TCW Total Return Bond Fund

Quarterly Commentary

The TCW Total Return Bond Fund – I Class (“Fund”) gained 2.50% during the first quarter of 2019, trailing the Bloomberg Barclays Aggregate Index (“Index”) by 44 bps. With all corporate sectors outpacing the Index in the first quarter, a lack of exposure in the Fund drove underperformance. Additionally, the underweight to non-U.S. debt such as emerging market issues also weighed on returns as the sector rebounded from fourth quarter losses to outpace Treasuries by over 300 bps as dovish central bank policy helped support the sector. Some of this drag was offset by contributions from issue selection among residential MBS, particularly the off-Index allocation to high quality, short duration, legacy non-agency MBS which continue to amortize. These issues performed well during the quarter, returning over 1% and benefitting from continued solid fundamentals in the underlying collateral, and ongoing sponsorship. A final plus to the relative return owed to an overweight to Freddie collateral within the agency MBS exposure, which saw pricing move closer to the premium level of Fannies in the lead-up to the June start of To Be Announced (TBA) trading and pool issuance under the Single Security Initiative (UMBS). Last, given the disciplined lengthening of Fund duration relative to the benchmark in last year’s rate run-up, performance has benefitted in the yield decline of the past four months, contributing to the incremental return versus the Index...

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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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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