TCW Artificial Intelligence Equity Fund

Quarterly Commentary

December 31, 2018

Performance

The TCW Artificial Intelligence Equity Fund, I Share Class (the “Fund”) generated a return of -17.21% during the quarter and underperformed the Russell 3000® Growth Index return of -16.33%. The portfolio’s underperformance was due to the Fund’s overexposure to the Semiconductors subsector relative to the Russell 3000® Growth Index. Individual underperformers for the quarter included NVIDIA (NVDA; 2.34%**), Align Technology (ALGN; 1.02%**), NetApp (NTAP; 1.68%**), and Western Digital (WDC; 0.95%**). Additionally, relative weakness in the quarter came from the video game publishers Activision Blizzard (ATVI; 1.15%**) and Electronic Arts (EA; 1.07%**). Offsetting the weakness was strong performance in the quarter from core top holdings (all in the Top 12) such as Tesla (TSLA; 2.62%**), Workday (WDAY; 2.53%**), American Tower (AMT; 2.79%**), Intel (INTC; 2.91%**), and ServiceNow (NOW; 4.00%**). Additional outperformers worth mentioning were Broadcom (AVGO; 2.05%**) and Tableau Software (DATA; 1.37%**). We would also note that the index is substantially overweight in Apple (AAPL; 1.71%**) as compared to our position size (average weight of 6.92% in the index versus 1.96% in the portfolio). As a result, Apple’s significant negative performance resulted in large relative outperformance for the fund compared to the index...

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Russell 3000® Growth Index – Measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000 companies with higher price-to-book ratios and higher forecasted growth values.

Portfolio Characteristics & Holdings
It should not be assumed that an investment in the securities listed was or will be profitable. Portfolio characteristics and holdings are subject to change at any time.

This content may include estimates, projections and other "forward-looking" statements. Actual events may differ substantially from those presented. TCW/MetWest assumes no duty to update any such statements. All projections are based on current asset prices and are subject to change.

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Equity investments entail equity risk and price volatility risk. The value of stocks and other equity securities will change based on changes in a company's financial condition and in overall market and economic conditions.

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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