TCW Short Term Bond Fund

Quarterly Commentary

The TCW Short Term Bond Fund – I Class (“Fund”) gained 0.99% in the first quarter of 2019, outpacing the Citi 1 Year U.S. Treasury Index by 15 basis points. With all corporate sectors outpacing the Index in the first quarter, exposure to the sector, albeit defensive, drove outperformance. Disciplined additions late last year were additive as price weakness presented buy opportunities in selective corporate names that recovered significantly in the first quarter, with the biggest contributions coming from banking, REITs, and non-cyclicals. Further contributions came from the allocation to commercial MBS, which saw both nonagency and agency collateral perform well during the quarter, and from agency CMOs. The small position in non-agency MBS contributed on the margin as the sector returned over 1%, benefitting from continued solid fundamentals in the underlying collateral, and ongoing sponsorship. Meanwhile, the slightly longer-than-index duration position of the Fund helped performance as rates fell during the quarter...

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Legal Disclosures

Citigroup 1-Year Treasury Index – Represents the return of the one-year treasuries each month (auctioned monthly). It is determined by taking the 1-year T-bill at the beginning of each month and calculating its return.


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

A Word About Risk

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.

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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The TCW Funds are distributed by TCW Funds Distributors LLC