Metwest Unconstrained Bond Fund

Quarterly Commentary


What a difference a quarter makes! Or, rather, what a difference a security blanket (the suggestion of accommodative Fed policy) can make. With trade uncertainty and disappointing manufacturing data, virtually non-existent inflation and slowing housing metrics, expectations increased for a renewal of monetary accommodation in the second half of 2019. After laying the groundwork in January with the introduction of dovish language, the Fed signaled an openness to cut rates during its June FOMC meeting, confirming as long suspected – the Fed is following rather than leading the markets. By second quarter-end, the probability of a July cut was priced in with near certainty. Perhaps more remarkably, the market began to price in roughly four cuts by the end of 2020. Taking stock of where we stand today, monetary policy has come full circle as investors once again receive succor from central bankers. It is not just the Fed - ECB President Mario Draghi delivered a boost to global markets as he indicated that additional monetary easing could be on the way, with a seemingly low bar for central back action. While the 10-Year U.S. Treasury yield revisited sub-2% last seen in 2016), French 10-year yields fell to zero for the first time to bring the total global stock of bonds yielding below-zero near 2016’s record level of $12.2 trillion...

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Media Attachments

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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You should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. A Fund’s Prospectus and Summary Prospectus contain this and other information about the Fund. To receive a Prospectus, please call 800-241-4671 or you may download the Prospectus. Please read it carefully.

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.