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WhatintheWorldis G i O Going On? ?

(Redux) (R d )
LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

June27,2013

Announcements W b Webcast News N


JeffSherman July9,2013
MultiAssetGrowth 1:15pmPDT/4:15pmEDT

LuzPadilla July23,2013
EmergingMarketsFixedIncome 1:15pmPDT/4:15pmEDT

JeffreyGundlach September10,2013
Total T t lReturn R t &Core C Fixed Fi dIncome I 1:15pmPDT/4:15pmEDT

ToReceivePresentationSlides: Youcanemail fundinfo@doubleline.com

WhatintheWorldis G i O Going On? ?(Redux) (R d )


LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

June27,2013

HeadlineCPIYoY

Current:1.40% Average:3.91%

DataSource:BureauofLaborStatistics(CPIYOY) CPI= ConsumerPriceIndexproducesmonthlydataonchangesinthepricespaidbyurbanconsumersforarepresentativebasketofgoodsandservices. Aninvestmentcannotbemadedirectlyinanindex.

USPersonalConsumptionExpenditureCorePriceIndex

Current:1.05% Average:3.47%

DataSource:BureauofLaborStatistics(CPIYOY) CPI= ConsumerPriceIndexproducesmonthlydataonchangesinthepricespaidbyurbanconsumersforarepresentativebasketofgoodsandservices. Aninvestmentcannotbemadedirectlyinanindex.

WherestheInflation? GoldSpotIndex
YearEnd2007throughJune26,2013

Source:BloombergFinancialServices,DoubleLineCapitalLP GOLDS=ThegoldspotpriceisquotedinUSDollarsperTroyounce. Aninvestmentcannotbemadedirectlyinanindex.

WherestheInflation? CRBCommodityIndex
YearEnd2007throughJune24,2013

Source:BloombergFinancialServices,DoubleLineCapitalLP Note:TheTR/JCRBCommodityExcessReturnIndexisanarithmeticaverageofcommodityfuturespriceswithmonthlyrebalancing. Aninvestmentcannotbemadedirectlyinanindex.

S&PGSCICommodityIndices RecentMonths
April30,2013throughJune26,2013

Source:BloombergFinancialServices,DoubleLineCapitalLP Pleaseseeappendixforindexdefinitions. Aninvestmentcannotbemadedirectlyinanindex.

S&PGSCICommodityIndices YearToDate2013
December30,2012throughJune26,2013

Source:BloombergFinancialServices,DoubleLineCapitalLP Pleaseseeappendixforindexdefinitions. Aninvestmentcannotbemadedirectlyinanindex.

GlobalCommodityMarkets(normalized): Gold,Silver,Grains,Energy, g Softs AllinlocalCCY


June25,2012throughJune25,2013

Source:BloombergFinancialServices,DoubleLineCapitalLP GOLDSandSILV=thespotpriceofgoldandsilvermeasuredintroyounces.DJUBS(DJUBSGR)=DowJonesGrainsIndexcomprisedoffuturescontractsoncorn,soybeans andwheat.DJEnergy(DJUBSEN)=DowJonesEnergyIndexcomprisedoffuturescontractsoncrudeoil,heatingoil,unleadedgasolineandnaturalgas.DJExSofts (DJUBSXSO)=DowJonesExSoftsIndexiscomprisedoffuturescontractsandphysicalcommoditiesexcludingthesoftssector. Pleaserefertotheappendixforindexdefinitions.Aninvestmentcannotbemadedirectlyinanindex.

GlobalFXMarkets(normalized): EUR,JPY,AUD,GBP,CAD AllinLocalCCY


June25,2012throughJune26,2013

Source:BloombergFinancialServices,DoubleLineCapitalLP EUR,JPY,AUD,GBP,CAD=CurrenciesoftheEuropeanUnion(EUR),JapaneseYen(JPY),AussieDollar(AUD),BritishPoundSterling(GBP)andtheCanadianDollar(CAD) Pleaserefertotheappendixforindexdefinitions.Aninvestmentcannotbemadedirectlyinanindex.

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GlobalEquityMarkets(normalized): SPX,Eurostoxx,SHCOMP,NKYAllinlocalCCY
June25,2012throughJune25,2013

Source:BloombergFinancialServices,DoubleLineCapitalLP Pleaserefertotheappendixforindexdefinitions.Aninvestmentcannotbemadedirectlyinanindex.

11

S&P500/MSCIEMIndex
June25,2012throughJune25,2013

Source:BloombergFinancialServices,DoubleLineCapitalLP Pleaserefertotheappendixforindexdefinitions.Aninvestmentcannotbemadedirectlyinanindex.

12

BrazilIndex
January4,2010throughJune26,2013

Source:BloombergFinancialServices,DoubleLineCapitalLP IBOVIndex=TheIbovespaisaacrosstotalreturnindexweightedbytradedvolumeandiscomprisedofthemostliquidstocks tradedontheSaoPauloStockExchange. Aninvestmentcannotbemadedirectlyinanindex.

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ShanghaiIndex
December31,2009throughJune26,2013

Source:BloombergFinancialServices,DoubleLineCapitalLP Note:TheShanghaiStockExchangeCompositeisacapitalizationweightedindextrackingdailypriceperformanceofallAandBshareslistedontheShanghaiStock Exchange.ThisindexwasdevelopedDecember19,1990withabasevalueof100. Aninvestmentcannotbemadedirectlyinanindex.

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ChinaInterbankOfferedRate:PBoCTightening
June26,2012throughJune26,2013

Source:BloombergFinancialServices,DoubleLineCapitalLP PBoc=PeoplesBankofChina SHIFON=ShanghaiInterbankOfferedRateFixingpublisheddaily.Aninvestmentcannotbemadedirectlyinanindex.

15

USUnemploymentRateandEmploymentto PopulationRatio
December31, 31 1990throughMay31, 31 2013

Source:USCensusBureau,Bloomberg,DoubleLineCapital

16

U.SHomePriceIndexLevelsandYearOverYear C a ge Change
January1,2000andJanuary1,2001throughMarch31,2013

Source:BloombergFinancialServices,CaseShiller S& /C Shiller S&P/Case Shill Home H Price i Index I d i iscomprised i dof fprice i changes h within i hi the h f following ll i subset b of f20metropolitan li markets: k 10City Ci Index I d Boston,Chicago, Chi Denver,Las L Vegas, V Los L Angeles,Miami,NewYork,SanDiego,SanFranciscoandWashingtonDC.Inadditiontothe10CityIndexitincludes:Atlanta,Charlotte,Cleveland,Dallas,Detroit,Minneapolis, Phoenix,Portland,Seattle,andTampa. CoreLogicNationalHousingPriceIndex(HPI)=CoreLogicisaleadingproviderofinformationandanalytics.Thisindexcovers 6,208zipcodes,572statisticalareasand1,027 countieslocatedinall50statesandDistrictofColumbia.Itisanationalaverage. Aninvestmentcannotbemadedirectlyinanindex.

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30YearU.S.MortgageRates
December31,2007throughJune26,2013

Source:BloombergFinancialServices,Bankrate.com ILM3NAVG=TheOvernightNationalAverageoftheU.S.30yearTreasuryinterestrate.Theyhelpconsumersseethemovementof ratesdaytoday.Subjecttoone daylag. Aninvestmentcannotbemadedirectlyinanindex.

1818

10YearU.S.TreasuryRates
December31,2012throughJune27,2013

Source:BloombergFinancialServices,Bankrate.com Aninvestmentcannotbemadedirectlyinanindex.

1919

10Yearto2YearTreasuryYieldSpreads
4%

Slope ofYieldCurve
3%

10 YearTreasury min 1 nus 2 Year Treasury Y YieldtoMaturity January 31,1977 June 25,2 2013

2%

1%

0%

-1%

-2%

Current: Average:

2.20% 0.90%

-3%

DataSource:Bloomberg(USYC2Y10)

HighYield ETF
December31,2012throughJune26,2013

Source:BloombergFinancialServices JNK=SPDRBarclaysHighYieldBondETFisanexchangetradedfundincorporatedintheUSA.TheFundsseeksinvestmentresultsthatcorrespondtothepriceandyieldofthe BarclaysHighYieldVeryLiquidBondIndex. Youcannotdirectlyinvestinanindex.

21

ABXAAA071Index
December31,2007throughJune26,2013

Source:BloombergFinancialServices,DoubleLineCapitalLP TheABX071AAAIndexisabasketofhomeequity.Constitutedfromreferenceobligationsissuedby20issuersofresidentialmortgagebackedsecurities. Aninvestmentcannotbemadedirectlyinanindex.

22

InvestmentGradeCorporates ETF
December31,2012throughJune26,2013

Source:BloombergFinancialServices LQD=iSharesiBoxxInvestmentGradeCorporateBondFundisanexchangetradedfundincorporatedintheUSA.TheFundseeksresultsthatcorrespondtothepriceandyield performanceofasegmentoftheUSInvestmentGradeCorporatebondmarketasdefinedbytheiBoxx$liquidInvestmentGradeIndex. Youcannotdirectlyinvestinanindex.

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TIPS ETF
December31,2012throughJune27,2013

Source:BloombergFinancialServices TIP=iSharesBarclaysUSTreasuryInflationProtectedSecuritiesFundisanexchangetradedfundincorporatedintheUSA.Theindexmeasurestheperformanceofinflation protectedpublicobligationoftheUSTreasury,alsoknownasTIPS. Youcannotdirectlyinvestinanindex.

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MunicipalBond ETF
December31,2012throughJune26,2013

Source:BloombergFinancialServices MUB=iSharesS&PNationalAMTFreeMunicipalBondFundisanexchangetradedfundincorporatedintheUSA.TheFundsseeksinvestmentresultsthatcorrespondtothe performanceoftheS&PMunicipalBondIndex,whichtracksmunicipalbondsecuritiesissuedbythestateandlocalmunicipalitieswhoseinterestisexemptformfederalincome. Youcannotdirectlyinvestinanindex.

25

EmergingMarkets ETF
December31,2012throughJune26,2013

Source:BloombergFinancialServices EMB=iSharesJPMorganUSDEmergingMarketsBondFundisanexchangetradedfundincorporatedintheUSA.TheFundsseeksinvestmentresultsthatcorrespondtotheprice andyieldoftheJPMorganEmergingMarketsBondIndex.. Youcannotdirectlyinvestinanindex.

26

AnnalyCapitalManagement MortgageREIT
December31,2012throughJune26,2013

Source:BloombergFinancialServices NLY=AnnalyCapitalManagement,Inc.isarealestateinvestmenttrustwhichownsandmanagesassetsandfundsonbehalfofinstitutionalandindividualinvestorsworldwide. Youcannotdirectlyinvestinanindex.

27

WhatintheWorldis G i O Going On? ?(Redux) (R d )


LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

June27,2013

IndexDescriptions
Barcla sCapitalUSA Barclays Aggregate re ateInde Index The Th B Barclays l C Capital it lUSAggregate A t Index I d represents t securities iti th that tareSECregistered, i t d taxable, t bl and dd dollar ll d denominated. i t d Th The indexcoverstheUSinvestmentgradefixedratebondmarket,withindexcomponentsforgovernmentandcorporatesecurities,mortgagepassthroughsecurities, andassetbackedsecurities.Thesemajorsectorsaresubdividedintomorespecificindicesthatarecalculatedandreportedona regularbasis. BarclaysCapitalUSTreasuryIndex ThisindexistheUSTreasurycomponentoftheUSGovernmentindex.PublicobligationsoftheUSTreasurywitharemaining maturityofoneyearormore. BarclaysCapitalUSTreasury10YearIndex Thisindexisthe10yearcomponentoftheUSGovernmentindex. Barclays y Capital p Capital p USTreasury y30YearIndex Thisindexisthe30y yearcomponent p oftheUSGovernmentindex. BarclaysCapitalUSHighYieldIndex TheBarclaysCapitalUSHighYieldIndexcoverstheuniverseoffixedrate,noninvestmentgradedebt.Eurobondsanddebt issuerfromcountriesdesignatedasemergingmarkets(e.g.Argentina,Brazil,Venezuela,etc.)areexcluded,butCanadianand globalbonds(SECregistered)of issuersinnonEMGcountriesareincluded.Originalissuezereos,stepupcouponstructures,144Asandpayinkind(PIK,asofOctober1,2009)arealsoincluded. BofAMerrillLynchUSGovernmentIndex(GOAO) TheMerrillLynchUSGovernmentIndextrackstheperformanceofUSgovernment(i.e.securitiesinthe TreasuryandAgencyindices.) BofAMerrillLynchUSCorporateIndex(COAO)InvestmentGrade TheMerrillLynchCorporateIndextrackstheperformanceofUSdollardenominated investmentgrade d corporatedebt d b publicly bl l issued dinthe h USdomestic d market. k Qualifying lf securitiesmusthave h aninvestmentgrade d rating(based (b donanaverageof f Moodys,S&PandFitch)andaninvestmentgraderatedcountryofrisk(basedonanaverageofMoodys,S&PandFitchforeigncurrencylongtermsovereigndebt ratings).Securitiesmusthaveatleastoneyearremainingtermtofinalmaturity,afixedcouponscheduleandaminimumamountoutstandingof$250MM. BofAMerrillLynchUSAllConvertiblesIndex(VOSO) TheMerrillLynchAllConvertibleIndexisaruledrivenindex.whichincludesallbondsandpreferredstocks ofU.S.registeredcompanies,whichhave$50millionormoreinaggregatemarketvalueandareconvertiblesinU.S.dollardenominatedcommonstocks,ADRsor cashequivalents.Pleasenoteaninvestorcannotinvestdirectlyinanindex. BofAMerrillLynchCMBSIndex(CMBS) trackstheperformanceofUSdollardenominatedsecuritizedcommercialmortgagebackedsecurities CRBCommodityIndex(CRY) Anunweightedgeometricaverageofsomeimportantcommodities.Itaveragespricesacross17commoditiesandacrosstime.The indextracksenergy,grains,industrials,livestock,preciousmetals,andagriculturals. S&P500(SPX) S&P500isafreefloatcapitalizationweightedindexpublishedsince1957ofthepricesof500largecapcommonstocksactively tradedinthe UnitedStates. DowJones UBSDJCommodityIndex TheDowJonesUBS CommodityindexiscomposedofcommoditiestradedonU.S.exchanges,withtheexceptionof aluminum,nickelandzinc,whichtradeontheLondonMetalExchange(LME). Copper=CopperSpotPrice(HGI)Copperistheworldsthirdmostusedmetalbehindironandaluminumprimarilyusedinhighlycyclicalindustriesincluding constructionandindustrialmachinerymanufacturing.SpotpricequotedinUSD/lb. Gold=GoldSpotPrice(Golds)TheGoldSpotpriceisquotedasUSDollarperTroyOunce. CrudeOil=Crudeoilvariesgreatlyinappearancedependingonitscomposition.WestTexasintermediate(WTI)=Texaslightsweetcrudeisusedasabenchmarkin oilpricing.Itslightbecauseofthelowdensityandsweetbecauseoflowsulfur.Brentcrude=Isamajortradingclassificationofsweetlightcrude.Brentistheoil makeralsoknownasBrentBlend. VolatilityIndex(VIX)TheVIXshowsthemarket market's sexpectationof30dayvolatility. volatility Itisconstructedusingtheimpliedvolatilitiesofawiderangeof S&P500index options. Thisvolatilityismeanttobeforwardlookingandiscalculatedfrombothcallsandputs. TheVIXisawidelyusedmeasureofmarketriskandisoften referredtoas the"investorfeargauge". 29

IndexDescriptions
BofAMerrillLynchUSDollarEmergingMarketsSovereignPlusIndex(IGOV) ThisindextrackstheperformanceofUSdollardenominatedemergingmarketandcrossoversovereigndebtpubliclyissuedintheeurobondorUSdomesticmarket. QualifyingcountriesmusthaveaBB1orlowerforeigncurrencylongtermsovereigndebtrating(basedonanaverageofMoodys,S&P,andFitch). BofAMerrillLynchU.S.HighYieldCashPayIndex(J0A0)BelowInvestmentGrade TheMerrillLynchHighYieldIndextrackstheperformanceofUSdollardenominatedbelowinvestmentgradecorporatedebt,currentlyinacouponpayingperiod, thatispubliclyissuedintheUSdomesticmarket.Qualifyingsecuritiesmusthaveabelowinvestmentgraderating(basedonanaverageofMoodys,S&PandFirth foreigncurrencylongtermsovereigndebtratings).Musthaveoneyearremainingtofinalmaturityandaminimumoutstandingamountof$100MM. BofAMerrillLynchInternationalGovernmentIndex(NOGO) TheMerrillLynchInternationalIndextrackstheperformanceofAustralia,Canadian,French,German,Japan,Dutch,SwissandUKinvestmentgradesovereigndebt publiclyissuedanddenominatedintheissuersowndomesticmarketandcurrency.Qualifyingsecuritiesmusthaveatleastoneyearremainingtermtofinalmaturity, afixedcouponscheduleandaminimumamountoutstanding. BofAMerrillLynchMortgageBackedSecuritiesIndex(MOA0) ThisindextrackstheperformanceofUSdollardenominatedfixedrateandhybridresidentialmortgagepassthroughsecuritiespubliclyissuedbyUSagenciesinthe USdomesticmarket.30year,20year,15yearandinterestonlyfixedratemortgagepoolsareincludedintheIndexprovidedtheyhaveatleastoneyearremaining termtofinalmaturityandaminimumamountoutstandingofatleast$5billionpergenericcouponand$250MMperproductionyear withineachgenericcoupon. BofAMerrillLynchU.S.MunicipalSecuritiesIndex(UOA0) ThisindextrackstheperformanceofUSdollardenominatedinvestmentgradetaxexemptdebtpubliclyissuedbyUSstatesandterritories,andtheirpolitical subdivisions,intheUSdomesticmarket.Qualifyingsecuritiesmusthaveatleastoneyearremainingtermtofinalmaturity,afixedcouponscheduleandan investmentgraderating(basedonMoodys,S&PandFitch).Minimumsizevarybasedontheinitialtermtofinalmaturityattime ofissuance. BarclaysCapitalGlobalEmergingMarketsIndex TheBarclaysCapitalGlobalEmergingMarketsIndexrepresentstheunionoftheUSDdenominatedUSEmerging MarketsindexandthepredominatelyEURdenominatedPanEuroEmergingMarketsIndex, Index coveringemergingmarketsinthefollowingregions:Americas, Americas Europe, Europe MiddleEast,Africa,andAsia.AswithotherfixedincomebenchmarksprovidedbyBarclaysCapital,theindexisrulesbased,whichallowsforanunbiasedviewofthe marketplaceandeasyreplicability. JPMorganInvestmentGradeCorporateIndex JPMorganInvestmentGradeCorporateIndexincludesperformanceofUSdollardenominatedinvestmentgrade corporatedebtpubliclyissuedintheUSdomesticmarket.Qualifyingsecuritiesmusthaveaninvestmentgraderating(basedonanaverageofMoodys,S&Pand Fitch)andaninvestmentgraderatedcountryofrisk(basedonanaverageofMoodys,S&PandFitchforeigncurrencylongtermsovereigndebtratings).Securities musthaveatleastoney yearremaining gtermtofinalmaturity, y afixedcoupon p scheduleandaminimumamountoutstanding gof$250MM. DrawDown Thepeaktotroughdeclineduringaspecificrecordperiodofaninvestment,fundorcommodity.Adrawdownisusuallyquotedasthepercentage betweenthepeakandthetrough. NAV Amutualfund'spricepershareorexchangetradedfund's(ETF)persharevalue.Inbothcases,thepersharedollaramountof thefundiscalculatedbydividing thetotalvalueofallthesecuritiesinitsportfolio,lessanyliabilities,bythenumberoffundsharesoutstanding. CMO Atypeofmortgagebackedsecuritythatcreatesseparatepoolsofpassthroughratesfordifferentclassesofbondholderswith varyingmaturities,called tranches.Therepaymentsfromthepoolofpassthroughsecuritiesareusedtoretirethebondsintheorderspecifiedbythebonds'prospectus TIPS Treasury T I Inflation fl ti P Protection. t ti At treasurysecurity it th that ti isi indexed d dt toi inflation fl ti i inorder d t toprotect t ti investors t f fromth thenegative ti effects ff t of finflation. i fl ti TIPSare consideredanextremelylowriskinvestmentsincetheyarebackedbytheU.S.governmentandsincetheirparvalueriseswithinflation,asmeasuredbythe ConsumerPriceIndex,whiletheirinterestrateremainsfixed. CPI ConsumerPriceIndex.Ameasurethatexaminestheweightedaverageofpricesofabasketofconsumergoodsandservices,such astransportation,foodand 30 medicalcare. CashFlow Cashflowmeasuresthecashgeneratingcapabilityofacompanybyaddingnoncashcharges(e.g.depreciation)andinterestexpensetopretaxincome.

IndexDescriptions
BofA/MerrillLynchHighYieldCashPayCCCratedIndex(JOA3) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonCCCrated HighYieldcreditonly. BofA/MerrillLynchHighYieldCashPayBBrated BB ratedIndex(JOA1) .A AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonBBrated HighYieldcreditonly. BofA/MerrillLynchHighYieldCashPayBratedIndex(JOA2) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonBratedHigh Yieldcreditonly. BofA/MerrillLynchCreditIndexBBBratedIndex(COA4) .AcomponentoftheBofA/MerrillLynchCreditIndexconcentratingonthelowerratedBBB investmentgradecredits. BofA/Merrill / Lynch y CreditIndexAAratedIndex( (COA2) ) .Acomponent p oftheBofA/Merrill / Lynch y CreditIndexconcentrating gontheAAratedinvestmentg grade credits. BofA/MerrillLynchCreditIndexAratedIndex(COA3) .AcomponentoftheBofA/MerrillLynchCreditIndexconcentratingontheAratedinvestmentgrade credits. BofA/MerrillLynchCreditIndexAAAratedIndex(COA1) .AcomponentoftheBofA/MerrillLynchCreditIndexconcentratingonthehighestratedAAA investmentgradecredits. BofAMerrillLynchUSTreasuryIndex(G0Q0)TheMerrillLynchUSTreasuryIndextrackstheperformanceofUSdollardenominatedsovereigndebtpublicly i issued dby b the h USgovernmenti ini itsdomestic d i market. k Qualifying Q lif i securities i i musthave h atleast l oneyearremaining i i termtofinal fi l maturity, i afi fixed dcouponschedule h d l andaminimumamountoutstandingof$1billion. BofAMerrillLynchUS1015YearTreasuryIndexLongTreasuryTheMerrillLynchUS1015TreasuryIndextrackstheperformanceofUSdollardenominated10 15yearsovereigndebtpubliclyissuedbytheUSgovernmentinitsdomesticmarket.ItisasubsetoftheBofAMerrillLynchU.S.TreasuryIndex(GOQO). BofAMerrillLynchMunicipalIndexTheMerrillLynchMunicipal BofAMerrillLynchCurrent10yearUSTIndex Thisindexisthe10yearcomponentoftheUSGovernmentindex. BofAMerrillLynchCurrent30yearUSTIndex Thisindexisthe30yearcomponentoftheUSGovernmentindex. S&PGSCISingleNameCommodityExcessReturnIndex Thisindexisasinglenamecommodity(ex.Corn)singledoutoftheS&PGSCIIndextoshowthetotal returnforthatspecificcommodity. ShanghaiIndex TheShanghaiStockExchangeCompositeisacapitalizationweightedindextrackingdailypriceperformanceofallAandBshareslistedonthe ShanghaiStockExchange.ThisindexwasdevelopedDecember19,1990withabasevalueof100. S&P/CaseShillerCompositeHomePriceIndex TheCaseShillerHomePriceIndices,onecomprisedofpricechangeswithinall20metropolitanmarkets,and anothercomprisedofpricechangeswithinthefollowingsubsetof10metropolitanmarkets:Boston,Chicago,Denver,LasVegas,LosAngeles,Miami,NewYork, SanDiego,SanFranciscoandWashingtonDC.Inadditiontothose10markets,the20HomePriceindexreflectspricechangesforAtlanta,Charlotte,Dallas,Detroit, Minneapolis,Phoenix,Portland,SeattleandTampa. NASDAQ Acomputerizedsystemthatfacilitatestradingandprovidespricequotationsonmorethan5,000ofthemoreactivelytradedover thecounterstocks. Createdin1971,theNasdaqwastheworld'sfirstelectronicstockmarket. Transports TheIndustrialsSectorincludescompanieswhosebusinessesaredominatedbyoneofthefollowingactivities:Themanufactureand distributionof capitalgoods,includingaerospace&defense,construction,engineering&buildingproducts,electricalequipmentandindustrial machinery Utilities Apublicutilityisabusinessthatfurnishesaneverydaynecessitytothepublicatlarge.Publicutilitiesprovidewater,electricity,naturalgas,telephone service,andotheressentials.Utilitiesmaybepubliclyorprivatelyowned,butmostareoperatedasprivatebusinesses. BasisPoint Abasispointisaunitthatisequalto1/100th of1%,andisusedtodenotethechangeinafinancialinstrument. REIT RealEstateTrust.Asecuritythatsellslikeastockonthemajorexchangesandinvestsinrealestatedirectly,eitherthrough propertiesormortgages 31 Duration Durationisacommonlyusedmeasureofthepotentialvolatilityofthepriceofadebtsecurity,ortheaggregatemarketvalueofaportfolioofdebt securities,priortomaturity.Securitieswithalongerdurationgenerallyhavemorevolatilepricesthansecuritiesofcomparablequalitywithashorterduration.

IndexDescriptions
BofA/MerrillLynchInflationLinkedIndex(G0Q1) TheBofAMerrillLynchUSInflationLinkedTreasuryIndextrackstheperformanceofUSdollardenominated inflationlinkedsovereigndebtpubliclyissuedbytheUSgovernmentinitsdomesticmarket. CitigroupTIPS(SBUSILSI) . Itmeasuresthereturnsoftheinflationlinkedbondswithfixedratecouponpaymentsthatarelinkedtoaninflationindex.The priceof eachissueintheUSLSIisadjustedbyusinganindexratio.Theindexratioisdeterminedbydividingthecurrentinflationindexlevelbytheinflationindexlevelat thetimeofissueofthesecurity.Theinflationindexispublishedonamonthlybasis,andtheintramonthindexratioiscalculatedusinglinear interpolation. p BarclaysCapitalCMBSIndex trackstheperformanceofUSdollardenominatedsecuritizedcommercialmortgagebackedsecurities. Russell2000 measurestheperformanceofthesmallcapsegmentoftheUSequityuniverse.Russell2000isasubsetoftheRussell3000indexrepresenting approximately10%ofthetotalmarketcapitalizationofthatindex. S&PGSCI isacompositeindexofcommoditysectorreturnrepresentinganunleveraged,longonlyinvestmentincommodityfuturesthatisbroadlydiversified acrossthespectrumofcommodities. S&PGSCIAgriculture isacompositeindexofagriculturecommodityfuturesunleveraged,longonlyinvestment. Citi Citigroup Economic E i Surprise S i Index I d . The Th Citi CitigroupE Economic i S Surprise i I Indices di areobjective bj ti and dquantitative tit ti measuresof feconomic i news.They Th aredefined d fi das weightedhistoricalstandarddeviationsofdatasurprises(actualreleasesvsBloombergsurveymedian).Apositivereadingof theEconomicSurpriseIndexsuggests thateconomicreleaseshaveonbalancebeatingconsensus.Theindicesarecalculateddailyinarollingthreemonthwindow.Theweightsofeconomicindicators arederivedfromrelativehighfrequencyspotFXimpactsof1standarddeviationdatasurprises.Theindicesalsoemployatimedecayfunctiontoreplicatethe limitedmemoryofmarkets. DAX ThisindexistheGermanStockIndexisatotalreturnindexof30selectedGermanbluechipstockstradedontheFrankfurtStockExchange. CAC40 ThisindexthemostwidelyusedindicatoroftheParismarket,reflectstheperformanceofthe40largestequitieslistedinFrance,measuredbyfreefloat marketcapitalizationandliquidity. FTSE100 Isacapitalizationweightedindexofthe100mosthighlycapitalizedcompaniestradedontheLondonStockExchange. MexicoIPC TheMexicanIPCindexisacapitalizationweightedindexoftheleadingstockstradedontheMexicanStockExchange. HangSeng TheHangSeng ChinaEnterprisesIndexisafreefloat capitalizationweightedindexcomprisedofHshareslistedontheHongKongStockExchangeand includedintheHangSeng MainlandCompositeIndex. KOSPI ThisindexisacapitalizedweightedindexofallcommonsharesontheKoreanStockExchanges. Nikkei225 TheNikkei225Stockaverageisapriceweightedaverageof225topratedJapanesecompanieslistedintheFirstSectionoftheTokyoStockExchange. AustraliaAORD S&P/ASXAllOrdinariesrepresents500largestcompaniesintheAustralianequitiesmarket.Indexconstitutesaredrawnfromeligiblecompanies listedontheAustralianStockExchange. BrazilBovespa Index(IBOV)TheBovespa Idnex isagrossreturnindexweightedbytradedvolumeandiscomprisedofthemostliquidstockstradedontheSao PauloStockExchange.TheBovespa Indexhasbeendivided10timesbyafactorof10sinceJanuary1,1985. ShanghaiIndex(SHCOMP)TheShanghaiStockExchangeCompositeIndexisacapitalizationweightedindex.TheindextracksthedailyperformanceofallAshares andBshareslistedontheShanghaiStockExchange Exchange.TheindexwasdevelopedonDecember19 19,1990 1990withabasevalueof100 100. BSEIndiaSensitiveIndex(Sensex)TheSensex isacapweightedindex.Theselectionoftheindexmembershasbeenmadeonthebasisofliquidity,depthand floatingstockadjustmentdepthandindustryrepresentation. 32

IndexDescriptions
EuroStoxx (SX5E)TheEuro Stoxx 50Index,Europe'sleadingbluechipindexfortheEurozone providesabluechiprepresentationofsupersector leadersinthe Eurozone. Nikkei225(NKY)TheNikkei225stockaverageisapriceweightedaverageof225topratedJapanesecompanieslistedintheFirstSectionoftheTokyoStock Exchange. iShares(MSCIEM)iSharesMSCIEmergingMarketsIndexisanexchangetradedfundincorporatedintheUSA.TheFundseeksresultsthatcorrespondgenerallyto thep priceandy yieldp performanceoftheMSCITREmerging g gMarketsIndex. Japan(G0Y0) BofAMerrillLynchJapanGovernement IndextrackstheperformanceofJPYdenominatedsovereigndebtpubliclyissuedbytheJapanese governmentinitsdomesticmarket. Brazil(GDBR) Bof AMerrillLynchUSDollarBrazilSovereignIndexrackstheperformanceofRialdenominatedsovereigndebtpubliclyissuedbytheBrazilian governmentinitsdomesticmarket. Mexico(GDMX) Bof AMerrillLynchUSDollarMexicoSovereignIndexrackstheperformanceofPesodenominatedsovereigndebtpubliclyissuedbytheMexican governmentinitsdomesticmarket. U it dKingdon United Ki d (G0LO) Bof B f AM Merrill illL Lynch hUSDollar D ll UKGiltI Index d t tracks k th theperformance f of fthe th B British iti hPound P dd denominated i t dsovereign i d debt btpublicly bli l i issued dby b theBraziliangovernmentinitsdomesticmarket. Russia(GDRU) Bof AMerrillLynchUSDollarRussianSovereignIndexrackstheperformanceofRubledenominatedsovereigndebtpubliclyissuedbytheRussian governmentinitsdomesticmarket. Germany(G0DO) Bof AMerrillLynchGermanGovernmentIndextrackstheperformanceofEurodenominatedsovereigndebtpubliclyissuedbytheGerman governmentinitsdomesticmarket. France(G0FO) Bof AMerrillLynchFrenchGovernmentIndextrackstheperformanceofEurodenominatedsovereigndebtpubliclyissuedbytheFrench governmentinitsdomesticmarket.

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Disclaimer
ImportantInformationRegardingThisReport
Issueselectionprocessesandtoolsillustratedthroughoutthispresentationaresamplesandmaybemodifiedperiodically.Suchchartsarenottheonlytoolsused bytheinvestmentteams,areextremelysophisticated,maynotalwaysproducetheintendedresultsandarenotintendedforusebynonprofessionals. DoubleLinehasnoobligationtoproviderevisedassessmentsintheeventofchangedcircumstances.Whilewehavegatheredthisinformationfromsources believedtobereliable,DoubleLinecannotguaranteetheaccuracyoftheinformationprovided.Securitiesdiscussedarenotrecommendationsandarepresented asexamplesofissueselectionorportfoliomanagementprocesses. processes Theyhavebeenpickedforcomparisonorillustrationpurposesonly. only Nosecuritypresented withiniseitherofferedforsaleorpurchase.DoubleLinereservestherighttochangeitsinvestmentperspectiveandoutlook withoutnoticeasmarketconditions dictateorasadditionalinformationbecomesavailable.

ImportantInformationRegardingRiskFactors
Investmentstrategiesmaynotachievethedesiredresultsduetoimplementationlag,othertimingfactors,portfoliomanagementdecisionmaking,economicor marketconditionsorotherunanticipatedfactors.Theviewsandforecastsexpressedinthismaterialareasofthedateindicated,aresubjecttochangewithout notice, ,may ynotcometop passanddonotrepresent p arecommendationorofferofany yp particularsecurity, y,strategy, gy,orinvestment. Pastp performanceisno guaranteeoffutureresults.

ImportantInformationRegardingDoubleLine
Inpreparingtheclientreports(andinmanagingtheportfolios),DoubleLineanditsvendorspriceseparateaccountportfolio securitiesusingvarioussources, includingindependentpricingservicesandfairvalueprocessessuchasbenchmarking. ToreceiveacomplimentarycopyofDoubleLinescurrentFormADVPartII(whichcontainsimportantadditionaldisclosureinformation),acopyoftheDoubleLines proxyvotingpoliciesandprocedures,ortoobtainadditionalinformationonDoubleLinesproxyvotingdecisions,pleasecontact DoubleLinesClientServices.

ImportantInformationRegardingDoubleLinesInvestmentStyle
DoubleLineseekstomaximizeinvestmentresultsconsistentwithourinterpretationofclientguidelinesandinvestmentmandate.WhileDoubleLineseeksto maximizereturnsforourclientsconsistentwithguidelines,DoubleLinecannotguaranteethatDoubleLinewilloutperformaclient'sspecifiedbenchmark. Additionally,thenatureofportfoliodiversificationimpliesthatcertainholdingsandsectorsinaclient'sportfoliomayberisinginpricewhileothersarefalling;or, thatsomeissuesandsectorsareoutperformingwhileothersareunderperforming.Suchoutorunderperformancecanbetheresultofmanyfactors,suchasbut notlimitedtoduration/interestrateexposure,yieldcurveexposure,bondsectorexposure,ornewsorrumorsspecifictoasinglename. D bl Li i DoubleLine isanactive ti managerand dwill illadjust dj tthe th composition iti of fclients li t portfolios tf li consistent i t twith ithourinvestment i t tteams t judgment j d tconcerning i market k t conditionsandanyparticularsecurity.TheconstructionofDoubleLineportfoliosmaydiffersubstantiallyfromtheconstruction ofanyofavarietyofbondmarket indices.Assuch,aDoubleLineportfoliohasthepotentialtounderperformoroutperformabondmarketindex.Sincemarketscanremaininefficientlypricedfor longperiods,DoubleLinesperformanceisproperlyassessedoverafullmultiyearmarketcycle. ReferencestootherFundsshouldnotbeinterpretedasanofferofthosesecurities. Diversification doesnotassureaprofitorprotectagainstalossinadecliningmarket. Opinionsexpressedaresubjecttochangeatanytime,arenotaguaranteeandshouldnotbeconsideredinvestmentadvice. 2013DoubleLineCapitalLP 34

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