Having trouble finding a Government Mortgage - Intermediate fund? Well, DoubleLine Total Return Bond N (DLTNX) would not be a good potential starting point right now. DLTNX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Government Mortgage - Intermediate funds is an area filled with choices, such as DLTNX. A mortgage-backed security (MBS) is a type of asset-backed security that packages mortgages together and then sells off the pooled securities. Government Mortgage - Intermediate funds focus on this market; this fund category presents a medium risk and yield profile, and concentrates on MBS with at least three years to maturity but less than 10.
History of Fund/Manager
Double Line is responsible for DLTNX, and the company is based out of Los Angeles, CA. The DoubleLine Total Return Bond N made its debut in April of 2010 and DLTNX has managed to accumulate roughly $6.02 billion in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 3.14%, and is in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 3.31%, which places it in the bottom third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 9.21%, the standard deviation of DLTNX over the past three years is 3.4%. Looking at the past 5 years, the fund's standard deviation is 2.89% compared to the category average of 8.06%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 0.81, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, DLTNX has a negative alpha of -0.31, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, DLTNX has 67.73% in high quality bonds rated at least 'AA' or higher. The fund has an average quality of AA, and focuses on high quality securities.