DoubleLine announcement the launch of two actively managed exchange-traded funds. the DoubleLine Opportunistic Bond ETF (NYSE Arca: DBND) and the DoubleLine Shiller CAPE US Equity ETF (NYSE Arca: DCPE) begin trading Tuesday on the NYSE Arca.
Jeffrey Gundlach, CEO of DoubleLine, and Jeffrey Sherman, Deputy Chief Investment Officer, are the portfolio managers of both funds.
“As managers of our clients’ investment capital, DoubleLine has diversified its distribution channels to meet the preferences of investors and their intermediaries,” DoubleLine Chairman Ron Redell said in a press release. “We are dedicated to clients who rely on our existing investment vehicles, including mutual funds, other pooled capital vehicles and segregated accounts, while remaining open to new vehicles that gain public acceptance. »
Redell added, “Actively managed ETFs are no longer a niche option among ’40 Act funds. In fact, active ETFs are fast becoming a mainstay for many investors and advisors. We formed the DoubleLine ETF Trust to offer them a suite of actively managed ETFs, starting with DBND and DCPE.
DBND offers traditional daily transparency on the assets held in its portfolio. DCPE uses the semi-transparent ActiveShares framework. The prospectus of these funds is available here.
DBND’s objective is to maximize current income and total return by investing, under normal circumstances, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in income-generating instruments. or other investments with economic characteristics such as fixed income securities. income tools.
DBND can invest across the full spectrum of credits, including up to 50% in lower quality bonds, and in the capital structure of all sectors of the global fixed income universe. Under normal market conditions, the portfolio managers intend to build an investment portfolio with an average effective duration of at least two years and at most eight years.
“After four decades of debt-financed deficits in the developed world, fixed income markets stand on the brink of a sovereign default catastrophe, an episode that will pose great challenges in risk management but also commensurate opportunities. “, Gundlach said. “We are already seeing harbingers of the next era. These include the reversal of benign interest rate and inflation regimes, the reorganization of productive economic leadership in favor of economies outside the G-7, and, despite the recent strength of the U.S. dollar, challenges crescents to its primacy as a reserve currency.
The DCPE’s investment objective is to seek a total return in excess of the total return of the S&P 500 Index by managing the portfolio to approximate the return of the Shiller Barclays CAPE US Sector TR USD Index. The index incorporates the long-term investment principles distilled by Dr. Robert Shiller and expressed by the CAPE (Cyclically Adjusted Price Earnings) ratio.
Under normal circumstances, DCPE invests at least 80% of its net assets in U.S. equity securities, including publicly traded common stocks and publicly traded investment companies such as index-traded funds and U.S.-traded notes. stock market to gain exposure to US equity securities.
The CAPE ratio measures equity market prices relative to the 10-year average of inflation-adjusted earnings to account for economic and market cycles.
The composition of the index is determined monthly. Each month, the index methodology ranks 11 US sectors based on a modified CAPE ratio and a 12-month momentum factor based on total return. The 11 sectors selectable by the index methodology are Communication Services, Consumer Discretionary, Consumer Staples, Energy, Financials, Healthcare, Industrials, Materials, Technology, Services public and real estate. Each sector is represented by a sector ETF which tracks a sector index, which is an ETF from the Select Sector SPDR Funds family or, in the case of the real estate sector, the iShares Dow Jones US Real Estate Index Fund.
Gundlach and Sherman will host a webcast on the two funds at 4:15 p.m. EST/1:15 p.m. Pacific on Tuesday, April 26. Click here save.
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