April 26, 2013

Top Portfolio Products: DoubleLine Debuts Income Solutions Fund

First Trust offers new actively managed ETF

Portfolio Products logoNew products introduced over the last week include DoubleLine’s Income Solutions Fund.

In addition, First Trust Advisors announced a new actively managed ETF.

Here are the latest developments of interest to advisors:

1) DoubleLine Announces New Income Solutions Fund

DoubleLine Capital announced that its new closed-end bond fund, the Income Solutions Fund (DSL), has completed an initial public offering of common shares listed on the NYSE. DSL, which is organized as a nondiversified, closed-end management investment company, has as its primary objective to seek high current income; its secondary objective is to seek capital appreciation. It will seek to achieve its objectives by investing in a portfolio of investments selected for their potential to provide high current income, growth of capital or both. Jeffrey Gundlach, CEO and CIO of DoubleLine, Luz Padilla and Bonnie Baha have primary responsibility for the day-to-day portfolio management of DSL.

DoubleLine expects that DSL will normally invest at least 80% of its net assets, plus any borrowings for investment purposes, in debt securities and other income-producing investments anywhere in the world, including emerging markets. It may invest in mortgage-backed securities of any kind and may invest without limit in securities rated below investment grade (high-yield securities or junk bonds). It also intends, subject to favorable market conditions, to add leverage to its portfolio by using reverse repurchase agreements, dollar roll transactions and/or borrowings, such as through loans or lines of credit from banks or other credit facilities.

2) First Trust to Launch First Trust Senior Loan Fund

First Trust Advisors announced that it would launch a new actively managed ETF on May 2, the First Trust Senior Loan Fund (FTSL). William Housey, senior vice president and senior portfolio manager, and Scott Fries, SVP and portfolio manager, serve as portfolio managers to FTSL.

FTSL seeks to generate high current income and preserve capital by investing primarily in a diversified portfolio of first-lien senior floating rate bank loans (senior loans). Under normal market conditions, at least 80% of FTSL’s net assets will be invested in senior loans made to businesses operating in North America. Up to 20% of its net assets may be allocated to non-senior loan debt securities, equity securities and warrants. FTSL attempts to outperform the S&P/LSTA U.S. Leveraged Loan 100 Index and the Markit iBoxx USD Leveraged Loan Index.

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Read the April 22 Portfolio Products Roundup on AdvisorOne.

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