Metwest Unconstrained Bond Fund

Quarterly Commentary

June 30, 2018
Tad Rivelle , Laird R. Landmann , Stephen M. Kane, CFA , Bryan T. Whalen, CFA

Encouraging signs continued to appear across the macroeconomic spectrum in the second quarter, as GDP growth picked up slightly and strength persisted in corporate earnings and housing market metrics. Further, long dormant pricing pressures surfaced, as the Core PCE Index, the Fed’s preferred inflation measure, hit the long-sought 2% year-over-year target in May. Add this to an early June unemployment rate that fell to 3.8% (matching lows last seen in 2000 and 1969 previously) and a reasonable conclusion might be that economy is humming and quite possibly poised to gain speed in the wake of fiscal stimulus earlier this year. These backwardlooking statistics do, indeed, tell a very good story, but not necessarily one likely to carry on much, much longer...

To read full commentary please click pdf below.

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Legal Disclosures


BofA Merrill Lynch 3 Month U.S. Treasury Bill Index Plus 200 bps – An unmanaged index comprised of a single issue purchased at the beginning of the month and held for a full month. The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but, not beyond three months from the rebalancing date.

About the Index or Indices

The index listed is not available for direct investment; therefore its performance does not reflect a reduction for fees or expenses incurred in managing a portfolio. The securities in the index may be substantially different from those in the Fund.

Forward Looking Statement

This report may include estimates, projections and other "forward-looking statements." Due to numerous factors, actual events may differ substantially from those presented. TCW assumes no duty to update any such statements.

About Performance
The performance data presented represents past performance and is no guarantee of future results. Total returns include reinvestment of dividends and distributions. Current performance may be lower or higher than the performance data presented. Performance data current to the most recent month end is available on the product detail page for each Fund. Investment returns and principal value will fluctuate with market conditions. The value of an investment in the Fund, when redeemed, may be worth more or less than its original purchase cost.
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A Word About Risk

Fixed income investments entail interest rate risk, the risk of issuer default, issuer credit risk, and price volatility risk. Funds investing in bonds can lose their value as interest rates rise and an investor can lose principal.


The MetWest Funds are distributed by TCW Funds Distributors LLC.

The MetWest Funds are advised by Metropolitan West Asset Management, LLC, which is a wholly-owned subsidiary of The TCW Group, Inc.