Gundlach, chief executive and chief investment officer of DoubleLine Capital, speaks at the Sohn Investment Conference in New York

Gundlach’s DoubleLine Funds post 15th consecutive month of inflows

By Jennifer Ablan

NEW YORK (Reuters) – DoubleLine Funds, whose co-founder Jeffrey Gundlach is widely followed for his investment calls, on Friday reported $945 million in net additional investments in April, the 15th consecutive month it has attracted new money.

The Los Angeles-based firm said the DoubleLine Total Return Bond Fund, its largest portfolio by assets, also had positive inflows in April.

The Total Return attracted a net inflow of $633 million last month, compared with $851 million in March. It has $46.2 billion in assets under management and invests primarily in mortgage-backed securities.

The fund, which marked its five-year anniversary last month, delivered an annualized total return of 7.81 percent as of April 30, ranking it No. 1 in the Morningstar intermediate-term bond category.

DoubleLine’s Core Fixed Income Fund, which invests in various intermediate-term bonds, had net inflows of $172 million in April, compared with $86 million in March.

The fund, with $4.2 billion in total assets, had record net monthly inflows of $495 million in December.

Both Total Return and Core Fixed Income are open-end funds.

“Gundlach has high visibility because of his long-term track record with his performance and investment calls,” said Todd Rosenbluth, director of ETF and mutual fund research at S&P Capital IQ.

The SPDR DoubleLine Total Return Tactical exchange-traded fund, introduced on Feb. 24, had $232.5 million in assets at the end of March. In April, the ETF’s assets increased to $405 million.

Last year, Gundlach correctly predicted that U.S. Treasury yields would fall, not rise as many had forecast, because inflationary pressures were non-existent and technical factors, including aging demographics, were at play.

In an interview this week, Gundlach said he did not like interest rates being so low.

“I like the 3 percent 10-year; I’d like a 4 percent 10-year,” he said. “I don’t think we are going to get there anytime soon. It’d be nice if yields were higher.”

The yield on the benchmark 10-year Treasury note trades around 2.12 percent.

Gundlach said this has been a pretty unremarkable market for fixed-income investors.

“It’s just not a lot of fun,” Gundlach said. “It’s fun when you buy something where you feel like, ‘You know what, I am getting 14 percent on this thing, and I will probably make a 20 percent gain.'”

(Reporting by Jennifer Ablan; Editing by Dan Grebler and Lisa Von Ahn)


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