TCW New America Premier Equities Fund Marks 3-Year Anniversary With 5-Star Overall Morningstar Rating™

February 07, 2019

LOS ANGELES – February 7, 2019 – The TCW Group, a global asset management firm, is pleased to announce the three-year anniversary of the TCW New America Premier Equities Fund (TGUSX/TGUNX) (the “Fund”), which has earned a 5-Star Overall Morningstar Rating™.  

“We are very pleased with the TCW New America Premier Equities Fund, which is a reflection of TCW’s commitment to developing compelling investment strategies for the benefit of our clients,” said David Lippman, President and CEO of TCW.  “TCW has strong conviction in the power of active management, and we believe this Fund shows that actively-managed equities can be an important driver of outperformance for investors.”  

Led by Portfolio Manager Joseph Shaposhnik, the TCW New America Premier Equities Fund seeks to outperform the broad U.S. indices with less risk and volatility in both rising and falling markets. The Fund leverages unique insights gleaned from comprehensive analysis of Environmental, Social and Governance (ESG) performance to successfully invest in predictable businesses that generate free cash flow.

Since inception on January 29, 2016 through January 31, 2019, the Fund has demonstrated consistent net performance, returning on an annualized basis 20.95% versus 14.14% for the Russell 1000, the Fund’s benchmark index.  

“The success of the New America Premier Equities Fund is reflective of our rigorous investment process and carefully constructed ESG factor analysis,” said Michael Reilly, Chief Investment Officer for Equities and Director of Equity Research at TCW. “This demonstrates that investors do not need to sacrifice their desire to invest responsibly in the pursuit of strong returns.”

For the calendar year 2017, the Fund ranked first out of over 700 funds in the Multi Cap Core Funds category according to data aggregated by The Lipper Rating System.  The Fund also ranked in the top decile of the Morningstar Large Cap Growth Funds category for the three years ended January 31, 2019 out of 1,252 funds.

“Recent market volatility has underscored the importance of careful and methodical security selection to mitigate risk,” said Shaposhnik. “We are pleased that our unique approach, in tandem with our commitment to responsible investing, has generated positive returns for our clients.”

MORNINGSTAR DISCLOSURE
©2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The Morningstar RatingTM for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Morningstar Overall Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The total number of Large Growth Funds for the 3-, 5-, and 10-year time periods were 1,252, 1,110, and 802, respectively.

FUND RISKS
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. Funds investing in mid and small cap companies involve special risks including higher volatility and lower liquidity.

The Fund will typically invest a portion of its assets in securities or other financial instruments issued by companies in the financial services sector, including, without limitation, the banking, brokerage and insurance industries. Changes to government regulations, interest rates, or general economic conditions may detrimentally affect the Fund because of the Fund’s investments in the financial services sector.

FUND PERFORMANCE & INDEX DISCLOSURE



1 For period 01/29/2016 – 03/31/2019.
2 Effective January 1, 2019, the Advisor has contractually agreed to cap the expenses (excluding interest, brokerage, extraordinary expenses and acquired fund fees and expenses, if any) to 0.80% of average daily net assets with respect to Class I shares and 1.00% of average daily net assets with respect to Class N shares until March 1, 2020.

Russell 1000® Index: Measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The index is not available for direct investment; therefore its performance does not reflect a reduction for fees or expenses incurred in managing a portfolio. The securities in the index may be substantially different from those in the Fund.

London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2018. FTSE Russell is a trading name of certain of the LSE Group companies. Russell® is a trade mark(s) of the relevant LSE Group companies and is/are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

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 Fund’s website at TCW.com. 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.

GENERAL DISCLOSURE

This material is for general information purposes only. There can be no assurance that the objectives and/or trends will come to pass or be maintained. This material may include estimates, projections and other “forward-looking” statements. Actual events may differ substantially from those presented. TCW assumes no duty to update any such statements. Projections are based on current asset prices and are subject to change.

The processes described herein are illustrative only and subject to adaptation in any particular context. This material reflects the current opinions of the author but not necessarily those of TCW and such opinions are subject to change without notice. TCW, its officers, directors, employees or clients may have positions in securities or investments mentioned in this publication, which positions may change at any time, without notice.

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 Prospectus from the Fund’s website at TCW.com. Please read it carefully.

TCW Funds are distributed by TCW Funds Distributors LLC

Glossary:

Active Management – A combination of investment strategies employed by a portfolio manager with the goal of exploiting market inefficiencies and outperforming the benchmark index.
Free cash flow (FCF) – FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.
Volatility--The propensity of the value of an asset or market to rise or fall.

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About The TCW Group
TCW is a leading global asset management firm with a broad range of products across fixed income, equities, emerging markets and alternative investments.  With more than four decades of investment experience, TCW today manages approximately $190 billion in client assets.  Through the MetWest and TCW Funds families, TCW manages one of the largest mutual fund complexes in the U.S. TCW’s clients include many of the world’s largest corporate and public pension plans, financial institutions, endowments and foundations, as well as financial advisors and high net worth individuals.  For more information, please visit www.tcw.com.

TCW Media Contact:
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Email: douglas.morris@tcw.com