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7/24/2019 Asset Allocation Core Flex Webcast Slides
1/71
333S.GrandAve.,18thFloor||LosAngeles,CA90071||213.633.8200
LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer
November
17,
2015
AssetAllocation
Webcast
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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.
Asof September30,2015 IShare NShare
GrossExpenseRatio 1.35% 1.60%
NetExpense Ratio 0.84% 1.09%
Asof September30,2015 IShare NShare
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
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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
Youcannotinvestdirectlyinanindex.
%
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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)
Source:DoubleLine,Bloomberg
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
Source:DoubleLine,Bloomberg
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.
Youcannotinvestdirectlyinanindex.
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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
Source:BloombergFinancialServices,DoubleLineCapitalLP
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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Source:BloombergFinancialServices,DoubleLineCapitalLP
GT10=US
10
Year
Treasury
Bond.
You
cannot
invest
directly
in
an
index.
U.S.10YearTreasuryNovember17,2010throughNovember16,2015
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Source:BloombergFinancialServices,DoubleLineCapitalLP
GT30=US
30
Year
Treasury
Bond.
You
cannot
invest
directly
in
an
index.
Past
performance
is
no
guarantee
of
future
results.
U.S.30YearTreasuryNovember17,2010throughNovember16,2015
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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
MerrillTreasuryIndex
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.
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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.
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
(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
Source:BloombergFinancialServices,DoubleLineCapitalLP
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
Source:DoubleLine,Bloomberg
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.
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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%
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U.S.SpeculativeGradeDefaultRateandDistressedRate
DataSource:
Moodys
Youcannotinvestdirectlyinanindex.
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
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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
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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.
Youcannotinvestdirectlyinanindex.
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
MerrillTreasuryIndex
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.
Standarddeviation=Ameasureofthedispersionofasetofdatafromitsmean.Themorespreadapartthedata,thehigherthedeviation.Sigma=Mathematical sum.
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
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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
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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
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333S.GrandAve.,18thFloor||LosAngeles,CA90071||213.633.8200
LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer
November17,2015
AssetAllocationWebcast
iShares iBoxx $InvestmentGradeCorporateBond
ETF(LQD)
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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
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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
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333S.
Grand
Ave.,
18th
Floor
||Los
Angeles,
CA
90071
||213.633.8200
LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer
November17,2015
AssetAllocationWebcast
UpcomingWebcastAnnouncements
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JeffreyGundlach December8,2015
TotalReturnBondFund
Gotowww.doublelinefunds.com,HomepageunderEvents
2015WebcastScheduletoregister
1:15pmPDT/4:15pmEDT
2016WebcastScheduleAvailableSoonondoubleline.comordoublelinefunds.com,homepage
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