DoubleLine Floating Rate Fund Opens to the Public

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Jul 01, 2013, 09:00 ET

LOS ANGELES, July 1, 2013 /PRNewswire/ -- The DoubleLine Floating Rate Fund (the "Fund") today opened for investment to the public. The Fund is offered in two no-load share classes: I shares DBFRX; N shares DLFRX.

The Fund is an open-end mutual fund that seeks to deliver a high level of income by investing in floating rate bank loans and other floating rate instruments. Prior to its opening to the public, the Fund was launched internally on February 1, 2013 and offered to DoubleLine clients, affiliated persons and certain DoubleLine investment vehicles.

Bonnie Baha, head of DoubleLine's Global Developed Credit team, and Robert Cohen are the portfolio managers of the Fund. As of the end of June, the Fund had approximately $145 million in total net assets. The Fund is benchmarked to the S&P/LSTA Leveraged Loan Index.

Bank loans, also known as leveraged loans, are corporate loans that have been structured and administered by a commercial or investment bank. Bank loans are sold (or syndicated) to banks and institutional investors, including open-end and closed-end mutual funds and collateralized loan obligations (CLOs). The loans typically pay interest based on a spread over the London Inter Bank Offered Rate (LIBOR). The DoubleLine Floating Rate Fund generally invests in senior secured bank loans.

Proceeds from bank loans typically fund strategic corporate transactions such as leveraged buyouts, mergers and acquisitions, project financings, recapitalizations and refinancings.

To register for a replay of the "DoubleLine Floating Rate Fund Launch" webcast held on June 25, go to www.doublelinefunds.com and click on Events. In the webcast, DoubleLine CEO Jeffrey Gundlach discusses the importance of bank loans as an asset class, and portfolio managers Baha and Cohen discuss the sector in greater detail and the Fund's investment approach.

Share Class Information

DBFRX (I shares): Minimum initial investment is $100,000 for regular accounts and $5,000 for Individual Retirement Accounts (IRAs). There is no annual 12b-1 fee.

DLFRX (N shares): Minimum initial investment is $2,000 for regular accounts and $500 for IRAs. There is an annual 12b-1 fee of 0.25%.

About DoubleLine Capital LP

DoubleLine Capital LP, a registered investment adviser under the Investment Advisers Act of 1940, acts as the investment adviser for the Fund. DoubleLine and its affiliates manage approximately $57 billion in assets held in closed- and open-end 1940 Act funds, separate accounts, hedge funds and UCITS. DoubleLine's headquarters is in Los Angeles, CA. Its offices can be reached by telephone at (213) 633-8200 or by e-mail at [email protected]. Media can reach DoubleLine by e-mail at [email protected]. DoubleLine® is a registered trademark of DoubleLine Capital LP.

Definitions:
Collateralized Loan Obligations (CLOs) = A form of securization where payments from multiple middle sized and large business loans are pooled together and passed on to different classed of owners in various tranches.

London Inter Bank Offered Rate (LIBOR) = British Bankers Association Fixing for US Dollar. The fixing is conducted each day at 11 am (London time). The rate is an average derived from the quotations provided by the banks determined by the British Bankers' Association.

S&P LSTA Leveraged Loan Index (LLI) = S&P/LSTA Leveraged Loan Index is a capitalization-weighted syndicated loan index based upon market weightings, spreads and interest payments. The S&P/LSTA Leveraged Loan Index (LLI) covers the U.S. market back to 1997 and currently calculates on a daily basis. One cannot invest directly in an index.

Disclosures:
The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the fund and may be obtained by calling 1 (877) 354-6311 / 1 (877) DLINE11 or visiting www.doublelinefunds.com. Please read the prospectus carefully before investing.

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in floating rate securities include additional risks that investors should be aware of such as credit risk, interest rate risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investments in lower‐rated and non‐rated securities present a greater risk of loss to principal and interest than higher‐rated securities. Investments in Asset‐Backed and Mortgage‐Backed securities include additional risks that investors should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investments in foreign securities may involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater for investments in emerging markets. In order to achieve its investment objectives, the Fund may use certain types of exchange traded funds or investment derivatives. Derivatives involve risks different from, and in certain cases, greater than the risks presented by more traditional investments. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when more advantageous. Investing in derivatives could lose more than the amount invested. ETF investments involve additional risks such as the market price trading at a discount to its net asset value, an active secondary trading market may not develop or be maintained or trading may be halted by the exchange in which they trade, which may impact the fund's ability to sell its shares.

While the Fund is no-load, management and other expenses still apply. Please refer to the prospectus for further details.

Investment strategies may not achieve the desired results due to implementation lag, other timing factors, portfolio management decision-making, economic or market conditions or other unanticipated factors. The views and forecasts expressed in this material are as of the date indicated, are subject to change without notice, may not come to pass and do not represent a recommendation or offer of any particular security, strategy, or investment.

DoubleLine has no obligation to provide revised assessments in the event of changed circumstances. While we have gathered this information from sources believed to be reliable, DoubleLine cannot guarantee the accuracy of the information provided. Securities discussed are not recommendations and are presented as examples of issue selection or portfolio management processes. They have been picked for comparison or illustration purposes only. No security presented within is either offered for sale or purchase. DoubleLine reserves the right to change its investment perspective and outlook without notice as market conditions dictate or as additional information becomes available.

The DoubleLine Funds are distributed by Quasar Distributors, LLC.

SOURCE DoubleLine