TCW Relative Value Dividend Appreciation Strategy

Quarterly Commentary

December 31, 2017


For the fourth quarter of 2017, the TCW Relative Value Dividend Appreciation (RVDA) strategy returned +3.76% gross (+3.58% net) underperforming the Russell 1000 Value and S&P 500 gains of +5.33% and +6.64%, respectively. For the calendar year, the RVDA strategy gain of +11.95% (+11.16% net) underperformed the Russell 1000 Value and S&P 500 returns of +13.66% and +21.83%, respectively. Over the course of the year, large cap growth stocks outperformed their value brethren, as represented by the Russell 1000 Growth and Value Indices, by nearly seventeen percentage points, tracking to a two standard deviation spread on a rolling ten year excess returns basis; only the third time since 1940. A straight total return average of the four typically highest yielding sectors in the S&P 500 (Consumer Staples, Utilities, Real Estate, Telecommunication Services), generated an 8.8% return in 2017...

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For Information Only

This publication is for general information purposes only. Past performance is no guarantee of future results. While the information and statistical data contained herein are based on sources believed to be reliable, we do not represent that it is accurate and should not be relied on as such or be the basis for an investment decision.

Subject to Change

Any opinions expressed are current only as of the time made and are subject to change without notice. TCW assumes no duty to update any such statements. The views expressed herein are solely those of the author and do not represent the views of TCW as a firm or of any other portfolio manager or employee of TCW. Any holdings of a particular company or security discussed herein are under periodic review by the author and are subject to change at any time, without notice. In addition, TCW manages a number of separate strategies and portfolio managers in those strategies may have differing views or analysis with respect to a particular company, security or the economy than the views expressed herein.

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