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LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer
June27,2013
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
June27,2013
HeadlineCPIYoY
Current:1.40% Average:3.91%
USPersonalConsumptionExpenditureCorePriceIndex
Current:1.05% Average:3.47%
WherestheInflation? GoldSpotIndex
YearEnd2007throughJune26,2013
WherestheInflation? CRBCommodityIndex
YearEnd2007throughJune24,2013
S&PGSCICommodityIndices RecentMonths
April30,2013throughJune26,2013
S&PGSCICommodityIndices YearToDate2013
December30,2012throughJune26,2013
10
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
13
ShanghaiIndex
December31,2009throughJune26,2013
14
ChinaInterbankOfferedRate:PBoCTightening
June26,2012throughJune26,2013
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.
17
17
30YearU.S.MortgageRates
December31,2007throughJune26,2013
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
21
ABXAAA071Index
December31,2007throughJune26,2013
22
InvestmentGradeCorporates ETF
December31,2012throughJune26,2013
23
TIPS ETF
December31,2012throughJune27,2013
24
MunicipalBond ETF
December31,2012throughJune26,2013
25
EmergingMarkets ETF
December31,2012throughJune26,2013
26
AnnalyCapitalManagement MortgageREIT
December31,2012throughJune26,2013
27
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.
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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
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
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