DoubleLine Selective Credit Fund Class I (DBSCX)

Overview

The fund is designed to provide investors with the opportunity to invest in a vast array of asset-backed securities, with a strong focus on both residential and commercial mortgage-backed securities. It aims to generate returns through careful investment in a diverse portfolio that comprises not only mortgage-backed securities but also extends to a variety of structured securities such as collateralized bond obligations (CBOs), collateralized loan obligations (CLOs), and other types of collateralized debt obligations (CDOs). The strategic allocation of at least 25% of its total assets into mortgage-backed securities, including those that are privately issued and lacks government agency backing, commonly referred to as "non-agency" securities, underscores its commitment to tapping into multiple sources of potential returns. This approach allows the fund to navigate through various market conditions while striving to meet its investment objectives.

Products and Services

The fund’s offerings are centered around various structured financial instruments, aimed at providing diversified investment opportunities. Below is a breakdown of its primary products and services:

• Mortgage-Backed Securities (MBS): The fund invests in both residential and commercial mortgage-backed securities, which are secured by mortgage payments. These investments potentially offer steady returns derived from the real estate market without direct investment in property. By allocating at least 25% of its assets into MBS, the fund seeks to capture gains from mortgage interest payments and repayment of principle.
• Privately-Issued Mortgage-Backed Securities: Apart from traditional MBS, the fund takes positions in non-agency securities, which are not guaranteed by government agencies. These securities might offer higher yields in exchange for higher risk, tapping into the performance of private lenders and a broader spectrum of the mortgage market.
• Collateralized Bond Obligations (CBOs): Investing in CBOs enables the fund to diversify its portfolio into bonds that are secured by a pool of various debt instruments. These might include bonds, loans, or other types of debt, offering returns tied to their collective performance.
• Collateralized Loan Obligations (CLOs): Similar to CBOs, CLOs consist of pooled loans, generally commercial or corporate loans, with varying degrees of credit quality. By investing in CLOs, the fund aims to benefit from the interest payments of these loans, diversified across multiple borrowers.
• Other Collateralized Debt Obligations (CDOs): The fund further diversifies by investing in other types of CDOs, encompassing a wide range of asset-backed securities. These instruments can be backed by different types of collateral, including but not limited to real estate, automobiles, or credit card payments, providing a broader base of assets to generate potential returns.