DoubleLine Total Return Bond Fund (DLTNX)

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DoubleLine Total Return Bond Fund (DLTNX) is one of the best mutual fund for financial investing. It provides yield for income.

Intermediate Term Bond

DoubleLine Total Return Bond Fund (DLTNX)As part of DoubleLine Capital LP fund, the DoubleLine Total Return Bond fund investment objective is seeking to maximize total return. DoubleLine Capital LP was founded in 2009. This DoubleLine fund is distributed through Quasar Distributors, LLC. The fund invests most of its net assets (>80%) in debt securities / obligations.

It intends to invest more than half of net assets in mortgage-backed securities (MBS) of any maturity or type guaranteed by, or secured by collateral that is guaranteed by, the United States government and agencies, instrumentalities or sponsored corporations, or in privately issued mortgage backed securities. These bonds should be rated with Aa3/AA- or higher by nationally recognized rating agencies like Moody's and S&P.

DLTNX fund fact:
  • Fund Inception Date: April 2010
  • Ticker Symbol: DLTNX (N Shares)
  • CUSIP: 258620202
  • Distribution Rate / Yield: 3.46%
  • Total Assets: $53.5 Billion
  • Category: Intermediate Term Bond
  • Capital gains: N/A
  • Turnover Rate: 17%
  • Minimum investment: $2,000
  • Sales Load: 0%
  • Expense Ratio: 0.74%
  • Fund Manager: Jeffrey Gundlach and Philip Barach
  • Beta (3yr): 0.94
  • Expense Fee: 0.72%
Updated on May 2017

Since its inception (2010), the fund has been managed by Jeffrey Gundlach and Philip Barach. These portfolio managers have worked together for nearly 20 years. Jeffrey Gundlach was used to manage TCW Total Return Bond Fund (Ticker: TGLMX). Gundlach is considered as one of the talented bond manager.

This best bond fund also has a yield of 7.37%. This fund can be considered as high yield mutual fund. It also has a low volatility. His DoubleLine fund has been outperformed his previous fund. The fund also has a net annual expense ratio of 0.74% and it also has 12b1 fee of 0.25%.

Best Mutual Funds

To start investing in this best mutual fund, you will need to a minimum initial investment of $2,000 for regular brokerage account and $500 for IRA account. DLTNX can be purchased from 35 brokerages such as Schwab Institutional, Vanguard NTF, Fidelity Retail FundsNetwork, TD Ameritrade Retail, TIAA-Cref NTF, Raymond James, etc. Please check with your mutual fund broker for details. For IRA or 401k account, please check with your account administration for details. As of April 8 2011, the fund year to date (YTD) performance is 1.99%.

Although it is newly established fund, this investment fund performance has been outstanding. The fund has returned 1.25% over the past 3 months and 17.65% over the past year. This percentage rank in category is 1% (i.e. top performer). There is no other performance return past 1 year mark hence it is still a new fund. The fund has beaten its index, Barclays Capital US Aggregate Index for the past year. Note: The Barclays Capital US Aggregate Index has returned 4.97% over the past year.
  • Year 2017: 1.74% (YTD)
  • Year 2016: 1.92%
  • Year 2015: 2.07%
  • Year 2014: 6.47%
  • Year 2013: -0.23%
As of March 2011, this best rated fund consists of 602 different bonds. The average market price is $99.08.  The average duration of this Double Line Total Return fund is 3.65 years (with option adjusted duration is 2.65 years) and the average effective maturity is 5.23 years. The fund average credit quality is BB.

The fund sectors breakdown are non agency residential MBS (44.3%), agency CMO (33.9%), agency pass-thru (9.3%), cash (8.1%), CMBS (4.3%) and other (0.1%). The following is Non-Agency Residential MBS Breakdown: Alt-A (58.6%), Prime (30.9%), and Subprime (10.5%). The top 3 fund asset allocations are domestic bonds (90.64%), cash (8.87%), and foreign bonds (0.49%). For top 10 holdings, please check the following above figure.

Best Performer Diversified Bond Mutual Funds 2012

If you are interested in other class, you can also invest in Institutional I-share class (Ticker: DBLTX), you will need $100,000 minimum initial fund to invest in this fund. As one of best bond mutual funds, this fund charge 0.49% annual expense ratio.

Best DoubleLine FundMy observation: Cash position is higher than typical bond fund (~9%), this may be due to many new retail or institutional investor invest in this fund. I think the fund manager should start limiting new fund to protect its current investor.

Disclosure: No Position

More details about Kip 25 best fund information and fund performance, you can be check on my Kip 25 Best Fund 2012 page.

This is my second article about Kiplinger 25 Best Mutual Fund. This next fund, DoubleLine Total Return Bond fund, is also a bond fund similar to Dodge & Cox Income fund. Most of these funds in Kip 25 don’t have any sales load and has reasonable expense ratio. The funds are among the best performer in its class. What I like about bond fund (fixed income fund) is its yield. These bond funds usually provide regular income either monthly or quarterly. This certainly is useful for retiree and near retirement investor. This bond fund price is also less volatile than stock fund price.

The fund list in Kiplinger 25 best fund is updated regularly. This DoubleLine Total Return Bond is also a new added fund in this best fund list in 2011. The DoubleLine Total Return Bond is part of no load mutual fund. More details about this mutual fund review is described below. If you are interested in best fund, please check my website.

Related Best Bond Funds:

Jeffrey Gundlach

After Gundlach was fired by TCW in December 2009, he has involved in Jury Trial between him and investment giant TCW Group Inc. On September 16th 2011, Jury found Jeffrey Gundlach was liable for breaching his fiduciary duty to TCW Group. TCW didn't get any financial compensation, though jury found TCW must pay $66.7 million to Gundlach and his three co-defendants.

The asset allocations are Bond (78.22%), Cash (21.05%), and other (0.72%). The average effective duration is 2.65 years and the average effective maturity is 5.01 years. As of May 2012, the top 4 sectors are Non Agency Residential MBS (30%), Agency MBS CMO (23.55%), Agency MBS Pass-Through (18.73%), and Asset Backed (4.32%).

Morningstar has rated this bond mutual fund with neutral rating. For 2011, this fund returned 9.16%.

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