Best Bond Funds #3: DoubleLine Total Return Fund (DLTNX)
Click to Enlarge When it comes to maximizing total return, one of the best bond fund managers in the world is Jeffrey Gundlach who leads the Doubleline Total Return Fund (DLTNX). This fund manages over $30 billion in total assets primarily in mortgage backed securities of varying credit qualities and durations. This fund currently has an average duration of just 4.11 years, a 30-day SEC yield of over 5%, and an expense ratio of 0.78%.
I like DLTNX because of the manager’s expertise in research, security selection, and active risk management strategies. Gundlach is known for shifting his portfolio to adjust to the interest rate and credit climates when they sense volatility on the horizon. The fund was essentially flat in 2013, but is already surged back near its all-time highs to begin 2014.
According to a recent fact sheet, since the fund was introduced on April 6, 2010 it has produced annualized returns of 9.04% through Dec. 31, 2013. In comparison, the Barclays U.S. Aggregate Index has produced returns of just 4.03% over the same time frame.