DoubleLine's Gundlach to Start Global Bond Fund to Buy G-20 Debt

  • Fund will focus on debt from major developed, emerging nations
  • Average duration of fund will range from one to 10 years

Jeffrey Gundlach, the head of DoubleLine Capital, is starting a global bond fund that will focus on the sovereign debt of major developed and emerging market countries.

The money-management firm, co-founded by Gundlach in 2009, filed to create the DoubleLine Global Bond Fund with the U.S. Securities and Exchange Commission on Sept. 16.

Gundlach will manage the fund, which plans to invest in debt obligations issued by governments and governmental agencies around the world, according to the filing. It will “significantly” invest in debt issued by members of the G-20, an organization of governments representing 20 major economies, the filing said.

The G-20 currently includes emerging-market countries, such as Brazil, Argentina, Turkey, Mexico and Russia. Its developed market members range from the U.S., Canada, and Japan to the European Union and the U.K.

Los Angeles-based DoubleLine, which manages $80 billion, will seek to create an investment portfolio for the fund with an average duration of one to 10 years, according to the filing. A longer duration suggests greater sensitivity to changes in interest rates.

DoubleLine executives didn’t immediately return calls seeking comment.

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