@MikeM Please let us know where you found sector allocation for DSENX? M* does not have such information for DSENX or CAPE index.

Some facts about teacher retirement plans in CT (each state has it own approach):
-CT teachers contribute to medicare, but not Social Security. CT teachers contribute to a State run retirement system in lieu of receiving SS.
-CT is attempting (a bill proposed by the governor to help balance the budget this year) to shift the shared retirement contributions from (State & the Teacher) to the towns (State, Municipality & the teacher).
-City/town teachers and their unions negotiate with local Administration (superintentent, HR, etc...and now TPAs...Third Party Administrators) usually not (the state, city, or local Board of Ed) when it comes to 403(b) plans.
-Individual teachers have to advocate for non-annuity products and attempt to implement 403(b)(7) plans themselves. Many roadblocks stand in the way of making these changes and options available.
-There was once an escape hatch (90-24 transfer) where an 403(b) annuity account could be surrendered and the account balance (after surrender fees) could be transferred to a company like Vanguard who provide 403(b)(7) options like Index funds. Curiously IRS law was changed to prohibit this. Here's a link to this topic from 2005 before the law changed:403bwise.com/index.php?showtopic=830
A little known option for individual teachers in CT is to utilize (by making voluntary contributions) to their voluntary account with CTRB (CT Teachers Retirement Board).
Link:ct.gov/trb/lib/trb/formsandpubs/VoluntaryBulletin.pdf
There are no expense ratio, no fees, and you receive a yearly return equal to the return of the state managed retirement fund. These contributions are after tax contributions that can later be applied to an extra annuity that the state offers at retirement or can be transferred (trustee to trustee) to any brokerage house at retirement.
Other state might have similar options.
Here's how the fund invests and its return:
ott.ct.gov/pensiondocs/fundperf/FundPerformance12312016.pdf
403bwise is a good resource for asking questions and seeking answers.
403bwise.com/

Also SGOIX 4.8%, FOSFX 4.4%, DVY 2.93%, and CAPE 6.24%.

My understanding is DSENX is using index swap to buy CAPE index. Instead of paying investors' cash for the stock index it invests all money into fix income instruments and then exchange (or swap) fix income return with CAPE index through an agreement with a counterparty. Index swaps are typical instrument for fix income funds that want to have exposure or invest to equity market.
So the fund is called a double value fund as it is using both CAPE index and fix income as the sources of its return. Performance of DSENX should be better than CAPE index as investors' money first go to fix income investment. DSENX should be considered as an enhanced equity index fund and not a balanced fund.

@MikeM
>> Doubleline actively managed fixed income portfolio
Yes, exactly, that's the secret bond sauce, as I was trying to explain. Courtesy Gundlach the pol prognosticator.
But not 40% or anything close to it. Their own announced benchmark is SP500. Observe how closely it tracks CAPE, slightly surpassing it, and that extent accounted for by the FI portion.

It does have that balancing bond component / secret sauce.

@davidrmoran
Not sure how you can say that. The Doubleine information says it has 2 components:
- Barclays Shiller CAPE® US Sector Index
- Doubleline actively managed fixed income portfolio
The secret sauce may just be the fact it uses only 4 of the 5 under valued sectors leaving out the worst trending sector.
Whatever it is, I treat it as a balanced fund and hold it equally along with PRWCX and ICMBX to make up 45% of my self managed portf.

Right, but it is not really a conventional balanced fund by any means, anymore than say AOA is. It does have that balancing bond component / secret sauce.
@VF, no, not wishful thinking.
It's interesting to me that if you diy and combined CAPE w PONDX and/or PDI, or indeed them with DVY, SPHD, NOBL, OUSA, SDOG, SCHD, or any of the other solid LC etfs, you would not do as well, not even close. Weird.

Although M* calls it an value equity fund, I see it more as a balanced fund. It uses the CAPE strategy in that it invests in the lowest valued sectors based on Schillers Cape ratio for determining value with a twist described by their web site. Below are a few pertinent points from the Doubline Site. If you believe in the axiom buy low sell high, value, this strategy does the work for you.
From the Doubleline site:
Strategy
The Shiller Enhanced CAPE® strategy offers exposure to the “cheapest sectors” of the large cap equity markets using an “Index Overlay” technique while the remaining assets are invested in a fixed income portfolio...
...The Relative CAPE® Ratio subdivides the S&P 500 into 10 sectors, eliminating the 5 with the highest relative CAPE® ratios, leaving what we believe are the 5 better value proposition sectors. Index methodology eliminates the one sector with the worst one-year momentum, to try and avoid the value trap...
Using a total return index swap to gain the exposure to the Barclays Shiller CAPE® US Sector Index, the remaining assets are then invested into, what we believe to be, a lower-risk bond portfolio with the goal of trying to outperform cash.

@MikeM, @DavidV
Guys, but DSENX actually does not invest in the CAPE stocks right. It tries to mimic its return, so it is more "active" than "passive" at doing that I would think. I would like to hope DSENX can actually do less worse if CAPE rolls over. Or are would you say that's totally wishful thinking on my part?

http://doubleline.com/dl/wp-content/uploads/9-30-2015-CAPE-Strategy-10-FAQ-Sherman-Final.pdf
Here is data from Doubleline. Looks like the max drawdown was around -44% during the 2007-2009 period, in contrast with -55% for the S&P 500.

Is there any historical back testing data for CAPE index? It would be interesting to see how it performed in 2007 -2009.

@VintageFreak said thanks for taking the time to answer all questions. I will definitely follow up on the webcast.
the replay has been approved and is now available online.Kind regards,
Leena Park Investor Services
http://www.doublelinefunds.com/webcasts/

CAPE crossed the $100 share price mark this week. Not meaningful, but rewarding if you own it.

@davidmoran,Mr Sherman encouraged investors to contact DblL for any ???s concerning the funds.The slides were informative and the presentation gave me a better understanding of the Cape Enhanced Strategy.Mr Sherman did not address the under performance of the new fund but it was shown on a couple of the slides.The slides are probably available today, but without Mr Sherman's comments. I just became an investor in the domestic strategy within the past 6 month's ,thanks to you and other posters here.
From DL this PM
Shiller Enhanced CAPE® and Shiller Enhanced International CAPE® Webcast replay
The replay will be available in 5-7 business days. I have added your email to our notification list and you will receive word when it posts to the site.
Thank you,
Leena Park
Investor Services
DoubleLine Capital LP || 333 S. Grand Avenue, 18th Floor || Los Angeles, CA 90071
direct 213.633.8498 || main 213.633.8200 || [email protected]
This might be an automated email link *
[email protected]
Hello,
*Once the presentation begins, please send me a copy of the slides.

Shiller Enhanced CAPE® & Shiller Enhanced Int'l CAPE® Webcast
Hosted by Jeffrey Sherman
Tuesday, February 7, 2017
1:15 pm PT / 4:15 pm ET / 3:15 CT
Please join us for a live webcast titled "Timing Equity Markets using the CAPE Ratio" hosted by:
Jeffrey Sherman, CFA
Deputy Chief Investment Officer & Portfolio Manager Jeffrey Sherman will discuss the strategy, sector allocations and outlook for the DoubleLine Shiller Enhanced CAPE® ( DSEEX / DSENX ) & DoubleLine Shiller Enhanced Int'l CAPE ( DSEUX / DLEUX ) for 2017.
Register
https://event.webcasts.com/starthere.jsp?ei=1129090

At most intervals over the last 3y-plus (except for a hair at 1y), it's outperformed by the much smaller CAPE.
Yes, hope you're breathing easier.

That article is 10y old. I think we probably are close to violent agreement. I do not argue against diversification in principle, and have been reading about the Lazy portfolios forever, longer than my following Israelsen, which has been a long time also. Defa likewise. I also hold no particular brief for Waggoner, and even he does not push the point too strongly. The thread got diverted because someone introduced EM a la DL.
So my point was only that foreign has not added a lot good or value for anyone's US equities portfolio in a looong time, which is indisputable. (See Bogle.) Whether one should do it anyway is almost a separate question, and based on their beliefs. When DLEUX becomes available to my accounts, assuming it does, I will certainly throw some money at it. But DSEEX / CAPE / auto-rebalancing SP500 does fine for many, has plenty of foreign exposure built in, as does say FLPSX, and therefore adding more foreign is a personal choice, as you say involving risk tolerance. If I were interested in rulebook quant approaches I would do Vang total market or total world approaches, or one of the handy AO_ family, as I have posted about before (AOA, AOR,AOM, AOK).

Two different funds are being conflated here now, a DL EM bond fund and their new CAPE-like auto-value-trading DLEUX / DSEUX one.

PTIAX
Performance Trust Strategic Bond Fund
4Q 2016 | COMMENTARY
While interest rates and spreads have waxed and waned somewhat since the crisis, volatility has been relatively mild, and the xed-income landscape has not changed fundamentally since the Fund launched in 2010. Consequently, our opinion on where value lies within fixed income has not changed much. Someday it may, but we’re not there yet. We still believe that seasoned non-agency residential mortgage backed securities (RMBS) offer more yield with less real world credit risk than any other sector in the fixed income space.
Static Structured Credit “Portfolio Defense” Allocation Performed Well During Rate Rise
Increased Tax-Exempt Municipal Allocation
Tax-exempt municipal bonds became particularly attractive post-election after the sell-off in bonds. After interest rates rose, we saw tax-exempt municipal bonds as the most effcient way to lock in higher rates
http://ptiafunds.com/documents/ptiax_commentary.pdf

@davidrmoran,
I listen to Meb Faber's podcasts, which are flat-out excellent. He is very down to earth and in no way is he influenced by celebrity. In show #36, he was particularly bullish on non-US developed equities, as they have lagged US equities for the trailing 1-, 3-, 5- and 10-year periods, which is apparently a very unusual period of underperformance. And he said that the CAPE method of investing beats the market 60% of the time, which is pretty decent as I see it. So DSEUX is now on the top of my potential buy list.
Kevin