
Source:DoubleLine,Bloomberg
Durationisameasureofsensitivityofthepriceofafixedincomeinvestmenttoachangeininterestrates.Itsexpressedinyears.
67
TotalReturnBondFundPortfolioStatistics
Total Return
BondFund
BarclaysCapitalU.S.
AggregateIndex
$99.30
$104.83
Duration
2.79
5.40
Average Life
4.52
7.70
AveragePrice
PortfoliostatisticsasofFebruary29,2016basedonmarketweightedaverages.Subjecttochangewithoutnotice.
Averageprice=Ameasureoftheweightedaveragepricepaidforthesecuritiescalculatedbytakingthepricesanddividingbythenumberofsecuritiesanddoesnotincludecash.Averagepriceshouldnot
beconfusedwithnetassetvalue.
AverageDuration =Durationisusedasariskmeasure.Itmeasuresthepricevolatilityofasecuritygivenachangeininterestratemovements.
AverageLife=Theaveragenumberofyearsthateachdollarofunpaidprincipaldueonthemortgageremainsoutstanding.Averagelifeiscomputedastheweightedaveragetimetothereceiptofallfuture
cashflows,usingastheweightsthedollaramountsoftheprincipalpaydowns.
Source:DoubleLineCapitalLP
Youcannotinvestdirectlyinanindex.Pleaseseeindexdefinitionintheappendix.
68
TotalReturnBondFundPortfolioComposition
BySecurityType
CLO 4.6% ABS 2.4%
CMBS
7.4%
Cash 11.9%
Government
3.7%
NonAgency
21.1%
Agency 48.9%
PortfoliocompositionasofFebruary29,2016.Subjecttochangewithoutnotice.
Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity.
Cash =Thevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketablesecurities,suchasgovernmentbonds,banker'sacceptances,cashequivalentsonbalancesheetsthatmayinclude
securitiesthatmaturewithin90days.
Government U.S.treasurysecurities.
Agency=MortgagesecuritieswhoseprincipalandinterestguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC).
NonAgency=ResidentialMortgagesBondSecuritiesareatypeofbondbackedbyresidentialmortgages.NonAgencymeanstheywereissuedby aprivateissuer.
CMBS =CommercialMortgageBackedSecurities.Securitizedloansmadeoncommercialratherthanresidentialproperty.
CLO =CollateralizedMortgageObligations
69
ConnecttheDots
LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer
March8,2016
SPDRBarclaysHighYieldBondETF(JNK)
InvestmentObjective&Summary
TheinvestmentobjectiveoftheSPDRBarclaysHighYieldBondETFseekstoprovideinvestmentresultsthat,beforefeesandexpenses,
correspondsgenerallytothepriceandyieldperformanceoftheBarclaysHighYieldVeryLiquidIndex.TheETFinvestsinU.S.highyield
bonds.
TheBarclaysHighYieldVeryLiquidIndexisdesignedtomeasuretheperformanceofpubliclyissuedU.S.dollardenominatedhighyieldcorporatebondswithaboveaverage
liquidity.Highyieldsecuritiesaregenerallyratedbelowinvestmentgradeandarecommonlyreferredtoas"junkbonds."The IndexincludespubliclyissuedU.S.dollar
denominated,noninvestmentgrade,fixedrate,taxablecorporatebondsthathavearemainingmaturityofatleastoneyear,regardlessofoptionality,areratedhighyield
(Ba1/BB+/BB+orbelow)usingthemiddleratingofMoody'sInvestorsService,Inc.,FitchInc.,orStandard&Poor's,Inc.Respectively,andhave$500millionormoreofoutstanding
facevalue
ImportantRiskInformation Ingeneral,ETFscanbeexpectedtomoveupordowninvaluewiththevalueoftheapplicableindex.AlthoughETFsharesmaybeboughtandsoldonthe
exchangethroughanybrokerageaccount,ETFsharesarenotindividuallyredeemablefromtheFund.InvestorsmayacquireETFsand tenderthemforredemptionthroughtheFundin
CreationUnitAggregationsonly.Pleaseseetheprospectusformoredetails.
Bondfundscontaininterestraterisk(asinterestratesrisebondpricesusuallyfall);theriskofissuerdefault;issuercreditrisk;liquidityrisk;andinflationrisk.
Investinginhighyieldfixedincomesecurities,otherwiseknownas"junkbonds"isconsideredspeculativeandinvolvesgreaterriskoflossofprincipalandinterestthaninvestingin
investmentgradefixedincomesecurities.Theselowerqualitydebtsecuritiesinvolvegreaterriskofdefaultorpricechangeduetopotentialchangesinthecreditqualityoftheissuer.
TheFundinvestsbysamplingtheIndex,holdingarangeofsecuritiesthat,intheaggregate,approximatesthefullIndexintermsofkeyriskfactorsandothercharacteristicswhichmay
causethefundtoexperiencetrackingerrorsrelativetoperformanceoftheIndex.
Distributor:StateStreetGlobalMarkets,LLC,memberFINRA,SIPC,awhollyownedsubsidiaryofStateStreetCorporation.ReferencestoStateStreetmayincludeStateStreet
Corporationanditsaffiliates.CertainStateStreetaffiliatesprovideservicesandreceivefeesfromtheSPDRETFs.
Beforeinvesting,considerthefunds'investmentobjectives,risks,chargesandexpenses.Toobtainaprospectusor
summaryprospectuswhichcontainsthisandotherinformation,call18667872257ortalktoyourfinancialadvisor.
Readitcarefullybeforeinvesting.
JNKisdistributedbyStateStreetGlobalMarkets,LLC
71
iBOXX HighYieldCorporateBondETF(HYG)
InvestmentObjective
TheiShares iBoxx $HighYieldCorporateBondETFseekstotracktheinvestmentresultsofanindexcomposedofU.S.dollardenominated,high
yieldcorporatebonds.
CarefullyconsidertheFunds'investmentobjectives,riskfactors,andchargesandexpensesbeforeinvesting.Thisand
otherinformationcanbefoundintheFunds'prospectusesor,ifavailable,thesummaryprospectuseswhichmaybe
obtainedbyvisitingtheiShares ETF andBlackRockFund prospectuspages.Readtheprospectuscarefullybefore
investing.
Investinginvolvesrisk,includingpossiblelossofprincipal.TheiShares EnhancedETFs,iShares ShortMaturityBondETF,iShares LiquidityIncomeETFandtheiShares InterestRate
HedgedETFsareactivelymanagedfundsanddonotseektoreplicatetheperformanceofaspecifiedindex.TheFundsmayhaveahigherportfolioturnoverthanfundsthatseekto
replicatetheperformanceofanindex.Fixedincomerisksincludeinterestrateandcreditrisk.Typically,wheninterestratesrise,thereisacorrespondingdeclineinbondvalues.Credit
riskreferstothepossibilitythatthebondissuerwillnotbeabletomakeprincipalandinterestpayments.
Noninvestmentgradedebtsecurities(highyield/junkbonds)maybesubjecttogreatermarketfluctuations,riskofdefaultorlossofincomeandprincipalthanhigherrated
securities.
TheiShares ShortMaturityBondETFwillinvestinprivatelyissuedsecuritiesthathavenotbeenregisteredundertheSecuritiesActof1933andasaresultaresubjecttolegal
restrictionsonresale.Privatelyissuedsecuritiesarenottradedonestablishedmarketsandmaybeilliquid,difficulttovalueandsubjecttowidefluctuationsinvalue.Delayor
difficultyinsellingsuchsecuritiesmayresultinalosstotheiShares ShortMaturityBondETF.Thefundmayinvestinassetbacked(ABS)andmortgagebackedsecurities(MBS)
whicharesubjecttocredit,prepaymentandextensionrisk,andreactdifferentlytochangesininterestratesthanotherbonds. Smallmovementsininterestratesmayquicklyreduce
thevalueofcertainABSandMBS.SharesofETFsareboughtandsoldatmarketprice(notNAV)andarenotindividuallyredeemedfromtheFund.Brokeragecommissionswillreduce
returns.Marketreturnsarebaseduponthemidpointofthebid/askspreadat4:00p.m.Easterntime(whenNAVisnormallydeterminedformostETFs),anddonotrepresentthe
returnsyouwouldreceiveifyoutradedsharesatothertimes.Fortheprospectuspleasecall18008820052.
HJYisdistributedbyBlackRock
72
MarketVectorsGoldMinersETF(GDX)
InvestmentObjective&Summary
Theinvestmentobjectiveseekstoreplicateascloselyaspossible,beforefeesandexpenses,thepriceandyieldperformance of the
NYSEArca GoldMinersIndex(GDMNTR),whichisintendedtotracktheoverallperformanceofcompaniesinvolvedinthefoldmining
industry.
73
SPDRGoldSharesETF(GLD)
InvestmentObjective&Summary
TheinvestmentobjectiveoftheTrustisforSPDRGoldShares(GLD)toreflecttheperformanceofthepriceofgoldbullion, lessthe
Trustsexpenses.
Thespotpriceofgoldbullionisdeterminedbymarketforcesinthe24hourglobaloverthecounter(OTC)marketforgold.TheOTCmarketaccountsformostglobalgoldtrading,
andpricesquotedreflecttheinformationavailabletothemarketatanygiventime.Theprice,holdings,andnetassetavalueofGoldShares,aswellasmarketdatafortheoverall
goldbullionmarket,canbetrackeddailyatwww.spdrgoldshares.com.
74
Definitions
BarclaysCapitalUSAggregateIndex TheBarclaysCapitalUSAggregateIndexrepresentssecuritiesthatareSECregistered,taxable,anddollardenominated.The
indexcoverstheUSinvestmentgradefixedratebondmarket,withindexcomponentsforgovernmentandcorporatesecurities,mortgagepassthroughsecurities,
andassetbackedsecurities.Thesemajorsectorsaresubdividedintomorespecificindicesthatarecalculatedandreportedona regularbasis.
BarclaysCapitalUSTreasuryIndex ThisindexistheUSTreasurycomponentoftheUSGovernmentindex.PublicobligationsoftheUSTreasurywitharemaining
maturityofoneyearormore.
BarclaysCapitalUSTreasury10YearIndex Thisindexisthe10yearcomponentoftheUSGovernmentindex.
BarclaysCapitalCapitalUSTreasury30YearIndex Thisindexisthe30yearcomponentoftheUSGovernmentindex.
BarclaysCapitalUSHighYieldIndex TheBarclaysCapitalUSHighYieldIndexcoverstheuniverseoffixedrate,noninvestmentgradedebt.Eurobondsanddebt
issuerfromcountriesdesignatedasemergingmarkets(e.g.Argentina,Brazil,Venezuela,etc.)areexcluded,butCanadianand globalbonds(SECregistered)of
issuersinnonEMGcountriesareincluded.Originalissuezereos,stepupcouponstructures,144Asandpayinkind(PIK,asofOctober1,2009)arealsoincluded.
BofAMerrillLynchUSGovernmentIndex(GOAO) TheMerrillLynchUSGovernmentIndextrackstheperformanceofUSgovernment(i.e.securitiesinthe
TreasuryandAgencyindices.)
BofAMerrillLynchUS15+YearTreasuryIndexLongTreasuries(G802) ThisindexisasubsetoftheBofAMerrillLynchUSTreasuryIndexincludingallsecurities
witharemainingtermoffinalmaturitygreaterthan15years..
BofAMerrillLynchUSCorporateIndex(COAO)InvestmentGrade TheMerrillLynchCorporateIndextrackstheperformanceofUSdollardenominated
investmentgradecorporatedebtpubliclyissuedintheUSdomesticmarket.Qualifyingsecuritiesmusthaveaninvestmentgraderating(basedonanaverageof
Moodys,S&PandFitch)andaninvestmentgraderatedcountryofrisk(basedonanaverageofMoodys,S&PandFitchforeigncurrencylongtermsovereigndebt
ratings).Securitiesmusthaveatleastoneyearremainingtermtofinalmaturity,afixedcouponscheduleandaminimumamountoutstandingof$250MM.
BofAMerrillLynchUSAllConvertiblesIndex(VOSO) TheMerrillLynchAllConvertibleIndexisaruledrivenindex.whichincludesallbondsandpreferredstocks
ofU.S.registeredcompanies,whichhave$50millionormoreinaggregatemarketvalueandareconvertiblesinU.S.dollardenominatedcommonstocks,ADRsor
cashequivalents.Pleasenoteaninvestorcannotinvestdirectlyinanindex.
CRBCommodityIndex(CRY) Anunweightedgeometricaverageofsomeimportantcommodities.Itaveragespricesacross17commoditiesandacrosstime.The
indextracksenergy,grains,industrials,livestock,preciousmetals,andagriculturals.
S&P500(SPX) S&P500isafreefloatcapitalizationweightedindexpublishedsince1957ofthepricesof500largecapcommonstocksactively tradedinthe
UnitedStates.
StandardDeviation Sigma=standarddeviation.Itshowshowmuchvariationthereisfromtheaverage(mean,orexpected/budgetedvalue).Alow standard
deviationindicatedthatthedatapointtendtobeveryclosetothemean,whereashighstandarddeviationindicatedthatthe dateisspreadoutoveralargerange
ofvalues.
DowJones UBSDJCommodityIndex TheDowJonesUBS CommodityindexiscomposedofcommoditiestradedonU.S.exchanges,withtheexceptionof
aluminum,nickelandzinc,whichtradeontheLondonMetalExchange(LME).
Copper=CopperSpotPrice(HGI)Copperistheworldsthirdmostusedmetalbehindironandaluminumprimarilyusedinhighlycyclicalindustriesincluding
constructionandindustrialmachinerymanufacturing.SpotpricequotedinUSD/lb.
Gold=GoldSpotPrice(Golds)TheGoldSpotpriceisquotedasUSDollarperTroyOunce.
CrudeOil=Crudeoilvariesgreatlyinappearancedependingonitscomposition.WestTexasintermediate(WTI)=Texaslightsweetcrudeisusedasabenchmarkin
oilpricing.Itslightbecauseofthelowdensityandsweetbecauseoflowsulfur.Brentcrude=Isamajortradingclassificationofsweetlightcrude.Brentistheoil
makeralsoknownasBrentBlend.
VolatilityIndex(VIX)TheVIXshowsthemarket'sexpectationof30dayvolatility.Itisconstructedusingtheimpliedvolatilitiesofawiderangeof S&P500index
options. Thisvolatilityismeanttobeforwardlookingandiscalculatedfrombothcallsandputs. TheVIXisawidelyusedmeasureofmarketriskandisoften
referredtoas the"investorfeargauge".
Spread Spreadisthepercentagepointdifferencebetweenyieldsofvariousclassesofbondscomparedtotreasurybonds.
75
IndexDescriptions
BofAMerrillLynchUSDollarEmergingMarketsSovereignPlusIndex(IGOV)
ThisindextrackstheperformanceofUSdollardenominatedemergingmarketandcrossoversovereigndebtpubliclyissuedintheeurobondorUSdomesticmarket.
QualifyingcountriesmusthaveaBB1orlowerforeigncurrencylongtermsovereigndebtrating(basedonanaverageofMoodys,S&P,andFitch).
BofAMerrillLynchU.S.HighYieldCashPayIndex(J0A0)BelowInvestmentGrade
TheMerrillLynchHighYieldIndextrackstheperformanceofUSdollardenominatedbelowinvestmentgradecorporatedebt,currentlyinacouponpayingperiod,
thatispubliclyissuedintheUSdomesticmarket.Qualifyingsecuritiesmusthaveabelowinvestmentgraderating(basedonanaverageofMoodys,S&PandFirth
foreigncurrencylongtermsovereigndebtratings).Musthaveoneyearremainingtofinalmaturityandaminimumoutstandingamountof$100MM.
BofAMerrillLynchInternationalGovernmentIndex(NOGO)
TheMerrillLynchInternationalIndextrackstheperformanceofAustralia,Canadian,French,German,Japan,Dutch,SwissandUKinvestmentgradesovereigndebt
publiclyissuedanddenominatedintheissuersowndomesticmarketandcurrency.Qualifyingsecuritiesmusthaveatleastoneyearremainingtermtofinalmaturity,
afixedcouponscheduleandaminimumamountoutstanding.
BofAMerrillLynchMortgageBackedSecuritiesIndex(MOA0)
ThisindextrackstheperformanceofUSdollardenominatedfixedrateandhybridresidentialmortgagepassthroughsecuritiespubliclyissuedbyUSagenciesinthe
USdomesticmarket.30year,20year,15yearandinterestonlyfixedratemortgagepoolsareincludedintheIndexprovidedtheyhaveatleastoneyearremaining
termtofinalmaturityandaminimumamountoutstandingofatleast$5billionpergenericcouponand$250MMperproductionyear withineachgenericcoupon.
BofAMerrillLynchU.S.MunicipalSecuritiesIndex(UOA0)
ThisindextrackstheperformanceofUSdollardenominatedinvestmentgradetaxexemptdebtpubliclyissuedbyUSstatesandterritories,andtheirpolitical
subdivisions,intheUSdomesticmarket.Qualifyingsecuritiesmusthaveatleastoneyearremainingtermtofinalmaturity,afixedcouponscheduleandan
investmentgraderating(basedonMoodys,S&PandFitch).Minimumsizevarybasedontheinitialtermtofinalmaturityattime ofissuance.
BarclaysCapitalGlobalEmergingMarketsIndex TheBarclaysCapitalGlobalEmergingMarketsIndexrepresentstheunionoftheUSDdenominatedUSEmerging
MarketsindexandthepredominatelyEURdenominatedPanEuroEmergingMarketsIndex,coveringemergingmarketsinthefollowingregions:Americas,Europe,
MiddleEast,Africa,andAsia.AswithotherfixedincomebenchmarksprovidedbyBarclaysCapital,theindexisrulesbased,whichallowsforanunbiasedviewofthe
marketplaceandeasyreplicability.
JPMorganInvestmentGradeCorporateIndex JPMorganInvestmentGradeCorporateIndexincludesperformanceofUSdollardenominatedinvestmentgrade
corporatedebtpubliclyissuedintheUSdomesticmarket.Qualifyingsecuritiesmusthaveaninvestmentgraderating(basedonanaverageofMoodys,S&Pand
Fitch)andaninvestmentgraderatedcountryofrisk(basedonanaverageofMoodys,S&PandFitchforeigncurrencylongtermsovereigndebtratings).Securities
musthaveatleastoneyearremainingtermtofinalmaturity,afixedcouponscheduleandaminimumamountoutstandingof$250MM.
DrawDown Thepeaktotroughdeclineduringaspecificrecordperiodofaninvestment,fundorcommodity.Adrawdownisusuallyquotedasthepercentage
betweenthepeakandthetrough.
NAV Amutualfund'spricepershareorexchangetradedfund's(ETF)persharevalue.Inbothcases,thepersharedollaramountof thefundiscalculatedbydividing
thetotalvalueofallthesecuritiesinitsportfolio,lessanyliabilities,bythenumberoffundsharesoutstanding.
CMO Atypeofmortgagebackedsecuritythatcreatesseparatepoolsofpassthroughratesfordifferentclassesofbondholderswith varyingmaturities,called
tranches.Therepaymentsfromthepoolofpassthroughsecuritiesareusedtoretirethebondsintheorderspecifiedbythebonds'prospectus
TIPS TreasuryInflationProtection.Atreasurysecuritythatisindexedtoinflationinordertoprotectinvestorsfromthenegativeeffectsofinflation.TIPSare
consideredanextremelylowriskinvestmentsincetheyarebackedbytheU.S.governmentandsincetheirparvalueriseswithinflation,asmeasuredbythe
ConsumerPriceIndex,whiletheirinterestrateremainsfixed.
CPI ConsumerPriceIndex.Ameasurethatexaminestheweightedaverageofpricesofabasketofconsumergoodsandservices,such astransportation,foodand
medicalcare.
CashFlow Cashflowmeasuresthecashgeneratingcapabilityofacompanybyaddingnoncashcharges(e.g.depreciation)andinterestexpensetopretaxincome.
76
IndexDescriptions
BofA/MerrillLynchHighYieldCashPayCCCratedIndex(JOA3) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonCCCrated
HighYieldcreditonly.
BofA/MerrillLynchHighYieldCashPayBBratedIndex(JOA1) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonBBrated
HighYieldcreditonly.
BofA/MerrillLynchHighYieldCashPayBratedIndex(JOA2) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonBratedHigh
Yieldcreditonly.
BofA/MerrillLynchCreditIndexBBBratedIndex(COA4) .AcomponentoftheBofA/MerrillLynchCreditIndexconcentratingonthelowerratedBBB
investmentgradecredits.
BofA/MerrillLynchCreditIndexAratedIndex(COA3) .AcomponentoftheBofA/MerrillLynchCreditIndexconcentratingontheAratedinvestmentgrade
credits.
BofA/MerrillLynchCreditIndexAAAratedIndex(COA1) .AcomponentoftheBofA/MerrillLynchCreditIndexconcentratingonthehighestratedAAA
investmentgradecredits.
BofAMerrillLynchUSTreasuryIndex(G0Q0)TheMerrillLynchUSTreasuryIndextrackstheperformanceofUSdollardenominatedsovereigndebtpublicly
issuedbytheUSgovernmentinitsdomesticmarket.Qualifyingsecuritiesmusthaveatleastoneyearremainingtermtofinal maturity,afixedcouponschedule
andaminimumamountoutstandingof$1billion.
BofAMerrillLynchUS1015YearTreasuryIndexLongTreasuryTheMerrillLynchUS1015TreasuryIndextrackstheperformanceofUSdollardenominated10
15yearsovereigndebtpubliclyissuedbytheUSgovernmentinitsdomesticmarket.ItisasubsetoftheBofAMerrillLynchU.S.TreasuryIndex(GOQO).
BofAMerrillLynchMunicipalIndexTheMerrillLynchMunicipal
BofAMerrillLynchCurrent10yearUSTIndex Thisindexisthe10yearcomponentoftheUSGovernmentindex.
BofAMerrillLynchCurrent30yearUSTIndex Thisindexisthe30yearcomponentoftheUSGovernmentindex.
ShanghaiIndex TheShanghaiStockExchangeCompositeisacapitalizationweightedindextrackingdailypriceperformanceofallAandBshareslistedonthe
ShanghaiStockExchange.ThisindexwasdevelopedDecember19,1990withabasevalueof100.
S&P/CaseShillerCompositeHomePriceIndex TheCaseShillerHomePriceIndices,onecomprisedofpricechangeswithinall20metropolitanmarkets,and
anothercomprisedofpricechangeswithinthefollowingsubsetof10metropolitanmarkets:Boston,Chicago,Denver,LasVegas,LosAngeles,Miami,NewYork,
SanDiego,SanFranciscoandWashingtonDC.Inadditiontothose10markets,the20HomePriceindexreflectspricechangesforAtlanta,Charlotte,Dallas,Detroit,
Minneapolis,Phoenix,Portland,SeattleandTampa.
NASDAQ Acomputerizedsystemthatfacilitatestradingandprovidespricequotationsonmorethan5,000ofthemoreactivelytradedover thecounterstocks.
Createdin1971,theNasdaqwastheworld'sfirstelectronicstockmarket.
Transports TheIndustrialsSectorincludescompanieswhosebusinessesaredominatedbyoneofthefollowingactivities:Themanufactureand distributionof
capitalgoods,includingaerospace&defense,construction,engineering&buildingproducts,electricalequipmentandindustrial machinery
Utilities Apublicutilityisabusinessthatfurnishesaneverydaynecessitytothepublicatlarge.Publicutilitiesprovidewater,electricity,naturalgas,telephone
service,andotheressentials.Utilitiesmaybepubliclyorprivatelyowned,butmostareoperatedasprivatebusinesses.
BasisPoint Abasispointisaunitthatisequalto1/100th of1%,andisusedtodenotethechangeinafinancialinstrument.
REIT RealEstateTrust.Asecuritythatsellslikeastockonthemajorexchangesandinvestsinrealestatedirectly,eitherthrough propertiesormortgages
Duration Durationisacommonlyusedmeasureofthepotentialvolatilityofthepriceofadebtsecurity,ortheaggregatemarketvalueofaportfolioofdebt
securities,priortomaturity.Securitieswithalongerdurationgenerallyhavemorevolatilepricesthansecuritiesofcomparablequalitywithashorterduration.
77
U.S. Aggr
1
getIndexA
Back
IWS?requ
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IndexDescriptions
Disclaimer
ImportantInformationRegardingThisReport
Thisreportwaspreparedasaprivatecommunicationandwasnotintendedforpubliccirculation.Clientsorprospectsmayauthorizedistributiontotheir
consultantsorotheragents.
Issueselectionprocessesandtoolsillustratedthroughoutthispresentationaresamplesandmaybemodifiedperiodically.Suchchartsarenottheonlytoolsused
bytheinvestmentteams,areextremelysophisticated,maynotalwaysproducetheintendedresultsandarenotintendedforusebynonprofessionals.
DoubleLinehasnoobligationtoproviderevisedassessmentsintheeventofchangedcircumstances.Whilewehavegatheredthisinformationfromsources
believedtobereliable,DoubleLinecannotguaranteetheaccuracyoftheinformationprovided.Securitiesdiscussedarenotrecommendationsandarepresented
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ImportantInformationRegardingDoubleLinesInvestmentStyle
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