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Tick,Tick,Tick.

LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

December8,2015

FundOfferings
TotalReturnBondFund
RetailandInstitutionalClass
NoLoadMutualFund
Retail
Nshare
Ticker
MinInvestment
MinIRAInvestment
GrossExpenseRatio

DLTNX
$2,000
$500
0.72%

Inst.
Ishare
DBLTX
$100,000
$5,000
0.47%

TheFundsinvestmentobjectives,risks,chargesandexpensesmustbeconsideredcarefullybeforeinvesting.The
statutoryprospectusandsummaryprospectus(ifavailable)containsthisandotherimportantinformationabout
theFunds,anditmaybeobtainedbycalling1(877)3546311/1(877)DLINE11,orvisiting
www.doublelinefunds.com.Readitcarefullybeforeinvesting.
Investmentsindebtsecuritiestypicallydecreaseinvaluewheninterestratesrise.Thisriskisusuallygreaterforlongertermdebtsecurities.Investmentsinlowerratedandnonratedsecuritiespresenta
greaterriskoflosstoprincipalandinterestthanhigherratedsecurities.InvestmentsinAssetBackedandMortgageBackedSecuritiesincludeadditionalrisksthatinvestorsshouldbeawareofsuchas
creditrisk,prepaymentrisk,possibleilliquidityanddefault,aswellasincreasedsusceptibilitytoadverseeconomicdevelopments.
TheFundmayusecertaintypesofinvestmentderivatives.Derivativesinvolverisksdifferentfrom,andincertaincases,greaterthantheriskspresentedbymoretraditionalinvestments.Derivativesmay
involvecertaincostsandrisksuchasliquidity,interestrate,market,credit,managementandtheriskthatapositioncouldnotbeclosedwhenmostadvantageous.Investinginderivativescouldlosemore
thantheamountinvested.TheFundmayalsoinvestinsecuritiesrelatedtorealestate,whichmaydeclineinvalueasaresultoffactorsaffectingtherealestateindustry.
TheDoubleLineTotalReturnBondFundintendstoinvestmorethan50%ofitsnetassetsinmortgagebackedsecuritiesofanymaturityortype.TheFundtherefore,potentiallyismorelikelytoreacttoany
volatilityorchangesinthemortgagebackedsecuritiesmarketplace.Theserisksaregreaterforinvestmentsinemergingmarkets.
Opinionsexpressedaresubjecttochangeatanytime,arenotforecastsandshouldnotbeconsideredinvestmentadvice.
DoubleLineFundsaredistributedbyQuasarDistributors,LLC.
WhiletheFundsarenoload,managementfeesandotherexpensesstillapply.Pleaserefertotheprospectusforfurtherdetails.
Fundholdingsandsectorallocationsaresubjecttochangeandarenotrecommendationstobuyorsellanysecurity.

Performance
DoubleLineTotalReturnBondFund QuarterEndingSeptember30,2015

QuarterEnd
September30,2015

3Q
2015

YeartoDate
2015

1Year

Ishare

1.68%

2.81%

Nshare

1.71%

BarclaysU.S.
AggregateIndex

SinceInception

3Year

5Year

Annualized

Annualized

Annualized
(4610to93015)

4.23%

3.42%

5.91%

8.05%

2.62%

4.07%

3.20%

5.66%

7.80%

1.23%

1.13%

2.94%

1.71%

3.10%

4.03%

Asof September30,2015

IShare NShare

BarclaysU.S.
AggregateIndex

1YrStd Deviation1

2.00%

2.07%

GrossExpenseRatio

0.47%

0.72%

3.06%

1.Standarddeviationisameasureofthevariationordispersionofasetofdatafromitsmeanorexpected/budgetedvalue.Alowstandarddeviationindicatesthatthedatapointstendtobeverycloseto
themean,whereasahighstandarddeviationindicatesthatthedataisspreadoutoveralargerangeofvalues.Ameasureofaninvestment'svolatility.

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturnandprincipal
valueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthantheoriginalcost.Current
performanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrenttothemostrecentmonthendmaybe
obtainedbycalling2136338200orbyvisitingwww.doublelinefunds.com.
BarclaysUSAggregateIndexrepresentssecuritiesthatareSECregistered,taxable,anddollardenominated.Theindexcoversthe USinvestmentgradefixedrate
bondmarket,withindexcomponentsforgovernmentandcorporatesecurities,mortgagepassthroughsecurities,andassetbackedsecurities.Thesemajorsectors
aresubdividedintomorespecificindicesthatarecalculatedandreportedonaregularbasis.Itisnotpossibletoinvestinanindex.
PastPerformancedoesnotguaranteefutureresults.Indexperformanceisnotillustrativeoffundperformance.

UpcomingWebcastAnnouncements
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JeffreyGundlachwilldiscuss
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Gotowww.doubleline.com,HomepageunderEvents
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ShillerEnhancedCAPE Fund February9,2016


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ToReceivePresentationSlides:
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Tick,Tick,Tick.

LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

December8,2015

TABI TheFed

ProbabilityofRateHike
February2,2015throughDecember7,2015
ProbabilityofRateHike
*basedonFedFundFutures
100%
90%
80%
70%
60%
Dec
50%

Mar
Jun

40%
30%
20%
10%
0%
2/2/2015

3/17/2015

Source:DoubleLine,Bloomberg
Youcannotinvestdirectlyinanindex.

4/28/2015

6/10/2015

7/23/2015

9/3/2015

10/15/2015

11/26/2015

3MonthLIBOR
December31,2009throughDecember7,2015

Source:Bloomberg
LIBOR=LondonInterbankOfferedRaterepresentstheICEBenchmarkAdministrationFixingforUSDollar.Thefixingisconductedeachdayat11amandreleasedat11:45am.Youcannotinvestdirectly
inanindex.

PastFedHikeComparisons
Asof June17,2015

Source:WallStreetJournalFedFlagsSlowPaceforRateHikes
GDP=GrossDomesticProductistheamountofgoodsandservicesproducedwithinagivencountry.PCE=PersonalConsumption Expenditures..Youcannotinvestdirectlyinanindex.

U.S.NominalGDPYoY December 31,1990toDecember2,2015

Source:DoubleLine,Bloomberg,ReportedQuarterlyasofSeptember30,2015
GDPCURYIndex=U.S.GDPinNominalDollarsyearoveryear,seasonallyadjusted.GDP=theamountofgoodsandserviceproduced withinagivencountry/territory.Yoy =yearoveryear.Youcannot
investdirectlyinanindex.

GDPNowRevisedDown

Source:AtlantaFederalReserveasofDecember4,2015
GDP=GrossDomesticProductistheamountofgoodsandservicesproducedwithinagivencountry.Bluechipconsensus=IsamonthlysurveyandassociatedpublicationbytheBlueChipPublications
divisionofAspenPublisherscollectingmacroeconomicindicatorofthehealthoftheU.S.economy.SAAR=SeasonallyAdjustedAnnualRate.Youcannotinvestdirectlyinanindex.

10

AtlantaFedGDPForecastvs.ActualGDP
September3,2013toSeptember3,2015

Source:Bloomberg
GDDCAFJP=AtlantaFedGFPNow Forecaststhatprovidesanestimateofoveralleconomicactivityinaneconomy.GDPCQOQIndex=AtlantaFedGDPNow Forecasts.GDPUSChained2009DollarsQoQ.
GDP=GrossDomesticProductistheamountofgoodsandservicesproducedwithinagivencountry.Youcannotinvestdirectlyinanindex.

11

PastFedHikeComparisons
Asof September30,2015

GDP=GrossDomesticProductistheamountofgoodsandservicesproducedwithinagivencountry.Youcannotinvestdirectlyinanindex.

12

ISMManufacturingvs.NominalGDP
ISMManufacturingIndex(LHS)

ISMManufacturingIndex
December31,2003 November30,2015

60

YoYChangeinNominalUSGDP(RHS)

8%

6%

55
4%
50
2%
45
0%
40

35

30

YoYChangeinNominalUSGDP
December31,2003 September30,2015

65

2%

4%

Source:Bloomberg,DoubleLine
ISMManufacturingindexisbasedonsurveysofmorethan300manufacturingfirmsbytheinstituteofSupplyManagement.QE=quantitativeeasing.GDP=GrossDomesticProductistheamountof
goodsandservicesproducedwithinagivencountry.LHS=lefthandside,RHS=righthandside.YoY =yearoveryear.Youcannotinvestdirectlyinanindex.

13

ISMManufacturingvs.QuantitativeEasing
65

QE1

QE2

QE3

ISMManufacturingIndex
December31,2003 November30,2015

60

55

50

45

40

35
ISMManufacturingIndex
30

Source:Bloomberg,DoubleLine
ISMManufacturingindexisbasedonsurveysofmorethan300manufacturingfirmsbytheinstituteofSupplyManagement.QE=quantitativeeasing.Youcannotinvestdirectlyinanindex.

14

U.S.IndustrialProduction(YoY)
10.0%

USIndustrialProductionYoY

YearoverYear%Change
December31,1999 October31,2015

5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

Source:DoubleLine,Bloomberg
YoY =yearoveryear.Youcannotinvestdirectlyinanindex.

15

TheDifferenceBetweenHikingandQEInfinity60bpsof
GDP?
USRealGDPYoY
3.5%

EURealGDPYoY

GDPYearoverYear%Change
December31,2010 September30,2015

3.0%
2.5%
2.20%
2.0%
1.5%
1.60%
1.0%
0.5%
0.0%
0.5%
1.0%
1.5%

Source:Bloomberg,DoubleLine
QE=QuantitativeEasing.bps=basispoints.GDP=grossdomesticproductorthenumberofgoodsandservicesproducedwithina givencountry.YoY =yearoveryear.EU=Eurozonewhichis
comprisedof27countriesacrossEurope.Youcannotinvestdirectlyinanindex.

16

GlobalInflationsUsingEurozoneMethod
January1,2005throughSeptember30,2015

Source:BiancoResearch
CPI=ConsumerPriceindexmeasurestheweightedaveragepricesofthebasketofconsumergoodsandservices.HICP=CommonmeasureofinflationacrosstheEurozone.YoY =yearoveryear.
Eurozonemethoddoesnotincludeshelter.Youcannotinvestdirectlyinanindex

17

WhyHikeNow?PCE
3.50%

HeadlinePCEYoY
CorePCEYoY

PCEYearoverYear%Change
December31,2010 October31,2015

3.00%

2.50%

QE3September2012
2.00%

1.50%

1.70%

1.28%

1.00%

0.50%

0.20%
0.00%

Source:DoubleLine,Bianco,Bloomberg
PCE=personalconsumptionexpenditures.CorePCEmeasuresthepricespaidbyconsumersforgoodsandserviceswithoutthevolatilitycausedbymovementsinfoodandenergy.HeadlinePCE
includesfoodandenergy.QE=QuantitativeEasing.YoY =yearoveryear.Youcannotinvestdirectlyinanindex..

18

GlobalQEDecember31,2008throughProjectedYearEnd2016

Source:DeutscheBankResearchNovember2015Report
USD=U.S.Dollar,Fed=FederalReserve,ECB=EuropeanCentralBank,BoJ =BankofJapan,bln =billion,QE=QuantitativeEasing.

19

NewHighsinNegativeYieldingAssetsinEurozone
July1,2014throughOctober31,2015

ECB=EuropeanCentralBank.EurozoneistheEuropeanUnionconsistingofAustria,Belgium,Cyprus,Estonia,Finland,France, Germany,Greece,Ireland,Italy,Latvia,Lithuania,Luxembourg,
Malta,theNetherlands,Portugal,Slovakia,SloveniaandSpain.bn =Eurobillion.ExchangerateasofDecember7,2015is$1U.S.dollar=0.92Euro.Youcannotinvestdirectlyinanindex.

20

NegativeRatesinEurozoneandBondFundFlows
January31,2015throughNovember30,2015

January31,2014throughSeptember30,2015

bn =Eurobillion.ExchangerateasofDecember7,2015is$1U.S.dollar=0.92Euro.600 = $651.15 bn U.S.


Lipper=ThompsonReutersLipperIndextracksthefinancialperformanceofEuropeanbondflows.EFAMA=EuropeanFundandAssetManagementAssociation.JPM
GBIBroadIndex=TracksfixedrateissuancesformhighincomecountriesspanningNorthAmerica,EuropeandAsia.Youcannotinvestdirectlyinanindex.

21

Sweden/Riksbank FlipFlop
January4,2008throughNovember30,2015

CentralBankBalanceSheet

Sveriges Riksbank RepoRate

Source:BloombergFinancialServices
SWBSATOTIndex=SwedenCentralBankBalanceSheetTotalAssetstrackstheaggregateassetsandliabilitiesofbankswithinaneconomy.SWRRATEIIndex=SwedensRepoRateatSveriges Riksbank.
Aninvestmentcannotbemadedirectlyinanindex.

22

GlobalRateHikes
AsofNovember30,2015

Median=Avalueorquantitylyingatthemidpointofafrequencydistributionofobservedvaluesorquantities.Youcannotinvestdirectlyinanindex

23

CentralBankPolicyRates
January1,2006throughMay31,2015

Source:Minack
NZ=NewZealand
Youcannotinvestdirectlyinanindex.

24

GSFinancialConditionsIndex
November28,2005toNovember30,2015

Source:DoubleLine,Bloomberg
GS=GoldmanSachsFinancialConditionsIndextrackschangesininterestrates,creditspreads,equityprices,andthevalueofthedollarinordertomeasuretheoveralleconomicstrengthorweakness
oftheU.S.economy.Youcannotinvestdirectlyinanindex.

25

S&P500NetProfitMargin
January1,1973throughMarch31,2015

Source:S&P 500Indexisdesignedtomeasureperformanceofthebroaddomesticeconomythroughchangesintheaggregatemarketvalueof 500stocksrepresentingallmajorindustries.Bp =basis


point.Youcannotinvestdirectlyinanindex.

26

WhyHikeNow? JunkBondsDecember8,2010toDecember7,2015

Source:DoubleLine,Bloomberg
JNK=SPDRBarclaysHighYieldBondETFinanexchangetradedincorporatedintheU.S.ItseeksinvestmentresultsthatcorrespondtothepriceandyieldoftheBarclaysHighYieldVeryLiquidBond
Index.Pleaseseetheappendixforprospectuslink,description,expenses,etc.forJNK.DoubleLine TotalReturnBondFundowns0%JNKasofSeptember8,2015.Youcannotinvestdirectlyinan
index.

27

HighYieldSpreadsWiderthanPriorFirstRateHikeinPast
CyclesFebruary1994,June1999,June2004andToday

Spreads=theSpreadbetweenHighYieldandTreasuryyields.
HYSpreadsreferstoCitigroupUSHighYieldMarketIndexwhichisU.S.dollardenominatedindexthatmeasurestheperformanceofhighyielddebtissuedbycorporationsdomiciledintheU.S.and
Canada.Youcannotinvestdirectlyinanindex.

28

LeveragedLoansAveragePrice
December3,2014throughDecember3,2015

Source:Bloomberg
SPBLDALBIndex=S&P/LSTALeveragedLoanIndexPriceisthemarketvalueweightedindexthatmeasuresperformanceofU.S.LeveragedLoanmarket.SPBDLLBindex=S&P/LSTAUSLeverageLoan
100IndexPriceisdesignedtoreflecttheperformanceofthelargestfacilitiesintheleveragedloanmarket.Youcannotinvest directlyinanindex.

29

TABII
DebtBurden

30

U.S.NationalDebt
December31,2004through2019Projections

Source:ForbesNationalDebtTops$18Trillion:GuessHowMuchYouOwe?,April24,2015

31

TotalDeficitsorSurplusesProjectionthrough2025

Source:CongressionalBudgetOfficeAnUpdatetotheBudgetandEconomicOutlook:2015to2025,August25,2015

32

U.S.FederalBudgetExpenditures
January1,1962projectedthrough2020

$3,500

Discretionary
Mandatory

USFederalBudgetExpenditures(BillionsUSD)
1962 2020

$3,000

NetInterest

$2,500

$2,000

$1,500

$1,000

$500

*Forecast

Source:Bloomberg,DoubleLine

33

SocialSecurityStabilityRevisedDown
December31,1998throughProjectedEstimates2038

Source:JustFacts,UnitedStatesSocialSecurityAdministration
OriginalEstimatesandreportcompletedJanuary27,2011andRevised April15,2015.

34

SocialSecurityWillRunaCumulativeCashDeficitof$2.8
trillionBetweenNowand2034

35

MedicareDependencyRatio
December31,1960throughProjected2080

Source:UnitedStatesSocialSecurityAdministration
Estimatesandreportcompletedyearend2013.

36

U.S.SpendingonHealthcare

Source:U.S.DepartmentofHealth&HumanServices,CentersforMedicareandMedicaidServices
GDP=GrossDomesticProductwhichmeasurestheamountsofgoodsandservicesproducedwithinagivencountry.

37

MaturityofFedU.S.TreasuryHoldings
$400

MaturityDistributionofFederalReserveUSTreasuryHoldings
asofDecember3,2015(BillionsUSD)

$373

$350

$329

$300

$250
$220

$216
$194

$200

$178

$177

$150
$122
$108
$101

$100

$88

$50
$23 $21 $19 $27
$17 $20
$0

$27
$9

$3

$12
$0

$0

$0

$0

$34

$94

$31
$3

$1

$0

Source:NYFederalReserve,DoubleLine

38

TABIII GlobalEconomy

39

ShanghaiComposite
December8,2005throughDecember7,2015

Source:Bloomberg
SHCOMP=Shanghaicompositeindexisacapitalizedweightedindex.TheindextracksthedailypriceperformanceofallAsharesandBshareslistedontheShanghaiStockExchange.
Youcannotinvestdirectlyinanindex.

40

ChinasBusinessActivity
October31,2011throughOctober31,2015

Source:Bloomberg
CNPRETLYIndex=ChinaIndustrialEnterprisesTotalProfitsyearoveryearprovidedbytheNationalBureauofStatisticsinChina.Ittracksthebusinessactivitiesoffirms,providingasummaryoftheir
financialcondition.Canincludeincomestatements,balancesheets,statementsofcashflows/retainedearnings,etc.Youcannotinvestdirectlyinanindex.

41

BrazilGDP
December31,1999throughSeptember30,2015

Source:Bloomberg
BZGDYOYIndex=BrazilGrossDomesticProduct(GDP)measuresthefinalmarketvalueofallgoodsandservicesproducedwithin acountry.Youcannotinvestdirectlyinanindex.

42

WhyHikeNow? EmergingMarketEquities
December8,2005throughDecember4,2015

882

883

918

910

831

468

Source:DoubleLine,Bloomberg
EMEquities(MXEFIndex)=TheMSCIEmergingMarketsIndexisafreefloatweightedequityindex.Youcannotinvestdirectlyinanindex.

43

WhyHikeNow? CommodityPrices
December31,1999toDecember8,2015

Source:Bloomberg
BCOMIndex=BloombergCommodityIndexiscalculatedonanexcessreturnbasisandreflectscommodityfuturespricemovements withmonthlyrebalancing.Youcannotinvestdirectlyinanindex..

44

WhyHikeNow? U.S.DollarIndexSpot
December31,2007throughDecember7,2015

Source:BloombergFinancialServices
DXY=DXYistheUSDollarIndex(USDX)indicatesthegeneralvalueoftheUSdollar.AverageexchangeratesbetweentheUSdollarandsixmajorworldcurrencies.
Aninvestmentcannotbemadedirectlyinanindex.

45

TABV
Energy

46

U.S.CrudeOilProductionvs.CrudeOilPrices
December10,2010throughDecember4,2015

Source:DoubleLine,Bloomberg
DOETCRUDIndex=DCECrudeOilTotalProductiondatatracksweeklybarrelsofpetroleumstatusreleasedbytheEnergyInformationAdministration.CL1Comdty =genericcrudeoilfuturescurrent
contract.Youcannotinvestdirectlyinanindex.

47

U.S.CrudeOilInventoriesbyYear
550,000

500,000

2005
450,000

2006
2007
2008

400,000

2009
2010
2011

350,000

2012
2013
2014

300,000

2015

250,000
1

11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53
Weeks

Source:Bloomberg.2015isthroughOctober31,2015
DOESCRUD=DOECrudeoiltotalinventorydataisupdatedeveryWednesday.InformationisprovidedbytheEnergyInformationAdministrationaspartoftheirweeklypetroleumstatusreport.
Youcannotinvestdirectlyinanindex.

48

TABVI
BloodlessVerdictoftheMarket

49

BofA/MerrillFixedIncomeIndexReturns
Grey=Year2014
Blue=YearToDate2015
9.97%

Convertibles(VOSO)
HighYield(JOAO)2.29%

0.98%
2.45%
7.31%

InternationalEmerging(IGOV)
1.36%
Corporate(COAO)
InternationalDeveloped(NOGO)
Mortgages(MOAO)
Government(G0A0)

0.05%

7.51%
8.11%

0.64%
1.36%

6.07%
5.88%

0.81%

DataSource:BofA/MerrillLynchIndicesthroughyearendDecember31,2014andDecember4,2015fortherespectiveyearsindicated.
PleaseseetheAppendixforindexdefinitions.Aninvestmentcannotbemadedirectlyinanindex.

50

BofA/MerrillFixedIncomeIndexReturns
Grey=Year2014
Blue=YearToDate2015
CCCRatedHighYield(JOA3)

3.36%
11.24%

5.34%
0.76%

BBRatedHighYieldCredit(JOA1)
BRatedHighYield(JOA2)
BBBRatedCredit(COA4)
ARatedCredit(COA3)
AAARatedCredit(COA1)

2.77%

1.28%
7.70%

1.16%

7.37%
0.93%
0.43%

9.43%

InvestmentGrade=IndicesratedAAAtoBBB (shownabove)areconsideredtobeinvestmentgrade.AbondisconsideredinvestmentgradeifitscreditratingisBBB orhigherbyStandard&


PoorsorBaa3byMoodys.Thehighertherating,themorelikelythebondistopaybackatpar/$100centsonthedollar.AAAisconsideredthehighestqualityandthelowestdegreeofrisk.They
areconsideredtobestableanddependable.
BelowInvestmentGrade=Alsoknownasjunkbond(shownabove)isasecurityratedbelowinvestmentgradehavingaratingofBBB orbelow.Thesebondsareseenashavinghigherdefault
riskorotheradversecreditevents,buttypicallypayhigheryieldsthanbetterqualitybondsinordertomakethemattractive. Theyarelesslikelytopaybackatpar/$100centsonthedollar.
CreditdistributionfromthehighestavailablecreditratingfromanyNationallyRecognizesStatisticalRatingOrganization(S&P,Moodys,andFitch).
Source:BofA/MerrillLynchIndicesasofDecember31,2014andDecember4,2015andfortheirrespectiveyearsindicated.
PleaseseeappendixforIndexdefinitions
Aninvestmentcannotbemadedirectlyinanindex.

51

U.S.2YearTreasury
December7,2010throughDecember7,2015

Source:BloombergFinancialServices,DoubleLineCapitalLP
GT02=US2YearTreasuryBond.Youcannotinvestdirectlyinanindex.Youcannotinvestdirectlyinanindex.

52

U.S.5YearTreasury
December8,2010throughDecember7,2015

Source:BloombergFinancialServices,DoubleLineCapitalLP
GT5=US5YearTreasuryBond.Youcannotinvestdirectlyinanindex.Youcannotinvestdirectlyinanindex.

53

U.S.10YearTreasury
December8,2010throughDecember7,2015

Source:BloombergFinancialServices,DoubleLineCapitalLP
GT10=US10YearTreasuryBond.Youcannotinvestdirectlyinanindex.

54

U.S.30YearTreasury
December8,2010throughDecember7,2015

Source:BloombergFinancialServices,DoubleLineCapitalLP
GT30=US30YearTreasuryBond.Youcannotinvestdirectlyinanindex.

55

TABVII
DoubleLineTotalReturnBondFund

56

Duration:DBLTXvs.BarclaysU.S.AggregateIndex
April1,2010throughNovember30,2015

DBLTX
Durationvs.BarclaysAGG
6.00

5.00

Duration

4.00

3.00

2.00

1.00

0.00

Duration

BarclaysAGGDuration

Source:DoubleLine,Barclays
BarclaysAGGDuration=BarclaysUSAggregateIndexduration.Durationisameasureofsensitivityofthepriceofafixedincomeinvestmenttoachangeininterestrates.Itsexpressedinyears

57

DBLTXDurationvs.10YearU.S.TreasuryYield
May31,2010throughNovember30,2015

DBLTX
Durationvs.U.S.10yr
4.5

4.5

3.5

Duration

2.5

2.5

1.5

1.5

USTreasury10YrYield

3.5

0.5

0.5

Duration

US10yr

Source:DoubleLine,Bloomberg
Durationisameasureofsensitivityofthepriceofafixedincomeinvestmenttoachangeininterestrates.Itsexpressedinyears.

58

TotalReturnBondFundPortfolioStatistics

Total Return
BondFund

BarclaysCapitalU.S.
AggregateIndex

$98.50

$103.69

Duration

3.65

5.67

Average Life

5.37

7.94

AveragePrice

PortfoliostatisticsasofNovember30,2015basedonmarketweightedaverages.Subjecttochangewithoutnotice.
Averageprice=Ameasureoftheweightedaveragepricepaidforthesecuritiescalculatedbytakingthepricesanddividingbythenumberofsecuritiesanddoesnotincludecash.Averagepriceshouldnot
beconfusedwithnetassetvalue.
AverageDuration =Durationisusedasariskmeasure.Itmeasuresthepricevolatilityofasecuritygivenachangeininterestratemovements.
AverageLife=Theaveragenumberofyearsthateachdollarofunpaidprincipaldueonthemortgageremainsoutstanding.Averagelifeiscomputedastheweightedaveragetimetothereceiptofallfuture
cashflows,usingastheweightsthedollaramountsoftheprincipalpaydowns.
Source:DoubleLineCapitalLP
Youcannotinvestdirectlyinanindex.Pleaseseeindexdefinitionintheappendix.

59

TotalReturnBondFundPortfolioComposition
BySecurityType
CLO 4.4% ABS 2.3%

Cash 8.8%

Government
3.9%

CMBS
7.8%

NonAgency
22.2%

Agency
50.6%

PortfoliocompositionasofNovember30,2015.Subjecttochangewithoutnotice.
Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity.
Cash =Thevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketablesecurities,suchasgovernmentbonds,banker'sacceptances,cashequivalentsonbalancesheetsthatmayinclude
securitiesthatmaturewithin90days.
Government U.S.treasurysecurities.
Agency=MortgagesecuritieswhoseprincipalandinterestguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC).
NonAgency=ResidentialMortgagesBondSecuritiesareatypeofbondbackedbyresidentialmortgages.NonAgencymeanstheywereissuedby aprivateissuer.
CMBS =CommercialMortgageBackedSecurities.Securitizedloansmadeoncommercialratherthanresidentialproperty.
CLO =CollateralizedMortgageObligations
60

TotalReturnBondFundPortfolioComposition
ByAgencyCollateralizeMortgageObligation(CMO)
SecurityType
IOCurrent, IOLocked,
0.7%
0.0%
Cash,8.8%
CMO
Locked,
6.7%

CMOCurrent,
14.5%

Inverse
Floater,0.9%

Pass
Through,
27.8%

AgencyCMOComposition
Cash
InverseFloater
PassThrough
CMOCurrent
CMOLocked
IOCurrent
IOLocked
Subtotal

8.8%
0.9%
27.8%
14.5%
6.7%
0.7%
0.0%
59.39%

PortfoliocompositionasofNovember30,2015. Subjecttochangewithoutnotice.
Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity.
Cash =Thevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketablesecurities,suchasgovernmentbonds,banker'sacceptances,cashequivalentsonbalance
sheetsthatmayincludesecuritiesthatmaturewithin90days.
PassThrough=MortgagepassthroughsecuritieswhoseprincipalandinterestguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC)ornon
agencyprivateissuewithnogovernmentguarantee.
CMOCurrent=CollateralizedMortgageObligation(CMO)isafinancialdebtvehicle/specialpurposeentitycalledapool.Investorsbuybondsissuedbytheentityandreceivepayments
accordingtoadefinedsetofrules.Themortgagesthemselvesarethecollateral,thebondsarethetranches(alsocalledclasses),andthesetofrulesthatdictateshowmoneyisreceived
fromthecollateralwillbedistributediscalledthestructure.Thelegalentity,collateralandstructurearecollectivelyreferredtoasthedeal.
IO =InterestOnlymortgagepoolsinwhichtheborrowersmonthlypaymentisonlytowardtheinterestontheloan.Anonamortized loan.
InverseFloater=Amortgagepoolthathasayieldthatisinverselyrelatedtointerestrates.
IOCurrentpay =Loansthatarecurrentlyreceivingprincipalpayments.
LockedOut/CMOLockedOut=Loansthatforasetperiodoftimewillnotreceiveprincipalpayments.
61

TotalReturnBondFundPortfolio
NonAgencyResidentialMortgageBackedSecurities
(RMBS)BreakdownByOriginalRating
BB
1%

CC
0%

NR
22%

BBB
A
1%
0%
AA
1%
AAA
75%

Portfoliocompositionandcreditratingsasofsecurityorigination.Portfoliocompositionissubjecttochangewithoutnotice.TherearesomenonratedsecuritiesintheFundasshowninthegraphabove.
CreditdistributionisdeterminedfromthehighestavailablecreditratingfromanyNationallyRecognizedStatisticalRatingOrganization(S&P,Moodys,andFitch).
InvestmentGrade=SecuritiesratedAAAtoBBB areconsideredtobeinvestmentgrade.AbondisconsideredinvestmentgradeifitscreditratingisBBB orhigherbyStandard&PoorsorBaa3byMoodys.
Ratingsbasedoncorporatebondmodel.Thehighertherating,themorelikelythebondistopaybackatpar/$100centsonthedollar.AAAisconsideredthehighestqualityandthelowestdegreeofrisk.
Theyareconsideredtobeextremelystableanddependable.
BelowInvestmentGrade=AlsoknownasjunkbondisasecurityratedbelowinvestmentgradehavingaratingofBBB orbelow.Thesebondsareseenas havinghigherdefaultriskorotheradversecredit
events,buttypicallypayhigheryieldsthanbetterqualitybondsinordertomakethemattractive.Theyarelesslikelytopaybackatpar/$100centsonthedollar.
NR=NotRated.Securitiesthatarenotratedbythethreeratingagencies.
CreditqualitymaybeassessedbydifferentagenciesfordifferentbondsforreasonsbeyondthecontroloftheFund.
Source:DoubleLineCapitalLPasofNovember30,2015

62

TotalReturnBondFundPortfolio
NonAgencyResidentialMortgageBackedSecurities
(RMBS)BreakdownByCurrentRating
AAA
11% AA
1%

NR
22%

D
14%

A BBB+
AA+ A
0%
0%
0% 0%
BBB
A+
0%
1%
BBB
0%
BB+
0%
BB
BB 2%
1%
B
CCC+ 1% B+
2%
5%
B
4%
CCC
14%

C
0%

CCC
13%
CC
10%

Portfoliocompositionandcreditratingsasofsecurityorigination.Portfoliocompositionissubjecttochangewithoutnotice.TherearesomenonratedsecuritiesintheFundasshowninthegraphabove.
CreditdistributionisdeterminedfromthehighestavailablecreditratingfromanyNationallyRecognizedStatisticalRatingOrganization(S&P,Moodys,andFitch).
InvestmentGrade=SecuritiesratedAAAtoBBB areconsideredtobeinvestmentgrade.AbondisconsideredinvestmentgradeifitscreditratingisBBB orhigherbyStandard&PoorsorBaa3byMoodys.
Ratingsbasedoncorporatebondmodel.Thehighertherating,themorelikelythebondistopaybackatpar/$100centsonthedollar.AAAisconsideredthehighestqualityandthelowestdegreeofrisk.
Theyareconsideredtobeextremelystableanddependable.
BelowInvestmentGrade=AlsoknownasjunkbondisasecurityratedbelowinvestmentgradehavingaratingofBBB orbelow.Thesebondsareseenas havinghigherdefaultriskorotheradversecredit
events,buttypicallypayhigheryieldsthanbetterqualitybondsinordertomakethemattractive.Theyarelesslikelytopaybackatpar/$100centsonthedollar.
NR=NotRated.Securitiesthatarenotratedbythethreeratingagencies.
CreditqualitymaybeassessedbydifferentagenciesfordifferentbondsforreasonsbeyondthecontroloftheFund.
Source:DoubleLineCapitalLPasofNovember30,2015

63

Tick,Tick,Tick.

LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

December8,2015

SPDRBarclaysHighYieldBondETF(JNK)
InvestmentObjective&Summary
TheinvestmentobjectiveoftheSPDRBarclaysHighYieldBondETFseekstoprovideinvestmentresultsthat,beforefeesandexpenses,
correspondsgenerallytothepriceandyieldperformanceoftheBarclaysHighYieldVeryLiquidIndex.TheETFinvestsinU.S.highyield
bonds.
TheBarclaysHighYieldVeryLiquidIndexisdesignedtomeasuretheperformanceofpubliclyissuedU.S.dollardenominatedhighyieldcorporatebondswithaboveaverage
liquidity.Highyieldsecuritiesaregenerallyratedbelowinvestmentgradeandarecommonlyreferredtoas"junkbonds."The IndexincludespubliclyissuedU.S.dollar
denominated,noninvestmentgrade,fixedrate,taxablecorporatebondsthathavearemainingmaturityofatleastoneyear,regardlessofoptionality,areratedhighyield
(Ba1/BB+/BB+orbelow)usingthemiddleratingofMoody'sInvestorsService,Inc.,FitchInc.,orStandard&Poor's,Inc.Respectively,andhave$500millionormoreofoutstanding
facevalue
ImportantRiskInformation Ingeneral,ETFscanbeexpectedtomoveupordowninvaluewiththevalueoftheapplicableindex.AlthoughETFsharesmaybeboughtandsoldonthe
exchangethroughanybrokerageaccount,ETFsharesarenotindividuallyredeemablefromtheFund.InvestorsmayacquireETFsand tenderthemforredemptionthroughtheFundin
CreationUnitAggregationsonly.Pleaseseetheprospectusformoredetails.
Bondfundscontaininterestraterisk(asinterestratesrisebondpricesusuallyfall);theriskofissuerdefault;issuercreditrisk;liquidityrisk;andinflationrisk.
Investinginhighyieldfixedincomesecurities,otherwiseknownas"junkbonds"isconsideredspeculativeandinvolvesgreaterriskoflossofprincipalandinterestthaninvestingin
investmentgradefixedincomesecurities.Theselowerqualitydebtsecuritiesinvolvegreaterriskofdefaultorpricechangeduetopotentialchangesinthecreditqualityoftheissuer.
TheFundinvestsbysamplingtheIndex,holdingarangeofsecuritiesthat,intheaggregate,approximatesthefullIndexintermsofkeyriskfactorsandothercharacteristicswhichmay
causethefundtoexperiencetrackingerrorsrelativetoperformanceoftheIndex.
Distributor:StateStreetGlobalMarkets,LLC,memberFINRA,SIPC,awhollyownedsubsidiaryofStateStreetCorporation.ReferencestoStateStreetmayincludeStateStreet
Corporationanditsaffiliates.CertainStateStreetaffiliatesprovideservicesandreceivefeesfromtheSPDRETFs.

Beforeinvesting,considerthefunds'investmentobjectives,risks,chargesandexpenses.Toobtainaprospectusorsummaryprospectuswhich
containsthisandotherinformation,call18667872257ortalktoyourfinancialadvisor.Readitcarefullybeforeinvesting.
JNKisdistributedbyStateStreetGlobalMarkets,LLC

65

Definitions
BarclaysCapitalUSAggregateIndex TheBarclaysCapitalUSAggregateIndexrepresentssecuritiesthatareSECregistered,taxable,anddollardenominated.The
indexcoverstheUSinvestmentgradefixedratebondmarket,withindexcomponentsforgovernmentandcorporatesecurities,mortgagepassthroughsecurities,
andassetbackedsecurities.Thesemajorsectorsaresubdividedintomorespecificindicesthatarecalculatedandreportedona regularbasis.
BarclaysCapitalUSTreasuryIndex ThisindexistheUSTreasurycomponentoftheUSGovernmentindex.PublicobligationsoftheUSTreasurywitharemaining
maturityofoneyearormore.
BarclaysCapitalUSTreasury10YearIndex Thisindexisthe10yearcomponentoftheUSGovernmentindex.
BarclaysCapitalCapitalUSTreasury30YearIndex Thisindexisthe30yearcomponentoftheUSGovernmentindex.
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.)
BofAMerrillLynchUS15+YearTreasuryIndexLongTreasuries(G802) ThisindexisasubsetoftheBofAMerrillLynchUSTreasuryIndexincludingallsecurities
witharemainingtermoffinalmaturitygreaterthan15years..
BofAMerrillLynchUSCorporateIndex(COAO)InvestmentGrade TheMerrillLynchCorporateIndextrackstheperformanceofUSdollardenominated
investmentgradecorporatedebtpubliclyissuedintheUSdomesticmarket.Qualifyingsecuritiesmusthaveaninvestmentgraderating(basedonanaverageof
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.
CRBCommodityIndex(CRY) Anunweightedgeometricaverageofsomeimportantcommodities.Itaveragespricesacross17commoditiesandacrosstime.The
indextracksenergy,grains,industrials,livestock,preciousmetals,andagriculturals.
S&P500(SPX) S&P500isafreefloatcapitalizationweightedindexpublishedsince1957ofthepricesof500largecapcommonstocksactively tradedinthe
UnitedStates.
StandardDeviation Sigma=standarddeviation.Itshowshowmuchvariationthereisfromtheaverage(mean,orexpected/budgetedvalue).Alow standard
deviationindicatedthatthedatapointtendtobeveryclosetothemean,whereashighstandarddeviationindicatedthatthe dateisspreadoutoveralargerange
ofvalues.
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'sexpectationof30dayvolatility.Itisconstructedusingtheimpliedvolatilitiesofawiderangeof S&P500index
options. Thisvolatilityismeanttobeforwardlookingandiscalculatedfrombothcallsandputs. TheVIXisawidelyusedmeasureofmarketriskandisoften
referredtoas the"investorfeargauge".
Spread Spreadisthepercentagepointdifferencebetweenyieldsofvariousclassesofbondscomparedtotreasurybonds.

66

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,coveringemergingmarketsinthefollowingregions:Americas,Europe,
MiddleEast,Africa,andAsia.AswithotherfixedincomebenchmarksprovidedbyBarclaysCapital,theindexisrulesbased,whichallowsforanunbiasedviewofthe
marketplaceandeasyreplicability.
JPMorganInvestmentGradeCorporateIndex JPMorganInvestmentGradeCorporateIndexincludesperformanceofUSdollardenominatedinvestmentgrade
corporatedebtpubliclyissuedintheUSdomesticmarket.Qualifyingsecuritiesmusthaveaninvestmentgraderating(basedonanaverageofMoodys,S&Pand
Fitch)andaninvestmentgraderatedcountryofrisk(basedonanaverageofMoodys,S&PandFitchforeigncurrencylongtermsovereigndebtratings).Securities
musthaveatleastoneyearremainingtermtofinalmaturity,afixedcouponscheduleandaminimumamountoutstandingof$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 TreasuryInflationProtection.Atreasurysecuritythatisindexedtoinflationinordertoprotectinvestorsfromthenegativeeffectsofinflation.TIPSare
consideredanextremelylowriskinvestmentsincetheyarebackedbytheU.S.governmentandsincetheirparvalueriseswithinflation,asmeasuredbythe
ConsumerPriceIndex,whiletheirinterestrateremainsfixed.
CPI ConsumerPriceIndex.Ameasurethatexaminestheweightedaverageofpricesofabasketofconsumergoodsandservices,such astransportation,foodand
medicalcare.
CashFlow Cashflowmeasuresthecashgeneratingcapabilityofacompanybyaddingnoncashcharges(e.g.depreciation)andinterestexpensetopretaxincome.

67

IndexDescriptions
BofA/MerrillLynchHighYieldCashPayCCCratedIndex(JOA3) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonCCCrated
HighYieldcreditonly.
BofA/MerrillLynchHighYieldCashPayBBratedIndex(JOA1) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonBBrated
HighYieldcreditonly.
BofA/MerrillLynchHighYieldCashPayBratedIndex(JOA2) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonBratedHigh
Yieldcreditonly.
BofA/MerrillLynchCreditIndexBBBratedIndex(COA4) .AcomponentoftheBofA/MerrillLynchCreditIndexconcentratingonthelowerratedBBB
investmentgradecredits.
BofA/MerrillLynchCreditIndexAratedIndex(COA3) .AcomponentoftheBofA/MerrillLynchCreditIndexconcentratingontheAratedinvestmentgrade
credits.
BofA/MerrillLynchCreditIndexAAAratedIndex(COA1) .AcomponentoftheBofA/MerrillLynchCreditIndexconcentratingonthehighestratedAAA
investmentgradecredits.
BofAMerrillLynchUSTreasuryIndex(G0Q0)TheMerrillLynchUSTreasuryIndextrackstheperformanceofUSdollardenominatedsovereigndebtpublicly
issuedbytheUSgovernmentinitsdomesticmarket.Qualifyingsecuritiesmusthaveatleastoneyearremainingtermtofinal maturity,afixedcouponschedule
andaminimumamountoutstandingof$1billion.
BofAMerrillLynchUS1015YearTreasuryIndexLongTreasuryTheMerrillLynchUS1015TreasuryIndextrackstheperformanceofUSdollardenominated10
15yearsovereigndebtpubliclyissuedbytheUSgovernmentinitsdomesticmarket.ItisasubsetoftheBofAMerrillLynchU.S.TreasuryIndex(GOQO).
BofAMerrillLynchMunicipalIndexTheMerrillLynchMunicipal
BofAMerrillLynchCurrent10yearUSTIndex Thisindexisthe10yearcomponentoftheUSGovernmentindex.
BofAMerrillLynchCurrent30yearUSTIndex Thisindexisthe30yearcomponentoftheUSGovernmentindex.
JPMorganCorporateEMBIBroadDiversifiedIndex(JBCDCOMP) Thisindextrackstheperformanceofinvestmentgradecorporatedebtpublicallyissuedacrossa
rangeofemergingmarketcountries.
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
Duration Durationisacommonlyusedmeasureofthepotentialvolatilityofthepriceofadebtsecurity,ortheaggregatemarketvalueofaportfolioofdebt
securities,priortomaturity.Securitieswithalongerdurationgenerallyhavemorevolatilepricesthansecuritiesofcomparablequalitywithashorterduration.
68

IndexDescriptions

BofA/MerrillLynchInflationLinkedIndex(G0Q1) TheBofAMerrillLynchUSInflationLinkedTreasuryIndextrackstheperformanceofUSdollardenominated
inflationlinkedsovereigndebtpubliclyissuedbytheUSgovernmentinitsdomesticmarket.
CitigroupTIPS(SBUSILSI) . Itmeasuresthereturnsoftheinflationlinkedbondswithfixedratecouponpaymentsthatarelinkedtoaninflationindex.The priceof
eachissueintheUSLSIisadjustedbyusinganindexratio.Theindexratioisdeterminedbydividingthecurrentinflationindexlevelbytheinflationindexlevelat
thetimeofissueofthesecurity.Theinflationindexispublishedonamonthlybasis,andtheintramonthindexratioiscalculatedusinglinear
interpolation.
BarclaysCapitalCMBSIndex trackstheperformanceofUSdollardenominatedsecuritizedcommercialmortgagebackedsecurities.
Russell2000 measurestheperformanceofthesmallcapsegmentoftheUSequityuniverse.Russell2000isasubsetoftheRussell3000indexrepresenting
approximately10%ofthetotalmarketcapitalizationofthatindex.
S&PGSCI isacompositeindexofcommoditysectorreturnrepresentinganunleveraged,longonlyinvestmentincommodityfuturesthatisbroadlydiversified
acrossthespectrumofcommodities.
S&PGSCIAgriculture isacompositeindexofagriculturecommodityfuturesunleveraged,longonlyinvestment.
BarclaysCapitalUS30YearTIPSIndex .BarclaysCapital30yearTIPSontherunindexquotedinUSDollarstradedintraday
CitigroupEconomicSurpriseIndex .TheCitigroupEconomicSurpriseIndicesareobjectiveandquantitativemeasuresofeconomicnews.Theyaredefinedas
weightedhistoricalstandarddeviationsofdatasurprises(actualreleasesvsBloombergsurveymedian).Apositivereadingof theEconomicSurpriseIndexsuggests
thateconomicreleaseshaveonbalancebeatingconsensus.Theindicesarecalculateddailyinarollingthreemonthwindow.Theweightsofeconomicindicators
arederivedfromrelativehighfrequencyspotFXimpactsof1standarddeviationdatasurprises.Theindicesalsoemployatimedecayfunctiontoreplicatethe
limitedmemoryofmarkets.
DAX ThisindexistheGermanStockIndexisatotalreturnindexof30selectedGermanbluechipstockstradedontheFrankfurtStockExchange.
CAC40 ThisindexthemostwidelyusedindicatoroftheParismarket,reflectstheperformanceofthe40largestequitieslistedinFrance,measuredbyfreefloat
marketcapitalizationandliquidity.
FTSE100 Isacapitalizationweightedindexofthe100mosthighlycapitalizedcompaniestradedontheLondonStockExchange.
MexicoIPC TheMexicanIPCindexisacapitalizationweightedindexoftheleadingstockstradedontheMexicanStockExchange.
HangSeng TheHangSengChinaEnterprisesIndexisafreefloatcapitalizationweightedindexcomprisedofHshareslistedontheHongKong StockExchangeand
includedintheHangSengMainlandCompositeIndex.
KOSPI ThisindexisacapitalizedweightedindexofallcommonsharesontheKoreanStockExchanges.
Nikkei225 TheNikkei225Stockaverageisapriceweightedaverageof225topratedJapanesecompanieslistedintheFirstSectionofthe TokyoStockExchange.
AustraliaAORD S&P/ASXAllOrdinariesrepresents500largestcompaniesintheAustralianequitiesmarket.Indexconstitutesaredrawnfromeligiblecompanies
listedontheAustralianStockExchange.
BrazilBovespaIndex(IBOV)TheBovespaIndexisagrossreturnindexweightedbytradedvolumeandiscomprisedofthemostliquidstockstradedontheSao
PauloStockExchange.TheBovespaIndexhasbeendivided10timesbyafactorof10sinceJanuary1,1985.
ShanghaiIndex(SHCOMP)TheShanghaiStockExchangeCompositeIndexisacapitalizationweightedindex.TheindextracksthedailyperformanceofallAshares
andBshareslistedontheShanghaiStockExchange.TheindexwasdevelopedonDecember19,1990withabasevalueof100.
BSEIndiaSensitiveIndex(Sensex)TheSensexisacapweightedindex.Theselectionoftheindexmembershasbeenmadeonthebasisofliquidity,depthand
floatingstockadjustmentdepthandindustryrepresentation.
S&PLSTALevLoanIndex(BankLoans) CreatedbytheLeveragedCommentary&Data(LCD)teamatS&PCapitalIQ,thereviewprovides an overviewandoutlook
oftheleveragedloanmarketaswellasanexpansivereviewoftheS&PLeveragedLoanIndexandsubindexes. Thereviewconsistsofindexgeneralcharacteristics,
results,riskreturnprofile,default/distressstatistics, andrepaymentanalysis.Itisnotpossibletoinvestdirectlyinanindex.
Citigroup3MonthTBill(SBMMTB3) 3MonthUSTBillinUSdollars.
69

Disclaimer
ImportantInformationRegardingThisReport
Thisreportwaspreparedasaprivatecommunicationandwasnotintendedforpubliccirculation.Clientsorprospectsmayauthorizedistributiontotheir
consultantsorotheragents.
Issueselectionprocessesandtoolsillustratedthroughoutthispresentationaresamplesandmaybemodifiedperiodically.Suchchartsarenottheonlytoolsused
bytheinvestmentteams,areextremelysophisticated,maynotalwaysproducetheintendedresultsandarenotintendedforusebynonprofessionals.
DoubleLinehasnoobligationtoproviderevisedassessmentsintheeventofchangedcircumstances.Whilewehavegatheredthisinformationfromsources
believedtobereliable,DoubleLinecannotguaranteetheaccuracyoftheinformationprovided.Securitiesdiscussedarenotrecommendationsandarepresented
asexamplesofissueselectionorportfoliomanagementprocesses.Theyhavebeenpickedforcomparisonorillustrationpurposesonly.Nosecuritypresented
withiniseitherofferedforsaleorpurchase.DoubleLinereservestherighttochangeitsinvestmentperspectiveandoutlook withoutnoticeasmarketconditions
dictateorasadditionalinformationbecomesavailable.ThismaterialmayincludestatementsthatconstituteforwardlookingstatementsundertheU.S.
securitieslaws.Forwardlookingstatementsinclude,amongotherthings,projections,estimates,andinformationaboutpossibleorfutureresultsrelatedtoa
clientsaccount,ormarketorregulatorydevelopments.

ImportantInformationRegardingRiskFactors
Investmentstrategiesmaynotachievethedesiredresultsduetoimplementationlag,othertimingfactors,portfoliomanagementdecisionmaking,economicor
marketconditionsorotherunanticipatedfactors.Theviewsandforecastsexpressedinthismaterialareasofthedateindicated,aresubjecttochangewithout
notice,maynotcometopassanddonotrepresentarecommendationorofferofanyparticularsecurity,strategy,orinvestment. Allinvestmentsinvolverisks.
PleaserequestacopyofDoubleLinesFormADVPart2AtoreviewthematerialrisksinvolvedinDoubleLinesstrategies.Pastperformanceisnoguaranteeof
futureresults.

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contactDoubleLinesClientServices.

70

Disclaimer
ImportantInformationRegardingDoubleLinesInvestmentStyle
DoubleLineseekstomaximizeinvestmentresultsconsistentwithourinterpretationofclientguidelinesandinvestmentmandate.WhileDoubleLineseeksto
maximizereturnsforourclientsconsistentwithguidelines,DoubleLinecannotguaranteethatDoubleLinewilloutperformaclient'sspecifiedbenchmarkorthe
marketorthatDoubleLinesriskmanagementtechniqueswillsuccessfullymitigatelosses.Additionally,thenatureofportfolio diversificationimpliesthatcertain
holdingsandsectorsinaclient'sportfoliomayberisinginpricewhileothersarefalling;or,thatsomeissuesandsectorsareoutperformingwhileothersare
underperforming.Suchoutorunderperformancecanbetheresultofmanyfactors,suchasbutnotlimitedtoduration/interest rateexposure,yieldcurve
exposure,bondsectorexposure,ornewsorrumorsspecifictoasinglename.
DoubleLineisanactivemanagerandwilladjustthecompositionofclientsportfoliosconsistentwithourinvestmentteamsjudgmentconcerningmarket
conditionsandanyparticularsectororsecurity.TheconstructionofDoubleLineportfoliosmaydiffersubstantiallyfromthe constructionofanyofavarietyof
bondmarketindices.Assuch,aDoubleLineportfoliohasthepotentialtounderperformoroutperformabondmarketindex.Sincemarketscanremain
inefficientlypricedforlongperiods,DoubleLinesperformanceisproperlyassessedoverafullmultiyearmarketcycle.

ImportantInformationRegardingClientResponsibilities
Clientsarerequestedtocarefullyreviewallportfolioholdingsandstrategies,includingbycomparingthecustodialstatementtoanystatementsreceivedfrom
DoubleLine.ClientsshouldpromptlyinformDoubleLineofanypotentialorperceivedpolicyorguidelineinconsistencies.Inparticular,DoubleLineunderstands
thatguidelineenablinglanguageissubjecttointerpretationandDoubleLinestronglyencouragesclientstoexpressanycontrastinginterpretationassoonas
practical.ClientsarealsorequestedtonotifyDoubleLineofanyupdatestoClientsorganization,suchas(butnotlimitedto) addingaffiliates(includingbroker
dealeraffiliates),issuingadditionalsecurities,namechanges,mergersorotheralterationstoClientslegalstructure.

DoubleLineisaregisteredtrademarkofDoubleLineCapitalLP.
2015DoubleLineCapitalLP

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LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

December8,2015