DoubleLine Paper Examines Infrastructure Outlook under Trump and Biden Election Scenarios
LOS ANGELES, Sept. 14, 2020 /PRNewswire/ -- In a paper titled "U.S. Infrastructure After the Nov. 3 Elections," Andrew Hsu and Damien Contes, portfolio managers of the DoubleLine Infrastructure Income Fund ("the Fund"), examine the potential for scaled-up federal investment in infrastructure after a re-election of President Donald Trump or an election of former Vice President Joe Biden.
Messrs. Hsu and Contes also discuss the potential opportunities for private investment in infrastructure debt under different election outcomes.
To obtain the paper "U.S. Infrastructure After the Nov. 3 Elections," please click on this link: https://doublelinefunds.com/wp-content/uploads/DoubleLineFunds-US-Infrastructure-After-Elections_September-2020.pdf
Infrastructure investments include any assets or projects that support the operation, function, growth or development of a community or economy. As Messrs. Hsu and Contes state in their paper, in 2016, Washington appeared on the cusp of undertaking the first major infrastructure spending program in more than 50 years. However, deep, party-line division in the wake of the 2016 presidential election and the lack of clear funding initiatives preempted Trump administration plans to send a $2 trillion infrastructure program to Congress.
Messrs. Hsu and Contes believe the outcome of this year's presidential election could remove the political gridlock on infrastructure and open the way to large-scale projects. However, they take note of significant policy differences between Republican and Democratic leaders. While presidential campaign platforms have not yet provided much detail on their infrastructure priorities, "U.S. Infrastructure After the Nov. 3 Elections" tries to outline the broad possibilities for federal infrastructure programs under a second-term Trump presidency and under a Biden presidency.
About the DoubleLine Infrastructure Income Fund
The Fund (I share class BILDX; N share class BILTX) seeks long-term total return while striving to generate current income. Under normal circumstances, DoubleLine Capital intends to invest at least 80% of the Fund's assets (plus borrowings for investment purposes) in infrastructure investments. Investments may be in or outside the United States, although DoubleLine intends to invest the Fund principally in U.S. dollar-denominated instruments.
The Fund's eligible investments can include fixed or floating-rate debt instruments, loans or other income-producing instruments issued by companies or other issuers:
- to finance (or refinance) the ownership, development, construction, maintenance, renovation, enhancement or operation of infrastructure assets;
- that invest in, own, lease or hold infrastructure assets; and
- that operate infrastructure assets or provide services, products or raw materials related to the development, construction, maintenance, renovation, enhancement or operation of infrastructure assets.
Assets to which the Fund may have exposure include transportation facilities (e.g., airports, subways, railroads, ports, toll roads), transportation equipment (e.g., shipping, aircraft, railcars, containers), electric utilities and power (e.g., power generation, transmission, distribution), energy (e.g., exploration and production, pipeline, storage, refining and distribution), communication networks and equipment, water and sewage treatment, social infrastructure (e.g., healthcare facilities, government buildings and other public service facilities), metals, mining, and other resources and services related to infrastructure assets (e.g., cement, chemical companies).
About DoubleLine Capital LP
DoubleLine Capital is an investment adviser registered under the Investment Advisers Act of 1940. 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.
The Fund's investment objectives, risk, charges and expenses must be considered carefully before investing. The statutory and summary 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.
Mutual Fund investing involves risk; Principal loss is possible. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and non-rated securities present a great 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 involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater for investments in emerging markets. The Infrastructure Income Fund may use certain types of investment derivatives. 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 most advantageous. Investing in derivatives could lose more than the amount invested. The Fund may use leverage which may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the Fund to be more volatile than if leverage was not used. The value of the Fund's infrastructure investments may be entirely dependent upon the successful development, construction, maintenance, renovation, enhancement, or operation of infrastructure-related projects. Accordingly, the Fund has significant exposure to adverse economic, regulatory, political, legal, demographic, environment and other developments affecting the success of the infrastructure investments in which it directly or indirectly invests. The Fund is non-diversified meaning it may concentrate its assets in fewer individual holdings than a diversified fund.
The DoubleLine Funds are distributed by Quasar Distributors, LLC.
SOURCE DoubleLine
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