TCW Comprehensive Asset Allocation Strategy

Alternative Products Division

A strategy that uses a four-step process to offer custom, global and strategic asset allocation in one product. Investments include U.S. equities and fixed income, international equities and fixed income, as well as certain alternative investments.



Investment Team

  • Michael P. Reilly, CFA
  • Stephen M. Kane, CFA
  • Adam T. Coppersmith, CFA

Strategy Overview and Objective

The TCW Comprehensive Asset Allocation strategy offers custom, global, and strategic asset allocation in one product. Client assets are managed across a global array of asset classes including U.S. equities and fixed income, foreign equities and fixed income, as well as certain alternative investments. The goal of TCW Comprehensive Asset Allocation is to achieve consistently strong performance relative to each client’s custom benchmark while minimizing downside risk. This is accomplished through a rigorous four-step process. Each client’s asset mix is periodically adjusted to reflect anticipated significant market changes.

Investment Approach

Our approach is based on the following beliefs:

  • Value can be added from both asset allocation and security selection;
  • Periodic asset allocation changes are necessary to address changing global market conditions;
  • Outperforming the client’s benchmark can be achieved without incurring unacceptable levels of risk (i.e. tracking error); and
  • TCW can blend both its quantitative and fundamental expertise to successfully implement the process.

Legal Disclosures

Objective Disclosure

There can be no assurance that this strategy will be able to achieve its objectives.

Investment Team

  • Photo: Michael P. Reilly, CFA
    Michael P. Reilly, CFA
    Group Managing Director

    Mr. Reilly is the Chief Investment Officer of the Equities Group and Director of Equity Research. He joined TCW in 1992 as an Equity Analyst after working four years in corporate finance at Security Pacific Bank. In 1995, he assumed co-portfolio management responsibility for TCW’s Latin America, Emerging Markets and International Equities in-vestment strategies. Subsequently, from 2002-2005, he was co-Portfolio Manager of the Société Générale Asset Management (SGAM) global equities team prior to assuming leadership of the U.S. Equity Research department in 2006. Mr. Reilly serves as a member of the USC Marshall Center for Investment Studies Board of Advisors and the USC Dornsife Board of Councilors. Mr. Reilly graduated valedictorian of the University of Southern California with a BS in Finance and a BA in Spanish and also received his MBA from the University of Southern California. He was recipient of the Rotary Foundation Ambassadorial Fellowship for a year of postgraduate studies at Universidad Complutense in Madrid, Spain. He is a CFA charterholder.

  • Photo: Stephen M. Kane, CFA
    Stephen M. Kane, CFA
    Group Managing Director

    Mr. Kane is a Generalist Portfolio Manager in TCW’s Fixed Income Group, a team that oversees over $180 billion in fixed income assets including the $80+ billion MetWest Total Return Bond Fund, one of largest actively managed bond funds in the world. Under his co-leadership, the MetWest investment team was recognized as Morningstar’s Fixed Income Manager of the Year for 2005. Mr. Kane has led the effort to launch a number of fixed income products, including AlphaTrak, Long Duration/LDI, Unconstrained, and Global. Prior to establishing MetWest, he was a fixed income portfolio manager at Hotchkis and Wiley. He also served as a Vice President at PIMCO. Mr. Kane earned a BS in Business from the University of California, Berkeley and an MBA from the University of Chicago Booth School of Business. He is a CFA charterholder.

  • Photo: Adam T. Coppersmith, CFA
    Adam T. Coppersmith, CFA
    Managing Director

    Mr. Coppersmith initially joined TCW in 1994 and returned in 1999 to join the Private Client Services Department as an Analyst. In 2003, he joined the Portfolio Analytics Group. Prior to his return, he worked at Patterson Capital as a Portfolio Analyst/Trader and with Deutsche Bank as an Analyst in their mortgage backed area. Mr. Coppersmith holds a BA in Political Science from the University of California at Los Angeles. He is a CFA® charterholder and is a member of the CFA® Society Los Angeles and the CFA® Institute.

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