TCW High Yield Strategy

Marketable Securities Division

The strategy seeks to maximize long-term total return consistent with the preservation of capital and aims to add value over the benchmark and control risk through the application of an in-depth fundamental credit research process.

At-A-Glance

AUM or Committed to Management

$705.2 Million (as of 12/31/17)

Investment Vehicles and Minimums Separate Account $40 Million
MW High Yield Bond Fund
  $3 million (I Class)
  $5,000 (M Class)

TCW High Yield Bond Fund
  $2,000 (I Class)
  $2,000 (N Class)

Investment Team

  • Laird R. Landmann
  • Stephen M. Kane, CFA
  • Jamie Farnham
Strategy Information
Product Name 1-mo 3-mo YTD
Annualized Performance
1-yr
3-yr 5-yr Since Inception
[10/01/2002]
TCW (Gross) 0.34% 0.73% 7.04% 7.04% 4.64% 4.46% 9.26%
TCW (Net) 0.28% 0.56% 6.30% 6.30% 4.00% 3.92% 8.85%
Bloomberg Barclays U.S. High Yield 2% Issuer Cap Index 0.30% 0.47% 7.50% 7.50% 6.36% 5.78% 9.39%
as of 12/31/2017 (updated quarterly)

Click Here for detailed Performance Disclosures 

Investment Objective

The TCW High Yield strategy seeks to maximize long-term total return consistent with the preservation of capital and aims to add value over the benchmark and control risk through the application of an indepth fundamental credit research process. The investments generally include corporate and government debt securities, mortgage and other asset-backed securities, secured bank loans, mezzanine investments, money market instruments and derivatives. The strategy maintains an average duration between 2 and 8 years and will generally invest at least 80% of its net assets in a portfolio of high yield securities rated below investment grade.

Investment Philosophy

The TCW fixed income management philosophy reflects a goal of consistently outperforming the portfolio benchmark while maintaining below average volatility with an emphasis on capital preservation, particularly in rising rate environments. We seek to achieve the desired outperformance through the measured and diversified application of our core philosophical tenets:

  • A value-based approach to manage credit risks through the cycle using a disciplined cost averaging approach to position for inflection points in high yield, which are often violent and illiquid
  • Tangible asset coverage drives credit performance, while minimizing potential default losses, and is under-emphasized by market participants
  • Understanding the “quality” of a claim is equally important to understanding the credit
  • Credit ratings contain limited and often misleading information

Performance Returns

as of 12/31/2017 (^ Annualized Performance updated quarterly)

Legal Disclosures


The source for all charts and tables above is TCW
Objective Disclosure

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

About Portfolio Values and Holdings

Portfolio characteristics and holdings are subject to change at any time. It should not be assumed that an investment in the securities listed was, or will be, profitable.

About Performance
Performance for any period not ending on a calendar quarter end is subject to adjustment at quarter end for accounts that are not present for the entire quarter. Past performance is no guarantee of future results.
Index Disclosure

The index or indices cited herein are unmanaged groups of securities often taken as representative of those segments of the overall market and assume no reduction for fees and expenses in measuring returns. The securities in the index or indices may be substantially different from those in the strategy.

Bloomberg Barclays U.S. Corp. High Yield 2% Issuer Capped Index

Is an unmanaged index that covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. The index limits exposures to a specific issuer to a maximum 2% by market value.


This material is for general information purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security. Any issuers or securities noted in this document are provided as illustrations or examples only, for the limited purpose of analyzing general market or economic conditions and may not form the basis for an investment decision, nor are they intended to serve as investment advice. Any such issuers or securities are under periodic review by the portfolio management group and are subject to change without notice. TCW makes no representation as to whether any security or issuer mentioned in this document is now in any TCW portfolio. TCW, its officers, directors, employees or clients may have positions in securities or investments mentioned in this publication, which are subject to change without notice. Any information and statistical data contained herein derived from third party sources are believed to be reliable, but TCW does not represent that they are accurate, and they should not be relied on as such or be the basis for an investment decision.

An investment in the strategy described herein has risks, including the risk of losing some or all of the invested capital. An investor should carefully consider the risks and suitability of an investment strategy based on their own investment objectives and financial position. There is no assurance that the investment objectives and/or trends will come to pass or be maintained. The information contained herein may include preliminary information and/or “forward-looking statements.” Due to numerous factors, actual events may differ substantially from those presented herein. TCW assumes no duty to update any forward-looking statements or opinions in this document. This material comprises the assets under management of The TCW Group, Inc. and its subsidiaries, including TCW Investment Management Company LLC, TCW Asset Management Company LLC, and Metropolitan West Asset Management, LLC. Any opinions expressed herein are current only as of the time made and are subject to change without notice. The investment processes described herein are illustrative only and are subject to change. Past performance is no guarantee of future results. © 2017 TCW

Investment Team

  • Photo: Laird R. Landmann
    Laird R. Landmann
    Group Managing Director

    Mr. Landmann is a Generalist Portfolio Manager in the Fixed Income Group. He joined TCW in 2009 during the acquisition of Metropolitan West Asset Management LLC (MetWest). Mr. Landmann currently serves on the boards of the TCW and Metropolitan West Mutual Funds. Mr. Landmann currently co-manages many of TCW and MetWest’s mutual funds, including the MetWest Total Return Bond Fund, the MetWest High Yield Bond Fund and the TCW Core Fixed Income Fund, and leads the fixed in-come group’s risk management efforts. He is a leader of the MetWest investment team that was recognized as Morningstar’s Fixed Income Manager of the Year for 2005 and has been nominated for the award eight times. Prior to founding MetWest in 1996, Mr. Landmann was a principal and the co-director of fixed income at Hotchkis and Wiley. He also served as a portfolio manager and vice president at PIMCO. Mr. Landmann holds an AB in Economics from Dartmouth College and an MBA from the University of Chicago Booth School of Business.

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

    Mr. Kane is a Generalist Portfolio Manager in the Fixed Income group. He joined TCW in 2009 during the acquisition of Metropolitan West Asset Management LLC (MetWest). At MetWest, Mr. Kane was responsible for leading MetWest’s AlphaTrak, Ultra Short and Liability Driven Investment (LDI) products, and he co-manages many of the firm’s mutual funds. Under his co-leadership, the MetWest investment team was recognized as Morningstar’s Fixed Income Manager of the Year for 2005. 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: Jamie Farnham
    Jamie Farnham
    Managing Director

    Mr. Farnham joined TCW in 2009 as the Director of Credit Research and a Specialist Portfolio Manager in the Fixed Income group. Previously with Metropolitan West Asset Management LLC (MetWest), Mr. Farnham served as a Portfolio Manager where he led a team of credit analysts and oversaw the firm’s proprietary credit research process within the corporate, high yield, and leveraged loan markets. Prior to that, he was a Private Equity Investor at Primus Capital after working as an Investment Banker at Merrill Lynch in New York, focusing on new issue origination of equity and fixed income securities, as well as mergers and acquisitions. Mr. Farnham holds an AB in Economics from Princeton University and an MBA from the UCLA Anderson School of Management.

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