Jeffrey Gundlach's DoubleLine Funds filed on Wednesday with the U.S. Securities and Exchange Commission to register shares of its Long Duration Total Return Bond Fund.

The SEC filing said the Long Duration fund, which is expected to have a dollar-weighted average effective duration of at least 10 years, "seeks current income by investing principally in debt securities of any kind."

Duration is a bond's sensitivity to interest rate fluctuations, and going longer duration is an investment strategy when rates are expected to remain low or drop further and vice versa.

Gundlach, who co-founded DoubleLine in December 2009 and who will be manager of the Long Duration Bond Fund, said last week that he does not see interest rates rising aggressively and expects the 10-year Treasury note's yield to range between 2.20 percent and 2.80 percent for the remainder of the year.

The fund may invest without limit in mortgage-backed securities of any maturity or type, including those guaranteed by, or secured by collateral that is guaranteed by, the U.S. government, its agencies, instrumentalities or sponsored corporations as well as those of private issuers not subject to any guarantee, the filing said.

Mortgage-backed securities include, among others, government mortgage pass-through securities, Collateralized Mortgage Obligations ("CMOs"), multiclass pass-through securities, private mortgage pass-through securities, stripped mortgage securities (e.g., interest-only and principal-only securities) and inverse floaters.

The SEC filing said the fund may also invest in corporate debt obligations; asset-backed securities; foreign securities (corporate and government); emerging market securities (corporate and government) as well as inflation-indexed bonds; bank loans and assignments.

The fund intends to invest primarily in fixed-income and other income-producing instruments rated high-quality investment grade, the filing said. The fund may, however, invest up to 20 percent of its total assets in fixed income and other income-producing instruments rated below investment grade and those that are unrated but determined by Gundlach to be of comparable credit quality - commonly known as junk bonds.

The fund may also invest up to 30 percent of its total assets in securities denominated in foreign currencies, and may invest without limit in U.S. dollar-denominated securities of foreign issuers, the filing added.

The fund may invest up to 25 percent of its total assets in obligations of governmental or private obligors in emerging market countries, it added.

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