TCW Relative Value Mid Cap 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. Midcap companies, in general, will be outsized beneficiaries as their current effective tax rates are among the highest of all U.S. companies. 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 Russell Midcap Index fell by 10% by the close of business February 8, only to recoup most of that loss by March 10, and then retesting lows in the last week of the quarter...

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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.


Russell Midcap® Value Index – A market capitalization-weighted index of medium-capitalization, value-oriented stocks of U.S. companies.

Portfolio Characteristics & Holdings

Portfolio characteristics and holdings are subject to change at any time.

A Word About Risk

Equity investments entail equity 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. Funds investing in mid and small cap companies involve special risks including higher volatility and lower liquidity.

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