DoubleLine Total Return Bond Fund: A Potent Mix of Mortgage Securities

Lead manager Jeffrey Gundlach's "secret sauce" seeks to increase returns while lowering risk.

The managers of DoubleLine Total Return Bond (symbol DLTNX), led by Jeffrey Gundlach, were loading up on government-backed mortgage securities months before the Federal Reserve began buying the bonds last September. "We saw the writing on the wall," says Vitaliy Liberman, a DoubleLine analyst who specializes in mortgage securities. "So we changed the allocation of the fund a bit in anticipation" of the Fed's purchases. As cash flowed into the fund, the managers allotted the lion's share of it to those high-quality debt instruments and devoted less to non-agency mortgage-backed bonds.

KIPLINGER 25: Our Favorite No-Load Mutual Funds

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Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.