TCW Relative Value Dividend Appreciation Fund

Quarterly Commentary

March 31, 2018

Investment Environment

U.S. equities began the year with a strong showing buoyed by strong synchronized global growth and indications the U.S. tax cuts, signed into law on December 22, will add to already noticeably higher corporate earnings in 2018. However, starting late in January, volatility picked up with concerns of rising inflation fueled by the January Bureau of Labor Statistics (BLS) report that stated Average Hourly Earnings (AHE) climbed to 2.9% year-over-year from a range of 2.3-2.5% and several March tariff pronouncements based on national security grounds and Trump’s “America first” campaign. After reaching an all-time high on January 26, the S&P 500 fell by 10% by the close of business February 8, recouping most of that loss by March 9, and then retesting lows in the last week of the quarter...

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Media Attachments

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.

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.

A Word About Risk

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.

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