DeficitsDontMatter

LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

May8,2012
AsofMarch31,2012,noDoubleLineFundsownedanyMasterCardorVisasecurities. BothDoubleLineTotalReturnBondFundandLowDurationFundsowned2%in AmericanExpress. Fundholdingsaresubjecttochangeandarenot recommendationstobuyorsellanysecurity.

FundOfferings
TotalReturnBondFund RetailandInstitutionalClass NoLoadMutualFund Retail Inst. Nshare Ishare Ticker MinInvestment MinIRAInvestment NetExpenseRatio DLTNX $2,000 $500 0.74% DBLTX $100,000 $5,000 0.49% Ticker MinInvestment MinIRAInvestment NetExpenseRatio CoreFixedIncomeFund RetailandInstitutionalClass NoLoadMutualFund Retail Inst. Nshare Ishare DLFNX $2,000 $500 0.74% DBLFX $100,000 $5,000 0.49%

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

Investmentsindebtsecuritiestypicallydecreaseinvaluewheninterestratesrise.Thisriskisusuallygreaterforlongertermdebtsecurities. InvestmentsinAssetBackedandMortgageBackedSecuritiesincludeadditionalrisksthatinvestorsshouldbeawareofsuchascreditrisk,prepaymentrisk,possibleilliquidityanddefault,aswellas In estments in Asset Backed and Mortgage Backed Sec rities incl de additional risks that in estors sho ld be a are of s ch as credit risk prepa ment risk possible illiq idit and defa lt as ell as increasedsusceptibilitytoadverseeconomicdevelopments.Investmentsinlowerratedandnonratedsecuritiespresentagreater riskoflosstoprincipalandinterestthanhigherratedsecurities. TheFundinvestsinforeignsecuritieswhichinvolvegreatervolatilityandpolitical,economicandcurrencyrisksanddifferencesinaccountingmethods. Opinionsexpressedaresubjecttochangeatanytime,arenotforecastsandshouldnotbeconsideredinvestmentadvice. DoubleLineFundsaredistributedbyQuasarDistributors,LLC. WhiletheFundsarenoload,managementfeesandotherexpensesstillapply.Pleaserefertotheprospectusforfurtherdetails. PastPerformancedoesnotguaranteefutureresults.Indexperformanceisnotillustrativeoffundperformance.Aninvestmentcannotbemadeinanindex.

Performance
DoubleLineTotalReturnBondFund QuarterEndingMarch31,2012
1Year
Ishare Nshare BarclaysUSAggregateIndex Barclays US Aggregate Index AsofMarch31,2012 GrossSEC30DayYield NetSEC30DayYield March 0.45% 0.44% 0 55% 0.55% Ishare 6.33% 6.34% Ishare 0.54% 0.49% 1Q2012 2.96% 2.90% 0.30% 0 30% Nshare 6.08% 6.09% Nshare 0.79% 0.74% 10.18% 9.83% 7.71% 7 71% SinceInception Si I ti Annualized 14.77% 14.47% 6.76% 6 76%
(Annualized) (4610to33112)

MorningstarIntermediateTermBondFundRankings* AsofMarch31,2012
1Year(AbsoluteRank) 1Year(%Rank) Fortheperiodending33112,MorningstarrankedtheTotalReturn BondFundinthetop2%and3%(fortheIandNshareclasses,respectively) amongthe1,179FundsintheIntermediateTermBondFundcategorybased ontotalreturns.

Ishare Nshare 19of1,179 27of1,179 2% % 3% %

GrossExpenseRatio NetExpenseRatio

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturn P f d t t d t t f t f d t t f t lt Th i t t t andprincipalvalueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthanthe originalcost.Currentperformanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrentto themostrecentmonthendmaybeobtainedbycalling2136338200orbyvisitingwww.doublelinefunds.com.

TheAdvisorhascontractuallyagreedtowaivefeesthroughJuly24,2012. 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. income and capital gains or losses and is not adjusted for sales charges or redemption fees 2011MorningstarInc.AllRightReserved.Theinformationcontainedherein:(1)isproprietarytoMorningstar;(2)maynotbecopiedordistributed;and(3)isnot warrantedtobeaccurate,completeortimely.NeitherMorningstarnoritscontentprovidersareresponsibleforanydamagesorlossesarisingfromanyuseofthis information. 2

Performance

DoubleLineCoreFixedIncomeFund QuarterEndingMarch31,2012
SinceInception Annualized 1Year (6110to331 1Q2012 (Annualized) 12) 1.99% 1.93% 0.30% Nshare 3.75% 3.83% Nshare 1.10% 0.74% 11.19% 10.85% 7.71% 11.57% 11.28% 5.92%

March Ishare Nshare BarclaysUSAggregateIndex AsofMarch31,2012 GrossSEC30DayYield NetSEC30DayYield 0.00% 0.11% 0.55% Ishare 4.01% 4.08% Ishare GrossExpenseRatio NetExpenseRatio 0.85% 0.49%

MorningstarIntermediateTermBondFundRankings* AsofMarch31,2012 1 Year(AbsoluteRank) 1Year (Absolute Rank) 1Year(%Rank) Ishare 1% Nshare 1% 5of1,17912of1,179 5 of 1,17912 of 1,179

Fortheperiodending33112,MorningstarrankedtheCoreFixedIncome BondFundinthetop1%(bothIandNshares)amongthe1,179Funds g y intheIntermediateTermBondFundcategorybasedontotalreturns.

Performancedataquotedrepresentspastperformance;pastperformancedoesnotguaranteefutureresults.Theinvestmentreturn andprincipalvalueofaninvestmentwillfluctuatesothataninvestor'sshares,whenredeemed,maybeworthmoreorlessthanthe originalcost.Currentperformanceofthefundmaybelowerorhigherthantheperformancequoted.Performancedatacurrentto themostrecentmonthendmaybeobtainedbycalling2136338200orbyvisitingwww.doublelinefunds.com.

TheAdvisorhascontractuallyagreedtowaivefeesthroughJuly24,2012. The Advisor has contractually agreed to waive fees through July 24 2012 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. 2012MorningstarInc.AllRightReserved.Theinformationcontainedherein:(1)isproprietarytoMorningstar;(2)maynotbecopiedordistributed;and(3)isnot warrantedtobeaccurate,completeortimely.NeitherMorningstarnoritscontentprovidersareresponsibleforanydamagesorlossesarisingfromanyuseofthis 3 information.

Announcements WebcastNews
LuzPadilla June12,2012
EmergingMarketsFixedIncomeFund June12,20121:15pmPDT/4:15pmEDT

PhilipBarach June19,2012 Philip Barach June 19, 2012

LowDurationBondFund June19,20121:15pmPDT/4:15pmEDT

JeffreyGundlach July10,2012 Jeffrey Gundlach July 10 2012

MultiAssetGrowthFund July10,20121:15pmPDT/4:15pmEDT

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

4

DeficitsDontMatter

LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

May8,2012
AsofMarch31,2012,noDoubleLineFundsownedanyMasterCardorVisasecurities. BothDoubleLineTotalReturnBondFundandLowDurationFundsowned2%in AmericanExpress. Fundholdingsaresubjecttochangeandarenot recommendationstobuyorsellanysecurity.

TABI
GovernmentSpending di Reagan,VicePresidentDickCheneyfamously g , y y declaredin2002,proveddeficitsdontmatter

May2,2011

DebttoGrossDomesticProduct(GDP)
UOBCashPlusCreditCard:ForLargerLiving g g
250

200

150 % 100

50

Source:CIAWorldFactbook.Includespublicsectordebt,notincludingintergovernmentaldebtorsocialsecurityasofDecember31,2011. GDP=ReferstotheGrossDomesticProductormarketvalueofallfinalgoodsandservicesproducedwithinacountryinagiven period. UOB=UnitedOverseasBank

WorldWideDebt

PIIGS10YearSovereignDebtSpreadtoGermanBund
January1,2010throughMay7,2012

AccessCreditCard:TakestheWaitingoutofWanting A C di C d T k h W i i fW i

Source:BloombergFinancialServices. PIIGS10=Portugal,Ireland,Italy,GreeceandSpain10yearTreasuryYieldspreadsversustheGermanBund10YearTreasuryyield.

10

CentralBankBalanceSheets
CarteBleuVisa: TheFutureChoosesCarteBleuVisa Carte Bleu Visa: The Future Chooses Carte Bleu Visa

10/31/11 13.20

12/31/08 10.12 2/28/09 8.95 8 95 8/31/08 7.23 5/31/06 4.99 4 99

11/30/10 10.87

Source:BiancoResearch,LLC,February2,2012 ECB=EuropeanCentralBank

11

EuroZoneUnemployment AmericanExpress:LongLiveDreams p g

Unemployment forUnder25yrs Spain51%

Ireland30% Portugal36% P t l 36%

Others: Bulgaria33% Bulgaria 33% Denmark15% Cypress29% Hungry29% Poland27%

Source:http://globaleconomicanalysis.blogspot.com/2012/01/moneysupplyfiguressuggestsitaly.html?utm_source=feedburner&utm_medium S h // l b l i l i bl /2012/01/ l fi i l h l? f db & di Eurozoneincludes27memberstates:Austria,Belgium,Bulgaria,Cyprus,CzechRepublic,Denmark,Estonia,Finland,France,Germany,Greece, Hungary,Ireland,Italy,Latvia,Lithuania,Luxembourg,Malta,Netherlands,Poland,Portugal,Romania,Slovakia,Slovenia,Spain,Spain,Swedenand theUnitedKingdom.UnemploymentratesasofNovember2011. Source:UnemploymentUnder25 JohnMauldin,ThoughtsfromtheFrontLine,May5,2012.

12

EuroZone andPIIGSGDP
1Q1998through4Q2011
20%

15%

10% YoY%Change(S SA)

5%

0%

5%

Eurozone 10%

Portugal

Ireland

Italy

Greece

Spain

Eurozoneincludes27memberstates:Austria,Belgium,Bulgaria,Cyprus,CzechRepublic,Denmark,Estonia,Finland,France,Germany,Greece,Hungary,Ireland,Italy,Latvia, Lithuania,Luxembourg,Malta,Netherlands,Poland,Portugal,Romania,Slovakia,Slovenia,Spain,Spain,SwedenandtheUnited Kingdom. PIIGS =Portugal,Ireland,Italy,GreeceandSpain. GDP=ReferstothegrossDomesticProductormarketvalueofallfinalgoodsandservicesproducedwithinacountryinagivenperiod. Source:DoubleLineCapital,BloombergFinancialServices.

13

WorkersPerRetiree

Source:Zerohedge

14

YearsofSoaringNationalDebt
Visa Card: Wherever it takes you, the future takes Visa VisaCard: Whereverittakesyou,thefuturetakesVisa

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

15

U.S.MilitaryExpendituresvs.OtherCountries JCBCreditCard:Future,Together , g

16

U.S.MilitaryDefenseOutlays

Source:USOfficeofManagement&Budget

17

U.S.HealthcareandMedicareOutlays

Source:USOfficeofManagement&Budget

18

U.S.FoodStampParticipation

Source:http://www.zerohedge.com/news/foodstamp-nation

Millionsof fAmericansonF Foodstamps 19

FederalWorkersvs.PrivateSector AmericanExpressCreditCard: MyLife.MyCard American Express Credit Card: My Life. My Card

Source:http://www.downsizinggovernment.org/overpaid-federal-workers

20

NationalDebtCeilingversusGrossFederalDebt VisaCreditCard: CouldBeCheap.CouldBeExpensive. Visa Credit Card: Could Be Cheap Could Be Expensive Visa.AllyouNeed
25
$Trillions (Endof fFiscalYear19 9402017)

FederalDebt 20 DebtSubjecttoLimit 15 Statutorylimitshavebeenreduced5timessince1940

10

0 1940 0 1943 3 1946 6 1949 9 1952 2 1955 5 1958 8 1961 1 1964 4 1967 7 1970 0 1973 3 1976 6 1979 9 1982 2 1985 5 1988 8 1991 1 1994 4 1997 7 2000 0 2003 3 2006 6 2009 9 2012(e e) 2015(e e)

Source:OfficeofManagementandBudget,DoubleLine

21

WhoseTaxRateRoseorFell
Changeintotalfederaltaxrate Whichincludesincome,payroll,estateand othertaxes forincomegroups1960to 2004,themostrecentdataavailable 2004ratesincludetheBushtaxcuts.The
majorchangesincethenistheObama stimulus,whichreducedtheoverall federaltaxratebybetween1and1.5 percentagepointsformanyhouseholds

Segment1960AverageOfIncomeTaxRateFor DistributionEachincomegroup

1960

2004

Source:http://www.nytimes.com/imagepages/2012/04/13/opinion/sunday/0415webleonhardt.html?ref=sundayreview NewYorkTimes1960through2004.

22

FedStimulusEffectonS&P500

1409.75

Source:http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/03/20120319_QE3_2.png Source: http://www zerohedge com/sites/default/files/images/user3303/imageroot/2012/03/20120319 QE3 2 png AsofMarch19,2012. Aninvestmentcannotbemadedirectlyinanindex. .

23

WhenWillTheFedHikeRates?
TheFedannouncedtheFundsratewouldstaybetween0%and0.25%until2014 However,thechartshows11outof17membersexpectpolicyfirmingbeforetheendof2014.

11

Source:BiancoResearch,LLC,February2,2012

24

PercentofJobLossesinPostWWIIRecessions

Source:http://www.crgraphs.com/2011/10/employmentgraphs.html

25

Employment ttoPopulationR Ratio%

54 Dec6 65 Apr6 67 Aug6 68 Dec6 69 Apr7 71 Aug7 72 Dec7 73 Apr7 75 Aug7 76 Dec7 77 Apr7 79 Aug8 80 Dec8 81 Apr8 83 Aug8 84 Dec8 85 Apr8 87 Aug8 88 Dec8 89 Apr9 91 Aug9 92 Dec9 93 Apr9 95 Aug9 96 Dec9 97 Apr9 99 Aug0 00 Dec0 01 Apr0 03 Aug0 04 Dec0 05 Apr0 07 Aug0 08 Dec0 09 Apr1 11 56 58 60 62 64 66
Source:BureauofLaborStatistics,DoubleLineCapital.

December1965throughApril2012

EmploymenttoPopulationRatio

26

CiviliansNotintheLaborForce
January1975throughMarch2012
90

85 Civil liansNotintheLab borForce,SeasonallyAdjusted(million ns) January1975throughMarc ch2012

80

75

70

65

60

55

Source:BureauofLaborStatistics

27

TotalU.S.DebtOutstanding

Source:BloombergFinancialServices

28

InterestRateonU.S.Debt

Source:BloombergFinancialServices

29

InterestonU.S.Debt

Source:BloombergFinancialServices

30

ConsumerPriceIndex(CPI) YearOverYear(YoY)

Source:BloombergFinancialServices

31

TABII
BloodlessVerdictoftheMarket Bl dl V di f h M k

WhatsInYourWallet? Whats In Your Wallet?

MerrillFixedIncomeIndexReturns
Grey=YTDending5/4/12 Blue=Year2011
Convertibles(VOSO) 3.76% HighYield(JOAO) High Yield (JOAO) InternationalEmerging(IGOV) Corporate(COAO) InternationalDeveloped(NOGO) Mortgages(MOAO) Government(G0A0)
DataSource:MerrillLynchIndices PleaseseetheAppendixforindexdefinitions.Aninvestmentcannotbemadedirectlyinanindex.

7.57% 6.67% 4.50% 4 50% 6.93% 8.16% 4.18% 4 18% 1.00% 5.60% 1.49% 0.46% 9.19%
33

7.51%

6.14%

MerrillFixedIncomeIndexReturns
Grey=YTDending5/4/12 G YTD di 5/4/12 Blue=Year2011
CCCRatedHighYield(JOA3) 1.33% BBRatedHighYieldCredit(JOA1) BRatedHighYield(JOA2) BBBRatedCredit(COA4) BBB R t d C dit (COA4) ARatedCredit(COA3) AAARatedCredit(COA1) 5.78% 6.12% 6.36% 4.72% 4.94% 4 94% 8.12% 3.95% 0.95% 7.39% 9.11% 10.38%

InvestmentGrade=IndicesratedAAAtoBBB (shownabove)areconsideredtobeinvestmentgrade.AbondisconsideredinvestmentgradeifitscreditratingisBBB of higherbyStandard&PoorsorBaa3byMoodys.Thehighertherating,themorelikelythebondistopaybackatpar/$100cents onthedollar.AAAisconsideredthehighest hi h b S d d & P B 3 b M d Th hi h h i h lik l h b d i b k /$100 h d ll AAA i id d h hi h qualityandthelowestdegreeofrisk.Theyareconsideredtobeextremelystableanddependable. BelowInvestmentGrade=Alsoknownasjunkbond(shownabove)isasecurityratedbelowinvestmentgradehavingaratingofBBB orbelow.Thesebondsareseenas havinghigherdefaultriskorotheradversecreditevents,buttypicallypayhigheryieldsthanbetterqualitybondsinorder to makethemattractive.Theyarelesslikelytopay backatpar/$100centsonthedollar. Source:MerrillLynchIndices. Aninvestmentcannotbemadedirectlyinanindex.

34

TABIII
HousingandMBSMarketTrends

Source:U.S.CensusBureau

HousingStarts

Source:BloombergFinancialServices

36

BuildingPermits

Source:BloombergFinancialServices

37

NewHomeSales
AnnualizedRateinthousands

Source:BloombergFinancialServices

38

NewHomeSalesMonthsSupply

Source:BloombergFinancialServices

39

ExistingHomeSales
AnnualizedRateinmillions

Source:BloombergFinancialServices

40

ExistingHomeSalesInventory
(Unitsinmillions)

Source:BloombergFinancialServices

41

NonAgencyRMBSLossSeverity
January31,2005throughMarch31,2012 y , g ,
90% 80%
LossSever rity Janua ary2005through hMarch2012

Prime AltA Subprime 76.3%

70% 60%

61.9% 50% 40% 30% 20% 10% 0% 48.6%

SeriousDelinquenciesisdefinedbymortgagesthatare60++delinquencyratesdefinedasloans60or90dayslateinmortgagepayments,oralreadyinforeclosureorREO status. PrimedefinedasFICO>725andLTV<75 AltAdefinedasFICO675725;orFICO>725andLTV>=75 SubprimedefinedasFICO<675 Source:LoanPerformance,Vichara,DoubleLineCapitalasofMarch31,2012.

42

NonAgencyRMBSConditionalDefaultRate
January31,2005throughMarch31,2012
18%

16%

Prime AltA Alt A Subprime

14% CDR Janua ary2005throughM March2012

12%

10%

9.0% 8.7%

8%

6%

4%

3.6%

2%

0%

SeriousDelinquenciesisdefinedbymortgagesthatare60++delinquencyratesdefinedasloans60or90dayslateinmortgagepayments,oralreadyinforeclosureorREO i li i i d fi d b h d li d fi d l d l i l d i f l status. PrimedefinedasFICO>725andLTV<75 AltAdefinedasFICO675725;orFICO>725andLTV>=75 SubprimedefinedasFICO<675 Source:LoanPerformance,Vichara,DoubleLineCapitalasofMarch31,2012.

43

NonAgencyRMBSConditionalRepaymentRate
January31,2005throughMarch31,2012
45%

Prime
40% 35%
CRR R January2005throughMarch2012

AltA Subprime

30% 25% 20%

14.2%
15% 10% 5% 0%

5.4%
1.8% 1 8%

SeriousDelinquenciesisdefinedbymortgagesthatare60++delinquencyratesdefinedasloans60or90dayslateinmortgagepayments,oralreadyinforeclosureorREO status. PrimedefinedasFICO>725andLTV<75 AltAdefinedasFICO675725;orFICO>725andLTV>=75 SubprimedefinedasFICO<675 Source:LoanPerformance,Vichara,DoubleLineCapitalasofMarch31,2012.

44

NonAgencyRMBS60++DelinquencyRate
January31,2005throughMarch31,2012
60%

Prime 50% AltA l

60+ ++SeriousDelinq quencies January2005throughMarch2012

42.3% 42 3%

40%

Subprime

30%

26.3%

20% 11.8% 10%

0%
SeriousDelinquenciesisdefinedbymortgagesthatare60++delinquencyratesdefinedasloans60or90dayslateinmortgagepayments,oralreadyinforeclosureorREO status. PrimedefinedasFICO>725andLTV<75 AltAdefinedasFICO675725;orFICO>725andLTV>=75 SubprimedefinedasFICO<675 Source:LoanPerformance,Vichara,DoubleLineCapitalasofMarch31,2012.

45

TABV
DoubleLineFundsOverview bl i d i

TotalReturnBondFundPortfolioStatistics

Total Return BondFund AveragePrice Duration Average Life 97.98 1.21 4.22

BarclaysCapitalU.S. AggregateIndex $108.95 5.07 2.07

PortfoliostatisticsasofApril30,2012basedonmarketweightedaverages.Subjecttochangewithoutnotice. Averageprice=Ameasureoftheweightedaveragepricepaidforthesecuritiescalculatedbytakingthepricesanddividingbythenumberofsecuritiesanddoesnotincludecash. Averagepriceshouldnotbeconfusedwithnetassetvalue. AverageDuration =Durationisusedasariskmeasure.Itmeasuresthepricevolatilityofasecuritygivenachangeininterestratemovements. g g y p p p g g g g p g g AverageLife=Theaveragenumberofyearsthateachdollarofunpaidprincipaldueonthemortgageremainsoutstanding.Averagelifeiscomputedastheweightedaveragetimeto thereceiptofallfuturecashflows,usingastheweightsthedollaramountsoftheprincipalpaydowns. Source:DoubleLineCapitalLP

47

TotalReturnBondFundPortfolioComposition BySecurityType
CMBS 4% Cash 20% %

NonAgency Residential MBS 33% Agency CMO 23% Agency Passthrough 12%

PortfoliocompositionasofApril30,2012.Subjecttochangewithoutnotice. Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity. Cash =Thevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketablesecurities,suchasgovernmentbonds,banker'sacceptances,cashequivalentsonbalance sheetsthatmayincludesecuritiesthatmaturewithin90days. sheets that may include securities that mature within 90 days AgencyPassThroughs=MortgagepassthroughsecuritieswhoseprincipalandinterestguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC). AgencyCMO=CollateralizedMortgageObligation(CMO)isafinancialdebtvehicle/specialpurposeentitycalledapool.Investorsbuybondsissuedbytheentityandreceivepayments accordingtoadefinedsetofrules.Themortgagesthemselvesarethecollateral,thebondsarethetranches(alsocalledclasses),andthesetofrulesthatdictateshowmoneyisreceived fromthecollateralwillbedistributediscalledthestructure.Thelegalentity,collateralandstructurearecollectivelyreferredtoasthedeal. 48 NonAgencyRMBS=ResidentialMortgagesBondSecuritiesareatypeofbondbackedbyresidentialmortgages.NonAgencymeanstheywereissuedby aprivateissuer. CMBS =CommercialMortgageBackedSecurities.Securitizedloansmadeoncommercialratherthanresidentialproperty.

TotalReturnBondFundPortfolioComposition Agencyvs.NonAgencyResidentialMortgageBacked Securities(RMBS)

Cash 20.2%

CMBS 3.6%

Agency A 42.9%

NonAgency g y 33.4%

PortfoliocompositionasofApril30,2012.Subjecttochangewithoutnotice. Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity. Source DoubleLine Capital LP Sector allocations are subject to change and should not be considered a recommendation to buy or sell any security AgencyRMBS=ResidentialmortgageloansguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC). NonAgencyRMBS=Residentialmortgagebackedsecuritiesareatypeofbondbackedbyresidentialmortgages.Nonagencymeanstheywereissuedbyaprivateissuer. CMBS =CommercialMortgageBackedSecurities.Securitizedloansmadeoncommercialratherthanresidentialproperty.

49

TotalReturnBondFundPortfolioComposition BySecurityType
IOCurrent, 1.8% CMOLocked, CMO Locked 14.0% IOLocked, 0.1%

Cash,20.9%

CMOCurrent, 4.0% InverseFloater, 2.9% PassThrough, 19.6%

PortfoliocompositionasofApril30,2012.Subjecttochangewithoutnotice. Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity. Cash =Thevalueofassetsthatcanbeconvertedintocashimmediately.Canincludemarketablesecurities,suchasgovernmentbonds,banker'sacceptances,cashequivalentsonbalance sheetsthatmayincludesecuritiesthatmaturewithin90days. AgencyPassThroughs=MortgagepassthroughsecuritieswhoseprincipalandinterestguaranteedbytheU.S.GovernmentagencyincludingFannieMae(FNMA)orFreddieMac(FHLMC). AgencyCMO=CollateralizedMortgageObligation(CMO)isafinancialdebtvehicle/specialpurposeentitycalledapool.Investorsbuybondsissuedbytheentityandreceivepayments A CMO C ll t li d M t Obli ti (CMO) i fi i l d bt hi l / i l tit ll d l I t b b d i d b th tit d i t accordingtoadefinedsetofrules.Themortgagesthemselvesarethecollateral,thebondsarethetranches(alsocalledclasses),andthesetofrulesthatdictateshowmoneyisreceived fromthecollateralwillbedistributediscalledthestructure.Thelegalentity,collateralandstructurearecollectivelyreferredtoasthedeal. IO =InterestOnlymortgagepoolsinwhichtheborrowersmonthlypaymentisonlytowardtheinterestontheloan.Anonamortized loan. 50 InverseFloater=Amortgagepoolthathasayieldthatisinverselyrelatedtointerestrates. Currentpay =Loansthatarecurrentlyreceivingprincipalpayments. LockedOut=Loansthatforasetperiodoftimewillnotreceiveprincipalpayments.

TotalReturnBondFundPortfolio NonAgencyRMBSBreakdownByOriginalRating
BBB BBB A 0.07% 0.04% NR 2% 9% AA+ 0.03%

AA 0.03%

AAA 89%

Portfoliocompositionandcreditratingsasofsecurityorigination.Portfoliocompositionissubjecttochangewithoutnotice.TherearesomenonratedsecuritiesintheFundasshown inthegraphabove.CreditdistributionisdeterminedfromthehighestavailablecreditratingfromanyNationallyRecognized StatisticalRatingOrganization(S&P,Moodys,andFitch). InvestmentGrade=SecuritiesratedAAAtoBBB areconsideredtobeinvestmentgrade.AbondisconsideredinvestmentgradeifitscreditratingisBBB orhigherbyStandard& PoorsorBaa3byMoodys.Ratingsbasedoncorporatebondmodel.Thehighertherating,themorelikelythebondistopayback atpar/$100centsonthedollar.AAAisconsideredthe $ highestqualityandthelowestdegreeofrisk.Theyareconsideredtobeextremelystableanddependable. BelowInvestmentGrade=AlsoknownasjunkbondisasecurityratedbelowinvestmentgradehavingaratingofBBB orbelow.Thesebondsareseenas havinghigherdefaultriskor otheradversecreditevents,buttypicallypayhigheryieldsthanbetterqualitybondsinordertomakethemattractive.They arelesslikelytopaybackatpar/$100centsonthedollar. 51 NR=NotRated.Securitiesthatarenotratedbythethreeratingagencies. CreditqualitymaybeassessedbydifferentagenciesfordifferentbondsforreasonsbeyondthecontroloftheFund. Source:DoubleLineCapitalLPasofApril30,2012.

TotalReturnBondFundPortfolio NonAgencyRMBSBreakdownByCurrentCreditQuality
AAA 4% AA+ 1% A 2% BBB BBB BB+ 1% 2% 1% A 1% BB 2% BB 1% B 5% CC 6% CCC 12% B 4% B+ 2%

NR 9% D 9%

CCC+ 9%

CCC 30%

PortfoliocompositionasofApril30,2012.Portfoliocompositionissubjecttochangewithoutnotice.Therearesomenonratedsecuritiesintheportfolioasshowninthechartabove. CreditdistributionisdeterminedfromthehighestavailablecreditratingfromanyNationallyRecognizedStatisticalRatingOrganization(S&P,Moodys,andFitch). InvestmentGrade=SecuritiesratedAAAtoBBB (showninblueabove)areconsideredtobeinvestmentgrade.AbondisconsideredinvestmentgradeifitscreditratingisBBB of higherbyStandard&PoorsorBaa3byMoodys.Ratingsbasedoncorporatebondmodel.Thehighertherating,themorelikely thebondistopaybackatpar/$100centsonthedollar. hi h b S d d & P B 3b M d R i b d b d d l Th hi h h i h lik l h b d i b k /$100 h d ll AAAisconsideredthehighestqualityandthelowestdegreeofrisk.Theyareconsideredtobeextremelystableanddependable. BelowInvestmentGrade=Alsoknownasjunkbond(showningreyabove)isasecurityratedbelowinvestmentgradehavingaratingofBBB orbelow.Thesebondsareseenas havinghigherdefaultriskorotheradversecreditevents,buttypicallypayhigheryieldsthanbetterqualitybondsinorder to makethemattractive.Theyarelesslikelytopaybackat 52 par/$100centsonthedollar. CreditqualitymaybeassessedbydifferentagenciesfordifferentbondsforreasonsbeyondthecontroloftheFund. Source:DoubleLineCapitalLP

TotalReturnBondFundPortfolio NonAgencyRMBSBreakdownByPrice
5.0% 4.5% 4.0% 3.5% 3.0%

% %ofFund

2.5% 2.0% 1.5% 1.0% 0.5% 0.0%

DollarPrice
PortfoliopricecompositionasofApril30,2012.Subjecttochangewithoutnotice. Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity.

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CoreFixedIncomeFundPortfolioStatistics

CoreFixedIncome Fund AveragePrice Duration Average Life $104.37 4.15 6.54

BarclaysCapitalU.S AggregateIndex $108.95 5.07 7.11

PortfoliostatisticsasofApril30,2012basedonmarketweightedaverages.Subjecttochangewithoutnotice. Averageprice=Ameasureoftheweightedaveragepricepaidforthesecuritiescalculatedbytakingthepricesanddividing by thenumberofsecuritiesanddoesnotincludecash. Averagepriceshouldnotbeconfusedwithnetassetvalue. AverageDuration=Durationisusedasariskmeasure.Itmeasuresthepricevolatilityofasecuritygivenachangeininterest ratemovements. g g y p p p g g g g p g g AverageLife=Theaveragenumberofyearsthateachdollarofunpaidprincipaldueonthemortgageremainsoutstanding.Average lifeiscomputedastheweightedaveragetimeto thereceiptofallfuturecashflows,usingastheweightsthedollaramountsoftheprincipalpaydowns. Source:DoubleLineCapitalLP

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CoreFixedIncomeFundPortfolioComposition
Commercial Commercial MortgageBacked Securities Cash 2% 1% InvestmentGrade I G d Corporate 22% Government 20%

Emerging Markets 10% 0%

MortgageBacked Securities 45%

PortfoliocompositionasofApril30,2012.Subjecttochangewithoutnotice. Cash =Cashholdingsarelesthan1%at0.33%andthereforearenotreflectedinthechartabove.Cashholdingincludethevalueof assetsthatcanbeconvertedintocashimmediately.Can includemarketablesecurities,suchasgovernmentbonds,banker'sacceptances,cashequivalentsonbalancesheetsthatmayincludesecuritiesthatmaturewithin90days. Government=Governmentdebt(alsoknownaspublicdebtornationaldebt)ismoney(orcredit)owedbyanylevelofgovernment;eithercentralgovernment,federalgovernment, municipalgovernmentorlocalgovernment. MortgageBackedSecurities=Amortgagebackedsecurity(MBS)isanassetbackedsecurityordebtobligationthatrepresentsaclaimonthecashflowsfrom mortgageloans,most commonlyonresidentialproperty l id i l EmergingMarketsFixedIncome=Emergingmarketdebt(EMD)isatermusedtoencompassbondsissuedbylessdevelopedcountries. InvestmentGradeandHighYieldCorporates=Investmentgradeandnoninvestmentgradecorporatecredit.Bondsissuedbycorporationstoraisemoneyinordertoexpandits business. CreditdistributionisdeterminedfromthehighestavailablecreditratingfromanyNationallyRecognizedStatisticalRatingOrganization(S&P,Moodys,andFitch).AbondratedBBBor 55 higherwouldbeconsideredInvestmentGrade.AnybondratedBBBorbelowwouldbeHighYield. Source:DoubleLineCapitalLP.Sectorallocationsaresubjecttochangeandshouldnotbeconsideredarecommendationtobuyorsellanysecurity.

CoreFixedIncomeFund PortfolioCreditQualityBreakdown
Below Investment Grade 15.3% Unrated Unrated Securities 1.3% Cash 1.1%

Government 20.3%

Investment Grade 34.9%

Agency 27.1%

PortfoliocompositionandcreditratingsasofApril30,2012.Portfoliocompositionissubjecttochangewithoutnotice.Creditdistributionisdeterminedfromthehighestavailable credit 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). A M t iti h i i l di t t ff ti l t d b th U S G t i l di F i M (FNMA) F ddi M (FHLMC) InvestmentGrade=AbondisconsideredinvestmentgradeifitscreditratingisBBB ofhigherbyStandard&PoorsorBaa3byMoodys.Ratingsbasedoncorporatebondmodel.The highertherating,themorelikelythebondistopaybackatpar/$100centsonthedollar. BelowInvestmentGrade=Alsoknownasjunkbondisasecurityratedbelowinvestmentgrade.Thesebondsareseenashavinghigherdefaultriskor otheradversecreditevents,but typicallypayhigheryieldsthanbetterqualitybondsinordertomakethemattractive.Theyarelesslikelytopaybackatpar/$100centsonthedollar. 56 CreditqualitymaybeassessedbydifferentagenciesfordifferentbondsforreasonsbeyondthecontroloftheFund. Source:DoubleLineCapitalLP.

DeficitsDontMatter

LiveWebcasthostedby:
JeffreyGundlach
ChiefExecutiveOfficer

May8,2012

TABVI TAB VI
Appendix

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IndexDescriptions
BarclaysCapitalUSAggregateIndex TheBarclaysCapitalUSAggregateIndexrepresentssecuritiesthatareSECregistered, taxable,anddollardenominated.Theindex B l C it l US A t I d coverstheUSinvestmentgradefixedratebondmarket,withindexcomponentsforgovernmentandcorporatesecurities,mortgagepassthroughsecurities,andassetbacked securities.Thesemajorsectorsaresubdividedintomorespecificindicesthatarecalculatedandreportedonaregularbasis. BarclaysCapitalUSTreasuryIndex ThisindexistheUSTreasurycomponentoftheUSGovernmentindex.PublicobligationsoftheUSTreasurywitharemaining
maturityofoneyearormore.

BarclaysCapitalUSTreasury2YearIndex Thisindexisthe2yearcomponentoftheUSGovernmentindex. BarclaysCapitalUSTreasury5YearIndex Thisindexisthe5yearcomponentoftheUSGovernmentindex. Barclays Capital US Treasury 5 Year Index Thi i d i th 5 t f th US G ti 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 CRB Commodity Index An unweighted geometric average of some important commodities. It averages prices across 17 commodities and across time. 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. large range of values. DowJones UBSDJCommodityIndex TheDowJonesUBS CommodityindexiscomposedofcommoditiestradedonU.S.exchanges,withthe exceptionofaluminum,nickelandzinc,whichtradeontheLondonMetalExchange(LME 59

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IndexDescriptions
BofAMerrillLynchUSDollarEmergingMarketsSovereignPlusIndex(IGOV) B fA M ill L h US D ll E i M k t S i Pl I d (IGOV)
ThisindextrackstheperformanceofUSdollardenominatedemergingmarketandcrossoversovereigndebtpubliclyissuedintheeurobondorUSdomesticmarket.Qualifying countriesmusthaveaBB1orlowerforeigncurrencylongtermsovereigndebtrating(basedonanaverageofMoodys,S&P,andFitch).

BofAMerrillLynchU.S.HighYieldCashPayIndex(J0A0)BelowInvestmentGrade
TheMerrillLynchHighYieldIndextrackstheperformanceofUSdollardenominatedbelowinvestmentgradecorporatedebt,currentlyinacouponpayingperiod,thatispubliclyissued intheUSdomesticmarket.Qualifyingsecuritiesmusthaveabelowinvestmentgraderating(basedonanaverageofMoodys,S&PandFirthforeigncurrencylongtermsovereigndebt ratings).Musthaveoneyearremainingtofinalmaturityandaminimumoutstandingamountof$100MM. g) y g y g $

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

BofAMerrillLynchMortgageBackedSecuritiesIndex(MOA0)
ThisindextrackstheperformanceofUSdollardenominatedfixedrateandhybridresidentialmortgagepassthroughsecuritiespubliclyissuedbyUSagenciesintheUSdomestic market.30year,20year,15yearandinterestonlyfixedratemortgagepoolsareincludedintheIndexprovidedtheyhaveatleastoneyearremainingtermtofinalmaturityanda k t 30 20 15 di t t l fi d t t l i l d d i th I d id d th h tl t i i t t fi l t it d minimumamountoutstandingofatleast$5billionpergenericcouponand$250MMperproductionyearwithineachgenericcoupon.

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

BarclaysCapitalGlobalEmergingMarketsIndex TheBarclaysCapitalGlobalEmergingMarketsIndexrepresentstheunionoftheUSDdenominatedUSEmerging y p g g y p g g p 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.

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IndexDescriptions
BofAMerrillLynchUSTreasuryIndex(G0Q0)TheMerrillLynchUSTreasuryIndextrackstheperformanceofUSdollardenominatedsovereigndebtpublicly issuedbytheUSgovernmentinitsdomesticmarket.Qualifyingsecuritiesmusthaveatleastoneyearremainingtermtofinal maturity,afixedcouponschedule y g y g y g y p andaminimumamountoutstandingof$1billion. BofAMerrillLynchUS1015YearTreasuryIndexLongTreasuryTheMerrillLynchUS1015TreasuryIndextrackstheperformanceofUSdollardenominated10 15yearsovereigndebtpubliclyissuedbytheUSgovernmentinitsdomesticmarket.ItisasubsetoftheBofAMerrillLynchU.S.TreasuryIndex(GOQO). BofA/MerrillLynchHighYieldCashPayCCCratedIndex(JOA3) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonCCCrated HighYieldcreditonly. BofA/MerrillLynchHighYieldCashPayBBratedIndex(JOA1) .AcomponentoftheBofA/MerrillLynchHighYieldCashPayIndexconcentratingonBBrated HighYieldcreditonly. Hi h Yi ld dit 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/CaseShillerCompositeHomePriceIndex 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 Acomputerizedsystemthatfacilitatestradingandprovidespricequotationsonmorethan5,000ofthemoreactivelytradedover thecounterstocks. NASDAQ A computerized system that facilitates trading and provides price quotations on more than 5 000 of the more actively traded over the counter 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. 61 PrimeXIndex PrimeXisanindexofferedbyMarkit.ItallowsinvestorstosyntheticallygainexposuretononagencyPrimeresidentialmortgagecollateral.An investmentcannotbemadedirectlyinandindex.

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IndexDescriptions
BofAMerrillLynch10YearUSTreasuryIndex(G0Q0) TheMerrillLynchUS10yearTreasuryIndextrackstheperformanceofUSdollardenominated10year sovereigndebtpubliclyissuedbytheUSgovernmentinitsdomesticmarket.ItisasubsetoftheBofAMerrillLynchU.S.TreasuryIndex(GOQO). BofAMerrillLynchUS30YearTreasuryIndexTheMerrillLynchUS30yearTreasuryIndextrackstheperformanceofUSdollardenominated30yearsovereign debtpubliclyissuedbytheUSgovernmentinitsdomesticmarket.ItisasubsetoftheBofAMerrillLynchU.S.TreasuryIndex(GOQO). DowJones,CreditSuisseIndex(DJCSIN10) .AimstoreflectchangesinthelongterminflationexpectationsembeddedintheUSgovernmentbondmarketby trackingalongpositioninontherun10yearTIPSbonds,andadurationadjustedshortpositionintheclosestmaturityTreasurytotheOTRTIPS.. g gp y j p y y CitigroupTIPS(SBUSILSI) . Itmeasuresthereturnsoftheinflationlinkedbondswithfixedratecouponpaymentsthatarelinkedtoaninflationindex.The priceof eachissueintheUSLSIisadjustedbyusinganindexratio.Theindexratioisdeterminedbydividingthecurrentinflationindexlevelbytheinflationindexlevelat thetimeofissueofthesecurity.Theinflationindexispublishedonamonthlybasis,andtheintramonthindexratioiscalculatedusinglinear interpolation. BarclaysCapital5YearTIPS(BXIIUL05) .BarclaysCapital5yearTIPSontherunindexquotedinUSDollarstradedintraday. BarclaysCapital10YearTIPS(BXIIUL10) . BarclaysCapital10yearTIPSontherunindexquotedinUSDollarstradedintraday BarclaysCapital20YearTIPS(BXIIUL20) .BarclaysCapital20yearTIPSontherunindexquotedinUSDollarstradedintraday B l C it l 20 Y TIPS (BXIIUL20) B l C it l 20 TIPS th i d t d i US D ll t d d 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.Theindicesarecalculateddailyinarollingthree monthwindow.Theweightsofeconomicindicators that economic releases have on balance beating consensus. The indices are calculated daily in a rolling threemonth window. The weights of economic indicators arederivedfromrelativehighfrequencyspotFXimpactsof1standarddeviationdatasurprises.Theindicesalsoemployatimedecayfunctiontoreplicatethe limitedmemoryofmarkets.

62

Disclaimer
ImportantInformationRegardingThisReport I t tI f ti R di Thi R t
Issueselectionprocessesandtoolsillustratedthroughoutthispresentationaresamplesandmaybemodifiedperiodically.Suchchartsarenottheonlytoolsused bytheinvestmentteams,areextremelysophisticated,maynotalwaysproducetheintendedresultsandarenotintendedforusebynonprofessionals. DoubleLinehasnoobligationtoproviderevisedassessmentsintheeventofchangedcircumstances.Whilewehavegatheredthisinformationfromsources believedtobereliable,DoubleLinecannotguaranteetheaccuracyoftheinformationprovided.Securitiesdiscussedarenotrecommendationsandarepresented asexamplesofissueselectionorportfoliomanagementprocesses.Theyhavebeenpickedforcomparisonorillustrationpurposesonly.Nosecuritypresented withiniseitherofferedforsaleorpurchase.DoubleLinereservestherighttochangeitsinvestmentperspectiveandoutlook withoutnoticeasmarketconditions within is either offered for sale or purchase DoubleLine reserves the right to change its investment perspective and outlook without notice as market conditions dictateorasadditionalinformationbecomesavailable.

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

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DoubleLineseekstomaximizeinvestmentresultsconsistentwithourinterpretationofclientguidelinesandinvestmentmandate.WhileDoubleLineseeksto maximizereturnsforourclientsconsistentwithguidelines,DoubleLinecannotguaranteethatDoubleLinewilloutperformaclient'sspecifiedbenchmark. Additionally,thenatureofportfoliodiversificationimpliesthatcertainholdingsandsectorsinaclient'sportfoliomayberisinginpricewhileothersarefalling;or, thatsomeissuesandsectorsareoutperformingwhileothersareunderperforming.Suchoutorunderperformancecanbetheresultofmanyfactors,suchasbut notlimitedtoduration/interestrateexposure,yieldcurveexposure,bondsectorexposure,ornewsorrumorsspecifictoasinglename. DoubleLineisanactivemanagerandwilladjustthecompositionofclientsportfoliosconsistentwithourinvestmentteamsjudgmentconcerningmarket conditionsandanyparticularsecurity.TheconstructionofDoubleLineportfoliosmaydiffersubstantiallyfromtheconstruction ofanyofavarietyofbondmarket diti d ti l it Th t ti f D bl Li tf li diff b t ti ll f th t ti f f i t fb d k t indices.Assuch,aDoubleLineportfoliohasthepotentialtounderperformoroutperformabondmarketindex.Sincemarketscanremaininefficientlypricedfor longperiods,DoubleLinesperformanceisproperlyassessedoverafullmultiyearmarketcycle. ReferencestootherFundsshouldnotbeinterpretedasanofferofthosesecurities. Diversification doesnotassureaprofitorprotectagainstalossinadecliningmarket. Opinionsexpressedaresubjecttochangeatanytime,arenotaguaranteeandshouldnotbeconsideredinvestmentadvice. Opinions expressed are subject to change at any time, are not a guarantee and should not be considered investment advice. DoubleLineTotalReturnBondFundandDoubleLineCoreFixedIncomefundsheld0%inUnitedOverseesBank,AccessCreditCard, CarteBlueVisaandJBCCredit CardasofMarch31,2012.Fundholdingsaresubjecttochangeandarenotrecommendationstobuyorsellanysecurity. 2012DoubleLineCapitalLP 63