The second quarter is starting with a flurry of product rollouts. DoubleLine Funds Trust will offer two open-end mutual funds on April 6, and Invesco PowerShares will list a series of U.S. small-cap sector funds on Nasdaq on April 7.
The new DoubleLine Total Return Bond Fund will be managed by DoubleLine Capital LP, the investment adviser to DoubleLine Funds. Jeffrey Gundlach, the chief executive of DoubleLine Capital, and Philip Barach, the firm’s president, will serve as co-portfolio managers. In line with the fund’s strategy, they intend to invest primarily in mortgage-backed securities (MBS), according to an April 5 statement. They will seek to maximize total return in the MBS market.
Luz Padilla, the head of the emerging markets fixed income team at DoubleLine Capital, will be the lead portfolio manager of the second new offering, the DoubleLine Emerging Markets Fixed Income Fund. She intends to invest primarily in fixed income instruments issued or backed by companies, financial institutions and government entities in emerging market countries, the statement said. The fund’s approach is to seek high total return from current income and capital appreciation.
The PowerShares S&P SmallCap Sector Portfolios are “the first suite of exchange-traded funds offering sector-specific beta exposure within the small-cap space,” the firm said in an April 5 announcement. They cover nine sectors: consumer discretionary, consumer staples, energy, financials, healthcare, industrials, IT, materials and utilities. Each ETF will normally invest at least 90% of its assets in common stocks that make up the underlying index.
The S&P SmallCap 600 Capped Sector indexes use a modified market cap weighted methodology and are rebalanced quarterly. Constituents are replaced on an as-needed basis.
Michael S. Fischer ([email protected]) is a New York-based financial writer and editor and a frequent contributor to Wealth Manager.