Gundlach's DoubleLine Funds posts 19th month of inflows in August

By Jennifer Ablan

NEW YORK (Reuters) - DoubleLine Funds, whose co-founder Jeffrey Gundlach is widely followed for his investment calls, on Wednesday reported $1.08 billion in net additional investments in August, the 19th consecutive month it has attracted new money.

The Los Angeles-based firm said the DoubleLine Total Return Bond Fund, its largest portfolio by assets, matched its overall performance for positive inflows in August.

The Total Return fund alone attracted a net inflow of $1.08 billion in August, for a year-to-date net inflow of $7.33 billion, DoubleLine said.

Net inflows in some of DoubleLine's other funds in August offset net outflows of some of its other portfolios.

The Total Return portfolio saw inflows of $390.4 million in July, compared with $81.7 million in June and $408 million in May and $633 million in April. It has $48.3 billion in assets under management and invests primarily in mortgage-backed securities.

"We think given the market volatility in August, investors were comfortable moving money into a fund with a strong long-term track record under current management," said Todd Rosenbluth, director of ETF & Mutual Fund Research at S&P Capital IQ.

"DBLTX, which is an S&P Capital IQ five-star for its risk/reward profile and low costs, has continued to outperform its peers in 2015 and takes on less interest-rate risk. This has and should remain appealing to investors ahead of pending Federal Reserve actions," Rosenbluth said.

The DoubleLine Core Fixed Income Fund had a net outflow of $58.2 million in August, bringing its year-to-date net inflow to $1.03 billion.

The DoubleLine Core Fixed Income Fund, which is an open-end intermediate-term bond fund that invests in different sectors of the fixed income market, including corporate securities, bank debt, emerging markets debt and Treasuries as well as MBS, has $4.5 billion in assets.

Last year, Gundlach correctly predicted that U.S. Treasury yields would fall, not rise as many others had forecast, because inflationary pressures were non-existent and technical factors, including aging demographics, were at play.

"During periods of market dislocation, I believe our valued clients and their advisers continue to recognize our portfolio manager and risk management team's efforts to produce excess return with lower volatility," Ronald Redell, president of the DoubleLine Funds, told Reuters.

(Reporting By Jennifer Ablan; Editing by Tom Brown; Editing by XXXX)

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