SmartBeta,

MeetSmartAlpha
LiveWebcastHostedBy:

JeffreySherman,CFA
PortfolioManager

October21,2014

Disclaimer
TheFundsinvestmentobjectives,risks,chargesandexpensesmustbeconsidered
carefullybeforeinvesting.Thestatutoryandsummaryprospectuscontainthisandother
importantinformationabouttheFunds,andmaybeobtainedbycalling1(877)354
6311/1(877)DLINE11,orvisitingwww.doublelinefunds.com.Readcarefullybefore
investing.
TheDoubleLine Shiller EnhancedCAPEmayinvestinforeignsecuritieswhichinvolvegreatervolatilityandpolitical,economicandcurrencyrisksanddifferencesinaccountingmethods.Theserisks
aregreaterforinvestmentsinemergingmarkets.Inordertoachieveitsinvestmentobjectives,theFundmayusecertaintypesofexchangetradedfundsorinvestmentderivatives.Derivatives
involverisksdifferentfrom,andincertaincases,greaterthantheriskspresentedbymoretraditionalinvestments.Derivativesmayinvolvecertaincostsandriskssuchasliquidity,interestrate,
market,credit,managementandtheriskthatapositioncouldnotbeclosedwhenmostadvantageous.Investinginderivativescouldlosemorethantheamountinvested.. ETFinvestmentsinvolve
additionalriskssuchasthemarketpricetradingatadiscounttoitsnetassetvalue,anactivesecondarytradingmarketmaynotdeveloporbemaintained,ortradingmaybehaltedbythe
exchangeinwhichtheytrade,whichmayimpactafundsabilitytosellitsshares.
Investmentsindebtsecuritiestypicallydecreaseinvaluewheninterestratesrise.Thisriskisusuallygreaterforlongertermdebtsecurities.InvestmentsinAssetBackedandMortgageBacked
securitiesincludeadditionalrisksthatinvestorsshouldbeawareofincludingcreditrisk,prepaymentrisk,possibleilliquidityanddefault,aswellasincreasesusceptibilitytoadverseeconomic
developments.Investmentsinlowerratedandnonratedsecuritiespresentagreaterriskoflosstoprincipalandinterestthanhigherratedsecurities.TheFundmayalsoinvestinsecuritiesrelated
torealestate,whichmaydeclineinvalueasaresultoffactorsaffectingtherealestateindustry.
Equitiesmaydeclineinvalueduetobothrealandperceivedgeneralmarket,economicandindustryconditions.Thefundmaymake shortsalesofsecurities,whichinvolvestheriskthatlossesmay
exceedtheoriginalamountinvested.
BarclaysCapitalInc.anditsaffiliates("Barclays")isnottheissuerorproducerofDoubleLine Shiller EnhancedCAPE (theFund)andBarclayshasnoresponsibilities,obligationsordutiesto
investorsintheFund.TheShiller BarclaysCAPE USSectorUSDIndex(theIndex)isatrademarkownedbyBarclaysBankPLCandlicensedforusebytheFund.WhiletheFundmayexecute
transaction(s)withBarclaysinorrelatingtotheIndex,FundinvestorsacquireinterestssolelyintheFundandinvestorsneitheracquireanyinterestintheIndexnorenterintoanyrelationshipof
anykindwhatsoeverwithBarclaysuponmakinganinvestmentintheFund.TheFundisnotsponsored,endorsed,soldorpromotedbyBarclaysandBarclaysmakesnorepresentationregardingthe
advisabilityofthe FundoruseoftheIndexoranydataincludedtherein.BarclaysshallnotbeliableinanywaytotheFund, investorsortootherthirdpartiesinrespectoftheuseoraccuracyofthe
Indexoranydataincludedtherein.
TheShillerBarclaysCAPE USIndexFamily(theIndexFamily)hasbeendevelopedinpartbyRSBBI,LLC,theresearchprincipalofwhichisRobertJ.Shiller.RSBBI,LLCisnotaninvestmentadvisor
anddoesnotguaranteetheaccuracyandcompletenessoftheIndexFamilyoranydataormethodologyeitherincludedthereinoruponwhichitisbased.RSBBI,LLCshallhavenoliabilityforany
errors,omissionsorinterruptionsthereinandmakesnowarrantiesexpressedorimplied,astotheperformanceorresultsexperiencedbyanypartyfromtheuseofanyinformationincluded
thereinoruponwhichitisbased,andexpresslydisclaimsallwarrantiesofthemerchantabilityorfitnessforaparticularpurposewithrespectthereto,andshallnotbeliableforanyclaimsorlosses
ofanynatureinconnectionwiththeuseofsuchinformation,includingbutnotlimitedto,lostprofitsorpunitiveorconsequentialdamageseven,ifRSBBI,LLCisadvisedofthepossibilityofsame.
CreditdistributionisdeterminedfromthehighestavailablecreditratingfromanyNationallyRecognizedStatisticalRatingOrganization(S&P,MoodysandFitch).
WhiletheFundisnoload,managementfeesandotherexpensesstillapply.
Pleaserefertotheprospectusforfurtherdetails.
Diversificationdoesnotassureaprofitorprotectagainstlossinadecliningmarket.
DoubleLineisaregisteredtrademarkofDoubleLine CapitalLP.
DoubleLine FundsaredistributedbyQuasarDistributors,LLC.

102114 SmartBeta,SmartAlpha1

FundOfferings
Shiller EnhancedCAPE
RetailandInstitutionalClass

Ticker
MinInvestment1
MinIRAInvestment
Gross ExpenseRatio
NetExpenseRatio2
ExpenseCap2

Retail
Nshare

Inst.
Ishare

DSENX
$2,000
$500
1.63%
1.24%
0.90%

DSEEX
$100,000
$5,000
1.38%
0.99%
0.65%

WhiletheFundisnoload,managementfeesandotherexpensesstillapply.Pleaserefertotheprospectusforfurtherdetails.
1. Subsequentinvestmentminimumsare$500,$250fortheIRA.A$100minimumsubsequentpurchaseamountappliesforautomaticinvestmentplans.Pleaseseetheprospectusfor
furtherdetails. Periodicinvestmentplansdonotassureaprofitanddonotprotectagainstlossindecliningmarkets.
2. TheAdvisorhascontractuallyagreedtowaiveitsinvestmentadvisoryfeeandtoreimbursetheFundforotherordinaryoperating expensestotheextentnecessarytolimitordinary
operatingexpensestoanamountnottoexceed0.65%forClassIsharesand0.90%forClassNshares.Ordinaryoperatingexpenses excludetaxes,commissions,markups,litigation
expenses,indemnificationexpenses,interestexpenses,AcquiredFundFeesandExpenses,andanyextraordinaryexpenses.These expenselimitationsareexpectedtoapplyuntilatleast
July31,2015,exceptthattheymaybeterminatedbytheBoardofTrusteesatanytime.
102114 SmartBeta,SmartAlpha2

ShillerEnhancedCAPE(DSEEX/DLSNX)
QuarterEndReturnsasofSeptember30,2014

QuarterEnd
September30,2014
Ishare
Nshare
S&P500Index

3Q
2014

(103113to93014)

0.41%
0.47%

15.80%
15.57%

1.13%

14.47%

SinceInception

AsofSeptember30,2014
GrossSEC30DayYield
NetSEC30DayYield

IShare
3.05%
3.31%

NShare
2.78%
3.04%

AsofSeptember30,2014
GrossExpenseRatio
NetExpenseRatio*
Expense Cap*

IShare
1.38%
0.99%
0.65%

NShare
1.63%
1.24%
0.90%

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturn
andprincipalvalueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthan
originalcost.Currentperformanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrenttothe
mostrecentmonthendmaybeobtainedbycalling213.633.8200orbyvisitingwww.doublelinefunds.com.
QuarterEndReturnsofSeptember30,2014.Subjecttochangewithoutnotice.
Theperformanceinformationshownassumesthereinvestmentofalldividendsanddistributions.
*TheAdvisorhascontractuallyagreedtowaiveitsinvestmentadvisoryfeeandtoreimbursetheFundforotherordinaryoperatingexpensestotheextentnecessarytolimitordinary
operatingexpensestoanamountnottoexceed0.65%forClassIsharesand0.90%forClassNshares.Ordinaryoperatingexpenses excludetaxes,commissions,markups,litigation
expenses,indemnificationexpenses,interestexpenses,AcquiredFundFeesandExpenses,andanyextraordinaryexpenses.These expenselimitationsareexpectedtoapplyuntilat
leastJuly31,2015,exceptthattheymaybeterminatedbytheBoardofTrusteesatanytime.
S&P500 Acapitalizedweightedindexof500stockschosenformarketsize,liquidityandindustrygrouping,amongotherfactors.Thisindexisdesignedtobealeadingindicatorof
U.S.equitiesandismeanttoreflecttherisk/returncharacteristicsofthelargecapuniverse.Youcannotinvestdirectlyinanindex.
Source:DoubleLine.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellany security.
102114 SmartBeta,SmartAlpha3

Announcements
WebcastNews
LuzPadilla November13,2014
DoubleLine EmergingMarketsFixedIncomeFundandLowDurationEmergingMarketsFund
1:15pmPDT/4:15pmEDT

PhilipBarach November25,2014
DoubleLine LowDurationBondFund
1:15pmPDT/4:15pmEDT

JeffreyGundlach December9,2014
DoubleLine TotalReturnBondFundandCoreFixedIncomeFund
1:15pmPDT/4:15pmEDT

ToReceivePresentationSlides,Emailfundinfo@doubleline.com

102114 SmartBeta,SmartAlpha4

TABI
DoubleLineShillerEnhancedCAPEStrategy

Source:

102114 SmartBeta,SmartAlpha5

WhatisDoubleValue?
TheDoubleLineShillerEnhancedCAPEStrategycreatesDoubleValuefor
investorswhencombiningtwouniquesourcesofvalue:
TheShillerBarclaysCAPEU.S.SectorIndexattemptstoshiftportfolio
exposurestothecheapestsectorsofthelargecapequitymarkets
DoubleLines FixedIncomestrategystrivestoshiftitsexposurestothe
cheapestsectorsofthefixedincomemarkets.
Bothstrategiesattempttoofferavalueplayintheirrespectivemarkets,and
when combinedinvestorshavethepotential toreceiveDoubleValue.

Fordefinitions,pleaseseetheAppendix.

102114 SmartBeta,SmartAlpha6

DoubleLineShillerCAPEStructure

ThedistinctstructureoftheDoubleLineShillerEnhancedCAPEStrategyallowsinvestorsto
simultaneouslyaccessreturnsoftheequitymarketsandfixedincomemarkets.Byusinganequity
indexswap,$1investedinthestrategyprovidesapproximately$1ofexposuretoeachmarket.
InitialInvestment

DoubleLineShiller
EnhancedCAPE

ShillerBarclays
CAPEUSSector
TRUSDIndex

*AportionoftheInitialInvestmentmaybepledgedascollateralundertheswap
**Marketfluctuationsmayprecludefull$1for$1exposurebetweentheswapsandthefixedincomeportfolio

DoubleLine
ActivelyManaged
FixedIncome
Portfolio

102114 SmartBeta,SmartAlpha7

TABII
DefiningtheCAPERatio

Source:

102114 SmartBeta,SmartAlpha8

WhatistheCAPE Ratio?
AcclaimedvalueinvestorsBenjaminGrahamandDavidDoddnotedinSecurity
Analysis thatequityvaluationstendtofollowabusinesscycleof37years
TheCAPERatiowasformulatedintheseminal1988piece1 fromProfessorRobert
ShillerandJohnCampbell.
CAPE=CyclicallyAdjustedP/E (PricetoEarnings)

CAPE

Current Equity Share Price

10 Year Inflation Adjusted Average Earnings

TheCAPEratioseekstoassesslongertermequityvaluationbyusinganinflation
adjustedearningshorizonthatis10timeslongerthanthetraditionalP/Emeasure
SimilartothetraditionalP/EtheCAPEcanbeappliedtoasingleequity,aportfolio
ofequities,asectororabroadbasedindex
Inflation=therateofchangeofpricescalculatedonamonthlyorannualbasis.
P/E=PriceEarningsRatioisthevaluationratioofacompanysmarketvaluepersharedividedbythecompanysearningspershare(EPS).
Shiller BarclaysCAPEUSSectorTRUSDIndexincorporatestheprinciplesoflongterminvestingdistilledbyDr.RobertShiller andexpressedthroughtheCAPE(CyclicallyAdjustedPriceEarnings)
ratio(theCAPERatio).ItaimstoidentifyundervaluedsectorsbasedonamodifiedCAPERatio,andthenusesamomentumfactortoseektomitigatetheeffectsofpotentialvaluetraps.You
cannotinvestdirectlyinanindex.
102114 SmartBeta,SmartAlpha9
1.Campbell,J.Y.,andR.J.Shiller,StockPrices,Earnings,andExpectedDividends,JournalofFinance,43:3,66176,1988

CAPE RatioforValueInvesting Sectors

ByapplyingtheCAPE ratio,equitysectorsshowingalowerCAPEratiohave
tendedtohavehighersubsequentreturns
CAPE ratioandsubsequentreturnforS&P500Industrialsector
(19832012)

35%
25%
15%
5%
5%

15%

InvestmentStart19831989
InvestmentStart19901996
InvestmentStart19972003
InvestmentStart20042010

25%

CAPEinSept2012:
20.43

45%

CAPEinSept2012:
20.01

SubsequentAnnualized2YearTotalReturn

SubsequentAnnualized2YearTotalReturn

45%

CAPE ratioandsubsequentreturnforS&P500Utilitysector
(19832012)

35%
25%
15%
5%
5%
15%
25%

InvestmentStart19831989
InvestmentStart19901996
InvestmentStart19972003
InvestmentStart20042010

35%

35%

45%

10

15

20

25
30
CAPERatio

35

40

45

15

25

35
CAPERatio

Source:ChangingTimes,ChangingValues:AHistoricalAnalysisofSectorswithintheUSStockMarket18722012,OliverD.BunnandRobertJ.Shiller,September4,2012
Anydataonpastperformance,modellingorbacktestingcontainedhereinisnoindicationastofutureperformance.
Youcannotinvestdirectlyinanindex.
PleaseseetheAppendixforindexdefinitions.

45

55

102114 SmartBeta,SmartAlpha10

RelativeCAPEIndicator
ToaccountforidiosyncraticdifferencesbetweensectorswhereCAPEratioshave
historicallybeenofdifferentmagnitudesonecanconstructaRelativeCAPEratio
Thismayallowinvestorstocomparesectorvaluationsonalevelplayingfield

Current Sector CAPE Ratio

Relative CAPE Ratio
20 Year Rolling Average of Sector CAPE Ratio

60

2.1

CAPERatio

50

RelativeCAPERatio

1.8
1.5

40

1.2
30

0.9

20

0.6

10
0
2002

Technology

0.3

Utilities

0.0

2004

2006

2008

2010

2012

Technology
Utilities
2002

2004

2006

2008

2010

2012

TheRelativeCAPEratioisusedtocomparerelativevaluationamongequitysectors
Source:ChangingTimes,ChangingValues:AHistoricalAnalysisofSectorswithintheUSStockMarket18722012,OliverD.BunnandRobertJ.Shiller,September4,2012
Anydataonpastperformance,modellingorbacktestingcontainedhereinisnoindicationastofutureperformance.SeeHistoricalIndexPerformanceDisclaimer.
Shiller BarclaysCAPEUSSectorTRUSDIndexincorporatestheprinciplesoflongterminvestingdistilledbyDr.RobertShiller andexpressedthroughtheCAPE(CyclicallyAdjustedPriceEarnings)ratio
(theCAPERatio).ItaimstoidentifyundervaluedsectorsbasedonamodifiedCAPERatio,andthenusesamomentumfactortoseektomitigatetheeffectsofpotentialvaluetraps.Youcannot
investdirectlyinanindex.
PleaseseetheAppendixforHistoricalIndexPerformanceDisclaimer.
102114 SmartBeta,SmartAlpha11

TABIII
SmartBeta:ShillerBarclaysCAPEU.S.SectorIndex

Source:

102114 SmartBeta,SmartAlpha12

ShillerBarclaysCAPEU.S.SectorIndex

InitialInvestment

DoubleLineShiller
EnhancedCAPE

ShillerBarclays
CAPEUSSector
TRUSDIndex

*AportionoftheInitialInvestmentmaybepledgedascollateralundertheswap
**Marketfluctuationsmayprecludefull$1for$1exposurebetweentheswapsandthefixedincomeportfolio

DoubleLine
ActivelyManaged
FixedIncome
Portfolio

102114 SmartBeta,SmartAlpha13

ShillerBarclaysCAPEU.S.SectorIndexSectorSelectionRules

10U.S.Sectors(aspertabletotheright)
Examine30yearsworthofindexvaluesandearningsfor10U.S.sectors

RelativeCAPEIndicatorforEachSector
Select5mostundervaluedsectorsbasedonRelativeCAPEindicator

Momentum
Removethesectorwiththelowest12monthpricemomentumforselectedsectors

Ranking
Equalweightin4favored,undervaluedsectorswithmostpositivepricemomentum

Source:DoubleLineCapital,BarclaysCapital
CAPE=CyclicallyAdjustedPriceEarnings
Shiller BarclaysCAPEU.S.SectorIndex=Shiller BarclaysCAPEUSSectorTRUSDIndexincorporatestheprinciplesoflongterminvestingdistilledbyDr.RobertShiller and
expressedthroughtheCAPE(CyclicallyAdjustedPriceEarnings)ratio(theCAPERatio).ItaimstoidentifyundervaluedsectorsbasedonamodifiedCAPERatio,andthen
usesamomentumfactortoseektomitigatetheeffectsofpotentialvaluetraps.Youcannotinvestdirectlyinanindex.

102114 SmartBeta,SmartAlpha14

RelativeCAPERatioforValueInvesting Sectors
TheShillerBarclaysCAPEU.S.SectorIndexusestheRelativeCAPERatiotoselectthemost
undervaluedsectorsinthemarket
Energy
ConsumerStaples
Technology

Materials
HealthCare
RealEstate

Industrials
Financials

ConsumerDiscretionary
Utilities

2.00
1.80
RelativeCAPERatio
September2002 September2014

RealEstate
1.60
1.40
1.20
1.00
0.80

Discretionary
Utilities
Materials
Financials
HealthCare
Industrials
Staples
Energy
Technology

0.60
0.40
0.20

Source:BarclaysCapital,DoubleLine
Inthechart,theverticalaxisrepresentstheRelativeCAPERatio.Fordefinitions,pleaseseetheAppendixsectionofthis
presentation.Forillustrativepurposesonly.Anydataonpastperformance,modelingorbacktestingcontainedhereinisno
indicationastofutureperformance.SeeHistoricalIndexPerformanceDisclaimerintheAppendixsectionofthispresentation.DataRange:September2002 September2014

102114 SmartBeta,SmartAlpha15

HistoricalSectorRotationofShillerBarclaysCAPE
U.S.SectorTotalReturnIndex
PortfolioweightsarereconstitutedonamonthlybasisusingtheRelativeCAPEratio
RealEstate

BarclaysShillerCAPEUSSectorExposures
September2002 October2014

Utilities
Technology
Materials
Industrials
Healthcare
Financials
Energy
ConsumerStaples
ConsumerDiscretionary

Source:BarclaysCapital,DoubleLine Capital.
Shiller BarclaysCAPEUSSectorTRUSDIndexincorporatestheprinciplesoflongterminvestingdistilledbyDr.RobertShiller andexpressedthroughtheCAPE(CyclicallyAdjusted
PriceEarnings)ratio(theCAPERatio).ItaimstoidentifyundervaluedsectorsbasedonamodifiedCAPERatio,andthenusesamomentumfactortoseektomitigatetheeffects
ofpotentialvaluetraps.Youcannotinvestdirectlyinanindex.PleasesetheAppendixforindexdefinitions.
102114 SmartBeta,SmartAlpha16

HistoricalSectorExposuresofShillerBarclaysCAPE
U.S.SectorTotalReturnIndex
Overthepast146months,theindexwasprimarilyallocatedtofivesectors:
Industrial:93%ofthetime
HealthCare:76%ofthetime
Energy:70%ofthetime
ConsumerStaples:68%ofthetime
Financial:56%ofthetime
Industrial

136

Healthcare

111

Energy

102

ConsumerStaples

99

Financial

82

Technology

31

Utilities

RealEstate

ConsumerDiscretionary

Materials

3
0

20

40

60

80

100

120

140

160

NumberofMonthsInvested
Source:Barclays,DoubleLine.PleaseseetheAppendixforfurtherdefinitions.InceptionoftheShiller BarclaysCAPEUSSectorTotalReturnIndexwasSeptember4,2002.
Shiller BarclaysCAPEUSSectorTRUSDIndexincorporatestheprinciplesoflongterminvestingdistilledbyDr.RobertShiller andexpressedthroughtheCAPE(CyclicallyAdjustedPriceEarnings)ratio
(theCAPERatio).ItaimstoidentifyundervaluedsectorsbasedonamodifiedCAPERatio,andthenusesamomentumfactortoseektomitigatetheeffectsofpotentialvaluetraps.Youcannotinvest
directlyinanindex.
102114 SmartBeta,SmartAlpha17

WhyDoubleLineChoosesShillerBarclaysCAPEU.S.
SectorTotalReturnIndexOverTraditionalEquityIndices?

Identifiesandinvestsinrelativelyundervaluedequitysectors

Doesnotrelyonsubjectiveforecasts

Usesalongtermestimateofvalue,avoidingshorttermbias

IsbasedontherigorousresearchofProfessorRobertShillerandJohnCampbell
WhichinturnisbaseduponthevalueinvestingprinciplesofBenjaminGraham&
DavidDodd

WebelieveitisanIntelligentAlternativetoCapitalizationWeightedPortfolios(S&P500)

Source:BarclaysCapital,DoubleLine Capital
PleaseseetheAppendixfordefinitions.

102114 SmartBeta,SmartAlpha18

TABIV
FixedIncomePortfolio

102114 SmartBeta,SmartAlpha19

FixedIncomePortfolio

InitialInvestment

DoubleLineShiller
EnhancedCAPE

ShillerBarclays
CAPEUSSector
TRUSDIndex

*AportionoftheInitialInvestmentmaybepledgedascollateralundertheswap
**Marketfluctuationsmayprecludefull$1for$1exposurebetweentheswapsandthefixedincomeportfolio

DoubleLine
ActivelyManaged
FixedIncome
Portfolio

102114 SmartBeta,SmartAlpha20

FixedIncomeInvestmentProcess

Economic
Discussions

Investment
Outlook

Implementation

AssetAllocationCommitteeholds
amonthlymeeting.Account
reviewandmarketsector
chartbookareevaluated.

Macroeconomicgroupdiscussion
ofinterestrates,currencies,
commodities,yieldcurve,spread
andgeneralfixedincomemarket
analysis.

TheCommitteeproposesasset
allocationchanges.The
CommitteeChairmanmakesthe
finalassetallocationdecision.

FixedIncomeAssetAllocation
ChartBookreviewsportfolio
characteristics,returnanalysis,
andriskmeasures.
FixedIncomeAssetAllocation
Chartbookgraphicallydepicts
historicalassetclassspreadsand
relativegrowthtrendsinthe
globalfixedincomemarketplace.

Sectorswithopportunitiesare
identifiedbasedontheportfolio
managersassessmentoftheir
respectivesectorsoutlookand
sectorattractivenessrelativeto
otherassetclasses.

Sectorteamsreviewclient
guidelinesandareresponsiblefor
securityselection.
TheAssetAllocationFixed
Incometeammonitors
implementationandperforms
portfolioanalytics.

Strategyrisksarereviewed.

102114 SmartBeta,SmartAlpha21

AssetAllocationFramework
ThedecisiontooverweightorunderweightasectorisdeterminedbytheDoubleLineFixedIncome
AssetAllocationCommittee.TheCommitteesdecisiontoover/underweightasectorisdrivenby
sectorvaluationandevolvingfundamentalconditions.
QuantitativeProcess
Valuation

Overweight

Neutral

Improving

Cheap

Stable

Average

Deteriorating

Rich

Underweight

QualitativeProcess
FundamentalConditions
102114 SmartBeta,SmartAlpha22

SmartAlpha

Thefixedincomeportfoliohasgeneratedarelativelyconsistentreturninadditiontothereturns
derivedfromtheShillerBarclaysCAPEindex
Thisconsistency,asopposedtochunkysourcesofalpha,iswhatdistinguishestheDoubleLine
doublevalueproposition
1.00%

FixedIncomePortfolioContributiontoReturn
October31,2013 September30,2014

0.80%

0.76%

0.73%

0.61%

0.59%

0.60%

0.44%

0.40%

0.40%
0.19%

0.20%

0.05%
0.00%
0.02%
0.20%

0.17%
0.25%

0.40%
Nov13

Dec13

Jan14

Feb14

Mar14

Apr14

May14

Jun14

Jul14

Pastperformanceisnoguaranteeoffutureresults.Indexperformanceisnotrepresentativeoffundperformance.

Aug14

Sep14

102114 SmartBeta,SmartAlpha23

FixedIncomePortfolio SectorAllocation
Strivestobebroadlydiversifiedacrossfixedincomesectors
Duration
Yield
WeightedAverage Life
Coupon

1.8
3.9%

International
Emerging
20.9%

4.6

Cash U.S.Government
2.1%
AgencyResidential
6.0%
MortgageBacked
Securities
2.7%

4.6%
NonAgency
Residentail
MortgageBacked
Securities
17.5%

BankLoan
4.9%

InvestmentGrade
Credit
9.5%

CollateralizedLoan
Obligations
18.4%
CommercialMortgage
BackedSecurities
13.6%

HighYieldCredit
4.5%

Source:DoubleLineCapital.RepresentativeportfoliosectorallocationisasofSeptember30,2014andissubjecttochangewithoutnotice.

102114 SmartBeta,SmartAlpha24

FixedIncomePortfolio RatingsDistribution
AveragecreditqualityisBBB
Unrated Cash
1.5% 2.1%

Government
6.1%
Agency
2.6%

Below
Investment
Grade
39.8%

Investment
Grade
47.9%

Source:DoubleLineCapital.RepresentativeportfolioratingsdistributionisasofSeptember30,2014andissubjecttochangewithoutnotice.
AverageCreditRatingreferstotheaverageratingofthesecuritiesinthefixedincomeportfolioofthefund.Thefunditself,northefixedincomeportfolio,doesnothaveacreditrating.

102114 SmartBeta,SmartAlpha25

FixedIncomePortfolio DurationBuckets
Portfoliodurationis1.8years
45.0%

39.3%

PercentageofFixedIncomePortfolio

40.0%
35.0%

28.7%

30.0%
25.0%

20.1%

20.0%
15.0%
10.0%
5.0%

7.0%
2.8%

2.1%

0.0%
Cash

<1Year

13Years

3to5years

5to7years

>7years

Source:DoubleLineCapital.RepresentativeportfoliodurationallocationandoveralldurationisasofSeptember30,2014and is subjecttochangewithoutnotice.

102114 SmartBeta,SmartAlpha26

TABV
DoubleLineShiller EnhancedCAPEPerformanceMetrics

Source:
102114 SmartBeta,SmartAlpha27

DoubleLineShillerEnhancedCAPE

InitialInvestment

DoubleLineShiller
EnhancedCAPE

Shiller Barclays
CAPEUSSector
TRUSDIndex

DoubleLine
ActivelyManaged
FixedIncome
Portfolio

*AportionoftheInitialInvestmentmaybepledgedascollateralundertheswap
**Marketfluctuationsmayprecludefull$1for$1exposurebetweentheswapsandthefixedincomeportfolio
102114 SmartBeta,SmartAlpha28

BarclaysShillerCAPEUSSectorIndexExposures
November2013throughOctober2014

Consumer Consumer
Discretionary Staples

Energy

Financial

Healthcare Industrial

Nov13

Staples

Energy

Healthcare

Industrial

Dec13

Staples

Energy

Healthcare

Industrial

Jan14

Staples

Energy

Healthcare

Industrial

Feb14

Staples

Healthcare

Industrial

Materials Technology

Energy

Apr14

Energy

Healthcare

Industrial

Technology

May14

Energy

Healthcare

Industrial

Technology

June14

Energy

Healthcare

Industrial

Technology

July14

Energy

Healthcare

Industrial

Technology

Aug14

Energy

Healthcare

Industrial

Technology

Sep14

Energy

Healthcare

Industrial

Technology

Healthcare

Industrial

Technology

Oct14

Staples

Healthcare

RealEstate

Technology

Mar14

Financial

Utilities

Technology

Source:Barclays,DoubleLineCapital
Fundholdingsandsectorallocationsaresubjecttochangeandnotarecommendationtobuyorsellanysecurity.

102114 SmartBeta,SmartAlpha29

EnergySectorHadWorstPerformanceinthe3rd Quarter
June30,2014throughSeptember30,2014

S&P500SectorReturns
June30,2014 September30,2014

8%
5.46%

6%

3.81%

4%

2.33%

1.95%

2%

1.13%

0.26%

0.22%

0%
2%

1.09%

4%

3.96%

6%
8%
10%

8.62%

Source:Bloomberg,DoubleLineCapital
*TotalReturn(notsumofsectorreturns)
Pastperformanceisnoguaranteeoffutureresults.Indexperformanceisnotrepresentativeoffundperformance.

102114 SmartBeta,SmartAlpha30

DSEEXContributiontoReturn
June30,2014throughSeptember30,2014
DSEEX
Over/Under
Performance
1.54%

ContributiontoReturn
June30,2014 September30,2014

3%

2.21%

1.82%

2%

1.13%
1%
0%
0.47%

1%

0.28% 0.13% 0.41%

2%
3%
4%

3.84%

5%

Source:Bloomberg,DoubleLine

CurrentlyinCAPEIndex
WasinCAPEIndexpreviously in2014
**TotalReturn,NotContributiontoReturn

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturn
andprincipalvalueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthan
originalcost.Currentperformanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrenttothe
mostrecentmonthendmaybeobtainedbycalling213.633.8200orbyvisitingwww.doublelinefunds.com.
Theperformanceinformationshownassumesthereinvestmentofalldividendsanddistributions.

102114 SmartBeta,SmartAlpha31

S&P500SectorPerformance
December31,2013throughSeptember30,2014

S&P500SectorReturns
December31,2013 September30,2014

18%

16.62%

16%
14.11%
14%

13.95%

12%
10%

8.87%
7.23%

8%

8.34%

7.42%

6%
3.23%

4%
2%

2.87%

0.86%

0%

Source:Bloomberg,DoubleLineCapital
*TotalReturn(notsumofsectorreturns)

102114 SmartBeta,SmartAlpha32

DSEEXContributiontoReturn
ContributiontoReturn
December31,2013 September30,2014

December31,2013throughSeptember30,2014
12%

11.13%

10%

DSEEX
Over/Under
Performance
2.79%
8.34%

8.12%
8%
6%
4.09%

3.83%

4%
2%

0.47%

3.02%
0.42%

0%
2%

0.26% 0.44%

CurrentlyinCAPEIndex
WasinCAPEIndexpreviously in2014
**TotalReturn,NotContributiontoReturn

Source:Bloomberg,DoubleLine

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturnandprincipalvalueofan
investmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthanoriginalcost.Currentperformanceofthefundmaybe
lowerorhigherthantheperformancequoted.Performancedatacurrenttothemostrecentmonthendmaybeobtainedbycalling213.633.8200orbyvisiting
www.doublelinefunds.com.
102114 SmartBeta,SmartAlpha33
Theperformanceinformationshownassumesthereinvestmentofalldividendsanddistributions.

S&P500SectorPerformance
October31,2013throughSeptember30,2014

S&P500SectorReturns
October31,2013 September30,2014

25%

23.12%

22.38%

20%
15.60%

14.73%

15%

14.46%
12.82%

11.06%
9.56%

10%
6.80%

7.38%

5%

0%

Source:Bloomberg,DoubleLineCapital
*TotalReturn(notsumofsectorreturns)
Pastperformanceisnoguaranteeoffutureresults.Indexperformanceisnotrepresentativeoffundperformance.

102114 SmartBeta,SmartAlpha34

DSEEXContributiontoReturn

ContributiontoReturn
October31,2013 September30,2014

October31,2013throughSeptember30,2014
18%
15.80%

16%

DSEEX
Over/Under
Performance
1.34%
14.46%

13.10%

14%
12%
10%
8%
5.38%

6%

4.32%

4%

2.38%

2%

2.70%

0.28% 0.26% 0.49%

0%

CurrentlyinCAPEIndex
WasinCAPEIndexpreviously duringsampleperiod
**TotalReturn,NotContributiontoReturn

Source:Bloomberg,DoubleLine

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturn
andprincipalvalueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthan
originalcost.Currentperformanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrentto
themostrecentmonthendmaybeobtainedbycalling213.633.8200orbyvisitingwww.doublelinefunds.com.
Theperformanceinformationshownassumesthereinvestmentofalldividendsanddistributions.

102114 SmartBeta,SmartAlpha35

DSEEXPerformanceRelativetoMorningstarUniverse
December31,2013throughSeptember30,2014
1Month

1Q2014

2Q2014

3Q2014

YeartoDate

Fund

2.69%

3.49%

7.84%

0.41%

11.13%

ExcessReturn+/ S&P500TRUSD

1.29%

1.68%

2.61%

1.54%

2.79%

ExcessReturn+/ Category

0.52%

1.21%

3.32%

0.14%

4.81%

MorningstarLargeValue Category

Source:Morningstar

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.
Theinvestmentreturnandprincipalvalueofaninvestmentwillfluctuatesothataninvestor'sshares,when
redeemed,maybeworthmoreorlessthanoriginalcost.Currentperformanceofthefundmaybeloweror
higherthantheperformancequoted.Performancedatacurrenttothemostrecentmonthendmaybeobtained
bycalling213.633.8200orbyvisitingwww.doublelinefunds.com.
102114 SmartBeta,SmartAlpha36

DSEEXPerformanceRelativetoMorningstarUniverse
November1,2013throughSeptember30,2014

Source:Morningstar,Zephyr
Pastperformanceisnoguaranteeoffutureresults.

102114 SmartBeta,SmartAlpha37

DSEEXSharpeRatioRelativetoMorningstarUniverse
November1,2013throughSeptember30,2014

Source:Morningstar,Zephyr
Pastperformanceisnoguaranteeoffutureresults.

102114 SmartBeta,SmartAlpha38

TABVI
PortfolioManagementTeam

102114 SmartBeta,SmartAlpha39

DoubleLineShillerEnhancedCAPEManagementTeam
EquityDerivatives
Management/Trading
JeffreySherman
SamuelLau
EricDhall
RobertHerron
JeffreyMayberry

Mortgages

GlobalDeveloped
Credit

JeffreyGundlach
PhilipBarach
JoelDamiani
JosephGalligan
SamuelGarza

BonnieBaha
RobertCohen

International
DevelopedSovereign
Debt

Government/
Municipals

JeffreyGundlach

GregoryWhiteley

EmergingMarkets
LuzPadilla
MarkChristensen
SuFeiKoo

102114 SmartBeta,SmartAlpha40

SmartBeta,
MeetSmartAlpha
LiveWebcastHostedBy:

JeffreySherman,CFA
PortfolioManager

October21,2014

IndexDescriptions
Alpha() Ameasureofperformanceonariskadjustedbasis.Alphatakesthevolatility(pricerisk)ofamutualfundandcomparesitsriskadjustedperformanceto
abenchmarkindex.
Beta() Themeasureofamutualfund'svolatilityinrelationtothemarket.Bydefinition,themarkethasabetaof1.0,andindividualmutualfundsareranked
accordingtohowmuchtheydeviatefromthemarket.Abetaofabove1.0meansthefundswingsmorethanthemarket.Ifthefundmoveslessthanthemarket,
thebetaislessthan1.0.
BasisPoint Abasispointisaunitthatisequalto1/100th of1%,andisusedtodenotethechangeinafinancialinstrument.
ShillerBarclaysCAPEU.S.SectorIndex Anindexthattakesalongpositionin4favoredsectorsthatareundervaluedandpossessrelativelystrongerprice
momentumoverthepast12months.Eachmonth,theindexranksthe10U.S.sectorsbasedonmodifiedCAPEratioand12monthpricemomentum,equally
allocatingacrossthetop4rankedsectors.
SharpeRatio Arewardtovariabilityratioandameasureoftheexcessreturn(orRiskPremium)perunitofriskinaninvestmentassetoratradingstrategy.
MorningstarLargeValueCategory LargevalueportfoliosinvestprimarilyinbigU.S.companiesthatarelessexpensiveorgrowingmoreslowlythanotherlarge
capstocks.Stocksinthetop70%ofthecapitalizationoftheU.S.equitymarketaredefinedaslargecap.Valueisdefinedbasedonlowvaluations(lowprice
ratiosandhighdividendyields)andslowgrowth(lowgrowthratesforearnings,sales,bookvalue,andcashflow).
WeightedAverageLife(WAL) Theaveragenumberofyearsforwhicheachdollarofunpaidprincipalonaloanormortgageremainsoutstanding.Oncecalculated,
WALtellshowmanyyearsitwilltaketopayhalfoftheoutstandingprincipal.
Duration Durationisacommonlyusedmeasureofthepotentialvolatilityofthepriceofadebtsecurity,ortheaggregatemarketvalueofaportfolioofdebt
securities,priortomaturity.Securitieswithalongerdurationgenerallyhavemorevolatilepricesthansecuritiesofcomparablequalitywithashorterduration.
S&P500TRIndex Isafreefloatcapitalizationweightedindexpublishedsince1957ofthepricesof500largecapcommonstocksactivelytradedintheUnited
States.
StandardDeviation Sigma=standarddeviation.Itshowshowmuchvariationthereisfromtheaverage(mean,orexpected/budgetedvalue).Alow standard
deviationindicatedthatthedatapointtendtobeveryclosetothemean,whereashighstandarddeviationindicatedthatthe dateisspreadoutoveralargerange
ofvalues.
BelowInvestmentGrade Referstoasecuritythatisratedbelowinvestmentgrade.Thesesecuritiesareseenashavinghigherdefaultriskorotheradversecredit
events,buttypicallypayhigheryieldsthanbetterqualitybondsinordertomakethemattractive.Theyarelesslikelytopayback100centsonthedollar.
InvestmentGrade Referstoabondconsideredinvestmentgradeifit'screditratingisBBB orhigherbyStandard&Poor'sorBaa3orhigherby Moody's.Ratings
arebasedonacorporatebondmodel.Thehighertheratingthemorelikelythebondwillpaybackpar/100centsonthedollar.
CAPERatio(CyclicallyAdjustedPricetoEarnings) Ameasureofthepriceofacompany'sstockrelativetoaverageearningsgrowthoverthepast10years.

102114 SmartBeta,SmartAlpha42

HistoricalIndexPerformanceDisclaimer

102114 SmartBeta,SmartAlpha43

BarclaysDisclaimer
BarclaysCapitalInc.anditsaffiliates("Barclays")isnottheissuerorproducerofDoubleLines Shiller EnhancedCAPE (theStrategy)andBarclayshasno
responsibilities,obligationsordutiestoinvestorsinthestrategy.TheShiller BarclaysCAPE USSectorUSDIndex(theIndex)isatrademarkownedby
BarclaysBankPLCandlicensedforusebytheStrategy.WhiletheStrategymayexecutetransaction(s)withBarclaysinorrelatingtotheIndex,Strategy
investorsacquireinterestssolelyusingthestrategyandinvestorsneitheracquireanyinterestintheIndexnorenterintoany relationshipofanykind
whatsoeverwithBarclaysuponmakinganinvestmentintheStrategy.TheStrategyisnotsponsored,endorsed,soldorpromoted by BarclaysandBarclays
makesnorepresentationregardingtheadvisabilityoruseoftheIndexoranydataincludedtherein.Barclaysshallnotbeliableinanywaytoinvestorsorto
otherthirdpartiesinrespectoftheuseoraccuracyoftheIndexoranydataincludedtherein.
TheShiller BarclaysCAPE USIndexFamily(theIndexFamily)hasbeendevelopedinpartbyRSBBI,LLC,theresearchprincipalofwhichisRobertJ.Shiller.
RSBBI,LLCisnotaninvestmentadvisoranddoesnotguaranteetheaccuracyandcompletenessoftheIndexFamilyoranydataor methodologyeither
includedthereinoruponwhichitisbased.RSBBI,LLCshallhavenoliabilityforanyerrors,omissionsorinterruptionsthereinandmakesnowarranties
expressedorimplied,astotheperformanceorresultsexperiencedbyanypartyfromtheuseofanyinformationincludedtherein oruponwhichitisbased,
andexpresslydisclaimsallwarrantiesofthemerchantabilityorfitnessforaparticularpurposewithrespectthereto,andshallnotbeliableforanyclaimsor
lossesofanynatureinconnectionwiththeuseofsuchinformation,includingbutnotlimitedto,lostprofitsorpunitiveorconsequentialdamageseven,if
RSBBI,LLCisadvisedofthepossibilityofsame.

102114 SmartBeta,SmartAlpha44

Disclaimer
ImportantInformationRegardingThisReport
Issueselectionprocessesandtoolsillustratedthroughoutthispresentationaresamplesandmaybemodifiedperiodically.Suchchartsarenottheonlytoolsused
bytheinvestmentteams,areextremelysophisticated,maynotalwaysproducetheintendedresultsandarenotintendedforusebynonprofessionals.
DoubleLinehasnoobligationtoproviderevisedassessmentsintheeventofchangedcircumstances.Whilewehavegatheredthisinformationfromsources
believedtobereliable,DoubleLinecannotguaranteetheaccuracyoftheinformationprovided.Securitiesdiscussedarenotrecommendationsandarepresented
asexamplesofissueselectionorportfoliomanagementprocesses.Theyhavebeenpickedforcomparisonorillustrationpurposesonly.Nosecuritypresented
withiniseitherofferedforsaleorpurchase.DoubleLinereservestherighttochangeitsinvestmentperspectiveandoutlook withoutnoticeasmarketconditions
dictateorasadditionalinformationbecomesavailable.

ImportantInformationRegardingRiskFactors
Investmentstrategiesmaynotachievethedesiredresultsduetoimplementationlag,othertimingfactors,portfoliomanagementdecisionmaking,economicor
marketconditionsorotherunanticipatedfactors.Theviewsandforecastsexpressedinthismaterialareasofthedateindicated,aresubjecttochangewithout
notice,maynotcometopassanddonotrepresentarecommendationorofferofanyparticularsecurity,strategy,orinvestment. Pastperformanceisno
guaranteeoffutureresults.

ImportantInformationRegardingDoubleLine
Inpreparingtheclientreports(andinmanagingtheportfolios),DoubleLineanditsvendorspriceseparateaccountportfolio securitiesusingvarioussources,
includingindependentpricingservicesandfairvalueprocessessuchasbenchmarking.
ToreceiveacomplimentarycopyofDoubleLinescurrentFormADVPartII(whichcontainsimportantadditionaldisclosureinformation),acopyoftheDoubleLines
proxyvotingpoliciesandprocedures,ortoobtainadditionalinformationonDoubleLinesproxyvotingdecisions,pleasecontact DoubleLinesClientServices.

ImportantInformationRegardingDoubleLinesInvestmentStyle
DoubleLineseekstomaximizeinvestmentresultsconsistentwithourinterpretationofclientguidelinesandinvestmentmandate.WhileDoubleLineseeksto
maximizereturnsforourclientsconsistentwithguidelines,DoubleLinecannotguaranteethatDoubleLinewilloutperformaclient'sspecifiedbenchmark.
Additionally,thenatureofportfoliodiversificationimpliesthatcertainholdingsandsectorsinaclient'sportfoliomayberisinginpricewhileothersarefalling;or,
thatsomeissuesandsectorsareoutperformingwhileothersareunderperforming.Suchoutorunderperformancecanbetheresultofmanyfactors,suchasbut
notlimitedtoduration/interestrateexposure,yieldcurveexposure,bondsectorexposure,ornewsorrumorsspecifictoasinglename.
DoubleLineisanactivemanagerandwilladjustthecompositionofclientsportfoliosconsistentwithourinvestmentteamsjudgmentconcerningmarket
conditionsandanyparticularsecurity.TheconstructionofDoubleLineportfoliosmaydiffersubstantiallyfromtheconstruction ofanyofavarietyofbondmarket
indices.Assuch,aDoubleLineportfoliohasthepotentialtounderperformoroutperformabondmarketindex.Sincemarketscanremaininefficientlypricedfor
longperiods,DoubleLinesperformanceisproperlyassessedoverafullmultiyearmarketcycle.
ReferencestootherFundsshouldnotbeinterpretedasanofferofthosesecurities.
Diversification doesnotassureaprofitorprotectagainstalossinadecliningmarket.
Opinionsexpressedaresubjecttochangeatanytime,arenotaguaranteeandshouldnotbeconsideredinvestmentadvice.
2014DoubleLineCapitalLP
102114 SmartBeta,SmartAlpha45

SmartBeta,
MeetSmartAlpha
LiveWebcastHostedBy:

JeffreySherman,CFA
PortfolioManager

October21,2014

Announcements
WebcastNews
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DoubleLine EmergingMarketsFixedIncomeFundandLowDurationEmergingMarketsFund
1:15pmPDT/4:15pmEDT

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1:15pmPDT/4:15pmEDT

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ToReceivePresentationSlides,Emailfundinfo@doubleline.com

102114 SmartBeta,SmartAlpha47