TAMPA,
Fla., April 4, 2023 /PRNewswire/ -- The
DoubleLine Mortgage ETF (Symbol: DMBS) and the DoubleLine
Commercial Real Estate ETF (DCMB), exchange-traded funds invested
in fixed income securities actively managed by DoubleLine, began
trading today on the NYSE Arca exchange.
"We are pleased to deliver these two unique exchange-traded
funds to the marketplace as DoubleLine continues to broaden our ETF
offerings to our valued clients," DoubleLine President Ron Redell said. For information on the
DoubleLine ETFs, please visit this web page:
https://doubleline.com/doubleline-exchange-traded-funds/#products
DoubleLine Mortgage ETF
The objective of the DoubleLine Mortgage ETF (or "Mortgage ETF")
is to seek total return (capital appreciation and current income)
that exceeds the total return of its benchmark, the Bloomberg US
Mortgage-Backed Securities Index, over a full market cycle. The
Mortgage ETF invests primarily in high-quality residential
mortgage-backed securities (RMBS), allocating between
government-backed Agency mortgage-backed securities (MBS) and
non-Agency MBS. Interest rate, credit and prepayment risks are
managed with the goal of delivering enhanced risk-adjusted returns
through changing interest-rate and economic environments.
Portfolio managers of the Mortgage ETF are Jeffrey Gundlach, founder, Chief Executive
Officer and Chief Investment Officer of DoubleLine; Vitaliy Liberman, Portfolio Manager overseeing
DoubleLine's Agency MBS team; Ken
Shinoda, Chairman of the firm's Structured Products
Committee and Portfolio Manager overseeing the non-Agency RMBS
team.
Although under normal circumstances the Mortgage ETF intends to
invest primarily in residential mortgage securities deemed to be
rated investment grade (i.e., securities rated Baa3/BBB- or higher)
at the time of purchase, the Fund may also invest in certain other
fixed income securities, including derivatives, U.S. government
securities, and other cash and cash equivalents.
DoubleLine has broad discretion to manage the Mortgage ETF's
portfolio duration; however, the investment team expects normally
to construct an investment portfolio with a U.S. dollar-weighted
average effective duration within two years (plus or minus) of the
benchmark. Duration is a measure of the expected life of a fixed
income instrument that is used to determine the sensitivity of a
security's price to changes in interest rates. Effective duration
is a measure of a duration adjusted for the anticipated effect of
interest rate changes on bond and mortgage prepayment rates as
determined by DoubleLine.
"Thirty years ago, thinking about the relative risks and rewards
of fixed income sectors," Mr. Gundlach said, "I realized that
Agency mortgage-backed securities offered superior characteristics
versus U.S. Treasury bonds or corporate securities. Through active
management, the MBS team and I have worked to make the most of
those advantages. As the mortgage market evolved, we developed
loan-level analysis to refine security selection and dynamic
allocation within and between Agency and non-Agency MBS. The aim of
these integrated tools is to manage risk through interest rate and
credit cycles and to enhance returns. The Mortgage ETF delivers
this time-tested investment framework in the vehicle of a
DoubleLine exchange-traded fund."
DoubleLine Commercial Real Estate ETF
The objective of the DoubleLine Commercial Real Estate ETF (or
"Commercial Real Estate ETF") is to seek current income and capital
preservation. As a secondary objective, the fund seeks long-term
capital appreciation. The fund invests in senior commercial real
estate debt through investment grade commercial mortgage-backed
securities (CMBS) and employs active management through security
selection across commercial real estate (CRE) property types and
subsectors while maintaining a low level of interest rate risk. The
investment universe includes high-quality CRE debt across Agency
CMBS, non-Agency CMBS and commercial real estate collateralized
loan obligations (CRE CLOs). DoubleLine's experienced, long-tenured
CRE specialists are responsible for security selection within their
sector based on in-depth, fundamental research and granular
property-level analysis.
Portfolio managers of the Commercial Real Estate ETF are
Morris Chen, who heads DoubleLine's
Commercial Mortgage-Backed Securities and Commercial Real Estate
Debt team; Mark Cho, Portfolio
Manager responsible for the team's CMBS credit platform;
Robert Stanbrook, Portfolio Manager
responsible for the team's CRE loan platform as well as its
investments in CRE CLOs.
The CMBS and CRE Debt team expects to invest the Commercial Real
Estate ETF primarily in instruments rated AAA to A- by S&P, at
the time of purchase, or the equivalent by any other nationally
recognized statistical rating organization.
Under normal market conditions, the portfolio managers intend to
seek to construct an investment portfolio with a dollar-weighted
average effective duration of three years or less.
"The commercial mortgage-backed securities market has adapted
over the past decade with the evolution of underlying commercial
real estate trends and government regulation. In more recent years,
commercial real estate finance investments have repriced," Mr. Chen
said. "This asset class diversifies from corporate credit and has
structural enhancements that provide attractive relative values.
The team employs granular underwriting of loan, borrower, property
and market fundamentals while incorporating DoubleLine's
macroeconomic views into portfolio construction. I'm pleased to see
this investment approach, managed by my team in separate accounts
and allocations in commingled vehicles such as mutual funds,
available in the Commercial Real Estate ETF."
About DoubleLine
DoubleLine ETF Adviser LP, adviser to the Mortgage ETF and the
Commercial Mortgage ETF, is an investment adviser under the
Investment Advisers Act of 1940. DoubleLine was founded in 2009 by
Jeffrey Gundlach and 45 other
partners. As of Dec. 31, 2022,
DoubleLine had $92 billion in assets
under management and 283 employees, including 109 investment
professionals. DoubleLine's portfolio managers have 22 years of
industry experience on average and have worked together on average
for 16 years (including prior to the firm's founding).
DoubleLine's offices can be reached by telephone at (813)
791-7333 or by email at ETFinfo@doubleline.com. Media can reach
DoubleLine by email at media@doubleline.com. DoubleLine® is a
registered trademark of DoubleLine Capital LP.
A Fund's investment objectives, risk, charges and expense
must be considered carefully before investing. The statutory
prospectus contains this and other important about the investment
company, and may be obtained by calling
(877)-354-6311/(877)DLINE11, or visiting www.doubleline.com
Read them carefully before investing.
Risk Disclosures
Investing involves risk. Principal
loss is possible. Equities may decline in value due to both real
and perceived general market, economic and industry conditions.
ETF investments involve additional risks such as the market
price trading at a discount to its net asset value, an active
secondary trading market may not develop or be maintained, or
trading may be halted by the exchange in which they trade, which
may impact a fund's ability to sell its shares.
Investments in debt securities change in value because of
changes in interest rates. The value of an instrument with a longer
duration (whether positive or negative) will be more sensitive to
changes in interest rates than a similar instrument with a shorter
duration. There is the risk that the Fund may be unable to sell a
portfolio investment at a desirable time or at the value the Fund
has placed on the investment. Illiquidity may be the result of, for
example, low trading volume, lack of a market maker, or contractual
or legal restrictions that limit or prevent the Fund from selling
securities or closing derivative positions. There is risk that
borrowers may default on their mortgage obligations or the
guarantees underlying the mortgage-backed securities will default
or otherwise fail and that, during periods of falling interest
rates, mortgage-backed securities will be called or prepaid, which
may result in the Fund having to reinvest proceeds in other
investments at a lower interest rate. Derivatives involve special
risks including correlation, counterparty, liquidity, operational,
accounting and tax risks. These risks, in certain cases, may be
greater than the risks presented by more traditional
investments.
The Fund is a "non-diversified" investment company and therefore
may invest a greater percentage of its assets in the securities of
a single issuer or a limited number of issuers than funds that are
"diversified." Accordingly, the Fund is more susceptible to risks
associated with a single economic political or regulatory
occurrence than a diversified fund might be.
DoubleLine ETFs are distributed by Foreside Fund Services,
LLC
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SOURCE DoubleLine