MutualFundWire.com: Gundlach Now Caters to Europeans as M* Ponders His CEF

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Wednesday, September 19, 2012

Gundlach Now Caters to Europeans as M* Ponders His CEF

If Jeff Gundlach has fans overseas, now they too can invest with him via a pooled product. Separately, Morningstar tentatively gives its stamp of approval to a nine-month-old DoubleLine [profile] closed-end fund.

In a partnership with Nordea, the Los Angeles-based mutual fund shop is now powering (basically subadvising) a UCITS version of his flagship total return bond offering, this time geared towards European investors. Both Bloomberg and Citywire covered the launch.

Like Gundlach's flagship mutual fund here in the U.S., the new offering will invest in agency mortgage-backed securities, as well as non-agency mortgage securities that do not have guarantee from the US government. The launch is the first European market venture of DoubleLine. Paul Malpas of Nordea told Citywire that: "The only difference in the fund's strategy from the current DoubleLine strategy is that won't have subprime as part of the portfolio due to regulatory as well as commercial reasons."

Meanwhile, Morningstar's Cara Esser takes an in-depth look at DoubleLine Opportunistic Credit. Esser writes that "an investment in this fund is more of an endorsement of your belief in Gundlach and his team's abilities rather than an asset-allocation decision."

"So far, such an endorsement would have proven well-placed."

Company Press Release
Nordea Asset Management is pleased to announce an agreement with leading US fixed income investment firm DoubleLine Capital LP. In an exclusive arrangement with Nordea, DoubleLine CEO Jeffrey Gundlach and his mortgage-backed securities team will manage a Nordea strategy based on DoubleLine's USD 30bn Total Return Bond strategy.

Nordea and DoubleLine Capital LP set to propose US fixed income strategy to European investors

Nordea Asset Management is pleased to announce an agreement with leading US fixed income investment firm DoubleLine Capital LP. In an exclusive arrangement with Nordea, DoubleLine CEO Jeffrey Gundlach and his mortgage-backed securities team will manage a Nordea strategy based on DoubleLine’s USD 30bn[1] Total Return Bond strategy.

“We are thrilled to bolster our successful US fixed income range with the addition of our soon-to-be launched US Total Return Bond Strategy managed by DoubleLine Capital. In fact, the investment philosophy is embedded in their name “DoubleLine”: the manager seeks to deliver superior risk-adjusted returns without crossing the double line into the oncoming lane of excessive risk,” says Christophe Girondel, Head of Global Fund Distribution.

Founded in 2009, employee-owned DoubleLine today manages more than USD 40bn[2] in strategies invested in mortgage-backed securities (MBS); corporate and sovereign securities of issuers in developed and emerging markets; U.S. government issues, including Treasuries and Agency debentures; commodities and equities. In 2011, DoubleLine Capital was named fastest-growing start-up fund company in 25 years.[3] Its portfolio managers have worked together on average for over 17 years, at DoubleLine and at a previous employer.

For more than two decades, the MBS team founded by Jeffrey Gundlach and DoubleLine President Philip Barach has worked to generate excess returns by exploiting inefficiencies in the mortgage sector of the bond market while blending diverse sets of holdings and implementing risk constraints to reduce volatility and protect principal.

Mr. Gundlach will serve as lead portfolio manager of the US Total Return Strategy. He is recognized as an authority[4] in fixed income investing and asset allocation. In 2011, he was featured as “The King of Bonds” in Barron’s, named one of “5 Mutual Fund All-Stars” by Fortune Magazine, named “Bond Manager of the Year” by Foundations and Endowments Money Management, and the “year’s best performing bond manager” by the Financial Times[5].

About Global Fund Distribution
Global Fund Distribution is part of the Nordea Group, which has assets under management totalling EUR 199.8 billion (30.06.2012). The business area offers Global investors exposure to a broad range of investment funds via its active distributors, which include banks, asset managers, independent financial advisors and insurance companies. Its main product is the Nordea 1, SICAV, which encompasses a diverse spectrum of high quality products. Nordea 1, SICAV has constantly grown in terms of volume and has steadily gained in reputation. This growth is the result of the success of its active management of products belonging to the following asset classes: value stocks, growth stocks, theme-oriented funds and dedicated sector funds, as well as multi-asset strategies, long/short strategies, bond and money market funds.

Contact for further information:
Philippe Graffart, +352 43 39 50-59, Philippe.Graffart@nordea.lu
Paul Malpas, +352 43 39 50-95, Paul.Malpas@nordea.lu