Mirror,MirrorontheWall

LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

September11,2012

FundOfferings
TotalReturnBondFund RetailandInstitutionalClass NoLoadMutualFund Retail Inst. Nshare Ishare Ticker MinInvestment MinIRAInvestment GrossExpenseRatio DLTNX $2,000 $500 0.76% DBLTX $100,000 $5,000 0.51% Ticker MinInvestment MinIRAInvestment Gross ExpenseRatio CoreFixedIncomeFund RetailandInstitutionalClass NoLoadMutualFund Retail Inst. Nshare Ishare DLFNX $2,000 $500 0.80% DBLFX $100,000 $5,000 0.55%

TheFundsinvestmentobjectives,risks,chargesandexpensesmustbeconsideredcarefullybeforeinvesting.The prospectuscontainsthisandotherimportantinformationabouttheFunds,anditmaybeobtainedbycalling1 (877)3546311/1(877)DLINE11,orvisitingwww.doublelinefunds.com.Readitcarefullybeforeinvesting.

Investmentsindebtsecuritiestypicallydecreaseinvaluewheninterestratesrise.Thisriskisusuallygreaterforlongertermdebtsecurities. In estmentsinAssetBackedandMortgageBackedSecurities Investments Sec ritiesincl include deadditionalrisksthatin investors estorssho should ldbea aware areofs such chascreditrisk risk,prepa prepayment mentrisk, risk possibleilliquidity illiq idit anddefault, defa lt aswell ellas increasedsusceptibilitytoadverseeconomicdevelopments.Investmentsinlowerratedandnonratedsecuritiespresentagreater riskoflosstoprincipalandinterestthanhigherratedsecurities. TheCoreFundinvestsinforeignsecuritieswhichinvolvegreatervolatilityandpolitical,economicandcurrencyrisksanddifferencesinaccountingmethods. TheTotalReturnBondFundintendstoinvestmorethan50%ofitsnetassetsinmortgagebackedscurrilitiesofanymaturityortype. Opinionsexpressedaresubjecttochangeatanytime,arenotforecastsandshouldnotbeconsideredinvestmentadvice. DoubleLineFundsaredistributedbyQuasarDistributors,LLC. WhiletheFundsarenoload,managementfeesandotherexpensesstillapply.Pleaserefertotheprospectusforfurtherdetails. PastPerformancedoesnotguaranteefutureresults.Indexperformanceisnotillustrativeoffundperformance.Aninvestmentcannotbemadeinanindex.

Performance
DoubleLineTotalReturnBondFund QuarterEndingJune30,2012
SinceInception 1Year Annualized (Annualized) (4610to63012) 9.43% 13.85% 9.17% 13.60% 7 47% 7.47% 6 95% 6.95% MorningstarIntermediateTermBondFundRankings* AsofJune30,2012 1Year(AbsoluteRank) Ishare Nshare

Ishare Nshare B l USAggregate Barclays A t I Index d AsofJune30,2012 GrossSEC30DayYield NetSEC30DayYield

June 0.43% 0.41% 0 04% 0.04% Ishare 5.59% 5.59% Ishare 0.51%

2Q2012 1.65% 1.68% 2 06% 2.06% Nshare 5.34% 5.34% Nshare 0.76%

57of1,184 71of1,184

1Year(%Rank) 5% 6% Fortheperiodending63012,MorningstarrankedtheTotalReturn BondFundinthetop5%and6%(fortheIandNshareclasses,respectively) among gthe1,184 , FundsintheIntermediateTermBondFundcategory g ybased ontotalreturns. Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturnandprincipal valueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthantheoriginalcost.Current performanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrenttothemostrecentmonthendmaybe obtainedbycalling2136338200orbyvisitingwww.doublelinefunds.com.
BarclaysUSAggregateIndexrepresentssecuritiesthatareSECregistered, registered taxable, taxable anddollardenominated denominated.Theindexcoversthe USinvestmentgradefixedrate bondmarket,withindexcomponentsforgovernmentandcorporatesecurities,mortgagepassthroughsecurities,andassetbackedsecurities.Thesemajorsectors aresubdividedintomorespecificindicesthatarecalculatedandreportedonaregularbasis.Itisnotpossibletoinvestinanindex. PastPerformancedoesnotguaranteefutureresults.Indexperformanceisnotillustrativeoffundperformance.Aninvestmentcannotbemadeinanindex. *Morningstarrankings(%Rank)representafund'stotalreturnpercentilerankrelativetoallfundsthathavethesameMorningstarcategory.Thehighest percentilerankis1andthelowestis100.MorningstarRankings(Absolute)representafundstotalreturnrankrelativetoall fundsthathavethesameMorningstar g y Thehighest g rankis1andthelowestisbasedonthetotalnumberoffundsinthecategory. g y ItisbasedonMorningstar g totalreturn, ,whichincludesboth Category. incomeandcapitalgainsorlossesandisnotadjustedforsaleschargesorredemptionfees. 2011MorningstarInc.AllRightReserved.Theinformationcontainedherein:(1)isproprietarytoMorningstar;(2)maynotbecopiedordistributed;and(3)isnot warrantedtobeaccurate,completeortimely.NeitherMorningstarnoritscontentprovidersareresponsibleforanydamagesorlossesarisingfromanyuseofthis 2 information.

GrossExpenseRatio

Performance

DoubleLineCoreFixedIncomeFund QuarterEndingJune30,2012
Si I Since Inception i 1Year Annualized (Annualized) (6110to63012) 10.63% 11.24% 10.38% 11.00% 7.47% 6.23% MorningstarIntermediateTermBondFundRankings* Ishare Nshare 22of 30of , 84 , 84 1,184 1,184 1Year(AbsoluteRank) 1Year(%Rank) 2% 3% Fortheperiodending63012,MorningstarrankedtheCoreFixedIncome BondFundinthetop2%and3%(fortheIandNshareclass,respectively)amongthe 1,184FundsintheIntermediateTermBondFundcategorybasedontotalreturns. AsofJune30,2012

Ishare Nshare BarclaysUSAggregateIndex AsofJune30,2012 GrossSEC30DayYield NetSEC30DayYield

June 0.26% 0.33% 0.04% Ishare 3.56% 3.58% Ishare h

2Q2012 2.12% 2.15% 2.06%

Nshare 3.30% 3.33% Nshare h 0.80%

GrossExpenseRatio

0.55%

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturnandprincipal valueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthantheoriginalcost.Current performanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrenttothemostrecentmonthendmaybe obtainedbycalling2136338200orbyvisitingwww.doublelinefunds.com.

BarclaysUSAggregateIndexrepresentssecuritiesthatareSECregistered,taxable,anddollardenominated.Theindexcoversthe USinvestmentgradefixedrate bondmarket,withindexcomponentsforgovernmentandcorporatesecurities,mortgagepassthroughsecurities,andassetbackedsecurities.Thesemajorsectors aresubdividedintomorespecificindicesthatarecalculatedandreportedonaregularbasis.Itisnotpossibletoinvestinanindex. PastPerformancedoesnotguaranteefutureresults.Indexperformanceisnotillustrativeoffundperformance.Aninvestmentcannotbemadeinanindex. *Morningstarrankings(%Rank)representafund'stotalreturnpercentilerankrelativetoallfundsthathavethesameMorningstarcategory.Thehighest percentilerankis1andthelowestis100.MorningstarRankings(Absolute)representafundstotalreturnrankrelativetoall fundsthathavethesameMorningstar Category.Thehighestrankis1andthelowestisbasedonthetotalnumberoffundsinthecategory.ItisbasedonMorningstar totalreturn,whichincludesboth incomeandcapitalgainsorlossesandisnotadjustedforsaleschargesorredemptionfees fees. 2012MorningstarInc.AllRightReserved.Theinformationcontainedherein:(1)isproprietarytoMorningstar;(2)maynotbecopiedordistributed;and(3)isnot warrantedtobeaccurate,completeortimely.NeitherMorningstarnoritscontentprovidersareresponsibleforanydamagesorlossesarisingfromanyuseofthis information. 3

Announcements WebcastNews
LuzPadilla October9,2012
EmergingMarketsFixedIncomeFund 1:15pmPDT/4:15pmEDT

PhilipBarach October23,2012
LowDurationBondFund 1:15pmPDT/4:15pmEDT

JeffreyGundlach&JeffSherman November6, 6 2012

MultiAssetGrowthFund 1:15pmPDT/4:15pmEDT

ToReceivePresentationSlides: Youcanemail fundinfo@doubleline com fundinfo@doubleline.com

4

Mirror,MirrorontheWall

LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

September11,2012

DoubleLine Performance DuringRising&FallingRateEnvironments

462010to10 72010 612010to107 2010 1072010to28 2011 282011to7 242012

DoubleLine TotalReturnBondFund DoubleLine CoreFixedIncomeFund BarclaysCapitalUSAggregate Bondindex

15.3%

8.8% 7.5%

1.5% 0.5.% 3.0%

16.9% 18.0% 13.1%

7.3%

4.6%

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturnand principalvalueofaninvestmentwillfluctuatesothataninvestorsshares,whenredeemed,maybeworthmoreorlessthantheoriginal cost.Currentperformanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrenttothemost recent monthendmaybeobtainedbycalling2136338200orbyvisitingwww.doublelinefunds.com.

Source:BloombergFinancialServices,DoubleLine Capital

TABI
GovernmentSpending
TurningtheWorld Upside id Down
ByAnish Kapoor

FederalSpending&Receipts

Germany

Source:FactCheck.org. http://www.factcheck.org/2012/06/obamasspendinginfernoornot/

FederalSpendingbyPresident

Germany

Source:http://www.factcheck.org/2010/07/geithnersgdpwhopper/

FederalSpendingbyPresident

Germany

Source:FactCheck.org. http://www.factcheck.org/2012/06/obamasspendinginfernoornot/

10

YearsofSoaringNationalDebt

Source:NYTimesTheDangerousNotionThatDebtDoesntMatter,January20,2012 http://www.nytimes.com/imagepages/2012/01/20/opinion/sunday/debtgraphic.html?ref=sunday

11

ADecadeofDecline

Germany

http://globaleconomicanalysis.blogspot.com/2012/09/whodoyoublameforwoesofmiddle.html Middleclassintheslidethatcontainsthebelowchartsisbasedonadultswhodescribethemselvesasmiddleclass.Itsnotbasedonanincometier.

12

ElectionPollOdds
AsofAugust31,2012

Source:BespokeInvestmentGroupB.I.G.Tips8/31/12WeekinReview:EndofSummerBlues,Intrade.com,AlphaCapital

13

ElectionPollOdds
AsofAugust31,2012

Source:BespokeInvestmentGroupB.I.G.Tips8/31/12WeekinReview:EndofSummerBlues,Intrade.com,AlphaCapital

14

HouseholdIncomeGrowthByAge
June1965throughDecember2010

15 Source:AdvisorsPerspective,http://advisorperspectives.com/dshort/

InflationComparison

http://globaleconomicanalysis.blogspot.com/2012/08/tradingcapsandgownsformopswhygo.html

16

UnleadedGasolinePrices
October1,2009throughSeptember4,2012

Source:BloombergFinancialServices SMAVG=SimpleMovingAverage

17

US$
Jan60 Jul61 Jan63 Jul64 Jan66 Jul67 Jan69 Jul70 Jan72 Jul73 Jan75 Jul76 Jan78 Jul79 Jan81 Jul82 Jan84 Jul85 Jan87 Jul88 Jan90 Jul91 Jan93 Jul94 Jan96 Jul97 Jan99 Jul00 Jan02 Jul03 Jan05 Jul06 Jan08 Jul09 Jan11 Jul12

Source:WorldBank

GlobalFoodPriceIndexatRecordHigh

18

FoodStampParticipants
(inthousands)

64%increaseinthepastfouryears

http://globaleconomicanalysis.blogspot.com/2012/08/foodstampusageup64inlastfour.html SNAP=SupplementalNutritionalAssistanceProgram

19

FoodStampProgramCosts

114%increaseinthepastfouryears

SNAP=SupplementalNutritionalAssistanceProgram http://globaleconomicanalysis.blogspot.com/2012/08/foodstampusageup64inlastfour.html

20

EuroAreavs.U.S.UnemploymentRates

Germany

EuroAreareferstotheEU27MemberStateswhichinclude:Belgium,Bulgaria,CzechRepublic,Denmark,Germany,Estonia,Ireland,France,Italy,Cyprus,Latvia, Lithuania,Luxembourg,Hungary,Austria,Poland,Portugal,Romania,Slovenia,Slovakia,Finland,Greece,Spain,Malta,Netherlands,SwedenandtheUnitedKingdom. Source:BloombergFinancialService http://www.ritholtz.com/blog/wpcontent/uploads/2012/09/EuroAreaUnemployment.png

21

EmploymenttoPopulationRatio
January1948throughJuly31,2012

Source:BloombergFinancialServices,BureauofLaborStatistics

22

CiviliansNotintheLaborForce
January1950throughJuly31,2012

Source:BloombergFinancialServices,BureauofLaborStatistics

23

U.S.JobLossesandRecovery

(Basedonwages perhour)

($21$55)

($14$21)

($8$ ($ $14)

http://www.ritholtz.com/blog/2012/09/americasminimumwagerecovery/

24

RestaurantPerformance
January1,2002throughJuly31,2012

http://www.calculatedriskblog.com/2012/09/restaurantperformanceindexdeclines.html NationalRestaurantPerformanceIndexisamonthlycompositeindexthattracksthehealthofandoutlookfortheU.S.restaurantindustry.Itisbasedonresponsestthe Associationsmonthlysurvey.

25

DevelopedEconomiesAreNowthe TheGreatProsperity: 19471979 Debtor Economies

26

PIIGS10YearSovereignDebtSpreadto GermanBundJanuary1,2010throughSeptember10,2012

Source:BloombergFinancialServices

27

EuroZone andPIIGSGDP
1Q1998through4Q2011
20%

15%

10%

YoY%Change e(SA)

5%

0%

5%

Eurozone 10%

Portugal

Ireland

Italy

Greece

Spain

Eurozoneincludes i l d 27member b states:Austria, i Belgium, l i Bulgaria, l i Cyprus,Czech hRepublic, bli Denmark, k Estonia, i Finland, i l d France,Germany,Greece,Hungary,Ireland, l d Italy, l Latvia, i Lithuania,Luxembourg,Malta,Netherlands,Poland,Portugal,Romania,Slovakia,Slovenia,Spain,Spain,SwedenandtheUnited Kingdom. PIIGS=Portugal,Ireland,Italy,GreeceandSpain. GDP=ReferstothegrossDomesticProductormarketvalueofallfinalgoodsandservicesproducedwithinacountryinagivenperiod. Source:DoubleLineCapital,BloombergFinancialServices. YoY =Yearover Year SA=SeasonallyAdjusted

28

EuroZoneUnemployment %
SpainUnemploymentRate(%) IrelandUnemploymentRate(%) FranceUnemploymentRate(%) GermanyUnemploymentRate(%) GreeceUnemploymentRate(%) PortugalUnemploymentRate(%) ItalyUnemploymentRate(%)

29
Source:BloombergFinancialServices

IndustrialProduction Germany&Italy

Source:GaveKal DataResearch. GermanyIndustrialProductionIndex(GRIPI)=IndustrialproductioninGermanyseasonallyadjustedandpublishedmonthlybytheBundsbank.Theindexincludes mining,Electricityandgassupply,manufacturingandconstructionindices. ItalyindustrialProductionIndex(ITPRSAN)=IndustrialproductionofItalyseasonallyadjustedandpublishedmonthlymeasuringrealoutputexpressedasa%ofreal outputinabaseyear. Aninvestmentcannotbemadedirectlyinanindex.

30

GlobalManufacturingActivity
Country August PMI JulyPMI MonthlyChange Austria 46.7 47.4 (0.7) EuroZone 45.1 44 1.1 Italy 43.6 44.3 (0.7) Japan 47.7 47.9 (0.2) Poland 48.3 49.7 (1.4) ( ) Singapore 49.1 49.8 (0.7) Switzerland 46.7 48.6 (1.9) Taiwan 46.1 47.5 (1.4) U.S. 49.6 49.8 (0.2) China 49.2 50.1 (0.9) Hungary g y 49.5 51.9 (2.4) ( ) Australia 45.3 40.3 5.0 Brazil 49.3 48.7 0.6 CzechRepublic 48.7 49.5 (0.8) France 46 43.4 2.6 Germany 44.7 43 1.7 Greece 42.1 41.9 0.2 Netherlands 49.7 48.9 0.8 SouthKorea 47.5 47.2 0.3 Spain 44 42.3 1.7 U.K. 49.5 45.2 4.3 Vietnam 47.9 43.6 4.3 Turkey 50 49.4 0.6 Canada 53 53.1 (0.1) India 52.8 52.9 (0.1) Ireland 50.9 53.9 (3.0) Mexico 55.1 55.2 (0.1) Russia 51 52 (1.0) SouthAfrica 50.2 51 (0.8) Indonesia 51.6 51.4 0.2 SaudiArabia 58.3 58.1 0.2
Source:WallStreetJournal PMI=PurchasingManagersIndex

Change ContractingFaster ContractingFaster ContractingFaster ContractingFaster Contracting gFaster ContractingFaster ContractingFaster ContractingFaster ContractingFaster Contracting Contracting g ContractingSlower ContractingSlower ContractingSlower ContractingSlower ContractingSlower ContractingSlower ContractingSlower ContractingSlower ContractingSlower ContractingSlower ContractingSlower Nochange ExpandingSlower ExpandingSlower ExpandingSlower ExpandingSlower ExpandingSlower ExpandingSlower ExpandingFaster ExpandingFaster

31

FutureEconomicSlowdownIndicators
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0

IronOre LMECopper Baltic DryIndex

S Source: Bloomberg Bl b Financial Fi i lServices S i IronOre=Referstoironorefuturescontract. LMECopper=CopperfuturestradedontheLondonMetalsExchange(LME) BalticDryIndex=AcompositeoftheBalticCapesize,Panamax,Handsize andSupramax indices.TheindexisdesignedasthesuccessortotheBalticFreightIndexandwas firstpublishedonJanuary4,1985.Itisrepresentsglobalshippingactivity. Aninvestmentcannotbemadedirectlyinanindex.

32

TABII
Bl dl Verdict Bloodless V di of fthe h Market M k
YouretooBullish
Today U.S.Treasuries

YouretooBearish
March2009 RiskAssets

MerrillFixedIncomeIndexReturns
Grey=YTDending9/10/12 Blue=Year2011
Convertibles(VOSO) 3.76% HighYield(JOAO) InternationalEmerging(IGOV) Corporate(COAO) InternationalDeveloped(NOGO) Mortgages(MOAO) Government(G0A0)
DataSource:MerrillLynchIndices PleaseseetheAppendixforindexdefinitions.Aninvestmentcannotbemadedirectlyinanindex.

10.79% 11.39% 14.02% 8.16% 7.86% 7 86% 7.51% 2.67% 5.60% 2.51% 2.00% 9.19%
34

4 50% 4.50%

6.14%

MerrillFixedIncomeIndexReturns
Grey=YTDending G di 9/10/12 Blue=Year2011
CCCRatedHighYield(JOA3) BBRatedHighYieldCredit(JOA1) BRatedHighYield(JOA2) BBBRated R t dC Credit dit(COA4) ARatedCredit(COA3) AAARatedCredit(COA1) 14.85% 1.33% 10.80% 6.12% 4.72% 10.78%

8 63% 8.63% 8.12% 7.77% 7.39% 3.57% 9.11%

InvestmentGrade=IndicesratedAAAtoBBB (shownabove)areconsideredtobeinvestmentgrade.AbondisconsideredinvestmentgradeifitscreditratingisBBB of hi h by higher b Standard S d d&Poors P orBaa3 B 3b byMoodys. M d Th Thehi higher h the h rating, i the h morelik likely l the h b bond d i istopayb back katpar/$100 /$100cents onthe h dollar. d ll AAAis i considered id dthe h hi highest h qualityandthelowestdegreeofrisk.Theyareconsideredtobeextremelystableanddependable. BelowInvestmentGrade=Alsoknownasjunkbond(shownabove)isasecurityratedbelowinvestmentgradehavingaratingofBBB orbelow.Thesebondsareseenas havinghigherdefaultriskorotheradversecreditevents,buttypicallypayhigheryieldsthanbetterqualitybondsinorder to makethemattractive.Theyarelesslikelytopay backatpar/$100centsonthedollar. Source:MerrillLynchIndices. Aninvestmentcannotbemadedirectlyinanindex.

35

DebttoGrossDomesticProduct(GDP)

1984 30yrUSThits14%
Inflation 4.0% ActuarialRates 9.0% 500bp profit

Currently 30yrUST2.5%
Inflation 2.0% ActuarialRates 7.5% 500bp Loss

Source:BloombergFinancialServices. GDP=ReferstotheGrossDomesticProductormarketvalueofallfinalgoodsandservicesproducedwithinacountryinagiven period. UST=USTreasurybond Inflation=Therateatwhichthegenerallevelofpricesforgoodsandservicesisrising,andsubsequently,purchasingpower is falling. Actuarialrates=Isanestimateoftheexpectedvalueoffuturelossusedbypensionfunds.Usuallythefuturelossexperienceispredictedonthebasisofhistoricallossexperience.

36

DowJonesIndustrialAverage
Overthelast100years,SeptemberistheonlymonththattheDJIAhasbeennegativeforthe past100,50and20yeartimeperiods

Source:BespokeInvestmentGroupB.I.G.Tips8/31/12WeekinReview:EndofSummerBlues,AlphaCapital

37

Eurovs.S&P500Index
May23,2011throughSeptember11,2012

Source:BloombergFinancialServices S&P500indexisabasketof500stocksthatareconsideredtobewidelyheld.Itisweightedbymarketvalueanditsperformanceisthoughttoberepresentativeofthestockmarketas awhole. Euro=TheofficialcurrencyoftheEuropeanUnion(EU)memberswhohaveadopteditincluding:Austria,Belgium,Finland,France,Germany,Greece,Ireland,Italy,Luxembourg,the 38 Netherlands,NewZealand,Portugal,andSpain. Aninvestmentcannotbemadedirectlyinanindex.

S&P500IndexandShanghaiIndex
July11,2011throughSeptember11,2012

Source:BloombergFinancialServices,DoubleLineCapitalLP S&P500indexisabasketof500stocksthatareconsideredtobewidelyheld.Itisweightedbymarketvalueanditsperformanceisthoughttoberepresentativeofthestock marketasawhole.SPXTistheS&P500indexnettotalreturnindex. SHCOMP=TheShanghaiStockExchangeCompositeisacapitalizationweightedindextrackingdailypriceperformanceofallAandBshareslistedontheShanghaiStock Exchange.ThisindexwasdevelopedDecember19,1990withabasevalueof100. Aninvestmentcannotbemadedirectlyinanindex.

39

TABIII
HousingandMBSMarketTrends
ASpecifc Object
ByDonaldJudd

Source:U.S.CensusBureau

Foreclosures
*January1,2011throughDecember31,2011

41
Source:ZeroHedge;http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/07/20120705_underwater.png

NewHomeSales(AnnualizedRateinthousands)
January31,1963throughJuly31,2012

Source:BloombergFinancialServices

42

ExistingHomeInventory
January1,2002throughJuly31,2012

Source:BusinessInsider,NAR;calculatedriskblog.com (June2011)

43

NonAgencyRMBS60++DelinquencyRate
January31,2005throughAugust31,2012

SeriousDelinquenciesisdefinedbymortgagesthatare60++delinquencyratesdefinedasloans60or90dayslateinmortgagepayments,oralreadyinforeclosureorREO status. PrimedefinedasFICO>725andLTV<75 AltAdefinedasFICO675725;orFICO>725andLTV>=75 SubprimedefinedasFICO<675 Source:LoanPerformance,Vichara,DoubleLineCapitalasofAugust31,2012.

44

NonAgencyRMBSConditionalDefaultRate
January31,2005throughAugust31,2012
18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

Prime AltA Subprime 10.3%

CDR Januar ry2005throughAugust2012

9.8%

4.3%

Serious i Delinquencies li i is i defined d fi dby b mortgagesthat h are60++delinquency d li ratesdefined d fi dasloans l 60or90days d late l in i mortgagepayments,oralready l d i inforeclosure f l orREO status. PrimedefinedasFICO>725andLTV<75 AltAdefinedasFICO675725;orFICO>725andLTV>=75 SubprimedefinedasFICO<675 Source:LoanPerformance,Vichara,DoubleLineCapitalasofAugust31,2012.

45

NonAgencyRMBSLossSeverity
January y31, ,2005through g August g 31, ,2012
90% Prime 80% AltA 70% LossSeverity y Janua ary2005throughA August2012 60% Subprime

72.6%

59.7%
50% 40% 30% 20% 10% 0%

48.9%

SeriousDelinquenciesisdefinedbymortgagesthatare60++delinquencyratesdefinedasloans60or90dayslateinmortgagepayments,oralreadyinforeclosureorREO status. PrimedefinedasFICO>725andLTV<75 AltAdefinedasFICO675725;orFICO>725andLTV>=75 SubprimedefinedasFICO<675 Source:LoanPerformance,Vichara,DoubleLineCapitalasofAugust31,2012.

46

NonAgencyRMBSConditionalRepaymentRate
January31,2005throughAugust31,2012
45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Prime AltA Subprime

CRR January2005throughA August2012

15.8%

6.6% 2.2%

SeriousDelinquenciesisdefinedbymortgagesthatare60++delinquencyratesdefinedasloans60or90dayslateinmortgagepayments,oralreadyinforeclosureorREO status. PrimedefinedasFICO>725andLTV<75 AltAdefinedasFICO675725;orFICO>725andLTV>=75 SubprimedefinedasFICO<675 Source:LoanPerformance,Vichara,DoubleLineCapitalasofAugust31,2012.

47

TABIV
DoubleLine bl i Funds d Overview i

TotalReturnBondFundPortfolioStatistics

Total Return BondFund AveragePrice Duration Average Life 97.28 1.21 4.10

BarclaysCapitalU.S. AggregateIndex $110.14 5.02 7.00

PortfoliostatisticsasofAugust31,2012basedonmarketweightedaverages.Subjecttochangewithoutnotice. Averageprice=Ameasureoftheweightedaveragepricepaidforthesecuritiescalculatedbytakingthepricesanddividingbythenumberofsecuritiesanddoesnotincludecash. Averagepriceshouldnotbeconfusedwithnetassetvalue. AverageDuration =Durationisusedasariskmeasure.Itmeasuresthepricevolatilityofasecuritygivenachangeininterestratemovements. g Life=Theaverage g numberofy yearsthateachdollarofunpaid p p principal p dueonthemortgage g g remainsoutstanding. g Average g lifeiscomputed p astheweighted g average g timeto Average thereceiptofallfuturecashflows,usingastheweightsthedollaramountsoftheprincipalpaydowns. Source:DoubleLineCapitalLP

49

TotalReturnBondFundPortfolioComposition BySecurityType
CMBS 3.63% 0 Cash 18.45%

NonAgency Residential MBS 30.43%

Agency Passthroughs 28.07% AgencyCMO 19.43%

PortfoliocompositionasofAugust31,2012.Subjecttochangewithoutnotice. Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity. Cash =Thevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketablesecurities,suchasgovernmentbonds,banker'sacceptances,cashequivalentsonbalance sheetsthatmayincludesecuritiesthatmaturewithin90days days. AgencyPassThroughs=MortgagepassthroughsecuritieswhoseprincipalandinterestguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC). AgencyCMO=CollateralizedMortgageObligation(CMO)isafinancialdebtvehicle/specialpurposeentitycalledapool.Investorsbuybondsissuedbytheentityandreceivepayments accordingtoadefinedsetofrules.Themortgagesthemselvesarethecollateral,thebondsarethetranches(alsocalledclasses),andthesetofrulesthatdictateshowmoneyisreceived fromthecollateralwillbedistributediscalledthestructure.Thelegalentity,collateralandstructurearecollectivelyreferredtoasthedeal. 50 NonAgencyRMBS=ResidentialMortgagesBondSecuritiesareatypeofbondbackedbyresidentialmortgages.NonAgencymeanstheywereissuedby aprivateissuer. CMBS =CommercialMortgageBackedSecurities.Securitizedloansmadeoncommercialratherthanresidentialproperty.

TotalReturnBondFundPortfolioComposition Agencyvs.NonAgencyResidentialMortgageBacked Securities(RMBS)

Cash 18.45% CMBS 3.63% Agency 47.50%

NonAgency 30 43% 30.43%

PortfoliocompositionasofAugust31,2012.Subjecttochangewithoutnotice. Source DoubleLineCapitalLP. Source: LP Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity. security AgencyRMBS=ResidentialmortgageloansguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC). NonAgencyRMBS=Residentialmortgagebackedsecuritiesareatypeofbondbackedbyresidentialmortgages.Nonagencymeanstheywereissuedbyaprivateissuer. CMBS =CommercialMortgageBackedSecurities.Securitizedloansmadeoncommercialratherthanresidentialproperty. 51 Cash=Thevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketablesecurities,suchasgovernmentbonds,banker'sacceptances,cashequivalentson balancesheetsthatmayincludesecuritiesthatmaturewithin90days.

TotalReturnBondFundPortfolioComposition BySecurityType
IOCurrent 1.43% IOLocked 0.05% Cash 18.45% CMOLocked 12.47% CMOCurrent 3 77% 3.77% InverseFloater 1.71% PassThrough h h 28.07%

PortfoliocompositionasofAugust31,2012.Subjecttochangewithoutnotice. Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity. Cash =Thevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketablesecurities,suchasgovernmentbonds,banker'sacceptances,cashequivalentsonbalance sheetsthatmayincludesecuritiesthatmaturewithin90days. AgencyPassThroughs=MortgagepassthroughsecuritieswhoseprincipalandinterestguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC). A Agency CMO=Collateralized C ll t li dM Mortgage t Obligation Obli ti (CMO)is i afinancial fi i ld debt btvehicle/special hi l / i lpurposeentity tit called ll dapool. l Investors I t buy b bonds b d issued i d b bythe th entity tit and dreceive i payments t accordingtoadefinedsetofrules.Themortgagesthemselvesarethecollateral,thebondsarethetranches(alsocalledclasses),andthesetofrulesthatdictateshowmoneyisreceived fromthecollateralwillbedistributediscalledthestructure.Thelegalentity,collateralandstructurearecollectivelyreferredtoasthedeal. IO =InterestOnlymortgagepoolsinwhichtheborrowersmonthlypaymentisonlytowardtheinterestontheloan.Anonamortized loan. 52 InverseFloater=Amortgagepoolthathasayieldthatisinverselyrelatedtointerestrates. Currentpay =Loansthatarecurrentlyreceivingprincipalpayments. LockedOut=Loansthatforasetperiodoftimewillnotreceiveprincipalpayments.

TotalReturnBondFundPortfolio NonAgencyRMBSBreakdownByOriginalRating
NonAgencyOriginalCredit
BBB+ BBB A 3% 0% 1% AA 0% AA+ 0% BBB 0% NR 9%

AAA 87%

Portfoliocompositionandcreditratingsasofsecurityorigination.Portfoliocompositionissubjecttochangewithoutnotice.TherearesomenonratedsecuritiesintheFundasshown inthegraphabove.CreditdistributionisdeterminedfromthehighestavailablecreditratingfromanyNationallyRecognized StatisticalRatingOrganization(S&P,Moodys,andFitch). InvestmentGrade=SecuritiesratedAAAtoBBB areconsideredtobeinvestmentgrade.AbondisconsideredinvestmentgradeifitscreditratingisBBB orhigherbyStandard& PoorsorBaa3byMoodys.Ratingsbasedoncorporatebondmodel.Thehighertherating,themorelikelythebondistopayback atpar/$100 $ centsonthedollar.AAAisconsideredthe highestqualityandthelowestdegreeofrisk.Theyareconsideredtobeextremelystableanddependable. BelowInvestmentGrade=AlsoknownasjunkbondisasecurityratedbelowinvestmentgradehavingaratingofBBB orbelow.Thesebondsareseenas havinghigherdefaultriskor otheradversecreditevents,buttypicallypayhigheryieldsthanbetterqualitybondsinordertomakethemattractive.They arelesslikelytopaybackatpar/$100centsonthedollar. 53 NR=NotRated.Securitiesthatarenotratedbythethreeratingagencies. CreditqualitymaybeassessedbydifferentagenciesfordifferentbondsforreasonsbeyondthecontroloftheFund. Source:DoubleLineCapitalLPasofAugust31,2012.

TotalReturnBondFundPortfolio NonAgencyRMBSBreakdownByCurrentCreditQuality
AAA 5% AA 0% NR 8% D 13% C 0% CCC+ 8% B 2% CCC 24% AA+ 1% AA A+ 0% 0% A 0% A 2% BBB 3% BBB+ 0%

BBB BB+ 2% 2% BB BB 1% 1% B+ B 1% 5%

CC 11%

CCC 13%

PortfoliocompositionasofAugust31,2012.Portfoliocompositionissubjecttochangewithoutnotice.Therearesomenonrated securitiesintheportfolioasshowninthechartabove. CreditdistributionisdeterminedfromthehighestavailablecreditratingfromanyNationallyRecognizedStatisticalRatingOrganization(S&P,Moodys,andFitch). InvestmentGrade=SecuritiesratedAAAtoBBB (showninblueabove)areconsideredtobeinvestmentgrade.AbondisconsideredinvestmentgradeifitscreditratingisBBB of higherbyStandard&PoorsorBaa3byMoodys.Ratingsbasedoncorporatebondmodel.Thehighertherating,themorelikely thebondistopaybackatpar/$100centsonthedollar. AAAis i considered id dthe h highest hi h quality li and dthe h lowest l degree d of frisk. i k Th Theyareconsidered id dtob beextremely l stable bl and ddependable. d d bl BelowInvestmentGrade=Alsoknownasjunkbond(showningreyabove)isasecurityratedbelowinvestmentgradehavingaratingofBBB orbelow.Thesebondsareseenas havinghigherdefaultriskorotheradversecreditevents,buttypicallypayhigheryieldsthanbetterqualitybondsinorder to makethemattractive.Theyarelesslikelytopaybackat par/$100centsonthedollar. CreditqualitymaybeassessedbydifferentagenciesfordifferentbondsforreasonsbeyondthecontroloftheFund. NR=NotRated.Securitiesthatarenotratedbythethreeratingagencies. Source:DoubleLineCapitalLP

54

TotalReturnBondFundPortfolio NonAgencyRMBSBreakdownByPrice
NonAgencyPriceBreakdown
6.0%

5.0%

4 0% 4.0%

%ofFund

3.0%

2.0%

1.0%

0.0%

DollarPrice
PortfoliopricecompositionasofAugust31,2012.Subjecttochangewithoutnotice. Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity.

55

CoreFixedIncomeFundPortfolioStatistics

CoreFixedIncome Fund AveragePrice Duration Average Life $107.48 4.50 6.97

BarclaysCapitalU.S AggregateIndex $110.14 5.02 7.00

PortfoliostatisticsasofAugust31,2012basedonmarketweightedaverages.Subjecttochangewithoutnotice. Averageprice=Ameasureoftheweightedaveragepricepaidforthesecuritiescalculatedbytakingthepricesanddividing by thenumberofsecuritiesanddoesnotincludecash. Averagepriceshouldnotbeconfusedwithnetassetvalue. AverageDuration=Durationisusedasariskmeasure.Itmeasuresthepricevolatilityofasecuritygivenachangeininterest ratemovements. g Life=Theaverage g numberofyears y thateachdollarofunpaid p principal p p dueonthemortgage g g remainsoutstanding. g Average g lifeiscomputed p astheweighted g average g timeto Average thereceiptofallfuturecashflows,usingastheweightsthedollaramountsoftheprincipalpaydowns. Source:DoubleLineCapitalLP

56

CoreFixedIncomeFundPortfolioComposition
HYCorporate 0.14% CMBS 2.09% Cash 2.93% Govt 19 05% 19.05% IGCorporate 21.59%

EM 10.07%

MBS 44.13%

PortfoliocompositionasofAugust31,2012.Subjecttochangewithoutnotice. Cash =Cashholdingincludethevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketablesecurities,suchasgovernmentbonds,banker'sacceptances,cash equivalentsonbalancesheetsthatmayincludesecuritiesthatmaturewithin90days. Government=Governmentdebt(alsoknownaspublicdebtornationaldebt)ismoney(orcredit)owedbyanylevelofgovernment;eithercentralgovernment,federalgovernment, municipalgovernmentorlocalgovernment. MortgageBackedSecurities=Amortgagebackedsecurity(MBS)isanassetbackedsecurityordebtobligationthatrepresentsaclaimonthecashflowsfrom mortgageloans,most commonly l onresidential id i lproperty EmergingMarketsFixedIncome=Emergingmarketdebt(EMD)isatermusedtoencompassbondsissuedbylessdevelopedcountries. InvestmentGradeandHighYieldCorporates=Investmentgradeandnoninvestmentgradecorporatecredit.Bondsissuedbycorporationstoraisemoneyinordertoexpandits business. CreditdistributionisdeterminedfromthehighestavailablecreditratingfromanyNationallyRecognizedStatisticalRatingOrganization(S&P,Moodys,andFitch).AbondratedBBBor 57 higherwouldbeconsideredInvestmentGrade.AnybondratedBBBorbelowwouldbeHighYield. Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity.

CoreFixedIncomeFund PortfolioCreditQualityBreakdown
d NotRated 1.0% BelowIG 13.3% Govt 19.1% Cash 2.9%

Investment Grade 34.6%

Agency 29.1%

PortfoliocompositionandcreditratingsasofAugust31,2012.Portfoliocompositionissubjecttochangewithoutnotice.Creditdistributionisdeterminedfromthehighestavailablecredit ratingfromanyNationallyRecognizedStatisticalRatingOrganization(S&P,Moodys,andFitch). Cash =Thevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketablesecurities,suchasgovernmentbonds, banker'sacceptances,cashequivalentsonbalance sheetsthatmayincludesecuritiesthatmaturewithin90days. Government =Governmentdebt(alsoknownaspublicdebtornationaldebt)ismoney(orcredit)owedbyanylevelofgovernment;eithercentralgovernment,federalgovernment, municipalgovernmentorlocalgovernment. Agency =MortgagesecuritieswhoseprincipalandinterestareeffectivelyguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC). I Investment t tG Grade d =Abond b d i isconsidered id di investment t tgrade d ifit itscredit ditrating ti i isBBB of fhigher hi h by b St Standard d d&Poors P orB Baa3 3by b Moodys. M d Ratings R ti based b doncorporate t bond b dmodel. d l The Th highertherating,themorelikelythebondistopaybackatpar/$100centsonthedollar. BelowInvestmentGrade=Alsoknownasjunkbondisasecurityratedbelowinvestmentgrade.Thesebondsareseenashavinghigherdefaultriskor otheradversecreditevents,but typicallypayhigheryieldsthanbetterqualitybondsinordertomakethemattractive.Theyarelesslikelytopaybackatpar/$100centsonthedollar. CreditqualitymaybeassessedbydifferentagenciesfordifferentbondsforreasonsbeyondthecontroloftheFund. 58 NR=NotRated.Securitiesthatarenotratedbythethreeratingagencies. Source:DoubleLineCapitalLP.

Mirror,MirrorontheWall

LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

September11,2012

U.S. Aggr 1 getIndexA Back IWS?requ to In

IndexDescriptions
B l Capital Barclays C it lUSA Aggregate t Index I d TheBarclaysCapitalUSAggregateIndexrepresentssecuritiesthatareSECregistered, taxable,anddollardenominated.Theindex coverstheUSinvestmentgradefixedratebondmarket,withindexcomponentsforgovernmentandcorporatesecurities,mortgagepassthroughsecurities,andassetbacked securities.Thesemajorsectorsaresubdividedintomorespecificindicesthatarecalculatedandreportedonaregularbasis. BarclaysCapitalUSTreasuryIndex ThisindexistheUSTreasurycomponentoftheUSGovernmentindex.PublicobligationsoftheUSTreasurywitharemaining
maturityofoneyearormore.

BarclaysCapitalUSTreasury2YearIndex Thisindexisthe2yearcomponentoftheUSGovernmentindex. BarclaysCapitalUSTreasury5YearIndex This Thi index i d is i the th 5yearcomponent tof fthe th USGovernment G tindex. i d BarclaysCapitalUSTreasury7YearIndex Thisindexisthe7yearcomponentoftheUSGovernmentindex. BarclaysCapitalUSTreasury10YearIndex Thisindexisthe10yearcomponentoftheUSGovernmentindex. BarclaysCapitalCapitalUSTreasury30YearIndex Thisindexisthe30yearcomponentoftheUSGovernmentindex. BarclaysCapitalUSHighYieldIndex TheBarclaysCapitalUSHighYieldIndexcoverstheuniverseoffixedrate,noninvestmentgradedebt.Eurobondsanddebtissuer
fromcountriesdesignatedasemergingmarkets(e.g.Argentina,Brazil,Venezuela,etc.)areexcluded,butCanadianandglobal bonds(SECregistered)ofissuersinnonEMGcountries areincluded.Originalissuezereos,stepupcouponstructures,144Asandpayinkind(PIK,asofOctober1,2009)arealsoincluded.

BofAMerrillLynchUSGovernmentIndex(GOAO) TheMerrillLynchUSGovernmentIndextrackstheperformanceofUSgovernment(i.e.securitiesinthe
TreasuryandAgencyindices.)

BofAMerrillLynchUS15+YearTreasuryIndexLongTreasuries(G802) ThisindexisasubsetoftheBofAMerrillLynchUSTreasuryIndexincludingall
securitieswitharemainingtermoffinalmaturitygreaterthan15years..

BofAMerrillLynchUSCorporateIndex(COAO)InvestmentGrade TheMerrillLynchCorporateIndextrackstheperformanceofUSdollardenominated
investmentgradecorporatedebtpubliclyissuedintheUSdomesticmarket.Qualifyingsecuritiesmusthaveaninvestmentgraderating(basedonanaverageofMoodys,S&Pand Fitch)andaninvestmentgraderatedcountryofrisk(basedonanaverageofMoodys,S&PandFitchforeigncurrencylongtermsovereigndebtratings).Securitiesmusthaveatleast oneyearremainingtermtofinalmaturity,afixedcouponscheduleandaminimumamountoutstandingof$250MM.

BofAMerrillLynchUSAllConvertiblesIndex(VOSO) TheMerrillLynchAllConvertibleIndexisaruledrivenindex.whichincludesallbondsandpreferredstocks
ofU.S.registeredcompanies,whichhave$50millionormoreinaggregatemarketvalueandareconvertiblesinU.S.dollardenominatedcommonstocks,ADRsorcashequivalents. Pleasenoteaninvestorcannotinvestdirectlyinanindex.

CRBCommodityIndex Anunweightedgeometricaverageofsomeimportantcommodities.Itaveragespricesacross17commoditiesandacrosstime.The
indextracksenergy,grains,industrials,livestock,preciousmetals,andagriculturals. S&P500 S&P500isafreefloatcapitalizationweightedindexpublishedsince1957ofthepricesof500largecapcommonstocksactively tradedintheUnited States. StandardDeviation Sigma=standarddeviation.Itshowshowmuchvariationthereisfromtheaverage(mean,orexpected/budgetedvalue).Alow standarddeviationindicatedthatthedatapointtendtobeveryclosetothemean,whereashighstandarddeviationindicated thatthedateisspreadoutovera largerangeofvalues. DowJones UBSDJCommodityIndex TheDowJonesUBS CommodityindexiscomposedofcommoditiestradedonU.S.exchanges,withthe exceptionofaluminum,nickelandzinc,whichtradeontheLondonMetalExchange(LME 60

U.S. Aggr 1 getIndexA Back IWS?requ to In

IndexDescriptions
B fAMerrill BofA M illLynch L hUSDollar D ll Emerging E i Markets M k t Sovereign S i Plus Pl Index I d (IGOV)
ThisindextrackstheperformanceofUSdollardenominatedemergingmarketandcrossoversovereigndebtpubliclyissuedintheeurobondorUSdomesticmarket.Qualifying countriesmusthaveaBB1orlowerforeigncurrencylongtermsovereigndebtrating(basedonanaverageofMoodys,S&P,andFitch).

BofAMerrillLynchU.S.HighYieldCashPayIndex(J0A0)BelowInvestmentGrade
TheMerrillLynchHighYieldIndextrackstheperformanceofUSdollardenominatedbelowinvestmentgradecorporatedebt,currentlyinacouponpayingperiod,thatispubliclyissued intheUSdomesticmarket.Qualifyingsecuritiesmusthaveabelowinvestmentgraderating(basedonanaverageofMoodys,S&PandFirthforeigncurrencylongtermsovereigndebt ratings). g ) Musthaveoneyear y remaining gtofinalmaturity yandaminimumoutstanding gamountof$100MM. $

BofAMerrillLynchInternationalGovernmentIndex(NOGO)
TheMerrillLynchInternationalIndextrackstheperformanceofAustralia,Canadian,French,German,Japan,Dutch,SwissandUKinvestmentgradesovereigndebtpubliclyissuedand denominatedintheissuersowndomesticmarketandcurrency.Qualifyingsecuritiesmusthaveatleastoneyearremainingtermtofinalmaturity,afixedcouponscheduleanda minimumamountoutstanding.

BofAMerrillLynchMortgageBackedSecuritiesIndex(MOA0)
ThisindextrackstheperformanceofUSdollardenominatedfixedrateandhybridresidentialmortgagepassthroughsecuritiespubliclyissuedbyUSagenciesintheUSdomestic market. k t 30year,20year,15yearand dinterest i t tonly l fixed fi drate t mortgage t pools l areincluded i l d din i the th Index I d provided id dthey th have h at tleast l toneyearremaining i i t termto t final fi lmaturity t it and da minimumamountoutstandingofatleast$5billionpergenericcouponand$250MMperproductionyearwithineachgenericcoupon.

BofAMerrillLynchU.S.MunicipalSecuritiesIndex(UOA0)
ThisindextrackstheperformanceofUSdollardenominatedinvestmentgradetaxexemptdebtpubliclyissuedbyUSstatesandterritories,andtheirpoliticalsubdivisions,intheUS domesticmarket.Qualifyingsecuritiesmusthaveatleastoneyearremainingtermtofinalmaturity,afixedcouponscheduleand aninvestmentgraderating(basedonMoodys,S&P andFitch).Minimumsizevarybasedontheinitialtermtofinalmaturityattimeofissuance.

Barclays y Capital p GlobalEmerging g gMarketsIndex TheBarclays y Capital p GlobalEmerging g gMarketsIndexrepresents p theunionoftheUSDdenominatedUSEmerging g g

MarketsindexandthepredominatelyEURdenominatedPanEuroEmergingMarketsIndex,coveringemergingmarketsinthefollowingregions:Americas,Europe,MiddleEast,Africa, andAsia.AswithotherfixedincomebenchmarksprovidedbyBarclaysCapital,theindexisrulesbased,whichallowsforanunbiasedviewofthemarketplaceandeasyreplicability.

JPMorganInvestmentGradeCorporateIndex JPMorganInvestmentGradeCorporateIndexincludesperformanceofUSdollardenominatedinvestmentgrade corporatedebtpubliclyissuedintheUSdomesticmarket.Qualifyingsecuritiesmusthaveaninvestmentgraderating(basedonanaverageofMoodys,S&PandFitch)andan investmentgraderatedcountryofrisk(basedonanaverageofMoodys,S&PandFitchforeigncurrencylongtermsovereigndebtratings).Securitiesmusthaveatleastoneyear remainingtermtofinalmaturity,afixedcouponscheduleandaminimumamountoutstandingof$250MM. DrawDown Thepeaktotroughdeclineduringaspecificrecordperiodofaninvestment,fundorcommodity.Adrawdownisusuallyquotedas thepercentagebetweenthepeak

andthetrough.

NAV Amutualfund'spricepershareorexchangetradedfund's(ETF)persharevalue.Inbothcases,thepersharedollaramountofthefundiscalculatedbydividingthetotalvalue
ofallthesecuritiesinitsportfolio,lessanyliabilities,bythenumberoffundsharesoutstanding.

CMO Atypeofmortgagebackedsecuritythatcreatesseparatepoolsofpassthroughratesfordifferentclassesofbondholderswithvaryingmaturities,calledtranches.The repaymentsfromthepoolofpassthroughsecuritiesareusedtoretirethebondsintheorderspecifiedbythebonds'prospectus TIPS TreasuryInflationProtection.Atreasurysecuritythatisindexedtoinflationinordertoprotectinvestorsfromthenegativeeffectsofinflation.TIPSareconsideredanextremely lowriskinvestmentsincetheyarebackedbytheU.S.governmentandsincetheirparvalueriseswithinflation,asmeasuredbytheConsumerPriceIndex,whiletheirinterestrate remainsfixed. CPI

ConsumerPriceIndex.Ameasurethatexaminestheweightedaverageofpricesofabasketofconsumergoodsandservices,such astransportation,foodandmedicalcare.

CashFlow Cashflowmeasuresthecashgeneratingcapabilityofacompanybyaddingnoncashcharges(e.g.depreciation)andinterestexpensetopretaxincome.

61

U.S. Aggr 1 getIndexA Back IWS?requ to In

IndexDescriptions
BofAMerrillLynchUSTreasuryIndex(G0Q0)TheMerrillLynchUSTreasuryIndextrackstheperformanceofUSdollardenominatedsovereigndebtpublicly issuedby ytheUSgovernment g initsdomesticmarket.Qualifying y gsecuritiesmusthaveatleastoneyear y remaining gtermtofinal maturity, y afixedcoupon p schedule andaminimumamountoutstandingof$1billion. BofAMerrillLynchUS1015YearTreasuryIndexLongTreasuryTheMerrillLynchUS1015TreasuryIndextrackstheperformanceofUSdollardenominated10 15yearsovereigndebtpubliclyissuedbytheUSgovernmentinitsdomesticmarket.ItisasubsetoftheBofAMerrillLynchU.S.TreasuryIndex(GOQO). BofA/MerrillLynchHighYieldCashPayCCCratedIndex(JOA3) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonCCCrated HighYieldcreditonly. BofA/MerrillLynchHighYieldCashPayBBratedIndex(JOA1) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonBBrated Hi hYi High Yield ldcredit ditonly. l BofA/MerrillLynchHighYieldCashPayBratedIndex(JOA2) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonBratedHigh Yieldcreditonly. BofA/MerrillLynchCreditIndexBBBratedIndex(COA4) .AcomponentoftheBofA/MerrillLynchCreditIndexconcentratingonthelowerratedBBB investmentgradecredits. BofA/MerrillLynchCreditIndexAratedIndex(COA3) . AcomponentoftheBofA/MerrillLynchCreditIndexconcentratingontheAratedinvestmentgrade credits. BofA/MerrillLynchCreditIndexAAAratedIndex(COA1) .AcomponentoftheBofA/MerrillLynchCreditIndexconcentratingonthehighestratedAAA investmentgradecredits. DowJones UBSCommodityIndex TheDowJonesUBS CommodityindexiscomposedofcommoditiestradedonU.S.exchanges,withtheexceptionof aluminum,nickelandzinc,whichtradeontheLondonMetalExchange(LME). ShanghaiIndex TheShanghaiStockExchangeCompositeisacapitalizationweightedindextrackingdailypriceperformanceofallAandBshareslistedonthe ShanghaiStockExchange.ThisindexwasdevelopedDecember19,1990withabasevalueof100. S&P/Case / ShillerCompositeHomePriceIndex TheCaseShillerHomePriceIndices,onecomprisedofpricechangeswithinall20metropolitanmarkets,and anothercomprisedofpricechangeswithinthefollowingsubsetof10metropolitanmarkets:Boston,Chicago,Denver,LasVegas,LosAngeles,Miami,NewYork, SanDiego,SanFranciscoandWashingtonDC.Inadditiontothose10markets,the20HomePriceindexreflectspricechangesforAtlanta,Charlotte,Dallas,Detroit, Minneapolis,Phoenix,Portland,SeattleandTampa. DowJonesIndustrialAverage AlsoknownastheDOWisastockmarketindexthatincludes30largepublicallyownedcompaniesbasedintheU.S.havetraded duringastandardtradingsessioninthestockmarket. NASDAQ Acomputerizedsystemthatfacilitatestradingandprovidespricequotationsonmorethan5 5,000 000ofthemoreactivelytradedover thecounterstocks stocks. Createdin1971,theNasdaqwastheworld'sfirstelectronicstockmarket. Transports TheIndustrialsSectorincludescompanieswhosebusinessesaredominatedbyoneofthefollowingactivities:Themanufactureand distributionof capitalgoods,includingaerospace&defense,construction,engineering&buildingproducts,electricalequipmentandindustrial machinery Utilities Apublicutilityisabusinessthatfurnishesaneverydaynecessitytothepublicatlarge.Publicutilitiesprovidewater,electricity,naturalgas,telephone service,andotheressentials.Utilitiesmaybepubliclyorprivatelyowned,butmostareoperatedasprivatebusinesses. BasisPoint Abasispointisaunitthatisequalto1/100th of1%,andisusedtodenotethechangeinafinancialinstrument. REIT RealEstateTrust.Asecuritythatsellslikeastockonthemajorexchangesandinvestsinrealestatedirectly,eitherthrough propertiesormortgages Duration Durationisacommonlyusedmeasureofthepotentialvolatilityofthepriceofadebtsecurity,ortheaggregatemarketvalueofaportfolioofdebt securities,priortomaturity.Securitieswithalongerdurationgenerallyhavemorevolatilepricesthansecuritiesofcomparablequalitywithashorterduration. BookValue Bookvalueisthenetassetvalueofacompany,calculatedbysubtractingtotalliabilitiesformtotalassets. 62 PrimeXIndex PrimeXisanindexofferedbyMarkit.ItallowsinvestorstosyntheticallygainexposuretononagencyPrimeresidentialmortgagecollateral.An investmentcannotbemadedirectlyinandindex.

U.S. Aggr 1 getIndexA Back IWS?requ to In

IndexDescriptions
BofAMerrillLynch10YearUSTreasuryIndex(G0Q0) TheMerrillLynchUS10yearTreasuryIndextrackstheperformanceofUSdollardenominated10year sovereigndebtpubliclyissuedbytheUSgovernmentinitsdomesticmarket.ItisasubsetoftheBofAMerrillLynchU.S.TreasuryIndex(GOQO). BofAMerrillLynchUS30YearTreasuryIndexTheMerrillLynchUS30yearTreasuryIndextrackstheperformanceofUSdollardenominated30yearsovereign debtpubliclyissuedbytheUSgovernmentinitsdomesticmarket.ItisasubsetoftheBofAMerrillLynchU.S.TreasuryIndex(GOQO). DowJones,CreditSuisseIndex(DJCSIN10) .AimstoreflectchangesinthelongterminflationexpectationsembeddedintheUSgovernmentbondmarketby tracking galong gp positioninontherun10y yearTIPSbonds,andadurationadjusted j shortposition p intheclosestmaturity yTreasury ytotheOTRTIPS.. CitigroupTIPS(SBUSILSI) . Itmeasuresthereturnsoftheinflationlinkedbondswithfixedratecouponpaymentsthatarelinkedtoaninflationindex.The priceof eachissueintheUSLSIisadjustedbyusinganindexratio.Theindexratioisdeterminedbydividingthecurrentinflationindexlevelbytheinflationindexlevelat thetimeofissueofthesecurity.Theinflationindexispublishedonamonthlybasis,andtheintramonthindexratioiscalculatedusinglinear interpolation. BarclaysCapital5YearTIPS(BXIIUL05) .BarclaysCapital5yearTIPSontherunindexquotedinUSDollarstradedintraday. BarclaysCapital10YearTIPS(BXIIUL10) . BarclaysCapital10yearTIPSontherunindexquotedinUSDollarstradedintraday B l C Barclays Capital it l20Y YearTIPS(BXIIUL20) (BXIIUL20) .Barclays B l Capital C it l20yearTIPSonthe th runindex i d quoted t din i USDollars D ll traded t d dintraday i t d BarclaysCapitalUSMBSIndex coversthemortgagebackedpassthroughsecuritiesofGinnieMae(GNMA),FannieMae(FNMA),andFreddieMac(FHLMC).The MBSIndexisformedbygroupingtheuniverseofover600,000individualfixedrateMBSpoolsintoapproximately3,500generic aggregates. BarclaysCapitalUS30YearTIPSIndex . BarclaysCapital30yearTIPSontherunindexquotedinUSDollarstradedintraday CitigroupEconomicSurpriseIndex . TheCitigroupEconomicSurpriseIndicesareobjectiveandquantitativemeasuresofeconomicnews.Theyaredefinedas weightedhistoricalstandarddeviationsofdatasurprises(actualreleasesvsBloombergsurveymedian).Apositivereadingof theEconomicSurpriseIndexsuggests thateconomicreleaseshaveonbalancebeatingconsensus.Theindicesarecalculateddailyinarollingthreemonthwindow.Theweightsofeconomicindicators arederivedfromrelativehighfrequencyspotFXimpactsof1standarddeviationdatasurprises.Theindicesalsoemployatimedecayfunctiontoreplicatethe limitedmemoryofmarkets.

63

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

ImportantInformationRegardingRiskFactors
Investmentstrategiesmaynotachievethedesiredresultsduetoimplementationlag,othertimingfactors,portfoliomanagementdecisionmaking,economicor marketconditionsorotherunanticipatedfactors.Theviewsandforecastsexpressedinthismaterialareasofthedateindicated,aresubjecttochangewithout notice, ,may ynotcometop passanddonotrepresent p arecommendationorofferofany yp particularsecurity, y,strategy, gy,orinvestment. Pastp performanceisno 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. D bl Li i DoubleLine isanactive ti managerand dwill illadjust dj tthe th composition iti of fclients li t portfolios tf li consistent i t twith ithourinvestment i t tteams t judgment j d tconcerning i market k t conditionsandanyparticularsecurity.TheconstructionofDoubleLineportfoliosmaydiffersubstantiallyfromtheconstruction ofanyofavarietyofbondmarket indices.Assuch,aDoubleLineportfoliohasthepotentialtounderperformoroutperformabondmarketindex.Sincemarketscanremaininefficientlypricedfor longperiods,DoubleLinesperformanceisproperlyassessedoverafullmultiyearmarketcycle. ReferencestootherFundsshouldnotbeinterpretedasanofferofthosesecurities. Diversification doesnotassureaprofitorprotectagainstalossinadecliningmarket. Opinionsexpressedaresubjecttochangeatanytime,arenotaguaranteeandshouldnotbeconsideredinvestmentadvice. 2012DoubleLineCapitalLP 64

Announcements WebcastNews
LuzPadilla October9,2012
EmergingMarketsFixedIncomeFund 1:15pmPDT/4:15pmEDT

PhilipBarach October23,2012
LowDurationBondFund 1:15pmPDT/4:15pmEDT

JeffreyGundlach&JeffSherman November6, 6 2012

MultiAssetGrowthFund 1:15pmPDT/4:15pmEDT

ToReceivePresentationSlides: Youcanemail fundinfo@doubleline com fundinfo@doubleline.com

65