DoubleLine to launch new fund tracking Shiller index
NEW YORK Aug 16 (Reuters) - DoubleLine Capital LP, the investment firm run by Jeffrey Gundlach, will launch a mutual fund that seeks to outperform one of Robert Shiller's benchmark indexes, a regulatory filing showed Thursday.
The DoubleLine Shiller Enhanced CAPE fund will seek a total return higher than that of the Shiller Barclays CAPE US Sector TR USD Index, the filing with the Securities and Exchange Commission said.
The index offers stock market exposure with a value-investing style and is directed toward investors who aim to "buy and hold" stocks for multiple years. The index is based on the Cyclically Adjusted Price-Earnings (CAPE) ratio devised by economists Shiller and John Campbell.
The new fund from DoubleLine, home to the roughly $38 billion DoubleLine Total Return Bond Fund, will use derivatives to closely match the performance of the index, the filing said.
Gundlach, DoubleLine's chief executive and chief investment officer, will manage the fund with portfolio manager Jeffrey Sherman.
Gundlach's DoubleLine Total Return Bond Fund is down 0.93 percent this year, according to Lipper. Even so, that performance is above the benchmark Barclays U.S. Aggregate Total Return index, which is down 2.93 percent.
The new fund will also invest in debt securities in order to boost long-term performance, the filing said. The debt portfolio will typically have an effective duration of between two and eight years, the filing added.
The fund's debt investments may include bonds of any rating, include assets such as U.S. government bonds, mortgage and asset-backed securities, foreign government or corporate bonds, emerging market bonds, bank loans, municipal debt, and inflation-indexed bonds, the filing said.
The Los Angeles-based DoubleLine had roughly $57 billion in assets at the end of June.
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