(Adds ticker symbols of DoubleLine funds)
By Jennifer Ablan
NEW YORK Dec 2 The DoubleLine Total Return Bond
Fund had net outflows of $1.4 billion in November, the
third-largest cash withdrawals since the "taper-tantrum" months
of 2013, while flows increased into DoubleLine's low duration
and unconstrained bond funds, the firm said Friday.
The $59.2 billion DoubleLine Total Return Bond Fund
, an open-end intermediate-term bond fund that invests
primarily in mortgage-backed securities, is run by Jeffrey
Gundlach, chief executive officer, and Philip Barach, its
president. It is the largest fund in the firm by total assets.
The DoubleLine Total Return Bond Fund's largest and
second-largest net outflows for a month, -$2.2 billion and -$2.0
billion, were posted respectively during the taper-tantrum
months of December and September 2013.
In May 2013, after a mere suggestion of an imminent
reduction or "taper" of bond purchases by then-Federal Reserve
Chairman Ben Bernanke, yields skyrocketed in a span of four
Throughout 2016, Gundlach has warned that rising rates would
translate into negative returns, which could spark a logical
rotation out of intermediate-term bond funds. "I predicted this
would happen," Gundlach said about the cash withdrawals.
But unlike during the taper tantrum of the second half of
2013, DoubleLine enters the next rising-rate period with
multiple strategies and track records of three years or longer
designed for investors fearing still higher rates.
Investors have moved money into DoubleLine's low duration,
unconstrained bond and equity portfolios.
DoubleLine's largest equities portfolio, the $1.7 billion
DoubleLine Shiller Enhanced CAPE fund, had a net
inflow of $172 million in November, the largest net monthly
inflow since the Oct. 31, 2013 inception of the fund. The fund
had a year-to-date net inflow of $844 million.
The $360.2 million DoubleLine Flexible Income Fund
, which is an unconstrained bond fund, had a net inflow
of $36 million in November, its second largest net monthly
inflow since inception and up from a $17.9 million net inflow in
the previous month.
The DoubleLine Flexible Income Fund is run by Gundlach and
Jeffrey Sherman, deputy chief investment officer.
The $3.4 billion DoubleLine Low Duration Bond Fund
had a net inflow of $154.4 million in November, its largest net
monthly inflow for the year so far and up from $61.5 million in
Gundlach said: "The diversification and innovation of
investment strategies within our mutual fund company have
offered investors solid choices in this current market
environment. For example, the DoubleLine Shiller Enhanced CAPE
Fund has been our fastest growing fund year-to-date, and
provides a solid alternative to traditional passive equity
Overall, the DoubleLine open-end mutual funds collectively
posted a net outflow of $990.5 million in November.
(Reporting by Jennifer Ablan; Editing by Tom Brown and Jonathan