doubleline: "smart beta, meet smart alpha"

8/10/2019 DoubleLine: "Smart Beta, Meet Smart Alpha"

1/48

SmartBeta,

MeetSmartAlpha

LiveWebcastHostedBy:

JeffreySherman,CFA

PortfolioManager

October21,2014


2/48


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102114 SmartBeta,SmartAlpha 2

FundOfferings

RetailandInstitutionalClass

Retail Inst.

Nshare Ishare

Ticker DSENX DSEEXMinInvestment1 $2,000 $100,000

MinIRAInvestment $500 $5,000

Gross ExpenseRatio 1.63% 1.38%

NetExpenseRatio2 1.24% 0.99%

ExpenseCap2 0.90% 0.65%

Shiller EnhancedCAPE

WhiletheFundisnoload,managementfeesandotherexpensesstillapply.Pleaserefertotheprospectusforfurtherdetails.

1. Subsequentinvestmentminimumsare$500,$250fortheIRA.A$100minimumsubsequentpurchaseamountappliesforautomaticinvestmentplans.Pleaseseetheprospectusfor

furtherdetails. Periodicinvestmentplansdonotassureaprofitanddonotprotectagainstlossindecliningmarkets.

2. The

Advisor

has

contractually

agreed

to

waive

its

investment

advisory

fee

and

to

reimburse

the

Fund

for

other

ordinary

operating expenses

to

the

extent

necessary

to

limit

ordinary

operatingexpensestoanamountnottoexceed0.65%forClassIsharesand0.90%forClassNshares.Ordinaryoperatingexpenses excludetaxes,commissions,markups,litigation

expenses,indemnificationexpenses,interestexpenses,AcquiredFundFeesandExpenses,andanyextraordinaryexpenses.These expenselimitationsareexpectedtoapplyuntilatleast

July31,2015,exceptthattheymaybeterminatedbytheBoardofTrusteesatanytime.


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ShillerEnhancedCAPE(DSEEX/DLSNX)Quarter

End

Returns

as

of

September

30,

2014

QuarterEnd

September30,2014

3Q

2014SinceInception

(103113to93014)

Ishare 0.41% 15.80%

Nshare

0.47% 15.57%

S&P500Index 1.13% 14.47%

AsofSeptember30,2014 IShare NShare

GrossSEC30DayYield 3.05% 2.78%

NetSEC30DayYield 3.31% 3.04%

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturn

andprincipalvalueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthan

originalcost.Currentperformanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrenttothe

mostrecentmonthendmaybeobtainedbycalling213.633.8200orbyvisitingwww.doublelinefunds.com.QuarterEndReturnsofSeptember30,2014.Subjecttochangewithoutnotice.

Theperformanceinformationshownassumesthereinvestmentofalldividendsanddistributions.

*TheAdvisorhascontractuallyagreedtowaiveitsinvestmentadvisoryfeeandtoreimbursetheFundforotherordinaryoperatingexpensestotheextentnecessarytolimitordinary

operatingexpensestoanamountnottoexceed0.65%forClassIsharesand0.90%forClassNshares.Ordinaryoperatingexpenses excludetaxes,commissions,markups,litigation

expenses,indemnificationexpenses,interestexpenses,AcquiredFundFeesandExpenses,andanyextraordinaryexpenses.These expenselimitationsareexpectedtoapplyuntilat

leastJuly31,2015,exceptthattheymaybeterminatedbytheBoardofTrusteesatanytime.

S&P500Acapitalizedweightedindexof500stockschosenformarketsize,liquidityandindustrygrouping,amongotherfactors.Thisindexisdesignedtobealeadingindicatorof

U.S.equitiesandismeanttoreflecttherisk/returncharacteristicsofthelargecapuniverse. Youcannotinvestdirectlyinanindex.

Source:DoubleLine.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellany security.

AsofSeptember30,2014 IShare NShare

GrossExpenseRatio 1.38% 1.63%

NetExpenseRatio* 0.99% 1.24%

Expense Cap* 0.65% 0.90%


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Announcements

WebcastNews

LuzPadilla November13,2014DoubleLine EmergingMarketsFixedIncomeFundandLowDurationEmergingMarketsFund

1:15pm

PDT/4:15

pm

EDT

PhilipBarach November25,2014DoubleLine LowDurationBondFund

1:15pmPDT/4:15pmEDT

JeffreyGundlach December9,2014DoubleLine TotalReturnBondFundandCoreFixedIncomeFund

1:15pmPDT/4:15pmEDT

ToReceivePresentationSlides,[email protected]


6/48


TABIDoubleLineShillerEnhancedCAPEStrategy

Source:


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WhatisDoubleValue?

Fordefinitions,pleaseseetheAppendix.

TheDoubleLineShillerEnhancedCAPEStrategycreatesDoubleValuefor

investorswhencombiningtwouniquesourcesofvalue:

The

Shiller

Barclays

CAPE

U.S.

Sector

Index

attempts

to

shift

portfolio

exposurestothecheapestsectorsofthelargecapequitymarkets

DoubleLines FixedIncomestrategystrivestoshiftitsexposurestothe

cheapestsectorsofthefixedincomemarkets.

Bothstrategiesattempttoofferavalueplayintheirrespectivemarkets,and

when combinedinvestorshavethepotential toreceiveDoubleValue.


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ThedistinctstructureoftheDoubleLineShillerEnhancedCAPEStrategyallowsinvestorsto

simultaneouslyaccessreturnsoftheequitymarketsandfixedincomemarkets.Byusinganequity

indexswap,$1investedinthestrategyprovidesapproximately$1ofexposuretoeachmarket.

DoubleLineShillerCAPEStructure

DoubleLineShiller

EnhancedCAPE

DoubleLineActivelyManaged

FixedIncomePortfolio

ShillerBarclaysCAPEUSSector

TRUSDIndex

InitialInvestment

*AportionoftheInitialInvestmentmaybepledgedascollateralundertheswap

**Marketfluctuationsmayprecludefull$1for$1exposurebetweentheswapsandthefixedincomeportfolio


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TABIIDefiningtheCAPERatio

Source:


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WhatistheCAPE Ratio?

Inflation=therateofchangeofpricescalculatedonamonthlyorannualbasis.

P/E=PriceEarningsRatio isthevaluationratioofacompanysmarketvaluepersharedividedbythecompanysearningspershare(EPS).

Shiller BarclaysCAPE

US

Sector

TR

USD

Index

incorporates

the

principles

of

long

term

investing

distilled

by

Dr.

Robert

Shiller and

expressed

through

the

CAPE

(Cyclically

Adjusted

Price

Earnings)

ratio(theCAPERatio).ItaimstoidentifyundervaluedsectorsbasedonamodifiedCAPERatio,andthenusesamomentumfactortoseektomitigatetheeffectsofpotentialvaluetraps.You

cannotinvestdirectlyinanindex.

AcclaimedvalueinvestorsBenjaminGrahamandDavidDoddnotedinSecurity

Analysisthatequityvaluationstendtofollowabusinesscycleof37years

TheCAPERatiowasformulatedintheseminal1988piece1 fromProfessorRobert

ShillerandJohnCampbell.

CAPE=CyclicallyAdjustedP/E(PricetoEarnings)

TheCAPEratioseekstoassesslongertermequityvaluationbyusinganinflation

adjustedearnings

horizon

that

is

10

times

longer

than

the

traditional

P/E

measure

SimilartothetraditionalP/EtheCAPEcanbeappliedtoasingleequity,aportfolio

ofequities,asectororabroadbasedindex

EarningsAverageAdjustedInflationYear10

PriceShareEquityCurrent

CAPE

1. Campbell,J.Y.,andR.J.Shiller,StockPrices,Earnings,andExpectedDividends,JournalofFinance,43:3,66176,1988


11/48


CAPE RatioforValueInvestingSectors

Source:ChangingTimes,ChangingValues:AHistoricalAnalysisofSectorswithintheUSStockMarket18722012,OliverD.BunnandRobertJ.Shiller,September4,2012

Anydata

on

past

performance,

modelling

or

back

testing

contained

herein

is

no

indication

as

to

future

performance.

Youcannotinvestdirectlyinanindex.

PleaseseetheAppendixforindexdefinitions.

35%

25%

15%

5%

5%

15%

25%

35%

45%

10 15 20 25 30 35 40 45CAPERatio

SubsequentAnnualized

2

YearTotalReturn

InvestmentStart1983 1989


InvestmentStart

1997

2003


CAPEin Sept2012:

20.01

Byapplying

the

CAPE ratio,

equity

sectors

showing

alower

CAPE

ratio

have

tendedtohavehighersubsequentreturns

45%

35%

25%

15%

5%

5%

15%

25%

35%

45%

5 15 25 35 45 55CAPERatio

SubsequentAnnualized

2

YearTotalReturn



InvestmentStart

1997

2003


CAPEin

Sept

2012:

20.43

CAPE ratioandsubsequentreturnforS&P500Industrialsector

(19832012)

CAPE ratioandsubsequentreturnforS&P500Utilitysector

(19832012)


12/48


RelativeCAPEIndicator

Source:ChangingTimes,ChangingValues:AHistoricalAnalysisofSectorswithintheUSStockMarket18722012,OliverD.BunnandRobertJ.Shiller,September4,2012

Anydataonpastperformance,modellingorbacktestingcontainedhereinisnoindicationastofutureperformance.SeeHistoricalIndexPerformanceDisclaimer.


US

Sector

TR

USD

Index

incorporates

the

principles

of

long

term

investing

distilled

by

Dr.

Robert

Shiller and

expressed

through

the

CAPE

(Cyclically

Adjusted

Price

Earnings)

ratio

(theCAPERatio).ItaimstoidentifyundervaluedsectorsbasedonamodifiedCAPERatio,andthenusesamomentumfactortoseektomitigatetheeffectsofpotentialvaluetraps.Youcannot

investdirectlyinanindex.

PleaseseetheAppendixforHistoricalIndexPerformanceDisclaimer.

ToaccountforidiosyncraticdifferencesbetweensectorswhereCAPEratioshave

historicallybeenofdifferentmagnitudesonecanconstructaRelativeCAPEratio

Thismayallowinvestorstocomparesectorvaluationsonalevelplayingfield

TheRelativeCAPEratioisusedtocomparerelativevaluationamongequitysectors

RatioCAPESectorofAverageRollingYear20RatioCAPESectorCurrent

RatioCAPERelative

0.0

0.3

0.6

0.9

1.2

1.5

1.8

2.1

2002 2004 2006 2008 2010 2012

RelativeCAPERatio

Technology

Utilities0

10

20

30

40

50

60

2002 2004 2006 2008 2010 2012

CAPERatio

Technology

Utilities


13/48


TABIIISmartBeta:ShillerBarclaysCAPEU.S.SectorIndex

Source:


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ShillerBarclaysCAPEU.S.SectorIndex

DoubleLineShillerEnhancedCAPE




TRUSDIndex

InitialInvestment




15/48


ShillerBarclaysCAPEU.S.SectorIndexSectorSelectionRules

Source:DoubleLineCapital,BarclaysCapital

CAPE=CyclicallyAdjustedPriceEarnings

Shiller BarclaysCAPEU.S.SectorIndex=Shiller BarclaysCAPEUSSectorTRUSDIndexincorporatestheprinciplesoflongterminvestingdistilledbyDr.RobertShiller and

expressedthroughtheCAPE(CyclicallyAdjustedPriceEarnings)ratio(theCAPERatio).ItaimstoidentifyundervaluedsectorsbasedonamodifiedCAPERatio,andthen

usesamomentum

factor

to

seek

to

mitigate

the

effects

of

potential

value

traps.

You

cannot

invest

directly

in

an

index.

10

U.S.

Sectors

(as

per

table

to

the

right)

Examine

30

years

worth

of

index

values

and

earnings

for

10

U.S.

sectors

RelativeCAPEIndicatorforEachSector

Select5mostundervaluedsectorsbasedonRelativeCAPEindicator

Momentum

Remove

the

sector

with

the

lowest

12

month

price

momentum

for

selected

sectors

Ranking

Equalweightin4favored,undervaluedsectorswithmostpositivepricemomentum


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0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

RelativeCAPE

Ratio

September2002

September2014

Energy Materials Industrials ConsumerDiscretionaryConsumerStaples HealthCare Financials UtilitiesTechnology RealEstate

RealEstate

DiscretionaryUtilitiesMaterialsFinancials

IndustrialsStaplesEnergyTechnology

HealthCare

RelativeCAPERatioforValueInvesting Sectors

TheShiller

Barclays

CAPE

U.S.

Sector

Index

uses

the

Relative

CAPE

Ratio

to

select

the

most

undervaluedsectorsinthemarket

Source:BarclaysCapital,DoubleLine

Inthechart,theverticalaxisrepresentstheRelativeCAPERatio.Fordefinitions,pleaseseetheAppendixsectionofthis

presentation. Forillustrativepurposesonly.Anydataonpastperformance,modelingorbacktestingcontainedhereinisno

indicationastofutureperformance.SeeHistoricalIndexPerformanceDisclaimerintheAppendixsectionofthispresentation. DataRange:September2002 September2014


17/48


PortfolioweightsarereconstitutedonamonthlybasisusingtheRelativeCAPEratio

HistoricalSectorRotationofShillerBarclaysCAPE

U.S.SectorTotalReturnIndex

Source:BarclaysCapital,DoubleLine Capital.


US

Sector

TR

USD

Index

incorporates

the

principles

of

long

term

investing

distilled

by

Dr.

Robert

Shiller and

expressed

through

the

CAPE

(Cyclically

Adjusted

PriceEarnings)ratio(theCAPERatio).ItaimstoidentifyundervaluedsectorsbasedonamodifiedCAPERatio,andthenusesamomentumfactortoseektomitigatetheeffects

ofpotentialvaluetraps.Youcannotinvestdirectlyinanindex.PleasesetheAppendixforindexdefinitions.

ConsumerDiscretionary

ConsumerStaples

Energy

Financials

Healthcare

Industrials

Materials

Technology

Utilities

RealEstate

BarclaysShillerCAPE

USSectorExposures

September2002

October2014


18/48


HistoricalSectorExposuresofShillerBarclaysCAPE

U.S.SectorTotalReturnIndex Overthepast146months,theindexwasprimarilyallocatedtofivesectors:

Industrial:93%ofthetime

HealthCare:76%ofthetime

Energy:70%ofthetime

Consumer

Staples:

68%

of

the

time

Financial:56%ofthetime

Source:Barclays,DoubleLine.PleaseseetheAppendixforfurtherdefinitions.InceptionoftheShiller BarclaysCAPEUSSectorTotalReturnIndexwasSeptember4,2002.

Shiller BarclaysCAPEUSSectorTRUSDIndexincorporatestheprinciplesoflongterminvestingdistilledbyDr.RobertShiller andexpressedthroughtheCAPE(CyclicallyAdjustedPriceEarnings)ratio(theCAPERatio).ItaimstoidentifyundervaluedsectorsbasedonamodifiedCAPERatio,andthenusesamomentumfactortoseektomitigatetheeffectsofpotentialvaluetraps.Youcannotinvest

directlyinanindex.

3

6

6

8

31

82

99

102

111

136

0 20 40 60 80 100 120 140 160

Materials

ConsumerDiscretionary

Real

Estate

Utilities

Technology

Financial

ConsumerStaples

Energy

Healthcare

Industrial

NumberofMonthsInvested


19/48


WhyDoubleLineChoosesShillerBarclaysCAPEU.S.

SectorTotalReturnIndexOverTraditionalEquityIndices?

Identifiesandinvestsinrelativelyundervaluedequitysectors

Doesnotrelyonsubjectiveforecasts

Usesalongtermestimateofvalue,avoidingshorttermbias

IsbasedontherigorousresearchofProfessorRobertShillerandJohnCampbell

Whichin

turn

is

based

upon

the

value

investing

principles

of

Benjamin

Graham

&

DavidDodd

WebelieveitisanIntelligentAlternativetoCapitalizationWeightedPortfolios(S&P500)

Source:BarclaysCapital,DoubleLine Capital

PleaseseetheAppendixfordefinitions.


20/48


TABIVFixedIncomePortfolio


21/48






TRUSDIndex

InitialInvestment





22/48


FixedIncomeInvestmentProcess

Investment

Outlook

ImplementationEconomic

Discussions

AssetAllocationCommitteeholdsamonthlymeeting. Account

reviewandmarketsector

chartbookareevaluated.

FixedIncomeAssetAllocation

ChartBookreviewsportfolio

characteristics, returnanalysis,

andriskmeasures.

FixedIncomeAssetAllocation

Chartbookgraphicallydepicts

historicalassetclassspreadsand

relativegrowthtrendsinthe

globalfixedincomemarketplace.

Macroeconomicgroupdiscussionofinterestrates,currencies,

commodities,yieldcurve,spread

andgeneralfixedincomemarket

analysis.

Sectorswithopportunitiesare

identifiedbasedontheportfolio

managersassessmentoftheir

respectivesectorsoutlookand

sectorattractivenessrelativeto

otherassetclasses.

Strategyrisksarereviewed.

TheCommitteeproposesassetallocationchanges. The

CommitteeChairmanmakesthe

finalassetallocationdecision.

Sectorteamsreviewclient

guidelinesandareresponsiblefor

securityselection.

TheAssetAllocationFixed

Incometeammonitors

implementationandperforms

portfolioanalytics.


23/48


24/48


SmartAlpha

Thefixed

income

portfolio

has

generated

arelatively

consistent

return

in

addition

to

the

returns

derivedfromtheShillerBarclaysCAPEindex

Thisconsistency,asopposedtochunkysourcesofalpha,iswhatdistinguishestheDoubleLine

doublevalueproposition

0.17%

0.02%

0.73%

0.59%

0.19%

0.44%

0.76%

0.40%

0.05%

0.61%

0.25%

0.40%

0.20%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

Nov13 Dec13 Jan14 Feb14 Mar14 Apr14 May14 Jun14 Jul14 Aug14 Sep14

Fixed

IncomePortfolioCon

tributiontoReturn

Oc

tober31,2013Sept

ember30,2014

Pastperformanceisnoguaranteeoffutureresults. Indexperformanceisnotrepresentative offundperformance.


25/48


FixedIncomePortfolio SectorAllocation

Strivesto

be

broadly

diversified

across

fixed

income

sectors

Source:DoubleLineCapital. RepresentativeportfoliosectorallocationisasofSeptember30,2014andissubjecttochangewithoutnotice.

Duration 1.8

Yield 3.9%

Weighted

Average Life 4.6Coupon 4.6%

Cash

2.1%U.S.Government

6.0% AgencyResidential

MortgageBacked

Securities

2.7%

NonAgency

Residentail

MortgageBacked

Securities

17.5%

InvestmentGrade

Credit

9.5%

HighYieldCredit

4.5%CommercialMortgage

BackedSecurities

13.6%

CollateralizedLoan

Obligations18.4%

BankLoan

4.9%

International

Emerging

20.9%


26/48


FixedIncomePortfolio RatingsDistribution

Averagecredit

quality

is

BBB

Source:DoubleLine

Capital.

Representative

portfolio

ratings

distribution

is

as

of

September

30,

2014

and

is

subject

to

change

without

notice.

AverageCreditRatingreferstotheaverageratingofthesecuritiesinthefixedincomeportfolioofthefund.Thefunditself,northefixedincomeportfolio,doesnothaveacreditrating.

Cash

2.1% Government

6.1%Agency

2.6%

Investment

Grade

47.9%

Below

Investment

Grade

39.8%

Unrated

1.5%


27/48


FixedIncomePortfolio DurationBuckets

Portfolioduration

is

1.8

years

Source:DoubleLineCapital.RepresentativeportfoliodurationallocationandoveralldurationisasofSeptember30,2014and is subjecttochangewithoutnotice.

2.1%

39.3%

28.7%

20.1%

7.0%

2.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Cash 7years

Percentageo

fFixedIncomePortfolio


28/48


TABVDoubleLineShiller EnhancedCAPEPerformanceMetrics

Source:


29/48




FixedIncome

Portfolio

Shiller BarclaysCAPEUSSector

TRUSDIndex

InitialInvestment

*A

portion

of

the

Initial

Investment

may

be

pledged

as

collateral

under

the

swap




30/48


Consumer

Discretionary

Consumer

Staples Energy Financial Healthcare Industrial Materials Technology Utilities RealEstate

Nov13 Staples Energy Healthcare Industrial

Dec13 Staples Energy Healthcare Industrial

Jan14 Staples Energy Healthcare Industrial

Feb14 Staples Healthcare Industrial Technology

Mar14 Energy Financial Healthcare TechnologyApr14 Energy Healthcare Industrial Technology

May14 Energy Healthcare Industrial Technology

June14 Energy Healthcare Industrial Technology

July14 Energy Healthcare Industrial Technology

Aug14 Energy Healthcare Industrial Technology

Sep14 Energy Healthcare Industrial Technology

Oct14 Staples Healthcare Industrial Technology

BarclaysShillerCAPEUSSectorIndexExposuresNovember2013throughOctober2014

Source:Barclays,

DoubleLine

Capital

Fundholdingsandsectorallocationsaresubjecttochangeandnotarecommendationtobuyorsellanysecurity.


31/48


EnergySectorHadWorstPerformanceinthe3rd QuarterJune30,2014throughSeptember30,2014

Source:Bloomberg,

DoubleLine

Capital

*TotalReturn(notsumofsectorreturns)

Pastperformanceisnoguaranteeoffutureresults. Indexperformanceisnotrepresentative offundperformance.

0.26%

1.95%

8.62%

2.33%

5.46%

1.09%

0.22%

3.81%

3.96%

1.13%

10%

8%

6%

4%

2%

0%

2%

4%

6%

8%

S&P500SectorReturns

June30,20

14

September30,20

14


32/48


DSEEXContributiontoReturnJune30,2014throughSeptember30,2014

Source:Bloomberg,DoubleLine



original

cost.

Current

performance

of

the

fund

may

be

lower

or

higher

than

the

performance

quoted.

Performance

data

current

to

the

mostrecentmonthendmaybeobtainedbycalling213.633.8200orbyvisitingwww.doublelinefunds.com.Theperformanceinformationshownassumesthereinvestmentofalldividendsanddistributions.

3.84%

2.21%

0.47%

1.82%

0.28%0.13%0.41%

1.13%

5%

4%

3%

2%

1%

0%

1%

2%

3%

ContributiontoReturn

June30,2014

September30,2

014

CurrentlyinCAPEIndex

WasinCAPEIndexpreviously in2014

**TotalReturn,NotContributiontoReturn

DSEEX

Over/Under

Performance

1.54%


33/48


S&P500SectorPerformanceDecember31,2013throughSeptember30,2014

Source:Bloomberg,DoubleLineCapital

*TotalReturn(notsumofsectorreturns)

0.86%

7.23%

3.23%

7.42%

16.62%

2.87%

8.87%

14.11% 13.95%

8.34%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

S&

P500SectorReturns

December31,2013

September30,2014


34/48


DSEEXContributiontoReturnDecember31,2013throughSeptember30,2014


Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturnandprincipalvalueofan

investmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthanoriginalcost.Currentperformanceofthefundmaybe

loweror

higher

than

the

performance

quoted.

Performance

data

current

to

the

most

recent

month

end

may

be

obtained

by

calling

213.633.8200

or

by

visiting

www.doublelinefunds.com.

Theperformanceinformationshownassumesthereinvestmentofalldividendsanddistributions.

0.26% 0.44%

0.47%

3.83%

0.42%

4.09%

8.12%

3.02%

11.13%

8.34%

2%

0%

2%

4%

6%

8%

10%

12%

ContributiontoRe

turn

Decem

ber31,2013

Septem

ber30,2014


WasinCAPEIndexpreviously in2014


DSEEX

Over/Under

Performance

2.79%


35/48


S&P500SectorPerformanceOctober31,2013throughSeptember30,2014

Source:

Bloomberg,

DoubleLine

Capital*TotalReturn(notsumofsectorreturns)

Pastperformanceisnoguaranteeoffutureresults. Indexperformanceisnotrepresentativeoffundperformance.

6.80%

9.56%

7.38%

14.73%

23.12%

11.06%

15.60%

22.38%

12.82%

14.46%

0%

5%

10%

15%

20%

25%

S&

P500SectorReturns

October3

1,2013

September3

0,2014


36/48


DSEEXContributiontoReturnOctober31,2013throughSeptember30,2014




originalcost.

Current

performance

of

the

fund

may

be

lower

or

higher

than

the

performance

quoted.

Performance

data

current

to

themostrecentmonthendmaybeobtainedbycalling213.633.8200orbyvisitingwww.doublelinefunds.com.Theperformanceinformationshownassumesthereinvestmentofalldividendsanddistributions.

0.28% 0.26% 0.49%

5.38%

2.38%

4.32%

13.10%

2.70%

15.80%

14.46%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

ContributiontoRet

urn

October31,2013

Septemb

er30,2014


WasinCAPEIndexpreviously duringsampleperiod


DSEEX

Over/Under

Performance

1.34%


37/48


DSEEXPerformanceRelativetoMorningstarUniverseDecember31,2013throughSeptember30,2014

Source:Morningstar

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.

Theinvestmentreturnandprincipalvalueofaninvestmentwillfluctuatesothataninvestor'sshares,when

redeemed,maybeworthmoreorlessthanoriginalcost.Currentperformanceofthefundmaybeloweror

higherthan

the

performance

quoted.

Performance

data

current

to

the

most

recent

month

end

may

be

obtained

bycalling213.633.8200orbyvisitingwww.doublelinefunds.com.

1Month 1Q 2014 2Q 2014 3Q 2014 YeartoDate

MorningstarLargeValue Category

Fund 2.69% 3.49% 7.84% 0.41% 11.13%

ExcessReturn+/S&P500TRUSD 1.29% 1.68% 2.61% 1.54% 2.79%

ExcessReturn+/Category 0.52% 1.21% 3.32% 0.14% 4.81%


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DSEEXPerformanceRelativetoMorningstarUniverse

November1,

2013

through

September

30,

2014

Source:Morningstar,Zephyr

Pastperformanceisnoguaranteeoffutureresults.


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DSEEXSharpeRatioRelativetoMorningstarUniverseNovember1,2013throughSeptember30,2014

Source:Morningstar,Zephyr

Pastperformanceisnoguaranteeoffutureresults.


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TABVIPortfolioManagementTeam


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Government/Municipals

GregoryWhiteley

Global DevelopedCredit

BonnieBaha

RobertCohen

EmergingMarkets

LuzPadilla

MarkChristensen

SuFeiKoo

Mortgages

JeffreyGundlach

PhilipBarach

JoelDamiani

JosephGalligan

SamuelGarza

InternationalDeveloped Sovereign

Debt

JeffreyGundlach

DoubleLineShillerEnhancedCAPEManagementTeam

EquityDerivativesManagement/Trading

JeffreyShermanSamuelLau

EricDhall

RobertHerron

JeffreyMayberry


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SmartBeta,

MeetSmartAlpha


JeffreySherman,CFA

PortfolioManager

October21,2014


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HistoricalIndexPerformanceDisclaimer


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BarclaysCapitalInc.anditsaffiliates("Barclays")isnottheissuerorproducerofDoubleLines Shiller EnhancedCAPE (theStrategy)andBarclayshasno

responsibilities,obligationsordutiestoinvestorsinthestrategy.TheShiller BarclaysCAPE USSectorUSDIndex(theIndex)isatrademarkownedby

BarclaysBankPLCandlicensedforusebytheStrategy.WhiletheStrategymayexecutetransaction(s)withBarclaysinorrelatingtotheIndex,Strategy

investorsacquireinterestssolelyusingthestrategyandinvestorsneitheracquireanyinterestintheIndexnorenterintoany relationshipofanykind

whatsoeverwithBarclaysuponmakinganinvestmentintheStrategy.TheStrategyisnotsponsored,endorsed,soldorpromoted by BarclaysandBarclays

makesnorepresentation regardingtheadvisabilityoruseoftheIndexoranydataincludedtherein.Barclaysshallnotbeliableinanywaytoinvestorsorto

otherthirdpartiesinrespectoftheuseoraccuracyoftheIndexoranydataincludedtherein.

TheShiller BarclaysCAPE USIndexFamily(theIndexFamily)hasbeendevelopedinpartbyRSBBI,LLC,theresearchprincipalofwhichisRobertJ.Shiller.

RSBBI,LLCisnotaninvestmentadvisoranddoesnotguaranteetheaccuracyandcompletenessoftheIndexFamilyoranydataor methodologyeither

includedthereinoruponwhichitisbased.RSBBI,LLCshallhavenoliabilityforanyerrors,omissionsorinterruptionsthereinandmakesnowarranties

expressedorimplied,astotheperformanceorresultsexperiencedbyanypartyfromtheuseofanyinformationincludedtherein oruponwhichitisbased,

andexpresslydisclaimsallwarrantiesofthemerchantabilityorfitnessforaparticularpurposewithrespectthereto,andshallnotbeliableforanyclaimsor

lossesofanynatureinconnectionwiththeuseofsuchinformation,includingbutnotlimitedto,lostprofitsorpunitiveorconsequentialdamageseven,if

RSBBI,LLCisadvisedofthepossibilityofsame.

BarclaysDisclaimer


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S t B t


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SmartBeta,

MeetSmartAlpha


JeffreySherman,CFAPortfolioManager

October21,2014


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Announcements

WebcastNews

LuzPadilla November13,2014DoubleLine EmergingMarketsFixedIncomeFundandLowDurationEmergingMarketsFund

1:15pmPDT/4:15pmEDT

PhilipBarach November25,2014DoubleLine LowDurationBondFund

1:15pmPDT/4:15pmEDT

JeffreyGundlach December9,2014DoubleLine TotalReturnBondFundandCoreFixedIncomeFund

1:15pmPDT/4:15pmEDT

ToReceivePresentationSlides,[email protected]

doubleline: "smart beta, meet smart alpha"

Documents