DoubleLine Capital, the investment firm overseen by Jeffrey Gundlach, on Wednesday filed a prospectus with U.S. securities regulators to offer a mutual fund that invests in bonds around the world.
The DoubleLine Global Bond Fund, which Gundlach will manage, will seek long-term total return mainly by investing in debt obligations issued by governments and government agencies, authorities and instrumentalities, according to the prospectus.
It expects to invest principally in bonds issued by G-20 countries, which are composed of 20 major economies in developed and emerging markets, and keep no more than 25 percent of assets in junk-rated bonds. The fund also expects to have "significant" exposure to foreign currencies.
Global bond funds let U.S. investors diversify their fixed-income exposure, and often have low correlations with domestic bond funds.
They can sometimes be more volatile, including if portfolio managers choose not to hedge currency exposure back to the U.S. dollar.
The DoubleLine global bond fund will have two share classes. Class I shares will have a minimum $100,000 initial investment for regular accounts, while Class N shares will have a minimum $2,000 initial investment. Expense ratios were not disclosed.
DoubleLine is based in Los Angeles, and had $76 billion of assets under management as of June 30.