DoubleLIne has introduced a fixed-income mutual fund that incorporates value-investing principles developed by Nobel Prize winner Robert Shiller.
The DoubleLine Shiller Enhanced CAPE fund opened yesterday to investors. Jeffrey Gundlach, chief executive officer and chief investment officer of DoubleLine, and Jeffrey Sherman, an asset allocation specialist, are the fund's portfolio managers.
The no-load, open-end fund is open to investors via I shares (DSEEX) and N shares (DSENX).
The fund strives to deliver a total return in excess of the Shiller Barclays CAPE US Sector TR USD Index. DoubleLine seeks to invest 100 percent of the fund's net assets in debt instruments. Part of the holdings will be pledged as collateral against derivatives exposed to the most undervalued sectors in the stock market as measured by the Cyclically Adjusted Price Earnings ratio, known as the CAPE ratio, which was developed by Shiller.
"The Fund allows investors to access the Shiller Barclays CAPE US Sector Index in mutual fund format with DoubleLine, combining two complementary, value-orientated approaches across both equity and fixed income markets," said Shiller.
Shiller, a Yale University professor, won the 2013 Nobel Prize in Economic Sciences along with colleagues Eugene Fama and Lars Peter Hansen for their research on asset prices.