TCW Global Real Estate Fund

Quarterly Commentary

September 30, 2019


The TCW Global Real Estate Fund, I Share Class, (the “Fund”) generated a gain of 5.37% during the quarter, underperforming the S&P Global REIT Index gain of 6.00%. Our exposure to Hotels Resorts and Cruise Lines and underweighting in Healthcare REITs contributed negatively to performance...

To read full commentary please click pdf below.

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Net and Gross Expense Ratio
Annual fund operating expenses as stated in the Prospectus dated February 28, 2019.
* Effective February 28, 2019, the Advisor has contractually agreed to cap the expenses (excluding interest and acquired fund fees and expenses, if any) of the I share class of the Fund at 1.00% and the N share class of the Fund at 1.15% until March 1, 2020.
A Word About Risk

The principal risks affecting the Fund that can cause a decline in value are:

Real Estate Investment Trusts (“REITs”) Risk: the risk that the value of the Fund’s investments in REITs will decline based on a decline in the value of real estate and general real estate market and local economic conditions. REITs are pooled investment vehicles that typically invest directly in real estate, in mortgages and/or loans collateralized by real estate. REITs are also subject to highly technical and complex provisions under federal tax law. Real Estate Industry Concentration Risk: the risk that because the Fund concentrates its investments in the real estate industry, it may be susceptible to the impact of market, economic, regulatory, and other factors affecting the real estate industry and/or the local or regional real estate markets. At times of such impact, the value of the Fund may fluctuate more widely than it would in a fund that invested more broadly across varying industries and sectors. Equity Risk: the risk that stocks and other equity securities generally fluctuate in value more than bonds and may decline in value over short or extended periods based on changes in a company’s financial condition and in overall market, economic and political conditions. Price Volatility Risk: the risk that the value of the Fund’s investment portfolio will change as the prices of its investments go up or down. Liquidity Risk: the risk that there may be no willing buyer of the Fund’s portfolio securities and the Fund may have to sell those securities at a lower price or may not be able to sell the securities at all, each of which would have a negative effect on performance. Market Risk: the risk that returns from the securities in which the Fund invests will underperform returns from the general securities markets or other types of securities. Foreign Investing Risk: the risk that Fund share prices will fluctuate with market conditions, currency exchange rates and the economic and political climates in countries where the Fund invests. Globalization Risk: the risk that the growing interrelationship of all global economies and financial markets has increased the effect of conditions in one country or region on issuers of securities in a different country or region. Foreign Currency Risk: the risk that the value of the Fund’s investments denominated in foreign currencies will decline in value because the foreign currency has declined in value relative to the U.S. dollar. Emerging Market Country Risk: the risk that Fund share prices will decline due to the greater degree of economic, political and social instability of emerging or developing countries as compared to developed countries. Securities Selection Risk: the risk that the securities held by the Fund will underperform those held by other funds investing in the same asset class or benchmarks that are representative of the asset class because of the portfolio manager’s choice of securities. Portfolio Management Risk: the risk that an investment strategy may fail to produce the intended results. Issuer Risk: the risk that the value of a security may decline for reasons directly related to the issuer such as management performance, financial leverage and reduced demand for the issuer’s goods or services. Investment Style Risk: the risk that the particular style or set of styles that the investment advisor primarily uses may be out of favor or may not produce the best results over short or longer time periods and may increase the volatility of the Fund’s share price. Mortgage/Loan REIT Risk: the risk that REITs invested in mortgages or loans may also be indirectly subject to various risks associated with those investments, including, but not limited to: interest rate risk, credit risk and defaulted securities risk: interest rate risk: the risk that debt securities will decline in value because of changes in interest rates or a decline in interest rates will lower the Fund’s yield, credit risk: the risk that an issuer will default in the payment of principal and/or interest on a security, defaulted securities risk: the risk of the uncertainty of repayment of defaulted securities and obligations of distressed issuers. Frequent Trading Risk: the risk that frequent trading will lead to increased portfolio turnover and higher transaction costs, which may detract from the Fund’s performance, and may produce capital gains, which are taxable to shareholders when distributed. Derivatives Risk: the risk of investing in derivative instruments include liquidity, interest rate, market, credit and management risks as well as risks related to mispricing or improper valuation. Changes in the value of a derivative may not correlate perfectly with the underlying asset, reference rate or index and the Fund could lose more than the principal amount invested. Certain derivatives (e.g. currency futures) involve the investment of a small amount of cash relative to the magnitude of risk assumed, and may increase the impact of resulting gains and loss. Leveraging Risk: the risk that leverage created from borrowing or certain types of transactions or instruments, including derivatives, may impair the Fund’s liquidity, cause it to liquidate positions at an unfavorable time, increase its volatility or otherwise cause it not to achieve its intended result. Counterparty Risk: the risk that the other party to a contract, such as a swap agreement, will not fulfill its contractual obligations. options strategy risk: the risk that the Fund’s opportunity to profit from an increase in the market value of its investments may be limited by writing call options. Investing in Other Investment Companies Risk: the risk that investments by the Fund in the shares of other investment companies, including exchange-traded funds (“ETFs”), are subject to the risks associated with an underlying fund’s portfolio securities. Accordingly, the Fund’s investment in shares of other investment companies will fluctuate in response to such underlying funds’ performance. In addition, Fund shareholders will indirectly bear a proportionate share of any underlying fund’s expenses, in addition to paying the Fund’s expenses. Other investment companies will have their own investment and valuation policies and procedures, each of which may vary from the Fund’s. There can be no assurance that the investment objective of any underlying fund will be achieved.

Please see “Principal Risks and Risk Definitions” in the Fund’s Prospectus for a more detailed description of the risks of investing 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.
Obtain a Prospectus

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 800-386-3829 or you may download the PDF TCW Funds Prospectus. Please read it carefully.

The TCW Funds are distributed by TCW Funds Distributors LLC