DoubleLine [profile] has opened up its new DoubleLine Floating Rate Fund to investors.
Initially launched on February 1, the open-end mutual fund comes in two no-load share classes: I shares DBFRX and N shares DLFRX. The fund targets investments in floating rate bank loans among other floating rate instruments.
Company Press Release
DoubleLine Floating Rate Fund Opens to the Public
LOS ANGELES, July 1, 2013 /PRNewswire/ -- The DoubleLine Floating Rate Fund (the "Fund") today opened for investment to the public. The Fund is offered in two no-load share classes: I shares DBFRX; N shares DLFRX.
The Fund is an open-end mutual fund that seeks to deliver a high level of income by investing in floating rate bank loans and other floating rate instruments. Prior to its opening to the public, the Fund was launched internally on February 1, 2013 and offered to DoubleLine clients, affiliated persons and certain DoubleLine investment vehicles.
Bonnie Baha, head of DoubleLine's Global Developed Credit team, and Robert Cohen are the portfolio managers of the Fund. As of the end of June, the Fund had approximately $145 million in total net assets. The Fund is benchmarked to the S&P/LSTA Leveraged Loan Index.
Bank loans, also known as leveraged loans, are corporate loans that have been structured and administered by a commercial or investment bank. Bank loans are sold (or syndicated) to banks and institutional investors, including open-end and closed-end mutual funds and collateralized loan obligations (CLOs). The loans typically pay interest based on a spread over the London Inter Bank Offered Rate (LIBOR). The DoubleLine Floating Rate Fund generally invests in senior secured bank loans.
Proceeds from bank loans typically fund strategic corporate transactions such as leveraged buyouts, mergers and acquisitions, project financings, recapitalizations and refinancings.
To register for a replay of the "DoubleLine Floating Rate Fund Launch" webcast held on June 25, go to www.doublelinefunds.com and click on Events. In the webcast, DoubleLine CEO Jeffrey Gundlach discusses the importance of bank loans as an asset class, and portfolio managers Baha and Cohen discuss the sector in greater detail and the Fund's investment approach.
Share Class Information?
?DBFRX (I shares): Minimum initial investment is $100,000 for regular accounts and $5,000 for Individual Retirement Accounts (IRAs). There is no annual 12b-1 fee.
DLFRX (N shares): Minimum initial investment is $2,000 for regular accounts and $500 for IRAs. There is an annual 12b-1 fee of 0.25%.