A Potential Solution for Equity Investors in Rising-Rate Environments

DoubleLine Publishes Updated Paper on DoubleLine Shiller Enhanced CAPE Strategy

News provided by

May 23, 2019, 07:00 ET

LOS ANGELES, May 23, 2019 /PRNewswire/ -- The potential for a rising-rate regime behooves investors to reconsider their equity allocations. The Cross-Asset team at DoubleLine Capital LP takes up this subject in the paper "DoubleLine Shiller Enhanced CAPE Strategy: A Potential Solution for Equity Investors in Rising-Rate Environments."

The paper presents information on the returns of two strategies: (1) the Shiller Barclays CAPE® U.S. Sector Total Return Index ("Shiller Barclays CAPE®"), a non-market cap-weighted, rules-based (aka "smart beta") index, and (2) the DoubleLine Shiller Enhanced CAPE®, an investment strategy pairing Shiller Barclays CAPE® with a short-to-intermediate term fixed income strategy actively managed by DoubleLine. The returns of the two strategies were compared with the returns of three passive, large-cap equity indices -- the S&P 500, Russell 1000 Value and Russell 100 Growth -- over rising and falling interest rate periods.

To read the paper, please visit this landing page: https://doubleline.com/dl/wp-content/uploads/DoubleLine-CAPEinRisingRateEnvironments-March2019.pdf

An earlier version of the paper was published in March 2017. The revised paper, published on DoubleLine.com in May 2019, updates the strategy and index return comparisons through March 2019.

About DoubleLine Capital

DoubleLine Capital is an investment adviser registered under the Investment Advisers Act of 1940. As of the March 31, 2019 end of the first quarter, DoubleLine Capital and its related entities managed approximately $130 billion in assets across all vehicles, including open-end mutual funds, collective investment trusts, closed-end funds, exchange-traded funds, hedge funds, variable annuities, UCITS and separate accounts. DoubleLine's 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.

Disclosures:

All investments contain risk and may lose value. This material is for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.

SOURCE DoubleLine