Tag Archives: DoubleLine Capital

Why Mutual Fund Guru Gundlach Is Now Embracing ETFs: A $TOTL $uccess

MarketsMuse.com ETF update profiles the embracement of exchange-traded funds on the part of one of the investment industry’s most intriguing mutual fund innovators, courtesy of excerpt from 18 April 19 story from InvestmentNews.com

Jeffrey Gundlach is no stranger to striking out on his own or launching new products. After an acrimonious split with the TCW Group Inc. in 2009, he did just that, building what has become a $63 billion business with 12 mutual funds.

But when it came to starting an exchange-traded fund, his Los Angeles-based firm, DoubleLine Capital, needed some convincing, according to David LaValle, head of ETF capital markets in the U.S. at State Street Corp.’s money management unit.

“Why would they want to be in this space when [they] have a successful franchise,” said Mr. LaValle, speaking at an industry conference in New York on April 1. Ultimately, though, ETFs access “a totally different investor base” than mutual funds, Mr. LaValle said.

Mr. Gundlach has said he remains ambivalent about just how popular ETFs will become. But, on the sidelines of a massive ETF industry conference he keynoted in Hollywood, Fla., in January, he said he wasn’t going to take any chances. “I want to be involved, certainly, and not left behind,” he told a reporter.

In little more than a month since the launch of his first actively managed ETF, in partnership with State Street, the SPDR DoubleLine Total Return Tactical ETF (TOTL) has become one of the largest ETFs of its kind. At $240 million, TOTL’s assets are still a pittance compared with the $117 billion in the world’s largest bond mutual fund, Pimco Total Return (PTTAX).

For the entire story from InvestmentNews.com, please click here

Bond Guru Gundlach Launches Actively-Traded Bond ETF

MarketsMuse update profiling the debut of bond guru and DoubleLine Capital’s founder Jeff Gundlach’s first foray into the ETF space is courtesy of ETF.com.The SPDR DoubleLine Total Return Tactical ETF (TOTL) is launching today (Tuesday, Feb. 24).

The $TOTL exchange-traded fund invests in just about every type of debt security, including investment-grade and junk debt—both sovereign and corporate—from issuers around the globe. The portfolio management team is led by none other than Gundlach himself, and will be advised by State Street, according to the prospectus. TOTL costs a net of 55 basis points in expense ratio, or $55 per $10,000 invested.

Gundlach, founder of Los Angeles-based DoubleLine Capital, is one of the most well-known fixed-income investors in the market today, but until now an absent presence in the quickly growing ETF market.

Partnership With SSgA

Last summer, he joined forces with State Street Global Advisors to bring to market an actively managed bond ETF that would go head-to-head with the Pimco Total Return ETF (BOND | B), which at the time was still managed by Bill Gross. Gross has since left Pimco to join Janus.

Replicating BOND’s success will be no small feat, considering that BOND gathered its first $1 billion in assets in less than three months after launch, and grew to become one of the biggest active bond ETFs in the market. BOND’s success was part Gross himself, part a solid track record of outperformance. TOTL has a powerhouse name behind it, but performance only time will tell.  Continue reading