(Adds DoubleLine analyst comment, additional flows, fund
By Sam Forgione
NEW YORK Jan 3 The DoubleLine Total Return Bond
Fund posted a net outflow of $3.5 billion in December,
its biggest one-month withdrawal ever, data from research firm
Morningstar showed on Tuesday.
The fund, which launched in April 2010 and is DoubleLine's
flagship, attracted a net $3.05 billion in new cash for all of
2016, the Morningstar data showed. The fund's December outflow,
which reduced its assets to $55.7 billion, marks its
second-straight net cash withdrawal after it bled $1.4 billion
Overall, the DoubleLine open-end mutual funds collectively
posted a net outflow of $3 billion in December and a total net
inflow of $7.9 billion in 2016, the Morningstar data showed.
The DoubleLine Total Return Bond Fund invests primarily in
mortgage-backed securities and is run by DoubleLine Chief
Executive Jeffrey Gundlach and the firm's president, Philip
Barach. Gundlach is known on Wall Street as the 'Bond King.'
The latest monthly outflow exceeded the DoubleLine Total
Return Bond Fund's largest and second-largest net withdrawals
for a month, of $2.12 billion and $2.07 billion, that were
posted respectively during the "taper-tantrum" months of
September and December 2013 according to Morningstar data.
In May 2013, after a mere suggestion of an imminent
reduction or "taper" of bond purchases by then-Federal Reserve
Chairman Ben Bernanke, yields skyrocketed in a span of four
"We have seen, as have other intermediate-term bond
managers, net outflows in the DoubleLine Total Return Bond Fund
in the final months of the year as investors have responded to
rising rates and also, maybe, doing some tax-related selling,"
said DoubleLine analyst Loren Fleckenstein.
"It wouldn't surprise me if we saw further net outflows from
intermediate-term bond funds, including ours, in the months
The fund delivered a roughly 2.2 percent return in 2016 to
lag 78 percent of peers, according to Morningstar data. The
fund's five-year annualized return, of 4 percent, has beaten 94
percent of peers, Morningstar data show.
While investors pulled cash from the firm's flagship fund,
the DoubleLine Shiller Enhanced CAPE fund and
DoubleLine Flexible Income Fund were two of the firm's
funds that attracted new money in December - $266 million and
$113 million, respectively.
The inflows brought the DoubleLine Shiller Enhanced CAPE
fund and the DoubleLine Flexible Income Fund's assets to $2
billion and $475 million, respectively.
Los Angeles-based DoubleLine managed over $100 billion in
assets as of June 1, 2016, according to the firm's website.
(Reporting by Sam Forgione; Editing by Bernard Orr)