TCW Relative Value Balanced Strategy

Managed Account Division

Invest in a diversified portfolio of stocks and investment-grade fixed income securities to seek high total return through a combination of income and capital appreciation.

At-A-Glance

 

Investment Team

  • Diane E. Jaffee, CFA

Investment Objective

The investment objective of the strategy is to achieve high total return through a combination of income and capital appreciation. The strategy seeks to obtain its objective by investing in a diversified portfolio of stocks and investment-grade fixed income securities. The Relative Value Balanced strategy utilizes the expertise of the Relative Value Large Cap and TCW High Grade Fixed Income investment teams.

There is, of course, no assurance that this goal will be realized.

Equities Distinctive Features:

  • Continuous management since inception
  • Stock holdings generally meet one or more of five value criteria
  • Sector weightings are generally 0.5x-2.0x a major economic sector

Fixed Income Distinctive Features:

  • Objective is to maximize total realized return while preserving capital and controlling interest rate risk
  • Portfolio strategy utilizes U.S. Treasury, investment grade corporate fixed income securities, mortgage-backed and asset-backed
  • Portfolio risk is controlled by neutralizing exposure to interest rate and yield curve risk
  • Value added through active management with focus on sector and security selection

Top Five Holdings (%)

  Portfolio Weight
Equity
JPMorgan Chase & Co. 2.80
Cisco Systems Inc. 2.73
Textron Inc. 2.72
Citigroup Inc. 2.63
Cypress Semiconductor Corp. 2.17
Fixed Income
U.S. Treasury N/B
2.625% 2/28/2023
4.56
U.S. Treasury Notes
1.250% 1/31/2020
3.82
U.S. Treasury N/B
2.250% 11/15/2027
3.73
Boston Properties
3.850% 2/1/2023
3.04
U.S. Treasury Notes
1.125% 7/31/2021
2.89
as of 3/31/2018 (updated quarterly)

Legal Disclosures


The source for all charts and tables above is TCW
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.
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.


*Source: BNY Mellon Performance and Risk Analytics, based on a managed account TCW Relative Value Balanced model portfolio. 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.

Investment Team

  • Photo: Diane E. Jaffee, CFA
    Diane E. Jaffee, CFA
    Group Managing Director

    Ms. Jaffee is the Senior Portfolio Manager for the TCW Relative Value Large Cap, TCW Relative Value Dividend Appreciation, and TCW Relative Value Mid Cap strategies and funds. She joined TCW through the acquisition of SG Cowen Asset Management in 2001. She had been a Senior Portfolio Manager at Cowen Asset Management since 1995 and continues in that role at TCW. She has more than 30 years of investment experience. Before joining Cowen, she was Vice President and Portfolio Manager at Kidder, Peabody & Co from 1986 to 1995. Prior to that, she was Vice President at Lehman Management Company from 1985 to 1986 and an Equity Analyst with Prudential Insurance from 1982 to 1985. In 2007, Ms. Jaffee was named the Separately Managed Accounts Award winner in the Large Cap Equity category by Standard & Poor’s and its award partners Prima Capital and Investment Advisor magazine. The TCW Relative Value Large Cap, Dividend Appreciation, and Mid Cap mutual funds have been each awarded Wall Street Journal’s “Category Kings” in their respective categories, multiple times in 2012, and the TCW Dividend Appreciation Fund was ranked the #1, top performing fund among Lipper Equity Income Funds for 2012. In 2013, the TCW Relative Value Large Cap mutual fund was ranked #1 fund for the first quarter and the #6 fund for the one-year period ending March 31, 2013 among Large Cap Value peers, while the Dividend Appreciation Fund ranked #2 for the quarter and #3 for the one-year period ending March 31, 2013 among Equity Income peers. Ms. Jaffee holds a BA in Economics from Wellesley College (1982). She has completed post-graduate work in Finance and Accounting at Rutgers University Graduate School of Management and is a CFA charterholder. Ms. Jaffee is also a member of the New York Society of Security Analysts, the Economic Club of New York, and the CFA Society.

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