TCW Conservative Allocation Fund

Quarterly Commentary


Portfolio Performance Summary

For the first quarter of 2016, the TCW Conservative Allocation I Share Fund (the “Fund”) posted a return of -0.25%. This trailed the blended Index of 60% Barclays U.S. Aggregate / 40% S&P 500 which returned 2.45%. The main detractors to performance were certain of our equity positions, notably our position in the TCW Select Equities Fund (down 7.9%) and in the TCW Growth Equities Fund (down 11.2%). The main contributors to performance on the equity side were an overweight allocation to Global Equities (up 2.5%), our position in a short emerging market ETF (EEV, up 7.9%), the position we initiated in the TCW/Gargoyle Hedged Value Fund (up 3.7%) and our position in the TCW Relative Value Large Cap Fund (up 2.4%). Our conservative positioning on the debt side performed as expected while slightly underperforming the Barclay U.S. Aggregate Index as our position in the Metwest Total Return Bond Fund returned 2.4% and our position in the TCW Total Return Bond Fund returned 2.1%...

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    Securities issued by U.S. Government agencies and authorities are not insured, and may not be guaranteed by the U.S. Government. 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.

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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.


    Russell 1000® Value Index – Measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.

    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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    The TCW Funds are distributed by TCW Funds Distributors LLC