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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07170
TCW Funds, Inc.
(Exact name of registrant as specified in charter)
515 South Flower Street, Los Angeles, CA 90071
(Address of principal executive offices)
Peter Davidson, Esq.
Vice President and Secretary
515 South Flower Street
Los Angeles, CA 90071
(Name and address of agent for service)
Registrant’s telephone number, including area code: (213) 244-0000
Date of fiscal year end: October 31
Date of reporting period: October 31, 2024
| Item 1. | Reports to Shareholders. |
| (a) | The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”): |
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Central Cash Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| TCW Central Cash Fund | $1 | 0.01% |
- Total Net Assets$2,727,562,302
- # of Portfolio Holdings18
- Total Advisory Fees Paid - Net$0
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| U.S. Treasury Securities | 55.6% |
| Repurchase Agreement | 29.3% |
| U.S. Government Agency Obligations | 18.4% |
| Money Market Investments | 0.3% |
| Liabilities in Excess of Other Assets | (3.6%) |
Top Ten Holdings (as a % of Net Assets)
| Bank of America NA, 4.83%, due 11/01/24 | 20.2% |
| U.S. Treasury Bills, 4.79%, due 05/20/11 | 12.7% |
| U.S. Treasury Bills, 4.76%, due 11/19/24 | 12.7% |
| JP Morgan Securities, 4.83%, due 11/01/24 | 9.2% |
| U.S. Treasury Bills, 5.02%, due 12/20/11 | 9.2% |
| U.S. Treasury Bills, 5.05%, due 05/20/11 | 6.4% |
| U.S. Treasury Bills, 4.80%, due 05/20/11 | 5.4% |
| U.S. Treasury Bills, 4.76%, due 12/20/11 | 4.0% |
| Federal Home Loan Banks, 4.81%, due 11/19/24 | 3.7% |
| Federal Home Loan Banks, 4.82%, due 04/08/25 | 3.7% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
Annual Shareholder Report — October 31, 2024
TCW Conservative Allocation Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Conservative Allocation Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class I | $57 | 0.52% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Conservative Allocation Fund returned 20.22% net of fees on its Class I shares. On a relative basis the Fund outperformed its first broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index, which returned 10.55%, though it lagged its second broad-based benchmark, the S&P 500 Index, which returned 38.02% in the same period. This period was marked by a significant gain in stock market valuation driven primarily by strong earnings growth and increased attention to technologies underpinning the expansion of artificial intelligence. At the same time the bond market was very responsive to a variety of high frequency data releases in anticipation of the beginning of cuts to the federal funds rate, leading to volatility in the market. In this period the Fund was generally defensively positioned with an emphasis on high quality fixed income assets with extended interest rate duration, including agency mortgage-backed securities. Exposure to high yield corporate debt and emerging market sovereigns was small but contributed positively to the returns. The Fund’s exposure to large cap technology stocks was reduced, which detracted from performance. The focus on stocks of high margin, cashflow-generating business was a positive for performance and volatility though economically sensitive stocks with strong relative value relative to the benchmark had muted returns in this period. Given an elevated correlation between stocks and bonds, exposure to alternative assets classes such as gold, other commodities and liquid real assets was increased to provide added diversification and contributed positively to returns.
| Class I | Bloomberg U.S. Aggregate Bond Index | S&P 500 Index | 40% S&P 500 Index/60% Bloomberg U.S. Aggregate Bond Index |
|---|
| 10/2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| 11/2014 | $10,139 | $10,071 | $10,269 | $10,150 |
| 12/2014 | $10,172 | $10,080 | $10,243 | $10,146 |
| 01/2015 | $10,122 | $10,292 | $9,936 | $10,151 |
| 02/2015 | $10,430 | $10,195 | $10,507 | $10,328 |
| 03/2015 | $10,396 | $10,242 | $10,340 | $10,291 |
| 04/2015 | $10,380 | $10,206 | $10,440 | $10,308 |
| 05/2015 | $10,413 | $10,181 | $10,574 | $10,346 |
| 06/2015 | $10,330 | $10,070 | $10,369 | $10,199 |
| 07/2015 | $10,538 | $10,140 | $10,586 | $10,327 |
| 08/2015 | $10,239 | $10,125 | $9,948 | $10,069 |
| 09/2015 | $10,114 | $10,194 | $9,702 | $10,010 |
| 10/2015 | $10,388 | $10,196 | $10,520 | $10,348 |
| 11/2015 | $10,372 | $10,169 | $10,551 | $10,344 |
| 12/2015 | $10,305 | $10,136 | $10,385 | $10,259 |
| 01/2016 | $10,029 | $10,275 | $9,869 | $10,140 |
| 02/2016 | $10,029 | $10,348 | $9,856 | $10,178 |
| 03/2016 | $10,279 | $10,443 | $10,525 | $10,510 |
| 04/2016 | $10,296 | $10,483 | $10,566 | $10,551 |
| 05/2016 | $10,340 | $10,486 | $10,755 | $10,628 |
| 06/2016 | $10,435 | $10,674 | $10,783 | $10,754 |
| 07/2016 | $10,616 | $10,742 | $11,181 | $10,953 |
| 08/2016 | $10,607 | $10,729 | $11,196 | $10,952 |
| 09/2016 | $10,616 | $10,723 | $11,199 | $10,949 |
| 10/2016 | $10,469 | $10,641 | $10,994 | $10,818 |
| 11/2016 | $10,417 | $10,389 | $11,401 | $10,825 |
| 12/2016 | $10,456 | $10,404 | $11,627 | $10,920 |
| 01/2017 | $10,576 | $10,425 | $11,847 | $11,016 |
| 02/2017 | $10,705 | $10,495 | $12,318 | $11,235 |
| 03/2017 | $10,742 | $10,489 | $12,332 | $11,237 |
| 04/2017 | $10,816 | $10,570 | $12,459 | $11,335 |
| 05/2017 | $10,899 | $10,651 | $12,634 | $11,451 |
| 06/2017 | $10,936 | $10,641 | $12,713 | $11,473 |
| 07/2017 | $11,028 | $10,686 | $12,974 | $11,597 |
| 08/2017 | $11,092 | $10,782 | $13,014 | $11,673 |
| 09/2017 | $11,139 | $10,731 | $13,283 | $11,736 |
| 10/2017 | $11,231 | $10,737 | $13,593 | $11,850 |
| 11/2017 | $11,314 | $10,723 | $14,009 | $11,986 |
| 12/2017 | $11,380 | $10,773 | $14,165 | $12,072 |
| 01/2018 | $11,562 | $10,649 | $14,976 | $12,265 |
| 02/2018 | $11,351 | $10,548 | $14,424 | $12,015 |
| 03/2018 | $11,322 | $10,615 | $14,058 | $11,939 |
| 04/2018 | $11,351 | $10,536 | $14,112 | $11,904 |
| 05/2018 | $11,476 | $10,612 | $14,451 | $12,070 |
| 06/2018 | $11,476 | $10,598 | $14,540 | $12,090 |
| 07/2018 | $11,601 | $10,601 | $15,081 | $12,272 |
| 08/2018 | $11,736 | $10,669 | $15,573 | $12,480 |
| 09/2018 | $11,707 | $10,600 | $15,662 | $12,460 |
| 10/2018 | $11,235 | $10,517 | $14,591 | $12,060 |
| 11/2018 | $11,341 | $10,580 | $14,888 | $12,201 |
| 12/2018 | $11,025 | $10,774 | $13,544 | $11,895 |
| 01/2019 | $11,466 | $10,888 | $14,629 | $12,352 |
| 02/2019 | $11,682 | $10,882 | $15,099 | $12,507 |
| 03/2019 | $11,846 | $11,091 | $15,393 | $12,748 |
| 04/2019 | $12,000 | $11,094 | $16,016 | $12,956 |
| 05/2019 | $11,877 | $11,291 | $14,998 | $12,765 |
| 06/2019 | $12,246 | $11,432 | $16,055 | $13,221 |
| 07/2019 | $12,287 | $11,458 | $16,286 | $13,315 |
| 08/2019 | $12,339 | $11,755 | $16,028 | $13,437 |
| 09/2019 | $12,328 | $11,692 | $16,328 | $13,495 |
| 10/2019 | $12,411 | $11,727 | $16,681 | $13,636 |
| 11/2019 | $12,585 | $11,721 | $17,287 | $13,830 |
| 12/2019 | $12,658 | $11,713 | $17,809 | $13,991 |
| 01/2020 | $12,834 | $11,938 | $17,802 | $14,151 |
| 02/2020 | $12,559 | $12,153 | $16,336 | $13,837 |
| 03/2020 | $11,614 | $12,082 | $14,319 | $13,105 |
| 04/2020 | $12,317 | $12,297 | $16,154 | $13,917 |
| 05/2020 | $12,735 | $12,354 | $16,923 | $14,221 |
| 06/2020 | $12,977 | $12,432 | $17,260 | $14,388 |
| 07/2020 | $13,405 | $12,617 | $18,233 | $14,841 |
| 08/2020 | $13,680 | $12,515 | $19,544 | $15,196 |
| 09/2020 | $13,537 | $12,509 | $18,801 | $14,960 |
| 10/2020 | $13,427 | $12,453 | $18,301 | $14,761 |
| 11/2020 | $14,207 | $12,575 | $20,305 | $15,494 |
| 12/2020 | $14,461 | $12,592 | $21,085 | $15,745 |
| 01/2021 | $14,327 | $12,502 | $20,872 | $15,614 |
| 02/2021 | $14,505 | $12,321 | $21,448 | $15,651 |
| 03/2021 | $14,595 | $12,168 | $22,387 | $15,808 |
| 04/2021 | $15,029 | $12,264 | $23,582 | $16,220 |
| 05/2021 | $15,107 | $12,304 | $23,747 | $16,297 |
| 06/2021 | $15,264 | $12,390 | $24,301 | $16,518 |
| 07/2021 | $15,453 | $12,529 | $24,878 | $16,786 |
| 08/2021 | $15,643 | $12,505 | $25,635 | $16,971 |
| 09/2021 | $15,252 | $12,397 | $24,443 | $16,567 |
| 10/2021 | $15,565 | $12,393 | $26,155 | $17,028 |
| 11/2021 | $15,408 | $12,430 | $25,974 | $17,011 |
| 12/2021 | $15,683 | $12,398 | $27,138 | $17,290 |
| 01/2022 | $15,119 | $12,131 | $25,734 | $16,709 |
| 02/2022 | $14,874 | $11,996 | $24,963 | $16,397 |
| 03/2022 | $14,813 | $11,662 | $25,890 | $16,367 |
| 04/2022 | $14,029 | $11,220 | $23,632 | $15,423 |
| 05/2022 | $13,992 | $11,292 | $23,676 | $15,494 |
| 06/2022 | $13,330 | $11,115 | $21,721 | $14,837 |
| 07/2022 | $13,931 | $11,387 | $23,724 | $15,602 |
| 08/2022 | $13,551 | $11,065 | $22,757 | $15,083 |
| 09/2022 | $12,730 | $10,587 | $20,661 | $14,136 |
| 10/2022 | $12,950 | $10,450 | $22,334 | $14,484 |
| 11/2022 | $13,538 | $10,834 | $23,582 | $15,127 |
| 12/2022 | $13,297 | $10,785 | $22,223 | $14,738 |
| 01/2023 | $13,939 | $11,117 | $23,619 | $15,380 |
| 02/2023 | $13,605 | $10,829 | $23,043 | $14,992 |
| 03/2023 | $13,888 | $11,105 | $23,889 | $15,440 |
| 04/2023 | $14,004 | $11,172 | $24,262 | $15,593 |
| 05/2023 | $13,888 | $11,050 | $24,367 | $15,518 |
| 06/2023 | $14,184 | $11,011 | $25,977 | $15,895 |
| 07/2023 | $14,389 | $11,003 | $26,812 | $16,093 |
| 08/2023 | $14,209 | $10,933 | $26,385 | $15,928 |
| 09/2023 | $13,734 | $10,655 | $25,127 | $15,382 |
| 10/2023 | $13,464 | $10,487 | $24,599 | $15,107 |
| 11/2023 | $14,363 | $10,962 | $26,845 | $16,069 |
| 12/2023 | $15,007 | $11,381 | $28,065 | $16,730 |
| 01/2024 | $15,100 | $11,350 | $28,536 | $16,815 |
| 02/2024 | $15,206 | $11,190 | $30,060 | $17,032 |
| 03/2024 | $15,497 | $11,293 | $31,027 | $17,345 |
| 04/2024 | $14,981 | $11,008 | $29,760 | $16,799 |
| 05/2024 | $15,404 | $11,194 | $31,236 | $17,303 |
| 06/2024 | $15,616 | $11,300 | $32,356 | $17,650 |
| 07/2024 | $16,000 | $11,564 | $32,750 | $17,983 |
| 08/2024 | $16,332 | $11,731 | $33,545 | $18,312 |
| 09/2024 | $16,583 | $11,888 | $34,261 | $18,616 |
| 10/2024 | $16,186 | $11,593 | $33,950 | $18,271 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 20.22% | 5.46% | 4.93% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
| S&P 500 Index | 38.02% | 15.26% | 13.00% |
| 40% S&P 500 Index/60% Bloomberg U.S. Aggregate Bond Index | 20.95% | 6.02% | 6.21% |
- Total Net Assets$32,950,692
- # of Portfolio Holdings19
- Portfolio Turnover Rate31%
- Total Advisory Fees Paid - Net$0
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Diversified Fixed Income Funds | 66.0% |
| Diversified Equity Funds | 19.2% |
| Exchange-Traded Funds | 13.5% |
| Exchange-Traded Notes | 1.0% |
| Short-Term Investments | 0.3% |
Top Ten Holdings (as a % of Net Assets)
| TCW Securitized Bond Fund (formerly TCW Total Return Bond Fund), Class I | 25.5% |
| TCW MetWest Total Return Bond Fund, Class I | 21.7% |
| TCW MetWest Unconstrained Bond Fund, Class I | 10.2% |
| TCW Compounders ETF | 9.7% |
| TCW Relative Value Large Cap Fund, Class I | 9.5% |
| TCW Select Equities Fund, Class I | 5.2% |
| TCW MetWest Low Duration Bond Fund, Class I | 4.1% |
| TCW Global Real Estate Fund, Class I | 3.9% |
| TCW Global Bond Fund, Class I | 3.4% |
| iShares MSCI EAFE ETF | 1.3% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Conservative Allocation Fund
Annual Shareholder Report — October 31, 2024
TCW Conservative Allocation Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Conservative Allocation Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class N | $75 | 0.68% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Conservative Allocation Fund returned 20.02% net of fees on its Class N shares. On a relative basis the Fund outperformed its first broad-based benchmark, the Bloomberg U.S. Aggregate Bond Index, which returned 10.55%, though it lagged its second broad-based benchmark, the S&P 500 Index, which returned 38.02% in the same period. This period was marked by a significant gain in stock market valuation driven primarily by strong earnings growth and increased attention to technologies underpinning the expansion of artificial intelligence. At the same time the bond market was very responsive to a variety of high frequency data releases in anticipation of the beginning of cuts to the federal funds rate, leading to volatility in the market. In this period the Fund was generally defensively positioned with an emphasis on high quality fixed income assets with extended interest rate duration, including agency mortgage-backed securities. Exposure to high yield corporate debt and emerging market sovereigns was small but contributed positively to the returns. The Fund’s exposure to large cap technology stocks was reduced, which detracted from performance. The focus on stocks of high margin, cashflow-generating business was a positive for performance and volatility though economically sensitive stocks with strong relative value relative to the benchmark had muted returns in this period. Given an elevated correlation between stocks and bonds, exposure to alternative assets classes such as gold, other commodities and liquid real assets was increased to provide added diversification and contributed positively to returns.
| Class N | Bloomberg U.S. Aggregate Bond Index | S&P 500 Index | 40% S&P 500 Index/60% Bloomberg U.S. Aggregate Bond Index |
|---|
| 10/2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| 11/2014 | $10,132 | $10,071 | $10,269 | $10,150 |
| 12/2014 | $10,165 | $10,080 | $10,243 | $10,146 |
| 01/2015 | $10,115 | $10,292 | $9,936 | $10,151 |
| 02/2015 | $10,414 | $10,195 | $10,507 | $10,328 |
| 03/2015 | $10,373 | $10,242 | $10,340 | $10,291 |
| 04/2015 | $10,356 | $10,206 | $10,440 | $10,308 |
| 05/2015 | $10,381 | $10,181 | $10,574 | $10,346 |
| 06/2015 | $10,298 | $10,070 | $10,369 | $10,199 |
| 07/2015 | $10,489 | $10,140 | $10,586 | $10,327 |
| 08/2015 | $10,190 | $10,125 | $9,948 | $10,069 |
| 09/2015 | $10,065 | $10,194 | $9,702 | $10,010 |
| 10/2015 | $10,331 | $10,196 | $10,520 | $10,348 |
| 11/2015 | $10,315 | $10,169 | $10,551 | $10,344 |
| 12/2015 | $10,234 | $10,136 | $10,385 | $10,259 |
| 01/2016 | $9,960 | $10,275 | $9,869 | $10,140 |
| 02/2016 | $9,960 | $10,348 | $9,856 | $10,178 |
| 03/2016 | $10,200 | $10,443 | $10,525 | $10,510 |
| 04/2016 | $10,209 | $10,483 | $10,566 | $10,551 |
| 05/2016 | $10,251 | $10,486 | $10,755 | $10,628 |
| 06/2016 | $10,346 | $10,674 | $10,783 | $10,754 |
| 07/2016 | $10,518 | $10,742 | $11,181 | $10,953 |
| 08/2016 | $10,509 | $10,729 | $11,196 | $10,952 |
| 09/2016 | $10,509 | $10,723 | $11,199 | $10,949 |
| 10/2016 | $10,363 | $10,641 | $10,994 | $10,818 |
| 11/2016 | $10,303 | $10,389 | $11,401 | $10,825 |
| 12/2016 | $10,334 | $10,404 | $11,627 | $10,920 |
| 01/2017 | $10,452 | $10,425 | $11,847 | $11,016 |
| 02/2017 | $10,570 | $10,495 | $12,318 | $11,235 |
| 03/2017 | $10,607 | $10,489 | $12,332 | $11,237 |
| 04/2017 | $10,671 | $10,570 | $12,459 | $11,335 |
| 05/2017 | $10,752 | $10,651 | $12,634 | $11,451 |
| 06/2017 | $10,789 | $10,641 | $12,713 | $11,473 |
| 07/2017 | $10,871 | $10,686 | $12,974 | $11,597 |
| 08/2017 | $10,925 | $10,782 | $13,014 | $11,673 |
| 09/2017 | $10,980 | $10,731 | $13,283 | $11,736 |
| 10/2017 | $11,062 | $10,737 | $13,593 | $11,850 |
| 11/2017 | $11,135 | $10,723 | $14,009 | $11,986 |
| 12/2017 | $11,202 | $10,773 | $14,165 | $12,072 |
| 01/2018 | $11,382 | $10,649 | $14,976 | $12,265 |
| 02/2018 | $11,174 | $10,548 | $14,424 | $12,015 |
| 03/2018 | $11,136 | $10,615 | $14,058 | $11,939 |
| 04/2018 | $11,155 | $10,536 | $14,112 | $11,904 |
| 05/2018 | $11,278 | $10,612 | $14,451 | $12,070 |
| 06/2018 | $11,269 | $10,598 | $14,540 | $12,090 |
| 07/2018 | $11,391 | $10,601 | $15,081 | $12,272 |
| 08/2018 | $11,524 | $10,669 | $15,573 | $12,480 |
| 09/2018 | $11,495 | $10,600 | $15,662 | $12,460 |
| 10/2018 | $11,023 | $10,517 | $14,591 | $12,060 |
| 11/2018 | $11,127 | $10,580 | $14,888 | $12,201 |
| 12/2018 | $10,817 | $10,774 | $13,544 | $11,895 |
| 01/2019 | $11,239 | $10,888 | $14,629 | $12,352 |
| 02/2019 | $11,450 | $10,882 | $15,099 | $12,507 |
| 03/2019 | $11,600 | $11,091 | $15,393 | $12,748 |
| 04/2019 | $11,761 | $11,094 | $16,016 | $12,956 |
| 05/2019 | $11,630 | $11,291 | $14,998 | $12,765 |
| 06/2019 | $11,992 | $11,432 | $16,055 | $13,221 |
| 07/2019 | $12,022 | $11,458 | $16,286 | $13,315 |
| 08/2019 | $12,072 | $11,755 | $16,028 | $13,437 |
| 09/2019 | $12,062 | $11,692 | $16,328 | $13,495 |
| 10/2019 | $12,143 | $11,727 | $16,681 | $13,636 |
| 11/2019 | $12,313 | $11,721 | $17,287 | $13,830 |
| 12/2019 | $12,377 | $11,713 | $17,809 | $13,991 |
| 01/2020 | $12,549 | $11,938 | $17,802 | $14,151 |
| 02/2020 | $12,270 | $12,153 | $16,336 | $13,837 |
| 03/2020 | $11,348 | $12,082 | $14,319 | $13,105 |
| 04/2020 | $12,024 | $12,297 | $16,154 | $13,917 |
| 05/2020 | $12,431 | $12,354 | $16,923 | $14,221 |
| 06/2020 | $12,667 | $12,432 | $17,260 | $14,388 |
| 07/2020 | $13,084 | $12,617 | $18,233 | $14,841 |
| 08/2020 | $13,342 | $12,515 | $19,544 | $15,196 |
| 09/2020 | $13,202 | $12,509 | $18,801 | $14,960 |
| 10/2020 | $13,095 | $12,453 | $18,301 | $14,761 |
| 11/2020 | $13,845 | $12,575 | $20,305 | $15,494 |
| 12/2020 | $14,102 | $12,592 | $21,085 | $15,745 |
| 01/2021 | $13,961 | $12,502 | $20,872 | $15,614 |
| 02/2021 | $14,124 | $12,321 | $21,448 | $15,651 |
| 03/2021 | $14,211 | $12,168 | $22,387 | $15,808 |
| 04/2021 | $14,633 | $12,264 | $23,582 | $16,220 |
| 05/2021 | $14,698 | $12,304 | $23,747 | $16,297 |
| 06/2021 | $14,861 | $12,390 | $24,301 | $16,518 |
| 07/2021 | $15,034 | $12,529 | $24,878 | $16,786 |
| 08/2021 | $15,208 | $12,505 | $25,635 | $16,971 |
| 09/2021 | $14,828 | $12,397 | $24,443 | $16,567 |
| 10/2021 | $15,143 | $12,393 | $26,155 | $17,028 |
| 11/2021 | $14,991 | $12,430 | $25,974 | $17,011 |
| 12/2021 | $15,253 | $12,398 | $27,138 | $17,290 |
| 01/2022 | $14,695 | $12,131 | $25,734 | $16,709 |
| 02/2022 | $14,457 | $11,996 | $24,963 | $16,397 |
| 03/2022 | $14,398 | $11,662 | $25,890 | $16,367 |
| 04/2022 | $13,626 | $11,220 | $23,632 | $15,423 |
| 05/2022 | $13,590 | $11,292 | $23,676 | $15,494 |
| 06/2022 | $12,949 | $11,115 | $21,721 | $14,837 |
| 07/2022 | $13,531 | $11,387 | $23,724 | $15,602 |
| 08/2022 | $13,162 | $11,065 | $22,757 | $15,083 |
| 09/2022 | $12,355 | $10,587 | $20,661 | $14,136 |
| 10/2022 | $12,556 | $10,450 | $22,334 | $14,484 |
| 11/2022 | $13,139 | $10,834 | $23,582 | $15,127 |
| 12/2022 | $12,894 | $10,785 | $22,223 | $14,738 |
| 01/2023 | $13,516 | $11,117 | $23,619 | $15,380 |
| 02/2023 | $13,193 | $10,829 | $23,043 | $14,992 |
| 03/2023 | $13,466 | $11,105 | $23,889 | $15,440 |
| 04/2023 | $13,565 | $11,172 | $24,262 | $15,593 |
| 05/2023 | $13,453 | $11,050 | $24,367 | $15,518 |
| 06/2023 | $13,739 | $11,011 | $25,977 | $15,895 |
| 07/2023 | $13,938 | $11,003 | $26,812 | $16,093 |
| 08/2023 | $13,764 | $10,933 | $26,385 | $15,928 |
| 09/2023 | $13,304 | $10,655 | $25,127 | $15,382 |
| 10/2023 | $13,031 | $10,487 | $24,599 | $15,107 |
| 11/2023 | $13,901 | $10,962 | $26,845 | $16,069 |
| 12/2023 | $14,516 | $11,381 | $28,065 | $16,730 |
| 01/2024 | $14,605 | $11,350 | $28,536 | $16,815 |
| 02/2024 | $14,707 | $11,190 | $30,060 | $17,032 |
| 03/2024 | $14,988 | $11,293 | $31,027 | $17,345 |
| 04/2024 | $14,477 | $11,008 | $29,760 | $16,799 |
| 05/2024 | $14,886 | $11,194 | $31,236 | $17,303 |
| 06/2024 | $15,103 | $11,300 | $32,356 | $17,650 |
| 07/2024 | $15,474 | $11,564 | $32,750 | $17,983 |
| 08/2024 | $15,781 | $11,731 | $33,545 | $18,312 |
| 09/2024 | $16,023 | $11,888 | $34,261 | $18,616 |
| 10/2024 | $15,640 | $11,593 | $33,950 | $18,271 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class N | 20.02% | 5.19% | 4.57% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
| S&P 500 Index | 38.02% | 15.26% | 13.00% |
| 40% S&P 500 Index/60% Bloomberg U.S. Aggregate Bond Index | 20.95% | 6.02% | 6.21% |
- Total Net Assets$32,950,692
- # of Portfolio Holdings19
- Portfolio Turnover Rate31%
- Total Advisory Fees Paid - Net$0
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Diversified Fixed Income Funds | 66.0% |
| Diversified Equity Funds | 19.2% |
| Exchange-Traded Funds | 13.5% |
| Exchange-Traded Notes | 1.0% |
| Short-Term Investments | 0.3% |
Top Ten Holdings (as a % of Net Assets)
| TCW Securitized Bond Fund (formerly TCW Total Return Bond Fund), Class I | 25.5% |
| TCW MetWest Total Return Bond Fund, Class I | 21.7% |
| TCW MetWest Unconstrained Bond Fund, Class I | 10.2% |
| TCW Compounders ETF | 9.7% |
| TCW Relative Value Large Cap Fund, Class I | 9.5% |
| TCW Select Equities Fund, Class I | 5.2% |
| TCW MetWest Low Duration Bond Fund, Class I | 4.1% |
| TCW Global Real Estate Fund, Class I | 3.9% |
| TCW Global Bond Fund, Class I | 3.4% |
| iShares MSCI EAFE ETF | 1.3% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Conservative Allocation Fund
Annual Shareholder Report — October 31, 2024
TCW Core Fixed Income Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Core Fixed Income Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class I | $52 | 0.49% |
How did the Fund perform last year and what affected its performance?
Given the sizeable moves lower in rates in both 4Q23 and 3Q24, the longer-than-Index duration position was the largest contributor to relative returns, while the overweight to front-end maturities provided a further, yet smaller, boost. From a sector allocation perspective, returns benefitted from the overweight to agency MBS (mortgage-backed securities) as lower yields and a steeper curve were especially conducive to performance in the sector, resulting in duration-adjusted outperformance relative to Treasuries and sizeable spread compression from the 190 bps (basis points) levels last October to 150 bps as of this October. In addition to the broad-based contribution from exposure to the agency MBS space, returns were further enhanced by issue selection, including a preference for lower and belly agency MBS coupons that outperformed higher coupons as rates fell and prepayment concerns weighed on the higher coupons. Meanwhile, the underweight to corporate credit produced a drag given the strong performance across industries, bolstered by the seemingly permanent risk-on market sentiment and attendant tightening of credit spreads. However, strong issue selection more than offset the drag from being underweight, led by banking, communications, and consumer non-cyclical names. Finally, the overweight positions in CMBS (commercial MBS) and ABS (asset-backed securities) were additive as yield spreads tightened, with the focus on CLOs (collateralized loan obligations) and single asset single borrower CMBS further supporting relative returns given strong issue-level contributions.
| Class I | Bloomberg U.S. Aggregate Bond Index |
|---|
| 10/2014 | $10,000 | $10,000 |
| 11/2014 | $10,062 | $10,071 |
| 12/2014 | $10,073 | $10,080 |
| 01/2015 | $10,257 | $10,292 |
| 02/2015 | $10,161 | $10,195 |
| 03/2015 | $10,199 | $10,242 |
| 04/2015 | $10,177 | $10,206 |
| 05/2015 | $10,154 | $10,181 |
| 06/2015 | $10,059 | $10,070 |
| 07/2015 | $10,109 | $10,140 |
| 08/2015 | $10,087 | $10,125 |
| 09/2015 | $10,129 | $10,194 |
| 10/2015 | $10,125 | $10,196 |
| 11/2015 | $10,104 | $10,169 |
| 12/2015 | $10,075 | $10,136 |
| 01/2016 | $10,200 | $10,275 |
| 02/2016 | $10,250 | $10,348 |
| 03/2016 | $10,329 | $10,443 |
| 04/2016 | $10,371 | $10,483 |
| 05/2016 | $10,379 | $10,486 |
| 06/2016 | $10,525 | $10,674 |
| 07/2016 | $10,606 | $10,742 |
| 08/2016 | $10,593 | $10,729 |
| 09/2016 | $10,597 | $10,723 |
| 10/2016 | $10,527 | $10,641 |
| 11/2016 | $10,308 | $10,389 |
| 12/2016 | $10,305 | $10,404 |
| 01/2017 | $10,331 | $10,425 |
| 02/2017 | $10,396 | $10,495 |
| 03/2017 | $10,395 | $10,489 |
| 04/2017 | $10,460 | $10,570 |
| 05/2017 | $10,527 | $10,651 |
| 06/2017 | $10,519 | $10,641 |
| 07/2017 | $10,558 | $10,686 |
| 08/2017 | $10,645 | $10,782 |
| 09/2017 | $10,598 | $10,731 |
| 10/2017 | $10,599 | $10,737 |
| 11/2017 | $10,590 | $10,723 |
| 12/2017 | $10,637 | $10,773 |
| 01/2018 | $10,510 | $10,649 |
| 02/2018 | $10,421 | $10,548 |
| 03/2018 | $10,489 | $10,615 |
| 04/2018 | $10,415 | $10,536 |
| 05/2018 | $10,498 | $10,612 |
| 06/2018 | $10,484 | $10,598 |
| 07/2018 | $10,478 | $10,601 |
| 08/2018 | $10,550 | $10,669 |
| 09/2018 | $10,476 | $10,600 |
| 10/2018 | $10,401 | $10,517 |
| 11/2018 | $10,464 | $10,580 |
| 12/2018 | $10,646 | $10,774 |
| 01/2019 | $10,762 | $10,888 |
| 02/2019 | $10,759 | $10,882 |
| 03/2019 | $10,966 | $11,091 |
| 04/2019 | $10,963 | $11,094 |
| 05/2019 | $11,171 | $11,291 |
| 06/2019 | $11,308 | $11,432 |
| 07/2019 | $11,329 | $11,458 |
| 08/2019 | $11,626 | $11,755 |
| 09/2019 | $11,560 | $11,692 |
| 10/2019 | $11,595 | $11,727 |
| 11/2019 | $11,586 | $11,721 |
| 12/2019 | $11,577 | $11,713 |
| 01/2020 | $11,806 | $11,938 |
| 02/2020 | $12,004 | $12,153 |
| 03/2020 | $11,908 | $12,082 |
| 04/2020 | $12,170 | $12,297 |
| 05/2020 | $12,234 | $12,354 |
| 06/2020 | $12,347 | $12,432 |
| 07/2020 | $12,548 | $12,617 |
| 08/2020 | $12,469 | $12,515 |
| 09/2020 | $12,472 | $12,509 |
| 10/2020 | $12,423 | $12,453 |
| 11/2020 | $12,561 | $12,575 |
| 12/2020 | $12,595 | $12,592 |
| 01/2021 | $12,526 | $12,502 |
| 02/2021 | $12,371 | $12,321 |
| 03/2021 | $12,227 | $12,168 |
| 04/2021 | $12,329 | $12,264 |
| 05/2021 | $12,356 | $12,304 |
| 06/2021 | $12,446 | $12,390 |
| 07/2021 | $12,580 | $12,529 |
| 08/2021 | $12,554 | $12,505 |
| 09/2021 | $12,451 | $12,397 |
| 10/2021 | $12,446 | $12,393 |
| 11/2021 | $12,473 | $12,430 |
| 12/2021 | $12,435 | $12,398 |
| 01/2022 | $12,179 | $12,131 |
| 02/2022 | $12,030 | $11,996 |
| 03/2022 | $11,665 | $11,662 |
| 04/2022 | $11,202 | $11,220 |
| 05/2022 | $11,281 | $11,292 |
| 06/2022 | $11,064 | $11,115 |
| 07/2022 | $11,368 | $11,387 |
| 08/2022 | $11,011 | $11,065 |
| 09/2022 | $10,468 | $10,587 |
| 10/2022 | $10,317 | $10,450 |
| 11/2022 | $10,726 | $10,834 |
| 12/2022 | $10,663 | $10,785 |
| 01/2023 | $11,063 | $11,117 |
| 02/2023 | $10,737 | $10,829 |
| 03/2023 | $11,041 | $11,105 |
| 04/2023 | $11,102 | $11,172 |
| 05/2023 | $10,963 | $11,050 |
| 06/2023 | $10,902 | $11,011 |
| 07/2023 | $10,896 | $11,003 |
| 08/2023 | $10,818 | $10,933 |
| 09/2023 | $10,491 | $10,655 |
| 10/2023 | $10,288 | $10,487 |
| 11/2023 | $10,809 | $10,962 |
| 12/2023 | $11,261 | $11,381 |
| 01/2024 | $11,261 | $11,350 |
| 02/2024 | $11,054 | $11,190 |
| 03/2024 | $11,146 | $11,293 |
| 04/2024 | $10,814 | $11,008 |
| 05/2024 | $11,025 | $11,194 |
| 06/2024 | $11,148 | $11,300 |
| 07/2024 | $11,434 | $11,564 |
| 08/2024 | $11,618 | $11,731 |
| 09/2024 | $11,780 | $11,888 |
| 10/2024 | $11,435 | $11,593 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 11.15% | -0.28% | 1.35% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$838,704,498
- # of Portfolio Holdings429
- Portfolio Turnover Rate454%
- Total Advisory Fees Paid - Net$3,246,419
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Residential Mortgage-Backed Securities - Agency | 38.3% |
| U.S. Treasury Securities | 32.5% |
| Corporate Bonds | 16.1% |
| Short-Term Investments | 7.0% |
| Residential Mortgage-Backed Securities - Non-Agency | 6.9% |
| Asset-Backed Securities | 6.5% |
| Commercial Mortgage-Backed Securities - Non-Agency | 3.8% |
| Municipal Bonds | 0.7% |
Other Security TypesFootnote Reference* | 0.6% |
| Liabilities in Excess of Other Assets | (12.4%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| U.S. Treasury Notes, 4.13%, due 10/31/29 | 10.0% |
| U.S. Treasury Notes, 3.88%, due 08/15/34 | 5.6% |
| U.S. Treasury Bonds, 4.13%, due 08/15/44 | 5.5% |
| U.S. Treasury Bonds, 4.25%, due 08/15/54 | 4.9% |
| U.S. Treasury Notes, 4.13%, due 10/31/26 | 4.5% |
| Uniform Mortgage-Backed Security, TBA, 3.50%, due 02/01/52 | 1.7% |
| U.S. Treasury Notes, 3.50%, due 09/30/29 | 1.5% |
| Government National Mortgage Association, TBA, 5.00%, due 06/01/54 | 1.3% |
| Government National Mortgage Association, TBA, 2.50%, due 12/01/51 | 1.3% |
| Uniform Mortgage-Backed Security, TBA, 5.00%, due 11/01/54 | 1.2% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Core Fixed Income Fund
Annual Shareholder Report — October 31, 2024
TCW Core Fixed Income Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Core Fixed Income Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class N | $65 | 0.62% |
How did the Fund perform last year and what affected its performance?
Given the sizeable moves lower in rates in both 4Q23 and 3Q24, the longer-than-Index duration position was the largest contributor to relative returns, while the overweight to front-end maturities provided a further, yet smaller, boost. From a sector allocation perspective, returns benefitted from the overweight to agency MBS (mortgage-backed securities) as lower yields and a steeper curve were especially conducive to performance in the sector, resulting in duration-adjusted outperformance relative to Treasuries and sizeable spread compression from the 190 bps (basis points) levels last October to 150 bps as of this October. In addition to the broad-based contribution from exposure to the agency MBS space, returns were further enhanced by issue selection, including a preference for lower and belly agency MBS coupons that outperformed higher coupons as rates fell and prepayment concerns weighed on the higher coupons. Meanwhile, the underweight to corporate credit produced a drag given the strong performance across industries, bolstered by the seemingly permanent risk-on market sentiment and attendant tightening of credit spreads. However, strong issue selection more than offset the drag from being underweight, led by banking, communications, and consumer non-cyclical names. Finally, the overweight positions in CMBS (commercial MBS) and ABS (asset-backed securities) were additive as yield spreads tightened, with the focus on CLOs (collateralized loan obligations) and single asset single borrower CMBS further supporting relative returns given strong issue-level contributions.
| Class N | Bloomberg U.S. Aggregate Bond Index |
|---|
| 10/2014 | $10,000 | $10,000 |
| 11/2014 | $10,060 | $10,071 |
| 12/2014 | $10,077 | $10,080 |
| 01/2015 | $10,259 | $10,292 |
| 02/2015 | $10,161 | $10,195 |
| 03/2015 | $10,197 | $10,242 |
| 04/2015 | $10,172 | $10,206 |
| 05/2015 | $10,139 | $10,181 |
| 06/2015 | $10,051 | $10,070 |
| 07/2015 | $10,089 | $10,140 |
| 08/2015 | $10,066 | $10,125 |
| 09/2015 | $10,105 | $10,194 |
| 10/2015 | $10,100 | $10,196 |
| 11/2015 | $10,076 | $10,169 |
| 12/2015 | $10,046 | $10,136 |
| 01/2016 | $10,168 | $10,275 |
| 02/2016 | $10,217 | $10,348 |
| 03/2016 | $10,294 | $10,443 |
| 04/2016 | $10,325 | $10,483 |
| 05/2016 | $10,331 | $10,486 |
| 06/2016 | $10,484 | $10,674 |
| 07/2016 | $10,554 | $10,742 |
| 08/2016 | $10,539 | $10,729 |
| 09/2016 | $10,542 | $10,723 |
| 10/2016 | $10,470 | $10,641 |
| 11/2016 | $10,249 | $10,389 |
| 12/2016 | $10,244 | $10,404 |
| 01/2017 | $10,268 | $10,425 |
| 02/2017 | $10,330 | $10,495 |
| 03/2017 | $10,326 | $10,489 |
| 04/2017 | $10,398 | $10,570 |
| 05/2017 | $10,463 | $10,651 |
| 06/2017 | $10,443 | $10,641 |
| 07/2017 | $10,479 | $10,686 |
| 08/2017 | $10,564 | $10,782 |
| 09/2017 | $10,514 | $10,731 |
| 10/2017 | $10,513 | $10,737 |
| 11/2017 | $10,502 | $10,723 |
| 12/2017 | $10,547 | $10,773 |
| 01/2018 | $10,427 | $10,649 |
| 02/2018 | $10,328 | $10,548 |
| 03/2018 | $10,394 | $10,615 |
| 04/2018 | $10,318 | $10,536 |
| 05/2018 | $10,399 | $10,612 |
| 06/2018 | $10,382 | $10,598 |
| 07/2018 | $10,374 | $10,601 |
| 08/2018 | $10,445 | $10,669 |
| 09/2018 | $10,368 | $10,600 |
| 10/2018 | $10,292 | $10,517 |
| 11/2018 | $10,353 | $10,580 |
| 12/2018 | $10,532 | $10,774 |
| 01/2019 | $10,645 | $10,888 |
| 02/2019 | $10,640 | $10,882 |
| 03/2019 | $10,843 | $11,091 |
| 04/2019 | $10,838 | $11,094 |
| 05/2019 | $11,042 | $11,291 |
| 06/2019 | $11,177 | $11,432 |
| 07/2019 | $11,195 | $11,458 |
| 08/2019 | $11,487 | $11,755 |
| 09/2019 | $11,420 | $11,692 |
| 10/2019 | $11,452 | $11,727 |
| 11/2019 | $11,441 | $11,721 |
| 12/2019 | $11,430 | $11,713 |
| 01/2020 | $11,655 | $11,938 |
| 02/2020 | $11,849 | $12,153 |
| 03/2020 | $11,750 | $12,082 |
| 04/2020 | $12,007 | $12,297 |
| 05/2020 | $12,068 | $12,354 |
| 06/2020 | $12,178 | $12,432 |
| 07/2020 | $12,375 | $12,617 |
| 08/2020 | $12,294 | $12,515 |
| 09/2020 | $12,295 | $12,509 |
| 10/2020 | $12,245 | $12,453 |
| 11/2020 | $12,389 | $12,575 |
| 12/2020 | $12,410 | $12,592 |
| 01/2021 | $12,340 | $12,502 |
| 02/2021 | $12,186 | $12,321 |
| 03/2021 | $12,052 | $12,168 |
| 04/2021 | $12,151 | $12,264 |
| 05/2021 | $12,175 | $12,304 |
| 06/2021 | $12,252 | $12,390 |
| 07/2021 | $12,383 | $12,529 |
| 08/2021 | $12,354 | $12,505 |
| 09/2021 | $12,262 | $12,397 |
| 10/2021 | $12,244 | $12,393 |
| 11/2021 | $12,269 | $12,430 |
| 12/2021 | $12,230 | $12,398 |
| 01/2022 | $11,986 | $12,131 |
| 02/2022 | $11,838 | $11,996 |
| 03/2022 | $11,476 | $11,662 |
| 04/2022 | $11,018 | $11,220 |
| 05/2022 | $11,093 | $11,292 |
| 06/2022 | $10,878 | $11,115 |
| 07/2022 | $11,176 | $11,387 |
| 08/2022 | $10,823 | $11,065 |
| 09/2022 | $10,297 | $10,587 |
| 10/2022 | $10,136 | $10,450 |
| 11/2022 | $10,548 | $10,834 |
| 12/2022 | $10,484 | $10,785 |
| 01/2023 | $10,865 | $11,117 |
| 02/2023 | $10,543 | $10,829 |
| 03/2023 | $10,841 | $11,105 |
| 04/2023 | $10,900 | $11,172 |
| 05/2023 | $10,762 | $11,050 |
| 06/2023 | $10,689 | $11,011 |
| 07/2023 | $10,682 | $11,003 |
| 08/2023 | $10,603 | $10,933 |
| 09/2023 | $10,292 | $10,655 |
| 10/2023 | $10,080 | $10,487 |
| 11/2023 | $10,602 | $10,962 |
| 12/2023 | $11,044 | $11,381 |
| 01/2024 | $11,031 | $11,350 |
| 02/2024 | $10,838 | $11,190 |
| 03/2024 | $10,927 | $11,293 |
| 04/2024 | $10,599 | $11,008 |
| 05/2024 | $10,794 | $11,194 |
| 06/2024 | $10,924 | $11,300 |
| 07/2024 | $11,204 | $11,564 |
| 08/2024 | $11,383 | $11,731 |
| 09/2024 | $11,541 | $11,888 |
| 10/2024 | $11,200 | $11,593 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class N | 11.12% | -0.44% | 1.14% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$838,704,498
- # of Portfolio Holdings429
- Portfolio Turnover Rate454%
- Total Advisory Fees Paid - Net$3,246,419
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Residential Mortgage-Backed Securities - Agency | 38.3% |
| U.S. Treasury Securities | 32.5% |
| Corporate Bonds | 16.1% |
| Short-Term Investments | 7.0% |
| Residential Mortgage-Backed Securities - Non-Agency | 6.9% |
| Asset-Backed Securities | 6.5% |
| Commercial Mortgage-Backed Securities - Non-Agency | 3.8% |
| Municipal Bonds | 0.7% |
Other Security TypesFootnote Reference* | 0.6% |
| Liabilities in Excess of Other Assets | (12.4%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| U.S. Treasury Notes, 4.13%, due 10/31/29 | 10.0% |
| U.S. Treasury Notes, 3.88%, due 08/15/34 | 5.6% |
| U.S. Treasury Bonds, 4.13%, due 08/15/44 | 5.5% |
| U.S. Treasury Bonds, 4.25%, due 08/15/54 | 4.9% |
| U.S. Treasury Notes, 4.13%, due 10/31/26 | 4.5% |
| Uniform Mortgage-Backed Security, TBA, 3.50%, due 02/01/52 | 1.7% |
| U.S. Treasury Notes, 3.50%, due 09/30/29 | 1.5% |
| Government National Mortgage Association, TBA, 5.00%, due 06/01/54 | 1.3% |
| Government National Mortgage Association, TBA, 2.50%, due 12/01/51 | 1.3% |
| Uniform Mortgage-Backed Security, TBA, 5.00%, due 11/01/54 | 1.2% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Core Fixed Income Fund
Annual Shareholder Report — October 31, 2024
TCW Core Fixed Income Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Core Fixed Income Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class P | $46 | 0.44% |
How did the Fund perform last year and what affected its performance?
Given the sizeable moves lower in rates in both 4Q23 and 3Q24, the longer-than-Index duration position was the largest contributor to relative returns, while the overweight to front-end maturities provided a further, yet smaller, boost. From a sector allocation perspective, returns benefitted from the overweight to agency MBS (mortgage-backed securities) as lower yields and a steeper curve were especially conducive to performance in the sector, resulting in duration-adjusted outperformance relative to Treasuries and sizeable spread compression from the 190 bps (basis points) levels last October to 150 bps as of this October. In addition to the broad-based contribution from exposure to the agency MBS space, returns were further enhanced by issue selection, including a preference for lower and belly agency MBS coupons that outperformed higher coupons as rates fell and prepayment concerns weighed on the higher coupons. Meanwhile, the underweight to corporate credit produced a drag given the strong performance across industries, bolstered by the seemingly permanent risk-on market sentiment and attendant tightening of credit spreads. However, strong issue selection more than offset the drag from being underweight, led by banking, communications, and consumer non-cyclical names. Finally, the overweight positions in CMBS (commercial MBS) and ABS (asset-backed securities) were additive as yield spreads tightened, with the focus on CLOs (collateralized loan obligations) and single asset single borrower CMBS further supporting relative returns given strong issue-level contributions.
| Class P | Bloomberg U.S. Aggregate Bond Index |
|---|
| 02/2020 | $10,000 | $10,000 |
| 03/2020 | $9,932 | $9,941 |
| 04/2020 | $10,133 | $10,118 |
| 05/2020 | $10,195 | $10,165 |
| 06/2020 | $10,307 | $10,229 |
| 07/2020 | $10,475 | $10,382 |
| 08/2020 | $10,426 | $10,298 |
| 09/2020 | $10,429 | $10,292 |
| 10/2020 | $10,398 | $10,246 |
| 11/2020 | $10,504 | $10,347 |
| 12/2020 | $10,524 | $10,361 |
| 01/2021 | $10,458 | $10,287 |
| 02/2021 | $10,331 | $10,138 |
| 03/2021 | $10,221 | $10,012 |
| 04/2021 | $10,305 | $10,091 |
| 05/2021 | $10,328 | $10,124 |
| 06/2021 | $10,395 | $10,195 |
| 07/2021 | $10,507 | $10,309 |
| 08/2021 | $10,485 | $10,289 |
| 09/2021 | $10,410 | $10,200 |
| 10/2021 | $10,397 | $10,197 |
| 11/2021 | $10,420 | $10,228 |
| 12/2021 | $10,389 | $10,201 |
| 01/2022 | $10,176 | $9,982 |
| 02/2022 | $10,062 | $9,870 |
| 03/2022 | $9,750 | $9,596 |
| 04/2022 | $9,365 | $9,232 |
| 05/2022 | $9,431 | $9,291 |
| 06/2022 | $9,251 | $9,146 |
| 07/2022 | $9,505 | $9,369 |
| 08/2022 | $9,208 | $9,104 |
| 09/2022 | $8,756 | $8,711 |
| 10/2022 | $8,622 | $8,598 |
| 11/2022 | $8,972 | $8,914 |
| 12/2022 | $8,920 | $8,874 |
| 01/2023 | $9,253 | $9,147 |
| 02/2023 | $8,982 | $8,911 |
| 03/2023 | $9,236 | $9,137 |
| 04/2023 | $9,288 | $9,192 |
| 05/2023 | $9,181 | $9,092 |
| 06/2023 | $9,122 | $9,060 |
| 07/2023 | $9,117 | $9,054 |
| 08/2023 | $9,052 | $8,996 |
| 09/2023 | $8,781 | $8,767 |
| 10/2023 | $8,613 | $8,629 |
| 11/2023 | $9,047 | $9,020 |
| 12/2023 | $9,433 | $9,365 |
| 01/2024 | $9,424 | $9,339 |
| 02/2024 | $9,253 | $9,207 |
| 03/2024 | $9,330 | $9,292 |
| 04/2024 | $9,054 | $9,057 |
| 05/2024 | $9,231 | $9,211 |
| 06/2024 | $9,333 | $9,298 |
| 07/2024 | $9,572 | $9,515 |
| 08/2024 | $9,726 | $9,652 |
| 09/2024 | $9,871 | $9,781 |
| 10/2024 | $9,574 | $9,539 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | Since Inception 2/28/20 |
|---|
| Class P | 11.17% | -0.93% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -1.00% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$838,704,498
- # of Portfolio Holdings429
- Portfolio Turnover Rate454%
- Total Advisory Fees Paid - Net$3,246,419
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Residential Mortgage-Backed Securities - Agency | 38.3% |
| U.S. Treasury Securities | 32.5% |
| Corporate Bonds | 16.1% |
| Short-Term Investments | 7.0% |
| Residential Mortgage-Backed Securities - Non-Agency | 6.9% |
| Asset-Backed Securities | 6.5% |
| Commercial Mortgage-Backed Securities - Non-Agency | 3.8% |
| Municipal Bonds | 0.7% |
Other Security TypesFootnote Reference* | 0.6% |
| Liabilities in Excess of Other Assets | (12.4%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| U.S. Treasury Notes, 4.13%, due 10/31/29 | 10.0% |
| U.S. Treasury Notes, 3.88%, due 08/15/34 | 5.6% |
| U.S. Treasury Bonds, 4.13%, due 08/15/44 | 5.5% |
| U.S. Treasury Bonds, 4.25%, due 08/15/54 | 4.9% |
| U.S. Treasury Notes, 4.13%, due 10/31/26 | 4.5% |
| Uniform Mortgage-Backed Security, TBA, 3.50%, due 02/01/52 | 1.7% |
| U.S. Treasury Notes, 3.50%, due 09/30/29 | 1.5% |
| Government National Mortgage Association, TBA, 5.00%, due 06/01/54 | 1.3% |
| Government National Mortgage Association, TBA, 2.50%, due 12/01/51 | 1.3% |
| Uniform Mortgage-Backed Security, TBA, 5.00%, due 11/01/54 | 1.2% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Core Fixed Income Fund
Annual Shareholder Report — October 31, 2024
TCW Emerging Markets Income Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Emerging Markets Income Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class I | $93 | 0.85% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Emerging Markets Income Fund (the “Fund”) returned 19.27% net of fees on its Class I shares. Performance of the Fund’s classes varies because of differing expenses. The Fund’s benchmark, the JPMorgan EMBI Global Diversified Index (“EMBI”), returned 18.16% over the same period. Relative outperformance for the one-year period was driven by security selection as well as overweight positioning to high yield. From a country perspective, the portfolio’s exposure to Egypt, Ukraine, Pakistan, Brazil and Turkey were among the larger drivers of relative outperformance. Emerging Markets (EM) benefited from factors including a more benign macro environment, fundamental improvement and attractive valuations. We remain constructive on EM as most countries continue to gradually adjust towards long-term potential growth and inflation targets. While China’s growth has slowed, other large economies like India or Brazil continue to exhibit higher-than-expected levels of economic activity. Recently announced China stimulus should help to contain its deceleration. EM financial resilience has increased since the 2013 taper tantrum, with many major EM countries establishing a track record of more prudent macro policies. Moreover, current account balances, a major source of EM vulnerability in earlier periods of stress, have turned positive. It remains early to assess the macroeconomic impact of potential policy measures to be adopted by the new U.S. administration, but campaign proposals suggest higher import tariffs, a crackdown on illegal immigration, a reduction of some taxes, and increases on defense spending, as well as economic de-regulation. We anticipate winners and losers, and the sequencing of the policy rollouts will matter. As such, differentiation remains key.
| Class I | JPMorgan EMBI Global Diversified Index |
|---|
| 10/2014 | $10,000 | $10,000 |
| 11/2014 | $9,866 | $10,009 |
| 12/2014 | $9,485 | $9,777 |
| 01/2015 | $9,397 | $9,868 |
| 02/2015 | $9,474 | $9,952 |
| 03/2015 | $9,456 | $9,974 |
| 04/2015 | $9,641 | $10,137 |
| 05/2015 | $9,599 | $10,098 |
| 06/2015 | $9,436 | $9,940 |
| 07/2015 | $9,454 | $9,989 |
| 08/2015 | $9,339 | $9,899 |
| 09/2015 | $9,181 | $9,771 |
| 10/2015 | $9,425 | $10,039 |
| 11/2015 | $9,413 | $10,033 |
| 12/2015 | $9,250 | $9,893 |
| 01/2016 | $9,176 | $9,875 |
| 02/2016 | $9,338 | $10,063 |
| 03/2016 | $9,675 | $10,392 |
| 04/2016 | $9,938 | $10,576 |
| 05/2016 | $9,942 | $10,557 |
| 06/2016 | $10,312 | $10,913 |
| 07/2016 | $10,512 | $11,110 |
| 08/2016 | $10,752 | $11,308 |
| 09/2016 | $10,839 | $11,354 |
| 10/2016 | $10,772 | $11,213 |
| 11/2016 | $10,371 | $10,754 |
| 12/2016 | $10,566 | $10,897 |
| 01/2017 | $10,757 | $11,055 |
| 02/2017 | $11,013 | $11,276 |
| 03/2017 | $11,061 | $11,319 |
| 04/2017 | $11,254 | $11,487 |
| 05/2017 | $11,288 | $11,589 |
| 06/2017 | $11,230 | $11,572 |
| 07/2017 | $11,372 | $11,669 |
| 08/2017 | $11,596 | $11,876 |
| 09/2017 | $11,619 | $11,877 |
| 10/2017 | $11,628 | $11,921 |
| 11/2017 | $11,645 | $11,927 |
| 12/2017 | $11,771 | $12,015 |
| 01/2018 | $11,846 | $12,010 |
| 02/2018 | $11,630 | $11,771 |
| 03/2018 | $11,618 | $11,805 |
| 04/2018 | $11,465 | $11,634 |
| 05/2018 | $11,264 | $11,524 |
| 06/2018 | $11,072 | $11,387 |
| 07/2018 | $11,398 | $11,678 |
| 08/2018 | $11,075 | $11,476 |
| 09/2018 | $11,318 | $11,649 |
| 10/2018 | $11,065 | $11,398 |
| 11/2018 | $10,939 | $11,350 |
| 12/2018 | $11,045 | $11,503 |
| 01/2019 | $11,621 | $12,011 |
| 02/2019 | $11,771 | $12,130 |
| 03/2019 | $11,893 | $12,303 |
| 04/2019 | $11,945 | $12,333 |
| 05/2019 | $11,880 | $12,384 |
| 06/2019 | $12,390 | $12,804 |
| 07/2019 | $12,548 | $12,960 |
| 08/2019 | $12,439 | $13,057 |
| 09/2019 | $12,419 | $12,997 |
| 10/2019 | $12,518 | $13,034 |
| 11/2019 | $12,414 | $12,972 |
| 12/2019 | $12,794 | $13,233 |
| 01/2020 | $12,979 | $13,434 |
| 02/2020 | $12,724 | $13,304 |
| 03/2020 | $10,334 | $11,462 |
| 04/2020 | $10,662 | $11,719 |
| 05/2020 | $11,468 | $12,430 |
| 06/2020 | $12,002 | $12,867 |
| 07/2020 | $12,548 | $13,345 |
| 08/2020 | $12,697 | $13,414 |
| 09/2020 | $12,416 | $13,165 |
| 10/2020 | $12,432 | $13,161 |
| 11/2020 | $13,111 | $13,669 |
| 12/2020 | $13,450 | $13,929 |
| 01/2021 | $13,284 | $13,777 |
| 02/2021 | $12,987 | $13,426 |
| 03/2021 | $12,783 | $13,296 |
| 04/2021 | $13,091 | $13,591 |
| 05/2021 | $13,223 | $13,735 |
| 06/2021 | $13,275 | $13,836 |
| 07/2021 | $13,277 | $13,894 |
| 08/2021 | $13,408 | $14,030 |
| 09/2021 | $13,001 | $13,739 |
| 10/2021 | $12,935 | $13,742 |
| 11/2021 | $12,538 | $13,490 |
| 12/2021 | $12,768 | $13,678 |
| 01/2022 | $12,433 | $13,289 |
| 02/2022 | $11,797 | $12,419 |
| 03/2022 | $11,824 | $12,308 |
| 04/2022 | $11,129 | $11,620 |
| 05/2022 | $11,153 | $11,623 |
| 06/2022 | $10,353 | $10,900 |
| 07/2022 | $10,685 | $11,216 |
| 08/2022 | $10,559 | $11,110 |
| 09/2022 | $9,747 | $10,403 |
| 10/2022 | $9,770 | $10,418 |
| 11/2022 | $10,520 | $11,209 |
| 12/2022 | $10,529 | $11,246 |
| 01/2023 | $10,927 | $11,602 |
| 02/2023 | $10,679 | $11,346 |
| 03/2023 | $10,745 | $11,455 |
| 04/2023 | $10,812 | $11,516 |
| 05/2023 | $10,684 | $11,450 |
| 06/2023 | $10,929 | $11,706 |
| 07/2023 | $11,176 | $11,930 |
| 08/2023 | $10,957 | $11,750 |
| 09/2023 | $10,700 | $11,444 |
| 10/2023 | $10,622 | $11,289 |
| 11/2023 | $11,237 | $11,929 |
| 12/2023 | $11,802 | $12,493 |
| 01/2024 | $11,672 | $12,366 |
| 02/2024 | $11,800 | $12,487 |
| 03/2024 | $12,077 | $12,748 |
| 04/2024 | $11,871 | $12,483 |
| 05/2024 | $12,095 | $12,708 |
| 06/2024 | $12,132 | $12,786 |
| 07/2024 | $12,377 | $13,025 |
| 08/2024 | $12,624 | $13,327 |
| 09/2024 | $12,912 | $13,573 |
| 10/2024 | $12,669 | $13,340 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 19.27% | 0.24% | 2.39% |
| JPMorgan EMBI Global Diversified Index | 18.16% | 0.47% | 2.92% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$3,505,272,750
- # of Portfolio Holdings269
- Portfolio Turnover Rate106%
- Total Advisory Fees Paid - Net$26,231,860
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Government | 69.2% |
| Energy | 10.7% |
| Basic Materials | 6.4% |
| Utilities | 5.7% |
| Financial | 4.9% |
| Consumer Discretionary | 1.3% |
| Short-Term Investments | 0.8% |
| Consumer Staples | 0.3% |
OtherFootnote Reference* | 0.2% |
| Other Assets in Excess of Liabilities | 0.5% |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| Ukraine Government International Bonds, 0.00%, due 08/01/41 | 2.0% |
| Greensaif Pipelines Bidco SARL, 6.13%, due 02/23/38 | 1.8% |
| Oman Government International Bonds, 6.25%, due 01/25/31 | 1.2% |
| Israel Government International Bonds, 5.50%, due 03/12/34 | 1.2% |
| Argentina Republic Government International Bonds, 0.75%, due 07/09/30 | 1.1% |
| Republic of Poland Government International Bonds, 4.88%, due 10/04/33 | 1.1% |
| Saudi Arabian Oil Co., 5.25%, due 07/17/34 | 1.1% |
| Oman Government International Bonds, 6.00%, due 08/01/29 | 1.0% |
| Corp. Nacional del Cobre de Chile, 6.30%, due 09/08/53 | 1.0% |
| Istanbul Metropolitan Municipality, 10.50%, due 12/06/28 | 1.0% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Emerging Markets Income Fund
Annual Shareholder Report — October 31, 2024
TCW Emerging Markets Income Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Emerging Markets Income Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class N | $104 | 0.95% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Emerging Markets Income Fund (the “Fund”) returned 19.33% net of fees on its Class N shares. Performance of the Fund’s classes varies because of differing expenses. The Fund’s benchmark, the JPMorgan EMBI Global Diversified Index (“EMBI”), returned 18.16% over the same period. Relative outperformance for the one-year period was driven by security selection as well as overweight positioning to high yield. From a country perspective, the portfolio’s exposure to Egypt, Ukraine, Pakistan, Brazil and Turkey were among the larger drivers of relative outperformance. Emerging Markets (EM) benefited from factors including a more benign macro environment, fundamental improvement and attractive valuations. We remain constructive on EM as most countries continue to gradually adjust towards long-term potential growth and inflation targets. While China’s growth has slowed, other large economies like India or Brazil continue to exhibit higher-than-expected levels of economic activity. Recently announced China stimulus should help to contain its deceleration. EM financial resilience has increased since the 2013 taper tantrum, with many major EM countries establishing a track record of more prudent macro policies. Moreover, current account balances, a major source of EM vulnerability in earlier periods of stress, have turned positive. It remains early to assess the macroeconomic impact of potential policy measures to be adopted by the new U.S. administration, but campaign proposals suggest higher import tariffs, a crackdown on illegal immigration, a reduction of some taxes, and increases on defense spending, as well as economic de-regulation. We anticipate winners and losers, and the sequencing of the policy rollouts will matter. As such, differentiation remains key.
| Class N | JPMorgan EMBI Global Diversified Index |
|---|
| 10/2014 | $10,000 | $10,000 |
| 11/2014 | $9,867 | $10,009 |
| 12/2014 | $9,487 | $9,777 |
| 01/2015 | $9,389 | $9,868 |
| 02/2015 | $9,465 | $9,952 |
| 03/2015 | $9,449 | $9,974 |
| 04/2015 | $9,636 | $10,137 |
| 05/2015 | $9,592 | $10,098 |
| 06/2015 | $9,417 | $9,940 |
| 07/2015 | $9,438 | $9,989 |
| 08/2015 | $9,318 | $9,899 |
| 09/2015 | $9,158 | $9,771 |
| 10/2015 | $9,404 | $10,039 |
| 11/2015 | $9,385 | $10,033 |
| 12/2015 | $9,218 | $9,893 |
| 01/2016 | $9,147 | $9,875 |
| 02/2016 | $9,307 | $10,063 |
| 03/2016 | $9,642 | $10,392 |
| 04/2016 | $9,900 | $10,576 |
| 05/2016 | $9,900 | $10,557 |
| 06/2016 | $10,271 | $10,913 |
| 07/2016 | $10,464 | $11,110 |
| 08/2016 | $10,697 | $11,308 |
| 09/2016 | $10,782 | $11,354 |
| 10/2016 | $10,719 | $11,213 |
| 11/2016 | $10,309 | $10,754 |
| 12/2016 | $10,508 | $10,897 |
| 01/2017 | $10,684 | $11,055 |
| 02/2017 | $10,941 | $11,276 |
| 03/2017 | $10,987 | $11,319 |
| 04/2017 | $11,176 | $11,487 |
| 05/2017 | $11,211 | $11,589 |
| 06/2017 | $11,155 | $11,572 |
| 07/2017 | $11,284 | $11,669 |
| 08/2017 | $11,508 | $11,876 |
| 09/2017 | $11,524 | $11,877 |
| 10/2017 | $11,541 | $11,921 |
| 11/2017 | $11,553 | $11,927 |
| 12/2017 | $11,677 | $12,015 |
| 01/2018 | $11,743 | $12,010 |
| 02/2018 | $11,532 | $11,771 |
| 03/2018 | $11,508 | $11,805 |
| 04/2018 | $11,355 | $11,634 |
| 05/2018 | $11,163 | $11,524 |
| 06/2018 | $10,966 | $11,387 |
| 07/2018 | $11,286 | $11,678 |
| 08/2018 | $10,967 | $11,476 |
| 09/2018 | $11,212 | $11,649 |
| 10/2018 | $10,945 | $11,398 |
| 11/2018 | $10,831 | $11,350 |
| 12/2018 | $10,931 | $11,503 |
| 01/2019 | $11,492 | $12,011 |
| 02/2019 | $11,648 | $12,130 |
| 03/2019 | $11,750 | $12,303 |
| 04/2019 | $11,799 | $12,333 |
| 05/2019 | $11,747 | $12,384 |
| 06/2019 | $12,238 | $12,804 |
| 07/2019 | $12,403 | $12,960 |
| 08/2019 | $12,283 | $13,057 |
| 09/2019 | $12,266 | $12,997 |
| 10/2019 | $12,351 | $13,034 |
| 11/2019 | $12,257 | $12,972 |
| 12/2019 | $12,626 | $13,233 |
| 01/2020 | $12,810 | $13,434 |
| 02/2020 | $12,553 | $13,304 |
| 03/2020 | $10,202 | $11,462 |
| 04/2020 | $10,518 | $11,719 |
| 05/2020 | $11,318 | $12,430 |
| 06/2020 | $11,839 | $12,867 |
| 07/2020 | $12,381 | $13,345 |
| 08/2020 | $12,525 | $13,414 |
| 09/2020 | $12,246 | $13,165 |
| 10/2020 | $12,266 | $13,161 |
| 11/2020 | $12,938 | $13,669 |
| 12/2020 | $13,268 | $13,929 |
| 01/2021 | $13,104 | $13,777 |
| 02/2021 | $12,802 | $13,426 |
| 03/2021 | $12,607 | $13,296 |
| 04/2021 | $12,914 | $13,591 |
| 05/2021 | $13,037 | $13,735 |
| 06/2021 | $13,088 | $13,836 |
| 07/2021 | $13,086 | $13,894 |
| 08/2021 | $13,221 | $14,030 |
| 09/2021 | $12,819 | $13,739 |
| 10/2021 | $12,753 | $13,742 |
| 11/2021 | $12,359 | $13,490 |
| 12/2021 | $12,594 | $13,678 |
| 01/2022 | $12,247 | $13,289 |
| 02/2022 | $11,630 | $12,419 |
| 03/2022 | $11,646 | $12,308 |
| 04/2022 | $10,958 | $11,620 |
| 05/2022 | $10,984 | $11,623 |
| 06/2022 | $10,202 | $10,900 |
| 07/2022 | $10,528 | $11,216 |
| 08/2022 | $10,389 | $11,110 |
| 09/2022 | $9,595 | $10,403 |
| 10/2022 | $9,620 | $10,418 |
| 11/2022 | $10,345 | $11,209 |
| 12/2022 | $10,361 | $11,246 |
| 01/2023 | $10,755 | $11,602 |
| 02/2023 | $10,522 | $11,346 |
| 03/2023 | $10,569 | $11,455 |
| 04/2023 | $10,643 | $11,516 |
| 05/2023 | $10,515 | $11,450 |
| 06/2023 | $10,753 | $11,706 |
| 07/2023 | $10,993 | $11,930 |
| 08/2023 | $10,781 | $11,750 |
| 09/2023 | $10,527 | $11,444 |
| 10/2023 | $10,436 | $11,289 |
| 11/2023 | $11,039 | $11,929 |
| 12/2023 | $11,606 | $12,493 |
| 01/2024 | $11,476 | $12,366 |
| 02/2024 | $11,612 | $12,487 |
| 03/2024 | $11,877 | $12,748 |
| 04/2024 | $11,674 | $12,483 |
| 05/2024 | $11,884 | $12,708 |
| 06/2024 | $11,924 | $12,786 |
| 07/2024 | $12,165 | $13,025 |
| 08/2024 | $12,408 | $13,327 |
| 09/2024 | $12,683 | $13,573 |
| 10/2024 | $12,453 | $13,340 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class N | 19.33% | 0.16% | 2.22% |
| JPMorgan EMBI Global Diversified Index | 18.16% | 0.47% | 2.92% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$3,505,272,750
- # of Portfolio Holdings269
- Portfolio Turnover Rate106%
- Total Advisory Fees Paid - Net$26,231,860
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Government | 69.2% |
| Energy | 10.7% |
| Basic Materials | 6.4% |
| Utilities | 5.7% |
| Financial | 4.9% |
| Consumer Discretionary | 1.3% |
| Short-Term Investments | 0.8% |
| Consumer Staples | 0.3% |
OtherFootnote Reference* | 0.2% |
| Other Assets in Excess of Liabilities | 0.5% |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| Ukraine Government International Bonds, 0.00%, due 08/01/41 | 2.0% |
| Greensaif Pipelines Bidco SARL, 6.13%, due 02/23/38 | 1.8% |
| Oman Government International Bonds, 6.25%, due 01/25/31 | 1.2% |
| Israel Government International Bonds, 5.50%, due 03/12/34 | 1.2% |
| Argentina Republic Government International Bonds, 0.75%, due 07/09/30 | 1.1% |
| Republic of Poland Government International Bonds, 4.88%, due 10/04/33 | 1.1% |
| Saudi Arabian Oil Co., 5.25%, due 07/17/34 | 1.1% |
| Oman Government International Bonds, 6.00%, due 08/01/29 | 1.0% |
| Corp. Nacional del Cobre de Chile, 6.30%, due 09/08/53 | 1.0% |
| Istanbul Metropolitan Municipality, 10.50%, due 12/06/28 | 1.0% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Emerging Markets Income Fund
Annual Shareholder Report — October 31, 2024
TCW Emerging Markets Income Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Emerging Markets Income Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class P | $85 | 0.77% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Emerging Markets Income Fund (the “Fund”) returned 19.57% net of fees on its Class P shares. Performance of the Fund’s classes varies because of differing expenses. The Fund’s benchmark, the JPMorgan EMBI Global Diversified Index (“EMBI”), returned 18.16% over the same period. Relative outperformance for the one-year period was driven by security selection as well as overweight positioning to high yield. From a country perspective, the portfolio’s exposure to Egypt, Ukraine, Pakistan, Brazil and Turkey were among the larger drivers of relative outperformance. Emerging Markets (EM) benefited from factors including a more benign macro environment, fundamental improvement and attractive valuations. We remain constructive on EM as most countries continue to gradually adjust towards long-term potential growth and inflation targets. While China’s growth has slowed, other large economies like India or Brazil continue to exhibit higher-than-expected levels of economic activity. Recently announced China stimulus should help to contain its deceleration. EM financial resilience has increased since the 2013 taper tantrum, with many major EM countries establishing a track record of more prudent macro policies. Moreover, current account balances, a major source of EM vulnerability in earlier periods of stress, have turned positive. It remains early to assess the macroeconomic impact of potential policy measures to be adopted by the new U.S. administration, but campaign proposals suggest higher import tariffs, a crackdown on illegal immigration, a reduction of some taxes, and increases on defense spending, as well as economic de-regulation. We anticipate winners and losers, and the sequencing of the policy rollouts will matter. As such, differentiation remains key.
| Class P | JPMorgan EMBI Global Diversified Index |
|---|
| 02/2020 | $10,000 | $10,000 |
| 03/2020 | $8,129 | $8,615 |
| 04/2020 | $8,363 | $8,809 |
| 05/2020 | $8,995 | $9,343 |
| 06/2020 | $9,401 | $9,672 |
| 07/2020 | $9,818 | $10,031 |
| 08/2020 | $9,935 | $10,082 |
| 09/2020 | $9,716 | $9,895 |
| 10/2020 | $9,741 | $9,892 |
| 11/2020 | $10,261 | $10,274 |
| 12/2020 | $10,528 | $10,469 |
| 01/2021 | $10,398 | $10,355 |
| 02/2021 | $10,166 | $10,091 |
| 03/2021 | $10,007 | $9,994 |
| 04/2021 | $10,261 | $10,215 |
| 05/2021 | $10,353 | $10,324 |
| 06/2021 | $10,395 | $10,399 |
| 07/2021 | $10,396 | $10,443 |
| 08/2021 | $10,513 | $10,545 |
| 09/2021 | $10,194 | $10,327 |
| 10/2021 | $10,143 | $10,329 |
| 11/2021 | $9,833 | $10,139 |
| 12/2021 | $10,013 | $10,281 |
| 01/2022 | $9,739 | $9,989 |
| 02/2022 | $9,253 | $9,335 |
| 03/2022 | $9,275 | $9,251 |
| 04/2022 | $8,717 | $8,734 |
| 05/2022 | $8,750 | $8,736 |
| 06/2022 | $8,110 | $8,193 |
| 07/2022 | $8,384 | $8,430 |
| 08/2022 | $8,272 | $8,350 |
| 09/2022 | $7,635 | $7,819 |
| 10/2022 | $7,667 | $7,831 |
| 11/2022 | $8,242 | $8,425 |
| 12/2022 | $8,264 | $8,453 |
| 01/2023 | $8,577 | $8,721 |
| 02/2023 | $8,383 | $8,528 |
| 03/2023 | $8,421 | $8,610 |
| 04/2023 | $8,488 | $8,656 |
| 05/2023 | $8,388 | $8,606 |
| 06/2023 | $8,582 | $8,798 |
| 07/2023 | $8,762 | $8,967 |
| 08/2023 | $8,605 | $8,832 |
| 09/2023 | $8,404 | $8,602 |
| 10/2023 | $8,328 | $8,485 |
| 11/2023 | $8,812 | $8,966 |
| 12/2023 | $9,257 | $9,390 |
| 01/2024 | $9,155 | $9,294 |
| 02/2024 | $9,270 | $9,385 |
| 03/2024 | $9,489 | $9,581 |
| 04/2024 | $9,327 | $9,383 |
| 05/2024 | $9,489 | $9,552 |
| 06/2024 | $9,518 | $9,610 |
| 07/2024 | $9,711 | $9,790 |
| 08/2024 | $9,921 | $10,017 |
| 09/2024 | $10,133 | $10,202 |
| 10/2024 | $9,958 | $10,027 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | Since Inception 2/28/20 |
|---|
| Class P | 19.57% | -0.09% |
| JPMorgan EMBI Global Diversified Index | 18.16% | -0.06% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$3,505,272,750
- # of Portfolio Holdings269
- Portfolio Turnover Rate106%
- Total Advisory Fees Paid - Net$26,231,860
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Government | 69.2% |
| Energy | 10.7% |
| Basic Materials | 6.4% |
| Utilities | 5.7% |
| Financial | 4.9% |
| Consumer Discretionary | 1.3% |
| Short-Term Investments | 0.8% |
| Consumer Staples | 0.3% |
OtherFootnote Reference* | 0.2% |
| Other Assets in Excess of Liabilities | 0.5% |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| Ukraine Government International Bonds, 0.00%, due 08/01/41 | 2.0% |
| Greensaif Pipelines Bidco SARL, 6.13%, due 02/23/38 | 1.8% |
| Oman Government International Bonds, 6.25%, due 01/25/31 | 1.2% |
| Israel Government International Bonds, 5.50%, due 03/12/34 | 1.2% |
| Argentina Republic Government International Bonds, 0.75%, due 07/09/30 | 1.1% |
| Republic of Poland Government International Bonds, 4.88%, due 10/04/33 | 1.1% |
| Saudi Arabian Oil Co., 5.25%, due 07/17/34 | 1.1% |
| Oman Government International Bonds, 6.00%, due 08/01/29 | 1.0% |
| Corp. Nacional del Cobre de Chile, 6.30%, due 09/08/53 | 1.0% |
| Istanbul Metropolitan Municipality, 10.50%, due 12/06/28 | 1.0% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Emerging Markets Income Fund
Annual Shareholder Report — October 31, 2024
TCW Emerging Markets Local Currency Income Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Emerging Markets Local Currency Income Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class I | $89 | 0.85% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Emerging Markets Local Currency Income Fund (the “Fund”) returned 8.40% net of fees on its Class I shares, versus 8.76% for the Fund’s benchmark, the JPMorgan GBI-EM Global Diversified Index (“GBI-EM GD”). Performance of the Fund’s classes varies because of differing expenses. Relative underperformance was primarily driven by underweight positioning in lower-yielding markets that rallied as the markets priced in the initiation of the Fed’s easing cycle, and overweight positioning in Brazil and Mexico. Underperformance was partially offset by overweight positioning in markets with idiosyncratic and relative value drivers of performance. We are constructive on Emerging Markets (EM) as most countries continue to gradually adjust towards long-term potential growth and inflation targets. EM growth has remained resilient and is forecast to exceed Developed Markets growth this year and next by around 240 bps. While China’s growth has slowed, other large economies like India or Brazil continue to exhibit higher-than-expected levels of economic activity. Further, recently announced China stimulus should help to contain its deceleration. EM financial resilience has increased since the 2013 taper tantrum, with many major EM countries establishing a track record of more prudent macro policies. Moreover, current account balances, a major source of EM vulnerability in earlier periods of stress, have turned positive. It remains early to assess the macroeconomic impact of potential policy measures to be adopted by the next U.S. administration. The initial reaction has been for dollar strength, particularly against markets with closer ties to U.S. trade. We anticipate winners and losers, and the sequencing of the policy rollouts will matter. As such, differentiation remains key.
| Class I | JPMorgan GBI-EM Global Diversified Index |
|---|
| 10/2014 | $10,000 | $10,000 |
| 11/2014 | $9,938 | $9,869 |
| 12/2014 | $9,422 | $9,284 |
| 01/2015 | $9,561 | $9,315 |
| 02/2015 | $9,406 | $9,190 |
| 03/2015 | $9,137 | $8,916 |
| 04/2015 | $9,354 | $9,176 |
| 05/2015 | $9,158 | $8,940 |
| 06/2015 | $9,065 | $8,831 |
| 07/2015 | $8,827 | $8,604 |
| 08/2015 | $8,382 | $8,142 |
| 09/2015 | $8,154 | $7,900 |
| 10/2015 | $8,465 | $8,258 |
| 11/2015 | $8,237 | $8,079 |
| 12/2015 | $8,020 | $7,899 |
| 01/2016 | $7,999 | $7,926 |
| 02/2016 | $8,113 | $8,041 |
| 03/2016 | $8,827 | $8,769 |
| 04/2016 | $9,096 | $8,995 |
| 05/2016 | $8,630 | $8,506 |
| 06/2016 | $9,158 | $9,006 |
| 07/2016 | $9,241 | $9,061 |
| 08/2016 | $9,272 | $9,064 |
| 09/2016 | $9,479 | $9,248 |
| 10/2016 | $9,448 | $9,169 |
| 11/2016 | $8,765 | $8,525 |
| 12/2016 | $8,992 | $8,684 |
| 01/2017 | $9,210 | $8,880 |
| 02/2017 | $9,437 | $9,040 |
| 03/2017 | $9,646 | $9,249 |
| 04/2017 | $9,742 | $9,357 |
| 05/2017 | $9,885 | $9,540 |
| 06/2017 | $9,953 | $9,584 |
| 07/2017 | $10,179 | $9,783 |
| 08/2017 | $10,364 | $9,958 |
| 09/2017 | $10,343 | $9,924 |
| 10/2017 | $10,045 | $9,645 |
| 11/2017 | $10,242 | $9,807 |
| 12/2017 | $10,455 | $10,005 |
| 01/2018 | $10,941 | $10,453 |
| 02/2018 | $10,808 | $10,344 |
| 03/2018 | $10,897 | $10,450 |
| 04/2018 | $10,515 | $10,141 |
| 05/2018 | $9,995 | $9,636 |
| 06/2018 | $9,689 | $9,361 |
| 07/2018 | $9,871 | $9,538 |
| 08/2018 | $9,245 | $8,958 |
| 09/2018 | $9,484 | $9,190 |
| 10/2018 | $9,267 | $9,010 |
| 11/2018 | $9,518 | $9,263 |
| 12/2018 | $9,596 | $9,384 |
| 01/2019 | $10,115 | $9,896 |
| 02/2019 | $10,034 | $9,788 |
| 03/2019 | $9,850 | $9,658 |
| 04/2019 | $9,850 | $9,641 |
| 05/2019 | $9,861 | $9,670 |
| 06/2019 | $10,427 | $10,202 |
| 07/2019 | $10,519 | $10,297 |
| 08/2019 | $10,138 | $10,025 |
| 09/2019 | $10,288 | $10,121 |
| 10/2019 | $10,589 | $10,415 |
| 11/2019 | $10,392 | $10,225 |
| 12/2019 | $10,834 | $10,648 |
| 01/2020 | $10,664 | $10,511 |
| 02/2020 | $10,290 | $10,153 |
| 03/2020 | $8,990 | $9,028 |
| 04/2020 | $9,377 | $9,382 |
| 05/2020 | $9,915 | $9,868 |
| 06/2020 | $9,938 | $9,915 |
| 07/2020 | $10,243 | $10,214 |
| 08/2020 | $10,208 | $10,180 |
| 09/2020 | $9,962 | $9,975 |
| 10/2020 | $10,032 | $10,018 |
| 11/2020 | $10,606 | $10,567 |
| 12/2020 | $11,027 | $10,935 |
| 01/2021 | $10,879 | $10,818 |
| 02/2021 | $10,601 | $10,528 |
| 03/2021 | $10,273 | $10,205 |
| 04/2021 | $10,500 | $10,435 |
| 05/2021 | $10,752 | $10,696 |
| 06/2021 | $10,636 | $10,566 |
| 07/2021 | $10,567 | $10,521 |
| 08/2021 | $10,665 | $10,602 |
| 09/2021 | $10,285 | $10,238 |
| 10/2021 | $10,167 | $10,102 |
| 11/2021 | $9,855 | $9,826 |
| 12/2021 | $10,000 | $9,978 |
| 01/2022 | $9,988 | $9,978 |
| 02/2022 | $9,575 | $9,479 |
| 03/2022 | $9,391 | $9,334 |
| 04/2022 | $8,821 | $8,771 |
| 05/2022 | $8,987 | $8,926 |
| 06/2022 | $8,550 | $8,529 |
| 07/2022 | $8,531 | $8,553 |
| 08/2022 | $8,524 | $8,541 |
| 09/2022 | $8,108 | $8,125 |
| 10/2022 | $8,075 | $8,054 |
| 11/2022 | $8,590 | $8,626 |
| 12/2022 | $8,770 | $8,812 |
| 01/2023 | $9,163 | $9,191 |
| 02/2023 | $8,832 | $8,900 |
| 03/2023 | $9,214 | $9,267 |
| 04/2023 | $9,321 | $9,347 |
| 05/2023 | $9,139 | $9,199 |
| 06/2023 | $9,489 | $9,499 |
| 07/2023 | $9,776 | $9,773 |
| 08/2023 | $9,467 | $9,510 |
| 09/2023 | $9,081 | $9,190 |
| 10/2023 | $9,038 | $9,141 |
| 11/2023 | $9,559 | $9,623 |
| 12/2023 | $9,929 | $9,932 |
| 01/2024 | $9,781 | $9,780 |
| 02/2024 | $9,684 | $9,724 |
| 03/2024 | $9,689 | $9,722 |
| 04/2024 | $9,469 | $9,514 |
| 05/2024 | $9,646 | $9,667 |
| 06/2024 | $9,504 | $9,563 |
| 07/2024 | $9,695 | $9,780 |
| 08/2024 | $9,984 | $10,081 |
| 09/2024 | $10,357 | $10,423 |
| 10/2024 | $9,797 | $9,942 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 8.40% | -1.54% | -0.20% |
| JPMorgan GBI-EM Global Diversified Index | 8.76% | -0.92% | -0.06% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$57,855,784
- # of Portfolio Holdings142
- Portfolio Turnover Rate116%
- Total Advisory Fees Paid - Net$254,044
What did the Fund invest in?
| Short-Term Investments | 13.3% |
| Indonesia | 12.1% |
| South Africa | 10.5% |
| Brazil | 10.4% |
| Mexico | 9.5% |
| Malaysia | 9.5% |
| India | 6.5% |
| Poland | 5.3% |
| Thailand | 5.1% |
OtherFootnote Reference* | 19.2% |
| Liabilities in Excess of Other Assets | (1.4%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| Brazil Notas do Tesouro Nacional, 10.00%, due 01/01/27 | 8.5% |
| Indonesia Treasury Bonds, 6.63%, due 02/15/34 | 3.5% |
| India Government Bonds, 7.18%, due 08/14/33 | 3.4% |
| Mexico Bonos, 7.50%, due 05/26/33 | 3.3% |
| India Government Bonds, 7.10%, due 04/08/34 | 3.0% |
| Republic of South Africa Government Bonds, 8.88%, due 02/28/35 | 2.8% |
| Thailand Government Bonds, 3.45%, due 06/17/43 | 2.7% |
| Mexico Bonos, 7.75%, due 11/23/34 | 2.5% |
| Malaysia Government Bonds, 3.52%, due 04/20/28 | 2.3% |
| Republic of South Africa Government Bonds, 8.75%, due 01/31/44 | 2.0% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Emerging Markets Local Currency Income Fund
Annual Shareholder Report — October 31, 2024
TCW Emerging Markets Local Currency Income Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Emerging Markets Local Currency Income Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class N | $94 | 0.90% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Emerging Markets Local Currency Income Fund (the “Fund”) returned 8.32% net of fees on its Class N shares, versus 8.76% for the Fund’s benchmark, the JPMorgan GBI-EM Global Diversified Index (“GBI-EM GD”). Performance of the Fund’s classes varies because of differing expenses. Relative underperformance was primarily driven by underweight positioning in lower-yielding markets that rallied as the markets priced in the initiation of the Fed’s easing cycle, and overweight positioning in Brazil and Mexico. Underperformance was partially offset by overweight positioning in markets with idiosyncratic and relative value drivers of performance. We are constructive on Emerging Markets (EM) as most countries continue to gradually adjust towards long-term potential growth and inflation targets. EM growth has remained resilient and is forecast to exceed Developed Markets growth this year and next by around 240 bps. While China’s growth has slowed, other large economies like India or Brazil continue to exhibit higher-than-expected levels of economic activity. Further, recently announced China stimulus should help to contain its deceleration. EM financial resilience has increased since the 2013 taper tantrum, with many major EM countries establishing a track record of more prudent macro policies. Moreover, current account balances, a major source of EM vulnerability in earlier periods of stress, have turned positive. It remains early to assess the macroeconomic impact of potential policy measures to be adopted by the next U.S. administration. The initial reaction has been for dollar strength, particularly against markets with closer ties to U.S. trade. We anticipate winners and losers, and the sequencing of the policy rollouts will matter. As such, differentiation remains key.
| Class N | JPMorgan GBI-EM Global Diversified Index |
|---|
| 10/2014 | $10,000 | $10,000 |
| 11/2014 | $9,938 | $9,869 |
| 12/2014 | $9,421 | $9,284 |
| 01/2015 | $9,561 | $9,315 |
| 02/2015 | $9,406 | $9,190 |
| 03/2015 | $9,136 | $8,916 |
| 04/2015 | $9,354 | $9,176 |
| 05/2015 | $9,157 | $8,940 |
| 06/2015 | $9,064 | $8,831 |
| 07/2015 | $8,825 | $8,604 |
| 08/2015 | $8,390 | $8,142 |
| 09/2015 | $8,152 | $7,900 |
| 10/2015 | $8,463 | $8,258 |
| 11/2015 | $8,235 | $8,079 |
| 12/2015 | $8,018 | $7,899 |
| 01/2016 | $7,997 | $7,926 |
| 02/2016 | $8,121 | $8,041 |
| 03/2016 | $8,836 | $8,769 |
| 04/2016 | $9,095 | $8,995 |
| 05/2016 | $8,629 | $8,506 |
| 06/2016 | $9,167 | $9,006 |
| 07/2016 | $9,240 | $9,061 |
| 08/2016 | $9,271 | $9,064 |
| 09/2016 | $9,478 | $9,248 |
| 10/2016 | $9,447 | $9,169 |
| 11/2016 | $8,774 | $8,525 |
| 12/2016 | $8,991 | $8,684 |
| 01/2017 | $9,209 | $8,880 |
| 02/2017 | $9,437 | $9,040 |
| 03/2017 | $9,646 | $9,249 |
| 04/2017 | $9,742 | $9,357 |
| 05/2017 | $9,885 | $9,540 |
| 06/2017 | $9,953 | $9,584 |
| 07/2017 | $10,179 | $9,783 |
| 08/2017 | $10,364 | $9,958 |
| 09/2017 | $10,343 | $9,924 |
| 10/2017 | $10,045 | $9,645 |
| 11/2017 | $10,243 | $9,807 |
| 12/2017 | $10,456 | $10,005 |
| 01/2018 | $10,942 | $10,453 |
| 02/2018 | $10,809 | $10,344 |
| 03/2018 | $10,887 | $10,450 |
| 04/2018 | $10,516 | $10,141 |
| 05/2018 | $9,995 | $9,636 |
| 06/2018 | $9,688 | $9,361 |
| 07/2018 | $9,871 | $9,538 |
| 08/2018 | $9,244 | $8,958 |
| 09/2018 | $9,483 | $9,190 |
| 10/2018 | $9,267 | $9,010 |
| 11/2018 | $9,517 | $9,263 |
| 12/2018 | $9,596 | $9,384 |
| 01/2019 | $10,114 | $9,896 |
| 02/2019 | $10,034 | $9,788 |
| 03/2019 | $9,849 | $9,658 |
| 04/2019 | $9,837 | $9,641 |
| 05/2019 | $9,860 | $9,670 |
| 06/2019 | $10,427 | $10,202 |
| 07/2019 | $10,519 | $10,297 |
| 08/2019 | $10,138 | $10,025 |
| 09/2019 | $10,277 | $10,121 |
| 10/2019 | $10,577 | $10,415 |
| 11/2019 | $10,381 | $10,225 |
| 12/2019 | $10,822 | $10,648 |
| 01/2020 | $10,652 | $10,511 |
| 02/2020 | $10,277 | $10,153 |
| 03/2020 | $8,988 | $9,028 |
| 04/2020 | $9,363 | $9,382 |
| 05/2020 | $9,902 | $9,868 |
| 06/2020 | $9,925 | $9,915 |
| 07/2020 | $10,230 | $10,214 |
| 08/2020 | $10,195 | $10,180 |
| 09/2020 | $9,949 | $9,975 |
| 10/2020 | $10,019 | $10,018 |
| 11/2020 | $10,593 | $10,567 |
| 12/2020 | $11,015 | $10,935 |
| 01/2021 | $10,854 | $10,818 |
| 02/2021 | $10,587 | $10,528 |
| 03/2021 | $10,259 | $10,205 |
| 04/2021 | $10,486 | $10,435 |
| 05/2021 | $10,737 | $10,696 |
| 06/2021 | $10,621 | $10,566 |
| 07/2021 | $10,551 | $10,521 |
| 08/2021 | $10,649 | $10,602 |
| 09/2021 | $10,268 | $10,238 |
| 10/2021 | $10,150 | $10,102 |
| 11/2021 | $9,838 | $9,826 |
| 12/2021 | $9,982 | $9,978 |
| 01/2022 | $9,970 | $9,978 |
| 02/2022 | $9,556 | $9,479 |
| 03/2022 | $9,371 | $9,334 |
| 04/2022 | $8,813 | $8,771 |
| 05/2022 | $8,967 | $8,926 |
| 06/2022 | $8,529 | $8,529 |
| 07/2022 | $8,510 | $8,553 |
| 08/2022 | $8,515 | $8,541 |
| 09/2022 | $8,086 | $8,125 |
| 10/2022 | $8,053 | $8,054 |
| 11/2022 | $8,567 | $8,626 |
| 12/2022 | $8,747 | $8,812 |
| 01/2023 | $9,140 | $9,191 |
| 02/2023 | $8,820 | $8,900 |
| 03/2023 | $9,190 | $9,267 |
| 04/2023 | $9,297 | $9,347 |
| 05/2023 | $9,114 | $9,199 |
| 06/2023 | $9,463 | $9,499 |
| 07/2023 | $9,750 | $9,773 |
| 08/2023 | $9,440 | $9,510 |
| 09/2023 | $9,055 | $9,190 |
| 10/2023 | $9,010 | $9,141 |
| 11/2023 | $9,544 | $9,623 |
| 12/2023 | $9,900 | $9,932 |
| 01/2024 | $9,752 | $9,780 |
| 02/2024 | $9,667 | $9,724 |
| 03/2024 | $9,659 | $9,722 |
| 04/2024 | $9,452 | $9,514 |
| 05/2024 | $9,615 | $9,667 |
| 06/2024 | $9,472 | $9,563 |
| 07/2024 | $9,663 | $9,780 |
| 08/2024 | $9,951 | $10,081 |
| 09/2024 | $10,323 | $10,423 |
| 10/2024 | $9,760 | $9,942 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class N | 8.32% | -1.60% | -0.24% |
| JPMorgan GBI-EM Global Diversified Index | 8.76% | -0.92% | -0.06% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$57,855,784
- # of Portfolio Holdings142
- Portfolio Turnover Rate116%
- Total Advisory Fees Paid - Net$254,044
What did the Fund invest in?
| Short-Term Investments | 13.3% |
| Indonesia | 12.1% |
| South Africa | 10.5% |
| Brazil | 10.4% |
| Mexico | 9.5% |
| Malaysia | 9.5% |
| India | 6.5% |
| Poland | 5.3% |
| Thailand | 5.1% |
OtherFootnote Reference* | 19.2% |
| Liabilities in Excess of Other Assets | (1.4%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| Brazil Notas do Tesouro Nacional, 10.00%, due 01/01/27 | 8.5% |
| Indonesia Treasury Bonds, 6.63%, due 02/15/34 | 3.5% |
| India Government Bonds, 7.18%, due 08/14/33 | 3.4% |
| Mexico Bonos, 7.50%, due 05/26/33 | 3.3% |
| India Government Bonds, 7.10%, due 04/08/34 | 3.0% |
| Republic of South Africa Government Bonds, 8.88%, due 02/28/35 | 2.8% |
| Thailand Government Bonds, 3.45%, due 06/17/43 | 2.7% |
| Mexico Bonos, 7.75%, due 11/23/34 | 2.5% |
| Malaysia Government Bonds, 3.52%, due 04/20/28 | 2.3% |
| Republic of South Africa Government Bonds, 8.75%, due 01/31/44 | 2.0% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Emerging Markets Local Currency Income Fund
Annual Shareholder Report — October 31, 2024
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Global Bond Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class I | $63 | 0.60% |
How did the Fund perform last year and what affected its performance?
Notwithstanding the sell-off in October 2024 on stronger-than-expected economic data and increased odds of a Republican sweep in the November U.S. Presidential election, global interest rates moved lower over the period. This decline in yields benefitted duration and curve positioning, particularly in 3Q24, with the biggest contributions coming from the relative overweight to U.S. duration and emphasis on policy-sensitive front-end yields, with smaller contributions from overweight positions in New Zealand and the Eurozone. Meanwhile, the duration underweight in Japan further contributed as yields increased over the past year with the Bank of Japan ending yield curve control and exiting negative interest rate policy in March 2024. Currency positioning was impacted by recent moves as the U.S. dollar, an underweight in the Fund, rallied against global currencies in October. As such, overweight positions in select emerging market currencies like the South Korean won and Brazilian real, and an overweight to Japanese yen resulted in a small drag. Turning to sector positioning, securitized assets contributed, particularly the overweight to residential MBS (mortgage-backed securities) and issue selection within the sector, including favorable agency MBS coupon selection in the Fund and the allocation to non-agency MBS, not held in the index. Elsewhere in securitized, CMBS (commercial MBS) backed by single asset single borrower deals held in the Fund outpaced Index conduit deals, while ABS (asset-backed securities) issues outperformed due to the emphasis on CLOs (collateralized loan obligations). Meanwhile, the underweight to developed market corporate credit was a small drag given continued strong returns across the corporate sector, though the Fund capitalized on the positive tone by continuing to trim risk in favor of more defensive and liquid positioning.
| Class I | Bloomberg Global Aggregate Bond Index |
|---|
| 10/2014 | $10,000 | $10,000 |
| 11/2014 | $9,976 | $9,963 |
| 12/2014 | $9,909 | $9,895 |
| 01/2015 | $9,870 | $9,879 |
| 02/2015 | $9,830 | $9,799 |
| 03/2015 | $9,752 | $9,705 |
| 04/2015 | $9,840 | $9,808 |
| 05/2015 | $9,702 | $9,633 |
| 06/2015 | $9,643 | $9,590 |
| 07/2015 | $9,653 | $9,612 |
| 08/2015 | $9,663 | $9,623 |
| 09/2015 | $9,712 | $9,672 |
| 10/2015 | $9,704 | $9,693 |
| 11/2015 | $9,577 | $9,532 |
| 12/2015 | $9,609 | $9,583 |
| 01/2016 | $9,689 | $9,666 |
| 02/2016 | $9,829 | $9,881 |
| 03/2016 | $10,023 | $10,148 |
| 04/2016 | $10,105 | $10,283 |
| 05/2016 | $10,016 | $10,145 |
| 06/2016 | $10,223 | $10,441 |
| 07/2016 | $10,297 | $10,520 |
| 08/2016 | $10,266 | $10,469 |
| 09/2016 | $10,317 | $10,527 |
| 10/2016 | $10,095 | $10,234 |
| 11/2016 | $9,771 | $9,828 |
| 12/2016 | $9,747 | $9,783 |
| 01/2017 | $9,809 | $9,893 |
| 02/2017 | $9,850 | $9,940 |
| 03/2017 | $9,858 | $9,955 |
| 04/2017 | $9,962 | $10,067 |
| 05/2017 | $10,102 | $10,223 |
| 06/2017 | $10,110 | $10,214 |
| 07/2017 | $10,229 | $10,386 |
| 08/2017 | $10,328 | $10,489 |
| 09/2017 | $10,250 | $10,394 |
| 10/2017 | $10,203 | $10,355 |
| 11/2017 | $10,292 | $10,470 |
| 12/2017 | $10,334 | $10,506 |
| 01/2018 | $10,418 | $10,631 |
| 02/2018 | $10,302 | $10,537 |
| 03/2018 | $10,408 | $10,649 |
| 04/2018 | $10,250 | $10,479 |
| 05/2018 | $10,176 | $10,399 |
| 06/2018 | $10,123 | $10,353 |
| 07/2018 | $10,113 | $10,336 |
| 08/2018 | $10,102 | $10,346 |
| 09/2018 | $10,060 | $10,257 |
| 10/2018 | $9,944 | $10,143 |
| 11/2018 | $9,976 | $10,174 |
| 12/2018 | $10,152 | $10,380 |
| 01/2019 | $10,354 | $10,538 |
| 02/2019 | $10,301 | $10,477 |
| 03/2019 | $10,433 | $10,609 |
| 04/2019 | $10,428 | $10,577 |
| 05/2019 | $10,561 | $10,720 |
| 06/2019 | $10,845 | $10,958 |
| 07/2019 | $10,781 | $10,928 |
| 08/2019 | $10,984 | $11,150 |
| 09/2019 | $10,887 | $11,036 |
| 10/2019 | $10,980 | $11,110 |
| 11/2019 | $10,895 | $11,026 |
| 12/2019 | $11,000 | $11,090 |
| 01/2020 | $11,144 | $11,232 |
| 02/2020 | $11,210 | $11,307 |
| 03/2020 | $10,813 | $11,054 |
| 04/2020 | $11,088 | $11,271 |
| 05/2020 | $11,243 | $11,320 |
| 06/2020 | $11,419 | $11,421 |
| 07/2020 | $11,839 | $11,785 |
| 08/2020 | $11,872 | $11,767 |
| 09/2020 | $11,816 | $11,725 |
| 10/2020 | $11,858 | $11,736 |
| 11/2020 | $12,167 | $11,949 |
| 12/2020 | $12,351 | $12,110 |
| 01/2021 | $12,256 | $12,003 |
| 02/2021 | $12,036 | $11,797 |
| 03/2021 | $11,802 | $11,570 |
| 04/2021 | $12,005 | $11,716 |
| 05/2021 | $12,105 | $11,826 |
| 06/2021 | $12,020 | $11,722 |
| 07/2021 | $12,143 | $11,878 |
| 08/2021 | $12,114 | $11,828 |
| 09/2021 | $11,912 | $11,618 |
| 10/2021 | $11,837 | $11,590 |
| 11/2021 | $11,739 | $11,556 |
| 12/2021 | $11,769 | $11,540 |
| 01/2022 | $11,540 | $11,303 |
| 02/2022 | $11,368 | $11,169 |
| 03/2022 | $11,045 | $10,829 |
| 04/2022 | $10,417 | $10,236 |
| 05/2022 | $10,421 | $10,264 |
| 06/2022 | $9,990 | $9,934 |
| 07/2022 | $10,253 | $10,145 |
| 08/2022 | $9,857 | $9,745 |
| 09/2022 | $9,259 | $9,244 |
| 10/2022 | $9,180 | $9,181 |
| 11/2022 | $9,717 | $9,613 |
| 12/2022 | $9,757 | $9,665 |
| 01/2023 | $10,153 | $9,982 |
| 02/2023 | $9,743 | $9,650 |
| 03/2023 | $10,095 | $9,955 |
| 04/2023 | $10,137 | $9,999 |
| 05/2023 | $9,909 | $9,804 |
| 06/2023 | $9,897 | $9,803 |
| 07/2023 | $9,993 | $9,871 |
| 08/2023 | $9,848 | $9,736 |
| 09/2023 | $9,525 | $9,452 |
| 10/2023 | $9,384 | $9,339 |
| 11/2023 | $9,955 | $9,809 |
| 12/2023 | $10,440 | $10,217 |
| 01/2024 | $10,305 | $10,076 |
| 02/2024 | $10,131 | $9,950 |
| 03/2024 | $10,193 | $10,004 |
| 04/2024 | $9,870 | $9,752 |
| 05/2024 | $10,020 | $9,880 |
| 06/2024 | $10,057 | $9,894 |
| 07/2024 | $10,395 | $10,167 |
| 08/2024 | $10,684 | $10,408 |
| 09/2024 | $10,911 | $10,585 |
| 10/2024 | $10,419 | $10,230 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 11.03% | -1.04% | 0.41% |
| Bloomberg Global Aggregate Bond Index | 9.54% | -1.64% | 0.23% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$19,557,106
- # of Portfolio Holdings345
- Portfolio Turnover Rate267%
- Total Advisory Fees Paid - Net$0
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Foreign Government Bonds | 48.8% |
| Residential Mortgage-Backed Securities - Agency | 22.3% |
| Corporate Bonds | 15.9% |
| Residential Mortgage-Backed Securities - Non-Agency | 8.4% |
| Asset-Backed Securities | 7.3% |
| Commercial Mortgage-Backed Securities - Non-Agency | 5.1% |
| Short-Term Investments | 2.2% |
| U.S. Treasury Securities | 1.7% |
Other Security TypesFootnote Reference* | 1.4% |
| Liabilities in Excess of Other Assets | (13.1%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| U.K. Gilts, 1.63%, due 10/22/28 | 5.5% |
| U.K. Gilts, 3.50%, due 10/22/25 | 4.6% |
| New Zealand Government Bonds, 4.50%, due 04/15/27 | 2.6% |
| New Zealand Government Bonds, 0.50%, due 05/15/26 | 2.3% |
| China Government Bonds, 3.13%, due 11/21/29 | 2.2% |
| French Republic Government Bonds OAT, 1.00%, due 05/25/27 | 2.1% |
| Uniform Mortgage-Backed Security, TBA, 4.50%, due 04/01/54 | 1.8% |
| U.K. Gilts, 4.13%, due 07/22/29 | 1.8% |
| Uniform Mortgage-Backed Security, TBA, 3.00%, due 01/01/52 | 1.6% |
| Uniform Mortgage-Backed Security, TBA, 4.00%, due 04/01/52 | 1.5% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
Annual Shareholder Report — October 31, 2024
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Global Bond Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class N | $74 | 0.70% |
How did the Fund perform last year and what affected its performance?
Notwithstanding the sell-off in October 2024 on stronger-than-expected economic data and increased odds of a Republican sweep in the November U.S. Presidential election, global interest rates moved lower over the period. This decline in yields benefitted duration and curve positioning, particularly in 3Q24, with the biggest contributions coming from the relative overweight to U.S. duration and emphasis on policy-sensitive front-end yields, with smaller contributions from overweight positions in New Zealand and the Eurozone. Meanwhile, the duration underweight in Japan further contributed as yields increased over the past year with the Bank of Japan ending yield curve control and exiting negative interest rate policy in March 2024. Currency positioning was impacted by recent moves as the U.S. dollar, an underweight in the Fund, rallied against global currencies in October. As such, overweight positions in select emerging market currencies like the South Korean won and Brazilian real, and an overweight to Japanese yen resulted in a small drag. Turning to sector positioning, securitized assets contributed, particularly the overweight to residential MBS (mortgage-backed securities) and issue selection within the sector, including favorable agency MBS coupon selection in the Fund and the allocation to non-agency MBS, not held in the index. Elsewhere in securitized, CMBS (commercial MBS) backed by single asset single borrower deals held in the Fund outpaced Index conduit deals, while ABS (asset-backed securities) issues outperformed due to the emphasis on CLOs (collateralized loan obligations). Meanwhile, the underweight to developed market corporate credit was a small drag given continued strong returns across the corporate sector, though the Fund capitalized on the positive tone by continuing to trim risk in favor of more defensive and liquid positioning.
| Class N | Bloomberg Global Aggregate Bond Index |
|---|
| 10/2014 | $10,000 | $10,000 |
| 11/2014 | $9,976 | $9,963 |
| 12/2014 | $9,909 | $9,895 |
| 01/2015 | $9,870 | $9,879 |
| 02/2015 | $9,830 | $9,799 |
| 03/2015 | $9,752 | $9,705 |
| 04/2015 | $9,840 | $9,808 |
| 05/2015 | $9,702 | $9,633 |
| 06/2015 | $9,643 | $9,590 |
| 07/2015 | $9,653 | $9,612 |
| 08/2015 | $9,663 | $9,623 |
| 09/2015 | $9,712 | $9,672 |
| 10/2015 | $9,704 | $9,693 |
| 11/2015 | $9,577 | $9,532 |
| 12/2015 | $9,609 | $9,583 |
| 01/2016 | $9,689 | $9,666 |
| 02/2016 | $9,829 | $9,881 |
| 03/2016 | $10,023 | $10,148 |
| 04/2016 | $10,105 | $10,283 |
| 05/2016 | $10,016 | $10,145 |
| 06/2016 | $10,223 | $10,441 |
| 07/2016 | $10,297 | $10,520 |
| 08/2016 | $10,266 | $10,469 |
| 09/2016 | $10,317 | $10,527 |
| 10/2016 | $10,095 | $10,234 |
| 11/2016 | $9,771 | $9,828 |
| 12/2016 | $9,747 | $9,783 |
| 01/2017 | $9,809 | $9,893 |
| 02/2017 | $9,850 | $9,940 |
| 03/2017 | $9,858 | $9,955 |
| 04/2017 | $9,962 | $10,067 |
| 05/2017 | $10,102 | $10,223 |
| 06/2017 | $10,110 | $10,214 |
| 07/2017 | $10,229 | $10,386 |
| 08/2017 | $10,328 | $10,489 |
| 09/2017 | $10,250 | $10,394 |
| 10/2017 | $10,203 | $10,355 |
| 11/2017 | $10,292 | $10,470 |
| 12/2017 | $10,334 | $10,506 |
| 01/2018 | $10,418 | $10,631 |
| 02/2018 | $10,302 | $10,537 |
| 03/2018 | $10,408 | $10,649 |
| 04/2018 | $10,250 | $10,479 |
| 05/2018 | $10,176 | $10,399 |
| 06/2018 | $10,123 | $10,353 |
| 07/2018 | $10,113 | $10,336 |
| 08/2018 | $10,102 | $10,346 |
| 09/2018 | $10,060 | $10,257 |
| 10/2018 | $9,944 | $10,143 |
| 11/2018 | $9,976 | $10,174 |
| 12/2018 | $10,152 | $10,380 |
| 01/2019 | $10,354 | $10,538 |
| 02/2019 | $10,301 | $10,477 |
| 03/2019 | $10,432 | $10,609 |
| 04/2019 | $10,424 | $10,577 |
| 05/2019 | $10,555 | $10,720 |
| 06/2019 | $10,837 | $10,958 |
| 07/2019 | $10,773 | $10,928 |
| 08/2019 | $10,976 | $11,150 |
| 09/2019 | $10,880 | $11,036 |
| 10/2019 | $10,971 | $11,110 |
| 11/2019 | $10,894 | $11,026 |
| 12/2019 | $10,987 | $11,090 |
| 01/2020 | $11,131 | $11,232 |
| 02/2020 | $11,197 | $11,307 |
| 03/2020 | $10,800 | $11,054 |
| 04/2020 | $11,075 | $11,271 |
| 05/2020 | $11,230 | $11,320 |
| 06/2020 | $11,406 | $11,421 |
| 07/2020 | $11,824 | $11,785 |
| 08/2020 | $11,845 | $11,767 |
| 09/2020 | $11,789 | $11,725 |
| 10/2020 | $11,840 | $11,736 |
| 11/2020 | $12,136 | $11,949 |
| 12/2020 | $12,330 | $12,110 |
| 01/2021 | $12,223 | $12,003 |
| 02/2021 | $12,013 | $11,797 |
| 03/2021 | $11,779 | $11,570 |
| 04/2021 | $11,981 | $11,716 |
| 05/2021 | $12,079 | $11,826 |
| 06/2021 | $11,993 | $11,722 |
| 07/2021 | $12,115 | $11,878 |
| 08/2021 | $12,074 | $11,828 |
| 09/2021 | $11,872 | $11,618 |
| 10/2021 | $11,796 | $11,590 |
| 11/2021 | $11,708 | $11,556 |
| 12/2021 | $11,737 | $11,540 |
| 01/2022 | $11,507 | $11,303 |
| 02/2022 | $11,336 | $11,169 |
| 03/2022 | $11,012 | $10,829 |
| 04/2022 | $10,373 | $10,236 |
| 05/2022 | $10,388 | $10,264 |
| 06/2022 | $9,958 | $9,934 |
| 07/2022 | $10,219 | $10,145 |
| 08/2022 | $9,823 | $9,745 |
| 09/2022 | $9,227 | $9,244 |
| 10/2022 | $9,147 | $9,181 |
| 11/2022 | $9,670 | $9,613 |
| 12/2022 | $9,721 | $9,665 |
| 01/2023 | $10,103 | $9,982 |
| 02/2023 | $9,693 | $9,650 |
| 03/2023 | $10,055 | $9,955 |
| 04/2023 | $10,096 | $9,999 |
| 05/2023 | $9,868 | $9,804 |
| 06/2023 | $9,855 | $9,803 |
| 07/2023 | $9,950 | $9,871 |
| 08/2023 | $9,805 | $9,736 |
| 09/2023 | $9,470 | $9,452 |
| 10/2023 | $9,341 | $9,339 |
| 11/2023 | $9,908 | $9,809 |
| 12/2023 | $10,391 | $10,217 |
| 01/2024 | $10,255 | $10,076 |
| 02/2024 | $10,082 | $9,950 |
| 03/2024 | $10,130 | $10,004 |
| 04/2024 | $9,808 | $9,752 |
| 05/2024 | $9,968 | $9,880 |
| 06/2024 | $10,005 | $9,894 |
| 07/2024 | $10,340 | $10,167 |
| 08/2024 | $10,627 | $10,408 |
| 09/2024 | $10,838 | $10,585 |
| 10/2024 | $10,361 | $10,230 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class N | 10.91% | -1.14% | 0.36% |
| Bloomberg Global Aggregate Bond Index | 9.54% | -1.64% | 0.23% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$19,557,106
- # of Portfolio Holdings345
- Portfolio Turnover Rate267%
- Total Advisory Fees Paid - Net$0
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Foreign Government Bonds | 48.8% |
| Residential Mortgage-Backed Securities - Agency | 22.3% |
| Corporate Bonds | 15.9% |
| Residential Mortgage-Backed Securities - Non-Agency | 8.4% |
| Asset-Backed Securities | 7.3% |
| Commercial Mortgage-Backed Securities - Non-Agency | 5.1% |
| Short-Term Investments | 2.2% |
| U.S. Treasury Securities | 1.7% |
Other Security TypesFootnote Reference* | 1.4% |
| Liabilities in Excess of Other Assets | (13.1%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| U.K. Gilts, 1.63%, due 10/22/28 | 5.5% |
| U.K. Gilts, 3.50%, due 10/22/25 | 4.6% |
| New Zealand Government Bonds, 4.50%, due 04/15/27 | 2.6% |
| New Zealand Government Bonds, 0.50%, due 05/15/26 | 2.3% |
| China Government Bonds, 3.13%, due 11/21/29 | 2.2% |
| French Republic Government Bonds OAT, 1.00%, due 05/25/27 | 2.1% |
| Uniform Mortgage-Backed Security, TBA, 4.50%, due 04/01/54 | 1.8% |
| U.K. Gilts, 4.13%, due 07/22/29 | 1.8% |
| Uniform Mortgage-Backed Security, TBA, 3.00%, due 01/01/52 | 1.6% |
| Uniform Mortgage-Backed Security, TBA, 4.00%, due 04/01/52 | 1.5% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
Annual Shareholder Report — October 31, 2024
TCW Global Real Estate Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Global Real Estate Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class I | $105 | 0.90% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Global Real Estate Fund (the “Fund”) generated gains of 33.41% on its Class I shares. The performance of the classes varies because of differing expenses. The Fund’s broad-based benchmark, the MSCI ACWI, increased by 34.03%, while the comparative benchmark, the S&P Global REIT Index, had a return of 32.15%. Our Fund benefitted from its underweight in Office REITs and its overweight in Homebuilding. The Fund’s overweight in Other Specialized REITs and its overweight in Hotels Resorts & Cruise Lines detracted the most from performance. Positive stock contributors included Taylor Morrison Home and Net Lease Office Properties. Conversely, notable detractors to relative performance included the S&P Global REIT Index’s overweight in Iron Mountain and the portfolio’s overweight in Hilton Grand Vacations. We remain largely constructive on real estate. Following years of dramatic underperformance relative to the broader markets, we now expect the headwinds facing the industry to wane. With the Fed having embarked on an easing cycle, REITs are likely to benefit disproportionately. The problems in commercial real estate have been well publicized and are widely acknowledged and appreciated – leaving less room for negative surprises. The issues were primarily centered in the office and retails sectors, but the importance of these, particularly in the listed REIT space, has faded. Other parts of real estate, like data centers, telecom towers and healthcare have robust fundamentals and strong growth drivers. Lastly, from a relative value standpoint, REITs appear compelling to us, particularly when compared to broader equities. With REITs handily outperforming the market in the calendar third quarter, we think that there is a lot more room for the space to run in upcoming quarters.
| Class I | MSCI ACWI | S&P Global REIT Index |
|---|
| 12/2014 | $10,000 | $10,000 | $10,000 |
| 12/2014 | $9,947 | $9,811 | $10,084 |
| 01/2015 | $10,278 | $9,660 | $10,635 |
| 02/2015 | $10,389 | $10,202 | $10,469 |
| 03/2015 | $10,454 | $10,050 | $10,473 |
| 04/2015 | $10,222 | $10,347 | $10,168 |
| 05/2015 | $10,091 | $10,341 | $10,047 |
| 06/2015 | $9,785 | $10,102 | $9,672 |
| 07/2015 | $10,019 | $10,194 | $10,051 |
| 08/2015 | $9,592 | $9,499 | $9,451 |
| 09/2015 | $9,549 | $9,159 | $9,645 |
| 10/2015 | $9,938 | $9,881 | $10,196 |
| 11/2015 | $9,754 | $9,803 | $10,042 |
| 12/2015 | $9,822 | $9,631 | $10,144 |
| 01/2016 | $9,243 | $9,052 | $9,821 |
| 02/2016 | $9,243 | $8,995 | $9,921 |
| 03/2016 | $10,067 | $9,668 | $10,876 |
| 04/2016 | $10,004 | $9,816 | $10,841 |
| 05/2016 | $10,161 | $9,837 | $10,874 |
| 06/2016 | $10,543 | $9,782 | $11,395 |
| 07/2016 | $10,963 | $10,207 | $11,918 |
| 08/2016 | $10,648 | $10,246 | $11,535 |
| 09/2016 | $10,572 | $10,313 | $11,396 |
| 10/2016 | $9,969 | $10,141 | $10,706 |
| 11/2016 | $9,874 | $10,223 | $10,417 |
| 12/2016 | $10,042 | $10,448 | $10,844 |
| 01/2017 | $10,149 | $10,736 | $10,857 |
| 02/2017 | $10,514 | $11,042 | $11,204 |
| 03/2017 | $10,401 | $11,184 | $11,030 |
| 04/2017 | $10,466 | $11,364 | $11,105 |
| 05/2017 | $10,606 | $11,625 | $11,127 |
| 06/2017 | $10,730 | $11,682 | $11,249 |
| 07/2017 | $10,903 | $12,013 | $11,459 |
| 08/2017 | $10,979 | $12,065 | $11,439 |
| 09/2017 | $10,884 | $12,302 | $11,407 |
| 10/2017 | $10,993 | $12,561 | $11,293 |
| 11/2017 | $11,211 | $12,810 | $11,641 |
| 12/2017 | $11,152 | $13,021 | $11,780 |
| 01/2018 | $11,086 | $13,758 | $11,596 |
| 02/2018 | $10,320 | $13,185 | $10,831 |
| 03/2018 | $10,368 | $12,911 | $11,130 |
| 04/2018 | $10,554 | $13,042 | $11,306 |
| 05/2018 | $10,620 | $13,069 | $11,558 |
| 06/2018 | $10,835 | $13,004 | $11,844 |
| 07/2018 | $10,912 | $13,400 | $11,949 |
| 08/2018 | $10,923 | $13,511 | $12,143 |
| 09/2018 | $10,771 | $13,576 | $11,870 |
| 10/2018 | $10,327 | $12,561 | $11,489 |
| 11/2018 | $10,416 | $12,751 | $11,902 |
| 12/2018 | $9,901 | $11,858 | $11,218 |
| 01/2019 | $10,970 | $12,798 | $12,453 |
| 02/2019 | $11,172 | $13,146 | $12,453 |
| 03/2019 | $11,406 | $13,319 | $12,832 |
| 04/2019 | $11,417 | $13,776 | $12,786 |
| 05/2019 | $11,473 | $12,971 | $12,761 |
| 06/2019 | $11,769 | $13,826 | $13,034 |
| 07/2019 | $11,950 | $13,871 | $13,124 |
| 08/2019 | $12,233 | $13,548 | $13,455 |
| 09/2019 | $12,401 | $13,840 | $13,817 |
| 10/2019 | $12,720 | $14,222 | $14,140 |
| 11/2019 | $12,788 | $14,575 | $13,981 |
| 12/2019 | $12,821 | $15,095 | $13,965 |
| 01/2020 | $13,133 | $14,932 | $14,082 |
| 02/2020 | $12,289 | $13,731 | $12,928 |
| 03/2020 | $10,254 | $11,886 | $9,943 |
| 04/2020 | $11,283 | $13,165 | $10,714 |
| 05/2020 | $11,653 | $13,746 | $10,817 |
| 06/2020 | $12,003 | $14,191 | $11,082 |
| 07/2020 | $12,664 | $14,947 | $11,527 |
| 08/2020 | $13,034 | $15,868 | $11,748 |
| 09/2020 | $12,819 | $15,362 | $11,373 |
| 10/2020 | $12,865 | $14,992 | $11,026 |
| 11/2020 | $14,214 | $16,846 | $12,326 |
| 12/2020 | $14,699 | $17,634 | $12,832 |
| 01/2021 | $14,513 | $17,558 | $12,813 |
| 02/2021 | $15,189 | $17,970 | $13,195 |
| 03/2021 | $16,051 | $18,460 | $13,660 |
| 04/2021 | $16,928 | $19,274 | $14,612 |
| 05/2021 | $17,092 | $19,585 | $14,819 |
| 06/2021 | $17,121 | $19,849 | $15,084 |
| 07/2021 | $17,603 | $19,992 | $15,695 |
| 08/2021 | $18,203 | $20,498 | $15,986 |
| 09/2021 | $17,374 | $19,660 | $15,103 |
| 10/2021 | $18,310 | $20,669 | $16,031 |
| 11/2021 | $17,717 | $20,178 | $15,810 |
| 12/2021 | $18,803 | $20,991 | $17,003 |
| 01/2022 | $17,567 | $19,964 | $15,880 |
| 02/2022 | $16,898 | $19,454 | $15,517 |
| 03/2022 | $17,194 | $19,887 | $16,388 |
| 04/2022 | $16,263 | $18,303 | $15,599 |
| 05/2022 | $15,682 | $18,337 | $14,835 |
| 06/2022 | $14,634 | $16,799 | $13,602 |
| 07/2022 | $15,765 | $17,978 | $14,749 |
| 08/2022 | $14,803 | $17,323 | $13,867 |
| 09/2022 | $13,088 | $15,672 | $12,121 |
| 10/2022 | $13,480 | $16,622 | $12,619 |
| 11/2022 | $14,670 | $17,919 | $13,440 |
| 12/2022 | $13,929 | $17,221 | $12,990 |
| 01/2023 | $15,334 | $18,460 | $14,210 |
| 02/2023 | $14,757 | $17,937 | $13,588 |
| 03/2023 | $14,297 | $18,503 | $13,205 |
| 04/2023 | $14,666 | $18,777 | $13,401 |
| 05/2023 | $13,889 | $18,590 | $12,912 |
| 06/2023 | $14,468 | $19,677 | $13,341 |
| 07/2023 | $14,667 | $20,403 | $13,796 |
| 08/2023 | $14,217 | $19,841 | $13,373 |
| 09/2023 | $13,357 | $19,028 | $12,511 |
| 10/2023 | $12,760 | $18,460 | $11,932 |
| 11/2023 | $14,260 | $20,173 | $13,206 |
| 12/2023 | $15,500 | $21,149 | $14,488 |
| 01/2024 | $15,112 | $21,277 | $13,911 |
| 02/2024 | $15,340 | $22,198 | $13,963 |
| 03/2024 | $15,948 | $22,907 | $14,356 |
| 04/2024 | $15,023 | $22,161 | $13,468 |
| 05/2024 | $15,787 | $23,075 | $14,001 |
| 06/2024 | $15,854 | $23,598 | $14,187 |
| 07/2024 | $16,999 | $23,985 | $15,053 |
| 08/2024 | $17,511 | $24,602 | $15,982 |
| 09/2024 | $17,902 | $25,183 | $16,505 |
| 10/2024 | $17,023 | $24,626 | $15,769 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | Since Inception 12/1/14 |
|---|
| Class I | 33.41% | 6.00% | 5.51% |
| MSCI ACWI | 34.03% | 9.93% | 8.31% |
| S&P Global REIT Index | 32.15% | 2.20% | 4.70% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$41,168,856
- # of Portfolio Holdings37
- Portfolio Turnover Rate71%
- Total Advisory Fees Paid - Net$56,748
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Specialized REITs | 21.7% |
| Industrial REITs | 14.6% |
| Diversified REITs | 11.9% |
| Residential REITs | 11.6% |
| Real Estate Management & Development | 9.3% |
| REIT | 7.8% |
| Health Care REITs | 4.7% |
| Hotels, Restaurants & Leisure | 4.2% |
OtherFootnote Reference* | 14.7% |
| Liabilities in Excess of Other Assets | (0.5%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| Welltower, Inc. | 4.7% |
| Digital Realty Trust, Inc. | 4.7% |
| Prologis, Inc. | 4.5% |
| PotlatchDeltic Corp. | 4.1% |
| American Tower Corp. | 4.0% |
| Americold Realty Trust, Inc. | 3.9% |
| Goodman Group | 3.6% |
| NexPoint Residential Trust, Inc. | 3.4% |
| Cellnex Telecom SA | 3.3% |
| CBRE Group, Inc., Class A | 3.2% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Global Real Estate Fund
Annual Shareholder Report — October 31, 2024
TCW Global Real Estate Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Global Real Estate Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class N | $117 | 1.00% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Global Real Estate Fund (the “Fund”) generated gains of 33.35% on its Class N shares. The performance of the classes varies because of differing expenses. The Fund’s broad-based benchmark, the MSCI ACWI, increased by 34.03%, while the comparative benchmark, the S&P Global REIT Index, had a return of 32.15%. Our Fund benefitted from its underweight in Office REITs and its overweight in Homebuilding. The Fund’s overweight in Other Specialized REITs and its overweight in Hotels Resorts & Cruise Lines detracted the most from performance. Positive stock contributors included Taylor Morrison Home and Net Lease Office Properties. Conversely, notable detractors to relative performance included the S&P Global REIT Index’s overweight in Iron Mountain and the portfolio’s overweight in Hilton Grand Vacations. We remain largely constructive on real estate. Following years of dramatic underperformance relative to the broader markets, we now expect the headwinds facing the industry to wane. With the Fed having embarked on an easing cycle, REITs are likely to benefit disproportionately. The problems in commercial real estate have been well publicized and are widely acknowledged and appreciated – leaving less room for negative surprises. The issues were primarily centered in the office and retails sectors, but the importance of these, particularly in the listed REIT space, has faded. Other parts of real estate, like data centers, telecom towers and healthcare have robust fundamentals and strong growth drivers. Lastly, from a relative value standpoint, REITs appear compelling to us, particularly when compared to broader equities. With REITs handily outperforming the market in the calendar third quarter, we think that there is a lot more room for the space to run in upcoming quarters.
| Class N | MSCI ACWI | S&P Global REIT Index |
|---|
| 12/2014 | $10,000 | $10,000 | $10,000 |
| 12/2014 | $9,947 | $9,811 | $10,084 |
| 01/2015 | $10,278 | $9,660 | $10,635 |
| 02/2015 | $10,389 | $10,202 | $10,469 |
| 03/2015 | $10,454 | $10,050 | $10,473 |
| 04/2015 | $10,222 | $10,347 | $10,168 |
| 05/2015 | $10,091 | $10,341 | $10,047 |
| 06/2015 | $9,785 | $10,102 | $9,672 |
| 07/2015 | $10,019 | $10,194 | $10,051 |
| 08/2015 | $9,592 | $9,499 | $9,451 |
| 09/2015 | $9,549 | $9,159 | $9,645 |
| 10/2015 | $9,928 | $9,881 | $10,196 |
| 11/2015 | $9,754 | $9,803 | $10,042 |
| 12/2015 | $9,822 | $9,631 | $10,144 |
| 01/2016 | $9,243 | $9,052 | $9,821 |
| 02/2016 | $9,243 | $8,995 | $9,921 |
| 03/2016 | $10,067 | $9,668 | $10,876 |
| 04/2016 | $10,005 | $9,816 | $10,841 |
| 05/2016 | $10,161 | $9,837 | $10,874 |
| 06/2016 | $10,543 | $9,782 | $11,395 |
| 07/2016 | $10,963 | $10,207 | $11,918 |
| 08/2016 | $10,648 | $10,246 | $11,535 |
| 09/2016 | $10,572 | $10,313 | $11,396 |
| 10/2016 | $9,969 | $10,141 | $10,706 |
| 11/2016 | $9,874 | $10,223 | $10,417 |
| 12/2016 | $10,042 | $10,448 | $10,844 |
| 01/2017 | $10,150 | $10,736 | $10,857 |
| 02/2017 | $10,525 | $11,042 | $11,204 |
| 03/2017 | $10,401 | $11,184 | $11,030 |
| 04/2017 | $10,466 | $11,364 | $11,105 |
| 05/2017 | $10,606 | $11,625 | $11,127 |
| 06/2017 | $10,730 | $11,682 | $11,249 |
| 07/2017 | $10,904 | $12,013 | $11,459 |
| 08/2017 | $10,979 | $12,065 | $11,439 |
| 09/2017 | $10,885 | $12,302 | $11,407 |
| 10/2017 | $10,993 | $12,561 | $11,293 |
| 11/2017 | $11,211 | $12,810 | $11,641 |
| 12/2017 | $11,152 | $13,021 | $11,780 |
| 01/2018 | $11,087 | $13,758 | $11,596 |
| 02/2018 | $10,320 | $13,185 | $10,831 |
| 03/2018 | $10,368 | $12,911 | $11,130 |
| 04/2018 | $10,555 | $13,042 | $11,306 |
| 05/2018 | $10,609 | $13,069 | $11,558 |
| 06/2018 | $10,830 | $13,004 | $11,844 |
| 07/2018 | $10,908 | $13,400 | $11,949 |
| 08/2018 | $10,908 | $13,511 | $12,143 |
| 09/2018 | $10,762 | $13,576 | $11,870 |
| 10/2018 | $10,319 | $12,561 | $11,489 |
| 11/2018 | $10,407 | $12,751 | $11,902 |
| 12/2018 | $9,888 | $11,858 | $11,218 |
| 01/2019 | $10,956 | $12,798 | $12,453 |
| 02/2019 | $11,158 | $13,146 | $12,453 |
| 03/2019 | $11,377 | $13,319 | $12,832 |
| 04/2019 | $11,400 | $13,776 | $12,786 |
| 05/2019 | $11,456 | $12,971 | $12,761 |
| 06/2019 | $11,746 | $13,826 | $13,034 |
| 07/2019 | $11,927 | $13,871 | $13,124 |
| 08/2019 | $12,199 | $13,548 | $13,455 |
| 09/2019 | $12,372 | $13,840 | $13,817 |
| 10/2019 | $12,690 | $14,222 | $14,140 |
| 11/2019 | $12,747 | $14,575 | $13,981 |
| 12/2019 | $12,775 | $15,095 | $13,965 |
| 01/2020 | $13,086 | $14,932 | $14,082 |
| 02/2020 | $12,244 | $13,731 | $12,928 |
| 03/2020 | $10,215 | $11,886 | $9,943 |
| 04/2020 | $11,253 | $13,165 | $10,714 |
| 05/2020 | $11,610 | $13,746 | $10,817 |
| 06/2020 | $11,967 | $14,191 | $11,082 |
| 07/2020 | $12,613 | $14,947 | $11,527 |
| 08/2020 | $12,983 | $15,868 | $11,748 |
| 09/2020 | $12,775 | $15,362 | $11,373 |
| 10/2020 | $12,810 | $14,992 | $11,026 |
| 11/2020 | $14,153 | $16,846 | $12,326 |
| 12/2020 | $14,632 | $17,634 | $12,832 |
| 01/2021 | $14,446 | $17,558 | $12,813 |
| 02/2021 | $15,108 | $17,970 | $13,195 |
| 03/2021 | $15,975 | $18,460 | $13,660 |
| 04/2021 | $16,848 | $19,274 | $14,612 |
| 05/2021 | $16,999 | $19,585 | $14,819 |
| 06/2021 | $17,024 | $19,849 | $15,084 |
| 07/2021 | $17,504 | $19,992 | $15,695 |
| 08/2021 | $18,101 | $20,498 | $15,986 |
| 09/2021 | $17,271 | $19,660 | $15,103 |
| 10/2021 | $18,203 | $20,669 | $16,031 |
| 11/2021 | $17,613 | $20,178 | $15,810 |
| 12/2021 | $18,687 | $20,991 | $17,003 |
| 01/2022 | $17,457 | $19,964 | $15,880 |
| 02/2022 | $16,791 | $19,454 | $15,517 |
| 03/2022 | $17,081 | $19,887 | $16,388 |
| 04/2022 | $16,168 | $18,303 | $15,599 |
| 05/2022 | $15,589 | $18,337 | $14,835 |
| 06/2022 | $14,544 | $16,799 | $13,602 |
| 07/2022 | $15,668 | $17,978 | $14,749 |
| 08/2022 | $14,699 | $17,323 | $13,867 |
| 09/2022 | $13,002 | $15,672 | $12,121 |
| 10/2022 | $13,392 | $16,622 | $12,619 |
| 11/2022 | $14,575 | $17,919 | $13,440 |
| 12/2022 | $13,836 | $17,221 | $12,990 |
| 01/2023 | $15,219 | $18,460 | $14,210 |
| 02/2023 | $14,658 | $17,937 | $13,588 |
| 03/2023 | $14,184 | $18,503 | $13,205 |
| 04/2023 | $14,551 | $18,777 | $13,401 |
| 05/2023 | $13,792 | $18,590 | $12,912 |
| 06/2023 | $14,351 | $19,677 | $13,341 |
| 07/2023 | $14,561 | $20,403 | $13,796 |
| 08/2023 | $14,101 | $19,841 | $13,373 |
| 09/2023 | $13,257 | $19,028 | $12,511 |
| 10/2023 | $12,650 | $18,460 | $11,932 |
| 11/2023 | $14,141 | $20,173 | $13,206 |
| 12/2023 | $15,382 | $21,149 | $14,488 |
| 01/2024 | $14,997 | $21,277 | $13,911 |
| 02/2024 | $15,209 | $22,198 | $13,963 |
| 03/2024 | $15,810 | $22,907 | $14,356 |
| 04/2024 | $14,904 | $22,161 | $13,468 |
| 05/2024 | $15,663 | $23,075 | $14,001 |
| 06/2024 | $15,712 | $23,598 | $14,187 |
| 07/2024 | $16,862 | $23,985 | $15,053 |
| 08/2024 | $17,357 | $24,602 | $15,982 |
| 09/2024 | $17,754 | $25,183 | $16,505 |
| 10/2024 | $16,869 | $24,626 | $15,769 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | Since Inception 12/1/14 |
|---|
| Class N | 33.35% | 5.86% | 5.41% |
| MSCI ACWI | 34.03% | 9.93% | 8.31% |
| S&P Global REIT Index | 32.15% | 2.20% | 4.70% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$41,168,856
- # of Portfolio Holdings37
- Portfolio Turnover Rate71%
- Total Advisory Fees Paid - Net$56,748
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Specialized REITs | 21.7% |
| Industrial REITs | 14.6% |
| Diversified REITs | 11.9% |
| Residential REITs | 11.6% |
| Real Estate Management & Development | 9.3% |
| REIT | 7.8% |
| Health Care REITs | 4.7% |
| Hotels, Restaurants & Leisure | 4.2% |
OtherFootnote Reference* | 14.7% |
| Liabilities in Excess of Other Assets | (0.5%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| Welltower, Inc. | 4.7% |
| Digital Realty Trust, Inc. | 4.7% |
| Prologis, Inc. | 4.5% |
| PotlatchDeltic Corp. | 4.1% |
| American Tower Corp. | 4.0% |
| Americold Realty Trust, Inc. | 3.9% |
| Goodman Group | 3.6% |
| NexPoint Residential Trust, Inc. | 3.4% |
| Cellnex Telecom SA | 3.3% |
| CBRE Group, Inc., Class A | 3.2% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Global Real Estate Fund
Annual Shareholder Report — October 31, 2024
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW High Yield Bond Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829). This report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class I | $59 | 0.55% |
How did the Fund perform last year and what affected its performance?
Given strong returns across the high yield market, the Fund’s allocation to cash and small position in investment grade credit resulted in a headwind to performance. From an allocation standpoint, while an overweight to consumer non-cyclicals and banks benefitted relative returns as both sectors posted strong returns over the period, issue selection across industrials drove underperformance. In particular, the preference for relatively higher quality issues vis-a-vis the FTSE U.S. High Yield Cash Pay Capped Custom Index detracted as lower quality cohorts led Index returns for the period. Finally, the allocation to bank loans weighed on relative returns as loans trailed high yield corporates for the 1-Year period.
| Class I | Bloomberg U.S. Universal Bond Index | Bloomberg U.S. Corporate High Yield Index 2% Issuer CapFootnote Reference1 | FTSE U.S. High Yield Cash Pay Capped Custom Index |
|---|
| 10/31/2014 | $10,000 | $10,000 | $10,000 | $10,000 |
| 11/30/2014 | $9,961 | $10,054 | $9,928 | $9,924 |
| 12/31/2014 | $9,921 | $10,036 | $9,784 | $9,759 |
| 1/31/2015 | $10,005 | $10,227 | $9,849 | $9,797 |
| 2/28/2015 | $10,149 | $10,167 | $10,086 | $10,050 |
| 3/31/2015 | $10,121 | $10,209 | $10,031 | $9,987 |
| 4/30/2015 | $10,205 | $10,197 | $10,152 | $10,121 |
| 5/31/2015 | $10,225 | $10,180 | $10,183 | $10,160 |
| 6/30/2015 | $10,102 | $10,066 | $10,031 | $10,005 |
| 7/31/2015 | $10,174 | $10,125 | $9,973 | $9,921 |
| 8/31/2015 | $10,082 | $10,095 | $9,799 | $9,723 |
| 9/30/2015 | $9,926 | $10,134 | $9,547 | $9,458 |
| 10/31/2015 | $10,174 | $10,167 | $9,809 | $9,734 |
| 11/30/2015 | $10,111 | $10,130 | $9,592 | $9,497 |
| 12/31/2015 | $9,981 | $10,079 | $9,351 | $9,232 |
| 1/31/2016 | $9,984 | $10,190 | $9,200 | $9,067 |
| 2/29/2016 | $10,033 | $10,263 | $9,253 | $9,119 |
| 3/31/2016 | $10,141 | $10,388 | $9,664 | $9,529 |
| 4/30/2016 | $10,288 | $10,459 | $10,042 | $9,915 |
| 5/31/2016 | $10,324 | $10,467 | $10,104 | $9,986 |
| 6/30/2016 | $10,377 | $10,652 | $10,197 | $10,093 |
| 7/31/2016 | $10,533 | $10,739 | $10,473 | $10,344 |
| 8/31/2016 | $10,655 | $10,751 | $10,692 | $10,566 |
| 9/30/2016 | $10,698 | $10,753 | $10,763 | $10,634 |
| 10/31/2016 | $10,689 | $10,682 | $10,805 | $10,662 |
| 11/30/2016 | $10,660 | $10,442 | $10,754 | $10,629 |
| 12/31/2016 | $10,786 | $10,473 | $10,952 | $10,830 |
| 1/31/2017 | $10,860 | $10,510 | $11,111 | $10,964 |
| 2/28/2017 | $10,969 | $10,591 | $11,273 | $11,111 |
| 3/31/2017 | $11,009 | $10,588 | $11,248 | $11,084 |
| 4/30/2017 | $11,102 | $10,675 | $11,377 | $11,202 |
| 5/31/2017 | $11,195 | $10,758 | $11,476 | $11,298 |
| 6/30/2017 | $11,235 | $10,749 | $11,492 | $11,301 |
| 7/31/2017 | $11,311 | $10,802 | $11,619 | $11,431 |
| 8/31/2017 | $11,334 | $10,895 | $11,614 | $11,418 |
| 9/30/2017 | $11,393 | $10,857 | $11,719 | $11,518 |
| 10/31/2017 | $11,416 | $10,870 | $11,768 | $11,566 |
| 11/30/2017 | $11,440 | $10,854 | $11,738 | $11,544 |
| 12/31/2017 | $11,463 | $10,901 | $11,774 | $11,581 |
| 1/31/2018 | $11,487 | $10,797 | $11,844 | $11,672 |
| 2/28/2018 | $11,419 | $10,694 | $11,744 | $11,561 |
| 3/31/2018 | $11,390 | $10,748 | $11,673 | $11,490 |
| 4/30/2018 | $11,459 | $10,676 | $11,749 | $11,556 |
| 5/31/2018 | $11,474 | $10,735 | $11,746 | $11,567 |
| 6/30/2018 | $11,490 | $10,719 | $11,793 | $11,611 |
| 7/31/2018 | $11,561 | $10,741 | $11,921 | $11,733 |
| 8/31/2018 | $11,633 | $10,794 | $12,009 | $11,813 |
| 9/30/2018 | $11,680 | $10,748 | $12,076 | $11,882 |
| 10/31/2018 | $11,576 | $10,658 | $11,883 | $11,693 |
| 11/30/2018 | $11,586 | $10,706 | $11,781 | $11,589 |
| 12/31/2018 | $11,463 | $10,874 | $11,529 | $11,320 |
| 1/31/2019 | $11,890 | $11,024 | $12,050 | $11,849 |
| 2/28/2019 | $12,014 | $11,036 | $12,250 | $12,036 |
| 3/31/2019 | $12,138 | $11,235 | $12,365 | $12,154 |
| 4/30/2019 | $12,263 | $11,251 | $12,541 | $12,318 |
| 5/31/2019 | $12,234 | $11,423 | $12,392 | $12,148 |
| 6/30/2019 | $12,496 | $11,585 | $12,674 | $12,438 |
| 7/31/2019 | $12,577 | $11,619 | $12,746 | $12,487 |
| 8/31/2019 | $12,679 | $11,882 | $12,797 | $12,523 |
| 9/30/2019 | $12,722 | $11,830 | $12,843 | $12,552 |
| 10/31/2019 | $12,785 | $11,869 | $12,879 | $12,580 |
| 11/30/2019 | $12,788 | $11,866 | $12,921 | $12,644 |
| 12/31/2019 | $12,951 | $11,884 | $13,179 | $12,908 |
| 1/31/2020 | $12,994 | $12,097 | $13,183 | $12,903 |
| 2/29/2020 | $13,018 | $12,278 | $12,997 | $12,679 |
| 3/31/2020 | $12,070 | $12,039 | $11,507 | $11,192 |
| 4/30/2020 | $12,704 | $12,280 | $12,029 | $11,575 |
| 5/31/2020 | $13,073 | $12,394 | $12,554 | $12,142 |
| 6/30/2020 | $13,137 | $12,498 | $12,674 | $12,226 |
| 7/31/2020 | $13,644 | $12,717 | $13,264 | $12,818 |
| 8/31/2020 | $13,725 | $12,644 | $13,392 | $12,949 |
| 9/30/2020 | $13,603 | $12,621 | $13,254 | $12,826 |
| 10/31/2020 | $13,665 | $12,576 | $13,320 | $12,885 |
| 11/30/2020 | $14,075 | $12,740 | $13,847 | $13,374 |
| 12/31/2020 | $14,248 | $12,784 | $14,108 | $13,630 |
| 1/31/2021 | $14,269 | $12,704 | $14,155 | $13,667 |
| 2/28/2021 | $14,290 | $12,540 | $14,207 | $13,702 |
| 3/31/2021 | $14,227 | $12,394 | $14,229 | $13,749 |
| 4/30/2021 | $14,352 | $12,498 | $14,383 | $13,894 |
| 5/31/2021 | $14,394 | $12,546 | $14,425 | $13,929 |
| 6/30/2021 | $14,541 | $12,637 | $14,618 | $14,100 |
| 7/31/2021 | $14,604 | $12,764 | $14,673 | $14,144 |
| 8/31/2021 | $14,688 | $12,756 | $14,749 | $14,222 |
| 9/30/2021 | $14,709 | $12,647 | $14,749 | $14,233 |
| 10/31/2021 | $14,646 | $12,636 | $14,722 | $14,207 |
| 11/30/2021 | $14,518 | $12,652 | $14,577 | $14,054 |
| 12/31/2021 | $14,741 | $12,643 | $14,850 | $14,332 |
| 1/31/2022 | $14,397 | $12,366 | $14,445 | $13,960 |
| 2/28/2022 | $14,228 | $12,197 | $14,297 | $13,824 |
| 3/31/2022 | $14,145 | $11,870 | $14,134 | $13,720 |
| 4/30/2022 | $13,665 | $11,427 | $13,632 | $13,252 |
| 5/31/2022 | $13,737 | $11,490 | $13,664 | $13,261 |
| 6/30/2022 | $12,993 | $11,261 | $12,744 | $12,366 |
| 7/31/2022 | $13,696 | $11,544 | $13,495 | $13,116 |
| 8/31/2022 | $13,466 | $11,244 | $13,185 | $12,821 |
| 9/30/2022 | $12,875 | $10,759 | $12,662 | $12,291 |
| 10/31/2022 | $13,186 | $10,641 | $12,991 | $12,679 |
| 11/30/2022 | $13,476 | $11,038 | $13,272 | $12,878 |
| 12/31/2022 | $13,451 | $11,001 | $13,190 | $12,798 |
| 1/31/2023 | $13,887 | $11,342 | $13,692 | $13,289 |
| 2/28/2023 | $13,633 | $11,063 | $13,517 | $13,123 |
| 3/31/2023 | $13,819 | $11,323 | $13,660 | $13,259 |
| 4/30/2023 | $13,912 | $11,392 | $13,798 | $13,409 |
| 5/31/2023 | $13,772 | $11,274 | $13,671 | $13,290 |
| 6/30/2023 | $13,913 | $11,256 | $13,900 | $13,505 |
| 7/31/2023 | $14,079 | $11,267 | $14,092 | $13,702 |
| 8/31/2023 | $14,127 | $11,200 | $14,133 | $13,741 |
| 9/30/2023 | $13,983 | $10,932 | $13,964 | $13,596 |
| 10/31/2023 | $13,839 | $10,768 | $13,800 | $13,404 |
| 11/30/2023 | $14,395 | $11,253 | $14,425 | $14,026 |
| 12/31/2023 | $14,881 | $11,680 | $14,963 | $14,535 |
| 1/31/2024 | $14,930 | $11,652 | $14,962 | $14,549 |
| 2/29/2024 | $14,955 | $11,512 | $15,006 | $14,592 |
| 3/31/2024 | $15,078 | $11,625 | $15,184 | $14,764 |
| 4/30/2024 | $14,880 | $11,353 | $15,041 | $14,630 |
| 5/31/2024 | $15,054 | $11,542 | $15,206 | $14,788 |
| 6/30/2024 | $15,180 | $11,647 | $15,350 | $14,930 |
| 7/31/2024 | $15,412 | $11,911 | $15,648 | $15,224 |
| 8/31/2024 | $15,646 | $12,087 | $15,903 | $15,472 |
| 9/30/2024 | $15,856 | $12,253 | $16,161 | $15,725 |
| 10/31/2024 | $15,760 | $11,974 | $16,073 | $15,650 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
| Footnote | Description |
Footnote1 | Benchmark changed to the Bloomberg U.S. Corporate High Yield Index 2% Issuer Cap Index effective 11/18/24. Prior to 11/18/24, the benchmark was the FTSE U.S. High Yield Cash Pay Capped Custom Index, also shown here. |
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 13.89% | 4.27% | 4.65% |
| Bloomberg U.S. Universal Bond Index | 11.20% | 0.18% | 1.82% |
| Bloomberg U.S. Corporate High Yield Index 2% Issuer Cap | 16.47% | 4.53% | 4.86% |
| FTSE U.S. High Yield Cash Pay Capped Custom Index | 16.73% | 4.46% | 4.58% |
- Total Net Assets$41,534,069
- # of Portfolio Holdings242
- Portfolio Turnover Rate65%
- Total Advisory Fees Paid - Net$0
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Corporate Bonds | 76.4% |
| Bank Loans | 16.5% |
| Short-Term Investments | 6.2% |
| Convertible Corporate Bonds | 0.2% |
| Other Assets in Excess of Liabilities | 0.7% |
Top Ten Holdings (as a % of Net Assets)
| Tenet Healthcare Corp., 5.13%, due 11/01/27 | 2.2% |
| Centene Corp., 4.25%, due 12/15/27 | 1.9% |
| Ford Motor Credit Co. LLC, 4.06%, due 11/01/24 | 1.8% |
| CCO Holdings LLC/CCO Holdings Capital Corp., 5.50%, due 05/01/26 | 1.7% |
| WarnerMedia Holdings, Inc., 5.14%, due 03/15/52 | 1.5% |
| CSC Holdings LLC, 6.50%, due 02/01/29 | 1.5% |
| Pilgrim's Pride Corp., 3.50%, due 03/01/32 | 1.4% |
| VICI Properties LP, 4.95%, due 02/15/30 | 1.4% |
| TransDigm, Inc., 6.38%, due 03/01/29 | 1.3% |
| Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.25%, due 05/15/27 | 1.3% |
On November 18, 2024, the TCW High Yield Bond Fund was reorganized into the TCW High Yield Bond ETF, a new series of the TCW ETF Trust, as previously announced.
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
Annual Shareholder Report — October 31, 2024
TCW Relative Value Large Cap Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Relative Value Large Cap Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class I | $83 | 0.70% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Relative Value Large Cap Fund (the “Fund”) gained 36.37% on its Class I shares. The performance of the Fund’s classes varies from differing expenses. The Fund’s broad-based benchmark, the S&P 500, returned 38.02% while the comparative benchmark, Russell 1000 Value, rose 30.98%. Stocks demonstrated a strong showing over the period, led in large part to the “Big 6” (Nvidia, Apple, Microsoft, Meta Platforms, Amazon, and Google). AI semiconductor maker Nvidia was by far the best performer, up 225%. The Fund’s stock selection was a positive adding nearly 220 basis points (bps) relative to the benchmark. The best contributions came from Financials, Consumer Discretionary, and IT led by Apollo Global Management, Dick’s Sporting Goods, and Broadcom. Other notable contributors included General Electric/GE Aerospace, Flex, and Lennar. The largest relative detractions occurred in Communication Services and Health Care. Comcast and the recently initiated Disney were largely responsible for the drag in Communication Services while McKesson, Centene, and Gilead weighed down in Health Care. Both Centene and Gilead were eliminated. Sector allocation detracted over 400 bps primarily due to the low 0.5x weighting in expensive IT, the best performing sector. Portfolio underperformance came from stocks not owned due to valuations not meeting any of the strategy’s five conservative valuation factors, an integral part of the investment philosophy and process. As such, the portfolio was negatively impacted by not owning the Big 6, especially Nvidia. Prices follow earnings and the gap between Big Tech earnings and the rest of the market is expected to continue to narrow into 2025. Slower Big Tech growth, but no hard landing, should be supportive for other stocks and sectors.
| Class I | S&P 500 Index | Russell 1000® Value Index |
|---|
| 10/2014 | $10,000 | $10,000 | $10,000 |
| 11/2014 | $10,308 | $10,269 | $10,205 |
| 12/2014 | $10,320 | $10,243 | $10,267 |
| 01/2015 | $9,827 | $9,936 | $9,857 |
| 02/2015 | $10,517 | $10,507 | $10,334 |
| 03/2015 | $10,338 | $10,340 | $10,193 |
| 04/2015 | $10,476 | $10,440 | $10,289 |
| 05/2015 | $10,613 | $10,574 | $10,412 |
| 06/2015 | $10,402 | $10,369 | $10,204 |
| 07/2015 | $10,366 | $10,586 | $10,249 |
| 08/2015 | $9,795 | $9,948 | $9,639 |
| 09/2015 | $9,415 | $9,702 | $9,348 |
| 10/2015 | $10,050 | $10,520 | $10,053 |
| 11/2015 | $10,005 | $10,551 | $10,091 |
| 12/2015 | $9,681 | $10,385 | $9,874 |
| 01/2016 | $9,030 | $9,869 | $9,364 |
| 02/2016 | $9,194 | $9,856 | $9,362 |
| 03/2016 | $9,918 | $10,525 | $10,036 |
| 04/2016 | $9,860 | $10,566 | $10,247 |
| 05/2016 | $9,976 | $10,755 | $10,406 |
| 06/2016 | $9,956 | $10,783 | $10,496 |
| 07/2016 | $10,395 | $11,181 | $10,801 |
| 08/2016 | $10,530 | $11,196 | $10,884 |
| 09/2016 | $10,559 | $11,199 | $10,861 |
| 10/2016 | $10,313 | $10,994 | $10,693 |
| 11/2016 | $11,148 | $11,401 | $11,304 |
| 12/2016 | $11,329 | $11,627 | $11,587 |
| 01/2017 | $11,520 | $11,847 | $11,669 |
| 02/2017 | $11,731 | $12,318 | $12,089 |
| 03/2017 | $11,778 | $12,332 | $11,965 |
| 04/2017 | $11,767 | $12,459 | $11,943 |
| 05/2017 | $11,757 | $12,634 | $11,931 |
| 06/2017 | $12,020 | $12,713 | $12,126 |
| 07/2017 | $12,185 | $12,974 | $12,287 |
| 08/2017 | $12,118 | $13,014 | $12,144 |
| 09/2017 | $12,552 | $13,283 | $12,504 |
| 10/2017 | $12,536 | $13,593 | $12,595 |
| 11/2017 | $12,851 | $14,009 | $12,980 |
| 12/2017 | $13,059 | $14,165 | $13,170 |
| 01/2018 | $13,726 | $14,976 | $13,679 |
| 02/2018 | $13,011 | $14,424 | $13,026 |
| 03/2018 | $12,783 | $14,058 | $12,797 |
| 04/2018 | $12,717 | $14,112 | $12,839 |
| 05/2018 | $12,741 | $14,451 | $12,915 |
| 06/2018 | $12,747 | $14,540 | $12,947 |
| 07/2018 | $13,269 | $15,081 | $13,460 |
| 08/2018 | $13,377 | $15,573 | $13,659 |
| 09/2018 | $13,185 | $15,662 | $13,686 |
| 10/2018 | $11,895 | $14,591 | $12,977 |
| 11/2018 | $12,195 | $14,888 | $13,364 |
| 12/2018 | $10,846 | $13,544 | $12,081 |
| 01/2019 | $12,009 | $14,629 | $13,021 |
| 02/2019 | $12,449 | $15,099 | $13,437 |
| 03/2019 | $12,401 | $15,393 | $13,523 |
| 04/2019 | $12,752 | $16,016 | $14,003 |
| 05/2019 | $11,761 | $14,998 | $13,102 |
| 06/2019 | $12,911 | $16,055 | $14,043 |
| 07/2019 | $12,959 | $16,286 | $14,159 |
| 08/2019 | $12,305 | $16,028 | $13,743 |
| 09/2019 | $12,780 | $16,328 | $14,233 |
| 10/2019 | $12,862 | $16,681 | $14,432 |
| 11/2019 | $13,344 | $17,287 | $14,878 |
| 12/2019 | $13,691 | $17,809 | $15,288 |
| 01/2020 | $13,228 | $17,802 | $14,959 |
| 02/2020 | $11,772 | $16,336 | $13,510 |
| 03/2020 | $9,455 | $14,319 | $11,201 |
| 04/2020 | $10,580 | $16,154 | $12,460 |
| 05/2020 | $11,110 | $16,923 | $12,887 |
| 06/2020 | $11,275 | $17,260 | $12,802 |
| 07/2020 | $11,750 | $18,233 | $13,308 |
| 08/2020 | $12,257 | $19,544 | $13,858 |
| 09/2020 | $12,047 | $18,801 | $13,518 |
| 10/2020 | $11,959 | $18,301 | $13,340 |
| 11/2020 | $13,879 | $20,305 | $15,135 |
| 12/2020 | $14,561 | $21,085 | $15,715 |
| 01/2021 | $14,801 | $20,872 | $15,571 |
| 02/2021 | $16,145 | $21,448 | $16,512 |
| 03/2021 | $16,768 | $22,387 | $17,484 |
| 04/2021 | $17,284 | $23,582 | $18,183 |
| 05/2021 | $17,728 | $23,747 | $18,607 |
| 06/2021 | $17,452 | $24,301 | $18,394 |
| 07/2021 | $17,500 | $24,878 | $18,541 |
| 08/2021 | $17,932 | $25,635 | $18,909 |
| 09/2021 | $17,236 | $24,443 | $18,251 |
| 10/2021 | $18,040 | $26,155 | $19,178 |
| 11/2021 | $17,668 | $25,974 | $18,502 |
| 12/2021 | $18,844 | $27,138 | $19,669 |
| 01/2022 | $18,337 | $25,734 | $19,211 |
| 02/2022 | $18,324 | $24,963 | $18,988 |
| 03/2022 | $18,701 | $25,890 | $19,524 |
| 04/2022 | $17,114 | $23,632 | $18,423 |
| 05/2022 | $17,414 | $23,676 | $18,781 |
| 06/2022 | $15,684 | $21,721 | $17,140 |
| 07/2022 | $16,828 | $23,724 | $18,276 |
| 08/2022 | $16,607 | $22,757 | $17,732 |
| 09/2022 | $15,112 | $20,661 | $16,177 |
| 10/2022 | $17,036 | $22,334 | $17,836 |
| 11/2022 | $18,298 | $23,582 | $18,950 |
| 12/2022 | $17,582 | $22,223 | $18,186 |
| 01/2023 | $18,614 | $23,619 | $19,129 |
| 02/2023 | $18,112 | $23,043 | $18,454 |
| 03/2023 | $18,084 | $23,889 | $18,369 |
| 04/2023 | $18,057 | $24,262 | $18,646 |
| 05/2023 | $17,513 | $24,367 | $17,927 |
| 06/2023 | $18,907 | $25,977 | $19,118 |
| 07/2023 | $19,660 | $26,812 | $19,790 |
| 08/2023 | $19,102 | $26,385 | $19,256 |
| 09/2023 | $18,391 | $25,127 | $18,513 |
| 10/2023 | $17,652 | $24,599 | $17,860 |
| 11/2023 | $19,046 | $26,845 | $19,207 |
| 12/2023 | $20,435 | $28,065 | $20,271 |
| 01/2024 | $20,610 | $28,536 | $20,292 |
| 02/2024 | $21,633 | $30,060 | $21,041 |
| 03/2024 | $22,830 | $31,027 | $22,092 |
| 04/2024 | $21,691 | $29,760 | $21,149 |
| 05/2024 | $22,553 | $31,236 | $21,819 |
| 06/2024 | $22,465 | $32,356 | $21,614 |
| 07/2024 | $23,444 | $32,750 | $22,719 |
| 08/2024 | $23,853 | $33,545 | $23,328 |
| 09/2024 | $24,349 | $34,261 | $23,652 |
| 10/2024 | $24,072 | $33,950 | $23,392 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 36.37% | 13.35% | 9.18% |
| S&P 500 Index | 38.02% | 15.26% | 13.00% |
Russell 1000® Value Index | 30.98% | 10.14% | 8.87% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$458,185,639
- # of Portfolio Holdings53
- Portfolio Turnover Rate39%
- Total Advisory Fees Paid - Net$1,221,848
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Financials | 24.8% |
| Information Technology | 14.9% |
| Health Care | 13.4% |
| Industrials | 12.8% |
| Consumer Discretionary | 8.8% |
| Communication Services | 5.2% |
| Energy | 4.5% |
| Consumer Staples | 3.9% |
OtherFootnote Reference* | 11.5% |
| Other Assets in Excess of Liabilities | 0.2% |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| International Business Machines Corp. | 4.4% |
| JPMorgan Chase & Co. | 3.9% |
| Broadcom, Inc. | 3.5% |
| Lennar Corp., Class A | 3.5% |
| General Electric Co. | 3.4% |
| Intercontinental Exchange, Inc. | 3.2% |
| McKesson Corp. | 3.0% |
| Bank of New York Mellon Corp. | 2.9% |
| Morgan Stanley | 2.7% |
| AbbVie, Inc. | 2.6% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Relative Value Large Cap Fund
Annual Shareholder Report — October 31, 2024
TCW Relative Value Large Cap Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Relative Value Large Cap Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class N | $100 | 0.85% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Relative Value Large Cap Fund (the “Fund”) gained 36.17% on its Class N shares. The performance of the Fund’s classes varies from differing expenses. The Fund’s broad-based benchmark, the S&P 500, returned 38.02% while the comparative benchmark, Russell 1000 Value, rose 30.98%. Stocks demonstrated a strong showing over the period, led in large part to the “Big 6” (Nvidia, Apple, Microsoft, Meta Platforms, Amazon, and Google). AI semiconductor maker Nvidia was by far the best performer, up 225%. The Fund’s stock selection was a positive adding nearly 220 basis points (bps) relative to the benchmark. The best contributions came from Financials, Consumer Discretionary, and IT led by Apollo Global Management, Dick’s Sporting Goods, and Broadcom. Other notable contributors included General Electric/GE Aerospace, Flex, and Lennar. The largest relative detractions occurred in Communication Services and Health Care. Comcast and the recently initiated Disney were largely responsible for the drag in Communication Services while McKesson, Centene, and Gilead weighed down in Health Care. Both Centene and Gilead were eliminated. Sector allocation detracted over 400 bps primarily due to the low 0.5x weighting in expensive IT, the best performing sector. Portfolio underperformance came from stocks not owned due to valuations not meeting any of the strategy’s five conservative valuation factors, an integral part of the investment philosophy and process. As such, the portfolio was negatively impacted by not owning the Big 6, especially Nvidia. Prices follow earnings and the gap between Big Tech earnings and the rest of the market is expected to continue to narrow into 2025. Slower Big Tech growth, but no hard landing, should be supportive for other stocks and sectors.
| Class N | S&P 500 Index | Russell 1000® Value Index |
|---|
| 10/2014 | $10,000 | $10,000 | $10,000 |
| 11/2014 | $10,304 | $10,269 | $10,205 |
| 12/2014 | $10,312 | $10,243 | $10,267 |
| 01/2015 | $9,818 | $9,936 | $9,857 |
| 02/2015 | $10,504 | $10,507 | $10,334 |
| 03/2015 | $10,321 | $10,340 | $10,193 |
| 04/2015 | $10,459 | $10,440 | $10,289 |
| 05/2015 | $10,596 | $10,574 | $10,412 |
| 06/2015 | $10,381 | $10,369 | $10,204 |
| 07/2015 | $10,340 | $10,586 | $10,249 |
| 08/2015 | $9,768 | $9,948 | $9,639 |
| 09/2015 | $9,388 | $9,702 | $9,348 |
| 10/2015 | $10,020 | $10,520 | $10,053 |
| 11/2015 | $9,974 | $10,551 | $10,091 |
| 12/2015 | $9,650 | $10,385 | $9,874 |
| 01/2016 | $9,000 | $9,869 | $9,364 |
| 02/2016 | $9,159 | $9,856 | $9,362 |
| 03/2016 | $9,881 | $10,525 | $10,036 |
| 04/2016 | $9,819 | $10,566 | $10,247 |
| 05/2016 | $9,934 | $10,755 | $10,406 |
| 06/2016 | $9,910 | $10,783 | $10,496 |
| 07/2016 | $10,344 | $11,181 | $10,801 |
| 08/2016 | $10,478 | $11,196 | $10,884 |
| 09/2016 | $10,507 | $11,199 | $10,861 |
| 10/2016 | $10,262 | $10,994 | $10,693 |
| 11/2016 | $11,090 | $11,401 | $11,304 |
| 12/2016 | $11,267 | $11,627 | $11,587 |
| 01/2017 | $11,457 | $11,847 | $11,669 |
| 02/2017 | $11,663 | $12,318 | $12,089 |
| 03/2017 | $11,709 | $12,332 | $11,965 |
| 04/2017 | $11,694 | $12,459 | $11,943 |
| 05/2017 | $11,683 | $12,634 | $11,931 |
| 06/2017 | $11,946 | $12,713 | $12,126 |
| 07/2017 | $12,105 | $12,974 | $12,287 |
| 08/2017 | $12,038 | $13,014 | $12,144 |
| 09/2017 | $12,460 | $13,283 | $12,504 |
| 10/2017 | $12,444 | $13,593 | $12,595 |
| 11/2017 | $12,753 | $14,009 | $12,980 |
| 12/2017 | $12,955 | $14,165 | $13,170 |
| 01/2018 | $13,617 | $14,976 | $13,679 |
| 02/2018 | $12,901 | $14,424 | $13,026 |
| 03/2018 | $12,680 | $14,058 | $12,797 |
| 04/2018 | $12,608 | $14,112 | $12,839 |
| 05/2018 | $12,632 | $14,451 | $12,915 |
| 06/2018 | $12,632 | $14,540 | $12,947 |
| 07/2018 | $13,145 | $15,081 | $13,460 |
| 08/2018 | $13,253 | $15,573 | $13,659 |
| 09/2018 | $13,062 | $15,662 | $13,686 |
| 10/2018 | $11,779 | $14,591 | $12,977 |
| 11/2018 | $12,077 | $14,888 | $13,364 |
| 12/2018 | $10,739 | $13,544 | $12,081 |
| 01/2019 | $11,893 | $14,629 | $13,021 |
| 02/2019 | $12,323 | $15,099 | $13,437 |
| 03/2019 | $12,275 | $15,393 | $13,523 |
| 04/2019 | $12,616 | $16,016 | $14,003 |
| 05/2019 | $11,640 | $14,998 | $13,102 |
| 06/2019 | $12,766 | $16,055 | $14,043 |
| 07/2019 | $12,814 | $16,286 | $14,159 |
| 08/2019 | $12,166 | $16,028 | $13,743 |
| 09/2019 | $12,637 | $16,328 | $14,233 |
| 10/2019 | $12,712 | $16,681 | $14,432 |
| 11/2019 | $13,183 | $17,287 | $14,878 |
| 12/2019 | $13,517 | $17,809 | $15,288 |
| 01/2020 | $13,058 | $17,802 | $14,959 |
| 02/2020 | $11,614 | $16,336 | $13,510 |
| 03/2020 | $9,340 | $14,319 | $11,201 |
| 04/2020 | $10,455 | $16,154 | $12,460 |
| 05/2020 | $10,969 | $16,923 | $12,887 |
| 06/2020 | $11,133 | $17,260 | $12,802 |
| 07/2020 | $11,603 | $18,233 | $13,308 |
| 08/2020 | $12,107 | $19,544 | $13,858 |
| 09/2020 | $11,888 | $18,801 | $13,518 |
| 10/2020 | $11,800 | $18,301 | $13,340 |
| 11/2020 | $13,703 | $20,305 | $15,135 |
| 12/2020 | $14,373 | $21,085 | $15,715 |
| 01/2021 | $14,598 | $20,872 | $15,571 |
| 02/2021 | $15,927 | $21,448 | $16,512 |
| 03/2021 | $16,533 | $22,387 | $17,484 |
| 04/2021 | $17,043 | $23,582 | $18,183 |
| 05/2021 | $17,470 | $23,747 | $18,607 |
| 06/2021 | $17,209 | $24,301 | $18,394 |
| 07/2021 | $17,245 | $24,878 | $18,541 |
| 08/2021 | $17,660 | $25,635 | $18,909 |
| 09/2021 | $16,984 | $24,443 | $18,251 |
| 10/2021 | $17,767 | $26,155 | $19,178 |
| 11/2021 | $17,411 | $25,974 | $18,502 |
| 12/2021 | $18,561 | $27,138 | $19,669 |
| 01/2022 | $18,060 | $25,734 | $19,211 |
| 02/2022 | $18,047 | $24,963 | $18,988 |
| 03/2022 | $18,420 | $25,890 | $19,524 |
| 04/2022 | $16,840 | $23,632 | $18,423 |
| 05/2022 | $17,135 | $23,676 | $18,781 |
| 06/2022 | $15,427 | $21,721 | $17,140 |
| 07/2022 | $16,557 | $23,724 | $18,276 |
| 08/2022 | $16,339 | $22,757 | $17,732 |
| 09/2022 | $14,862 | $20,661 | $16,177 |
| 10/2022 | $16,750 | $22,334 | $17,836 |
| 11/2022 | $17,996 | $23,582 | $18,950 |
| 12/2022 | $17,279 | $22,223 | $18,186 |
| 01/2023 | $18,297 | $23,619 | $19,129 |
| 02/2023 | $17,802 | $23,043 | $18,454 |
| 03/2023 | $17,774 | $23,889 | $18,369 |
| 04/2023 | $17,733 | $24,262 | $18,646 |
| 05/2023 | $17,197 | $24,367 | $17,927 |
| 06/2023 | $18,571 | $25,977 | $19,118 |
| 07/2023 | $19,300 | $26,812 | $19,790 |
| 08/2023 | $18,750 | $26,385 | $19,256 |
| 09/2023 | $18,049 | $25,127 | $18,513 |
| 10/2023 | $17,321 | $24,599 | $17,860 |
| 11/2023 | $18,681 | $26,845 | $19,207 |
| 12/2023 | $20,050 | $28,065 | $20,271 |
| 01/2024 | $20,223 | $28,536 | $20,292 |
| 02/2024 | $21,214 | $30,060 | $21,041 |
| 03/2024 | $22,393 | $31,027 | $22,092 |
| 04/2024 | $21,272 | $29,760 | $21,149 |
| 05/2024 | $22,106 | $31,236 | $21,819 |
| 06/2024 | $22,019 | $32,356 | $21,614 |
| 07/2024 | $22,968 | $32,750 | $22,719 |
| 08/2024 | $23,370 | $33,545 | $23,328 |
| 09/2024 | $23,859 | $34,261 | $23,652 |
| 10/2024 | $23,586 | $33,950 | $23,392 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class N | 36.17% | 13.16% | 8.96% |
| S&P 500 Index | 38.02% | 15.26% | 13.00% |
Russell 1000® Value Index | 30.98% | 10.14% | 8.87% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$458,185,639
- # of Portfolio Holdings53
- Portfolio Turnover Rate39%
- Total Advisory Fees Paid - Net$1,221,848
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Financials | 24.8% |
| Information Technology | 14.9% |
| Health Care | 13.4% |
| Industrials | 12.8% |
| Consumer Discretionary | 8.8% |
| Communication Services | 5.2% |
| Energy | 4.5% |
| Consumer Staples | 3.9% |
OtherFootnote Reference* | 11.5% |
| Other Assets in Excess of Liabilities | 0.2% |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| International Business Machines Corp. | 4.4% |
| JPMorgan Chase & Co. | 3.9% |
| Broadcom, Inc. | 3.5% |
| Lennar Corp., Class A | 3.5% |
| General Electric Co. | 3.4% |
| Intercontinental Exchange, Inc. | 3.2% |
| McKesson Corp. | 3.0% |
| Bank of New York Mellon Corp. | 2.9% |
| Morgan Stanley | 2.7% |
| AbbVie, Inc. | 2.6% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Relative Value Large Cap Fund
Annual Shareholder Report — October 31, 2024
TCW Relative Value Mid Cap Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Relative Value Mid Cap Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class I | $99 | 0.85% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Relative Value Mid Cap Fund (the “Fund”) gained 33.77% on its Class I shares. The performance of the Fund’s classes varies with expenses. The Fund’s broad-based benchmark S&P 500 returned 38.02% while the comparative benchmark Russell Midcap Value was up 34.03%. Stocks demonstrated a strong showing over the period led in large part by the “Big 6” (Nvidia, Apple, Microsoft, Meta Platforms, Amazon, and Google). AI semiconductor maker Nvidia was by far the best performer, up 225%. Stock selection detracted slightly by -24 basis points (bps) relative to the broad benchmark. The best contributions came from Consumer Discretionary, Real Estate, and Financials led by Toll Brothers, Jones Lang LaSalle, and Apollo Global. Other notable contributors included Sprouts Farmers Market, Flex, and United Airlines. The portfolio’s Health Care holdings were the biggest drag due largely to Acadia Healthcare and Centene. Acadia was sold while Centene was reduced. The portfolio also underperformed from stock selection in Energy, Comm Svce, and Industrials, with NOV, Interpublic Group, and Textron being the biggest detractors, respectively. Sector allocation detracted nearly 375 bps primarily due to the low weighting in expensive IT, the best performing sector. Portfolio underperformance came from stocks not owned due to valuations not meeting any of the strategy’s five conservative valuation factors, an integral part of the investment philosophy and process, as well as mega cap names outside the portfolio’s mid cap scope. Therefore, the portfolio was negatively impacted by not owning the Big 6, especially Nvidia. Prices follow earnings and the gap between Big Tech earnings and mid cap is expected to continue to narrow into 2025. Slower Big Tech growth, but no hard landing, should be supportive for mid cap stocks.
| Class I | S&P 500 Index | Russell Midcap® Value Index |
|---|
| 10/2014 | $10,000 | $10,000 | $- |
| 11/2014 | $10,158 | $10,269 | $10,178 |
| 12/2014 | $10,180 | $10,243 | $10,254 |
| 01/2015 | $9,789 | $9,936 | $10,108 |
| 02/2015 | $10,516 | $10,507 | $10,522 |
| 03/2015 | $10,465 | $10,340 | $10,503 |
| 04/2015 | $10,512 | $10,440 | $10,383 |
| 05/2015 | $10,682 | $10,574 | $10,567 |
| 06/2015 | $10,435 | $10,369 | $10,296 |
| 07/2015 | $10,099 | $10,586 | $10,282 |
| 08/2015 | $9,623 | $9,948 | $9,796 |
| 09/2015 | $9,078 | $9,702 | $9,469 |
| 10/2015 | $9,542 | $10,520 | $10,047 |
| 11/2015 | $9,512 | $10,551 | $10,076 |
| 12/2015 | $8,966 | $10,385 | $9,764 |
| 01/2016 | $8,171 | $9,869 | $9,225 |
| 02/2016 | $8,374 | $9,856 | $9,289 |
| 03/2016 | $9,232 | $10,525 | $10,147 |
| 04/2016 | $9,222 | $10,566 | $10,365 |
| 05/2016 | $9,336 | $10,755 | $10,534 |
| 06/2016 | $9,242 | $10,783 | $10,630 |
| 07/2016 | $9,819 | $11,181 | $11,081 |
| 08/2016 | $9,992 | $11,196 | $11,057 |
| 09/2016 | $10,175 | $11,199 | $11,103 |
| 10/2016 | $9,878 | $10,994 | $10,834 |
| 11/2016 | $11,171 | $11,401 | $11,512 |
| 12/2016 | $11,283 | $11,627 | $11,717 |
| 01/2017 | $11,581 | $11,847 | $11,914 |
| 02/2017 | $11,695 | $12,318 | $12,247 |
| 03/2017 | $11,685 | $12,332 | $12,157 |
| 04/2017 | $11,705 | $12,459 | $12,180 |
| 05/2017 | $11,596 | $12,634 | $12,143 |
| 06/2017 | $11,953 | $12,713 | $12,323 |
| 07/2017 | $12,127 | $12,974 | $12,487 |
| 08/2017 | $12,008 | $13,014 | $12,253 |
| 09/2017 | $12,727 | $13,283 | $12,587 |
| 10/2017 | $12,881 | $13,593 | $12,689 |
| 11/2017 | $13,338 | $14,009 | $13,118 |
| 12/2017 | $13,506 | $14,165 | $13,280 |
| 01/2018 | $14,188 | $14,976 | $13,585 |
| 02/2018 | $13,399 | $14,424 | $12,916 |
| 03/2018 | $13,410 | $14,058 | $12,948 |
| 04/2018 | $13,447 | $14,112 | $13,012 |
| 05/2018 | $13,791 | $14,451 | $13,153 |
| 06/2018 | $13,678 | $14,540 | $13,259 |
| 07/2018 | $13,979 | $15,081 | $13,620 |
| 08/2018 | $14,022 | $15,573 | $13,805 |
| 09/2018 | $13,641 | $15,662 | $13,696 |
| 10/2018 | $12,046 | $14,591 | $12,710 |
| 11/2018 | $12,202 | $14,888 | $13,014 |
| 12/2018 | $10,511 | $13,544 | $11,648 |
| 01/2019 | $11,904 | $14,629 | $12,847 |
| 02/2019 | $12,435 | $15,099 | $13,256 |
| 03/2019 | $12,182 | $15,393 | $13,322 |
| 04/2019 | $12,642 | $16,016 | $13,761 |
| 05/2019 | $11,509 | $14,998 | $12,878 |
| 06/2019 | $12,524 | $16,055 | $13,747 |
| 07/2019 | $12,695 | $16,286 | $13,862 |
| 08/2019 | $11,727 | $16,028 | $13,373 |
| 09/2019 | $12,347 | $16,328 | $13,916 |
| 10/2019 | $12,429 | $16,681 | $13,990 |
| 11/2019 | $13,031 | $17,287 | $14,363 |
| 12/2019 | $13,597 | $17,809 | $14,800 |
| 01/2020 | $13,059 | $17,802 | $14,512 |
| 02/2020 | $11,596 | $16,336 | $13,075 |
| 03/2020 | $8,524 | $14,319 | $10,107 |
| 04/2020 | $9,667 | $16,154 | $11,457 |
| 05/2020 | $10,217 | $16,923 | $11,988 |
| 06/2020 | $10,380 | $17,260 | $12,124 |
| 07/2020 | $10,949 | $18,233 | $12,696 |
| 08/2020 | $11,336 | $19,544 | $13,199 |
| 09/2020 | $11,233 | $18,801 | $12,900 |
| 10/2020 | $11,426 | $18,301 | $13,020 |
| 11/2020 | $13,270 | $20,305 | $14,848 |
| 12/2020 | $14,095 | $21,085 | $15,535 |
| 01/2021 | $14,576 | $20,872 | $15,499 |
| 02/2021 | $16,081 | $21,448 | $16,700 |
| 03/2021 | $16,842 | $22,387 | $17,563 |
| 04/2021 | $17,604 | $23,582 | $18,412 |
| 05/2021 | $18,323 | $23,747 | $18,775 |
| 06/2021 | $17,805 | $24,301 | $18,557 |
| 07/2021 | $17,707 | $24,878 | $18,671 |
| 08/2021 | $18,036 | $25,635 | $19,072 |
| 09/2021 | $17,202 | $24,443 | $18,369 |
| 10/2021 | $18,042 | $26,155 | $19,347 |
| 11/2021 | $17,537 | $25,974 | $18,759 |
| 12/2021 | $18,598 | $27,138 | $19,937 |
| 01/2022 | $17,719 | $25,734 | $19,086 |
| 02/2022 | $18,008 | $24,963 | $18,997 |
| 03/2022 | $18,069 | $25,890 | $19,574 |
| 04/2022 | $16,656 | $23,632 | $18,411 |
| 05/2022 | $17,026 | $23,676 | $18,765 |
| 06/2022 | $15,125 | $21,721 | $16,702 |
| 07/2022 | $16,333 | $23,724 | $18,139 |
| 08/2022 | $15,901 | $22,757 | $17,584 |
| 09/2022 | $14,473 | $20,661 | $15,879 |
| 10/2022 | $16,175 | $22,334 | $17,379 |
| 11/2022 | $17,143 | $23,582 | $18,477 |
| 12/2022 | $16,410 | $22,223 | $17,538 |
| 01/2023 | $17,705 | $23,619 | $18,955 |
| 02/2023 | $17,332 | $23,043 | $18,348 |
| 03/2023 | $16,713 | $23,889 | $17,770 |
| 04/2023 | $16,642 | $24,262 | $17,771 |
| 05/2023 | $16,023 | $24,367 | $16,983 |
| 06/2023 | $17,663 | $25,977 | $18,456 |
| 07/2023 | $18,402 | $26,812 | $19,260 |
| 08/2023 | $17,818 | $26,385 | $18,578 |
| 09/2023 | $17,051 | $25,127 | $17,633 |
| 10/2023 | $16,361 | $24,599 | $16,759 |
| 11/2023 | $17,663 | $26,845 | $18,339 |
| 12/2023 | $19,033 | $28,065 | $19,768 |
| 01/2024 | $18,918 | $28,536 | $19,414 |
| 02/2024 | $19,760 | $30,060 | $20,342 |
| 03/2024 | $21,000 | $31,027 | $21,394 |
| 04/2024 | $20,063 | $29,760 | $20,275 |
| 05/2024 | $21,036 | $31,236 | $21,003 |
| 06/2024 | $20,481 | $32,356 | $20,666 |
| 07/2024 | $21,763 | $32,750 | $21,915 |
| 08/2024 | $21,936 | $33,545 | $22,328 |
| 09/2024 | $22,210 | $34,261 | $22,749 |
| 10/2024 | $21,886 | $33,950 | $22,463 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 33.77% | 11.98% | 8.15% |
| S&P 500 Index | 38.02% | 15.26% | 13.00% |
Russell Midcap® Value Index | 34.03% | 9.93% | 8.43% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$91,636,822
- # of Portfolio Holdings59
- Portfolio Turnover Rate39%
- Total Advisory Fees Paid - Net$439,480
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Financials | 26.4% |
| Industrials | 17.3% |
| Consumer Discretionary | 13.0% |
| Information Technology | 8.3% |
| Real Estate | 7.7% |
| Energy | 6.0% |
| Utilities | 5.3% |
| Materials | 4.3% |
OtherFootnote Reference* | 12.0% |
| Liabilities in Excess of Other Assets | (0.3%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| Apollo Global Management, Inc. | 4.6% |
| Popular, Inc. | 4.0% |
| Toll Brothers, Inc. | 4.0% |
| Arch Capital Group Ltd. | 3.9% |
| Jones Lang LaSalle, Inc. | 3.8% |
| Flex Ltd. | 3.4% |
| Westinghouse Air Brake Technologies Corp. | 3.3% |
| Equitable Holdings, Inc. | 3.3% |
| Corpay, Inc. | 3.2% |
| Welltower, Inc. | 2.5% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Relative Value Mid Cap Fund
Annual Shareholder Report — October 31, 2024
TCW Relative Value Mid Cap Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Relative Value Mid Cap Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class N | $111 | 0.95% |
How did the Fund perform last year and what affected its performance?
For the year ended October 31, 2024, the TCW Relative Value Mid Cap Fund (the “Fund”) gained 33.66% on its Class N shares. The performance of the Fund’s classes varies with expenses. The Fund’s broad-based benchmark S&P 500 returned 38.02% while the comparative benchmark Russell Midcap Value was up 34.03%. Stocks demonstrated a strong showing over the period led in large part by the “Big 6” (Nvidia, Apple, Microsoft, Meta Platforms, Amazon, and Google). AI semiconductor maker Nvidia was by far the best performer, up 225%. Stock selection detracted slightly by -24 basis points (bps) relative to the broad benchmark. The best contributions came from Consumer Discretionary, Real Estate, and Financials led by Toll Brothers, Jones Lang LaSalle, and Apollo Global. Other notable contributors included Sprouts Farmers Market, Flex, and United Airlines. The portfolio’s Health Care holdings were the biggest drag due largely to Acadia Healthcare and Centene. Acadia was sold while Centene was reduced. The portfolio also underperformed from stock selection in Energy, Comm Svce, and Industrials, with NOV, Interpublic Group, and Textron being the biggest detractors, respectively. Sector allocation detracted nearly 375 bps primarily due to the low weighting in expensive IT, the best performing sector. Portfolio underperformance came from stocks not owned due to valuations not meeting any of the strategy’s five conservative valuation factors, an integral part of the investment philosophy and process, as well as mega cap names outside the portfolio’s mid cap scope. Therefore, the portfolio was negatively impacted by not owning the Big 6, especially Nvidia. Prices follow earnings and the gap between Big Tech earnings and mid cap is expected to continue to narrow into 2025. Slower Big Tech growth, but no hard landing, should be supportive for mid cap stocks.
| Class N | S&P 500 Index | Russell Midcap® Value Index |
|---|
| 10/2014 | $10,000 | $10,000 | $- |
| 11/2014 | $10,157 | $10,269 | $10,178 |
| 12/2014 | $10,178 | $10,243 | $10,254 |
| 01/2015 | $9,783 | $9,936 | $10,108 |
| 02/2015 | $10,509 | $10,507 | $10,522 |
| 03/2015 | $10,456 | $10,340 | $10,503 |
| 04/2015 | $10,500 | $10,440 | $10,383 |
| 05/2015 | $10,670 | $10,574 | $10,567 |
| 06/2015 | $10,417 | $10,369 | $10,296 |
| 07/2015 | $10,078 | $10,586 | $10,282 |
| 08/2015 | $9,604 | $9,948 | $9,796 |
| 09/2015 | $9,061 | $9,702 | $9,469 |
| 10/2015 | $9,522 | $10,520 | $10,047 |
| 11/2015 | $9,487 | $10,551 | $10,076 |
| 12/2015 | $8,938 | $10,385 | $9,764 |
| 01/2016 | $8,146 | $9,869 | $9,225 |
| 02/2016 | $8,348 | $9,856 | $9,289 |
| 03/2016 | $9,201 | $10,525 | $10,147 |
| 04/2016 | $9,190 | $10,566 | $10,365 |
| 05/2016 | $9,307 | $10,755 | $10,534 |
| 06/2016 | $9,211 | $10,783 | $10,630 |
| 07/2016 | $9,781 | $11,181 | $11,081 |
| 08/2016 | $9,952 | $11,196 | $11,057 |
| 09/2016 | $10,129 | $11,199 | $11,103 |
| 10/2016 | $9,836 | $10,994 | $10,834 |
| 11/2016 | $11,122 | $11,401 | $11,512 |
| 12/2016 | $11,232 | $11,627 | $11,717 |
| 01/2017 | $11,525 | $11,847 | $11,914 |
| 02/2017 | $11,637 | $12,318 | $12,247 |
| 03/2017 | $11,622 | $12,332 | $12,157 |
| 04/2017 | $11,642 | $12,459 | $12,180 |
| 05/2017 | $11,530 | $12,634 | $12,143 |
| 06/2017 | $11,885 | $12,713 | $12,323 |
| 07/2017 | $12,057 | $12,974 | $12,487 |
| 08/2017 | $11,941 | $13,014 | $12,253 |
| 09/2017 | $12,650 | $13,283 | $12,587 |
| 10/2017 | $12,802 | $13,593 | $12,689 |
| 11/2017 | $13,257 | $14,009 | $13,118 |
| 12/2017 | $13,424 | $14,165 | $13,280 |
| 01/2018 | $14,103 | $14,976 | $13,585 |
| 02/2018 | $13,309 | $14,424 | $12,916 |
| 03/2018 | $13,325 | $14,058 | $12,948 |
| 04/2018 | $13,358 | $14,112 | $13,012 |
| 05/2018 | $13,698 | $14,451 | $13,153 |
| 06/2018 | $13,588 | $14,540 | $13,259 |
| 07/2018 | $13,884 | $15,081 | $13,620 |
| 08/2018 | $13,923 | $15,573 | $13,805 |
| 09/2018 | $13,545 | $15,662 | $13,696 |
| 10/2018 | $11,956 | $14,591 | $12,710 |
| 11/2018 | $12,115 | $14,888 | $13,014 |
| 12/2018 | $10,435 | $13,544 | $11,648 |
| 01/2019 | $11,816 | $14,629 | $12,847 |
| 02/2019 | $12,340 | $15,099 | $13,256 |
| 03/2019 | $12,093 | $15,393 | $13,322 |
| 04/2019 | $12,545 | $16,016 | $13,761 |
| 05/2019 | $11,418 | $14,998 | $12,878 |
| 06/2019 | $12,431 | $16,055 | $13,747 |
| 07/2019 | $12,599 | $16,286 | $13,862 |
| 08/2019 | $11,635 | $16,028 | $13,373 |
| 09/2019 | $12,250 | $16,328 | $13,916 |
| 10/2019 | $12,328 | $16,681 | $13,990 |
| 11/2019 | $12,925 | $17,287 | $14,363 |
| 12/2019 | $13,480 | $17,809 | $14,800 |
| 01/2020 | $12,949 | $17,802 | $14,512 |
| 02/2020 | $11,493 | $16,336 | $13,075 |
| 03/2020 | $8,450 | $14,319 | $10,107 |
| 04/2020 | $9,586 | $16,154 | $11,457 |
| 05/2020 | $10,129 | $16,923 | $11,988 |
| 06/2020 | $10,289 | $17,260 | $12,124 |
| 07/2020 | $10,851 | $18,233 | $12,696 |
| 08/2020 | $11,234 | $19,544 | $13,199 |
| 09/2020 | $11,129 | $18,801 | $12,900 |
| 10/2020 | $11,320 | $18,301 | $13,020 |
| 11/2020 | $13,147 | $20,305 | $14,848 |
| 12/2020 | $13,966 | $21,085 | $15,535 |
| 01/2021 | $14,438 | $20,872 | $15,499 |
| 02/2021 | $15,929 | $21,448 | $16,700 |
| 03/2021 | $16,681 | $22,387 | $17,563 |
| 04/2021 | $17,432 | $23,582 | $18,412 |
| 05/2021 | $18,147 | $23,747 | $18,775 |
| 06/2021 | $17,631 | $24,301 | $18,557 |
| 07/2021 | $17,532 | $24,878 | $18,671 |
| 08/2021 | $17,855 | $25,635 | $19,072 |
| 09/2021 | $17,029 | $24,443 | $18,369 |
| 10/2021 | $17,861 | $26,155 | $19,347 |
| 11/2021 | $17,358 | $25,974 | $18,759 |
| 12/2021 | $18,409 | $27,138 | $19,937 |
| 01/2022 | $17,532 | $25,734 | $19,086 |
| 02/2022 | $17,820 | $24,963 | $18,997 |
| 03/2022 | $17,876 | $25,890 | $19,574 |
| 04/2022 | $16,479 | $23,632 | $18,411 |
| 05/2022 | $16,844 | $23,676 | $18,765 |
| 06/2022 | $14,963 | $21,721 | $16,702 |
| 07/2022 | $16,156 | $23,724 | $18,139 |
| 08/2022 | $15,721 | $22,757 | $17,584 |
| 09/2022 | $14,311 | $20,661 | $15,879 |
| 10/2022 | $15,995 | $22,334 | $17,379 |
| 11/2022 | $16,949 | $23,582 | $18,477 |
| 12/2022 | $16,220 | $22,223 | $17,538 |
| 01/2023 | $17,501 | $23,619 | $18,955 |
| 02/2023 | $17,134 | $23,043 | $18,348 |
| 03/2023 | $16,516 | $23,889 | $17,770 |
| 04/2023 | $16,444 | $24,262 | $17,771 |
| 05/2023 | $15,832 | $24,367 | $16,983 |
| 06/2023 | $17,458 | $25,977 | $18,456 |
| 07/2023 | $18,185 | $26,812 | $19,260 |
| 08/2023 | $17,602 | $26,385 | $18,578 |
| 09/2023 | $16,847 | $25,127 | $17,633 |
| 10/2023 | $16,163 | $24,599 | $16,759 |
| 11/2023 | $17,451 | $26,845 | $18,339 |
| 12/2023 | $18,799 | $28,065 | $19,768 |
| 01/2024 | $18,682 | $28,536 | $19,414 |
| 02/2024 | $19,521 | $30,060 | $20,342 |
| 03/2024 | $20,735 | $31,027 | $21,394 |
| 04/2024 | $19,808 | $29,760 | $20,275 |
| 05/2024 | $20,765 | $31,236 | $21,003 |
| 06/2024 | $20,220 | $32,356 | $20,666 |
| 07/2024 | $21,479 | $32,750 | $21,915 |
| 08/2024 | $21,655 | $33,545 | $22,328 |
| 09/2024 | $21,928 | $34,261 | $22,749 |
| 10/2024 | $21,604 | $33,950 | $22,463 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class N | 33.66% | 11.87% | 8.01% |
| S&P 500 Index | 38.02% | 15.26% | 13.00% |
Russell Midcap® Value Index | 34.03% | 9.93% | 8.43% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$91,636,822
- # of Portfolio Holdings59
- Portfolio Turnover Rate39%
- Total Advisory Fees Paid - Net$439,480
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Financials | 26.4% |
| Industrials | 17.3% |
| Consumer Discretionary | 13.0% |
| Information Technology | 8.3% |
| Real Estate | 7.7% |
| Energy | 6.0% |
| Utilities | 5.3% |
| Materials | 4.3% |
OtherFootnote Reference* | 12.0% |
| Liabilities in Excess of Other Assets | (0.3%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| Apollo Global Management, Inc. | 4.6% |
| Popular, Inc. | 4.0% |
| Toll Brothers, Inc. | 4.0% |
| Arch Capital Group Ltd. | 3.9% |
| Jones Lang LaSalle, Inc. | 3.8% |
| Flex Ltd. | 3.4% |
| Westinghouse Air Brake Technologies Corp. | 3.3% |
| Equitable Holdings, Inc. | 3.3% |
| Corpay, Inc. | 3.2% |
| Welltower, Inc. | 2.5% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Relative Value Mid Cap Fund
Annual Shareholder Report — October 31, 2024
TCW Securitized Bond Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Securitized Bond Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829). This report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class I | $52 | 0.49% |
How did the Fund perform last year and what affected its performance?
Relative performance was driven by the Fund’s duration position, which remained longer than the Bloomberg U.S. Aggregate Bond Index throughout the period and benefitted from the decline in rates across the curve. Lower rates and a steeper curve were also conducive to agency MBS (mortgage-backed securities) performance as the sector finished ahead of duration-matched Treasuries by over 200 bps (basis points), driven in large part by a decline in nominal yields and return of demand from both banks and money managers. Non-agency MBS issues in the Fund further benefitted relative performance given the steady cash flows and attractive yields, especially among legacy (pre-2008 vintage) profiles. Elsewhere in securitized markets, exposure to both ABS (asset-backed securities) and CMBS (commercial MBS) was rewarded as both sectors experienced an increase in prices and improvement in valuations alongside ongoing risk-on investor sentiment, particularly CMBS as negative headline risk from early 2023 lightened. From an issue selection standpoint, returns were boosted by the focus on non-agency single asset single borrower CMBS deals, which provided targeted exposure to high-quality collateral offering robust yield premiums. Finally, the securitized emphasis of the Fund and lack of corporate exposure was a modest headwind as valuations across corporate markets continued to improve, highlighted by nearly 440 bps of duration-adjusted outperformance versus Treasuries for the sector.
| Class I | Bloomberg U.S. Aggregate Bond Index |
|---|
| 10/2014 | $10,000 | $10,000 |
| 11/2014 | $10,067 | $10,071 |
| 12/2014 | $10,076 | $10,080 |
| 01/2015 | $10,210 | $10,292 |
| 02/2015 | $10,149 | $10,195 |
| 03/2015 | $10,205 | $10,242 |
| 04/2015 | $10,193 | $10,206 |
| 05/2015 | $10,191 | $10,181 |
| 06/2015 | $10,119 | $10,070 |
| 07/2015 | $10,177 | $10,140 |
| 08/2015 | $10,176 | $10,125 |
| 09/2015 | $10,235 | $10,194 |
| 10/2015 | $10,224 | $10,196 |
| 11/2015 | $10,204 | $10,169 |
| 12/2015 | $10,185 | $10,136 |
| 01/2016 | $10,335 | $10,275 |
| 02/2016 | $10,375 | $10,348 |
| 03/2016 | $10,394 | $10,443 |
| 04/2016 | $10,424 | $10,483 |
| 05/2016 | $10,434 | $10,486 |
| 06/2016 | $10,596 | $10,674 |
| 07/2016 | $10,658 | $10,742 |
| 08/2016 | $10,651 | $10,729 |
| 09/2016 | $10,675 | $10,723 |
| 10/2016 | $10,596 | $10,641 |
| 11/2016 | $10,340 | $10,389 |
| 12/2016 | $10,340 | $10,404 |
| 01/2017 | $10,352 | $10,425 |
| 02/2017 | $10,416 | $10,495 |
| 03/2017 | $10,426 | $10,489 |
| 04/2017 | $10,500 | $10,570 |
| 05/2017 | $10,586 | $10,651 |
| 06/2017 | $10,567 | $10,641 |
| 07/2017 | $10,600 | $10,686 |
| 08/2017 | $10,719 | $10,782 |
| 09/2017 | $10,669 | $10,731 |
| 10/2017 | $10,672 | $10,737 |
| 11/2017 | $10,656 | $10,723 |
| 12/2017 | $10,696 | $10,773 |
| 01/2018 | $10,547 | $10,649 |
| 02/2018 | $10,483 | $10,548 |
| 03/2018 | $10,562 | $10,615 |
| 04/2018 | $10,495 | $10,536 |
| 05/2018 | $10,593 | $10,612 |
| 06/2018 | $10,593 | $10,598 |
| 07/2018 | $10,560 | $10,601 |
| 08/2018 | $10,648 | $10,669 |
| 09/2018 | $10,559 | $10,600 |
| 10/2018 | $10,493 | $10,517 |
| 11/2018 | $10,571 | $10,580 |
| 12/2018 | $10,782 | $10,774 |
| 01/2019 | $10,860 | $10,888 |
| 02/2019 | $10,848 | $10,882 |
| 03/2019 | $11,051 | $11,091 |
| 04/2019 | $11,028 | $11,094 |
| 05/2019 | $11,265 | $11,291 |
| 06/2019 | $11,356 | $11,432 |
| 07/2019 | $11,365 | $11,458 |
| 08/2019 | $11,683 | $11,755 |
| 09/2019 | $11,617 | $11,692 |
| 10/2019 | $11,628 | $11,727 |
| 11/2019 | $11,609 | $11,721 |
| 12/2019 | $11,566 | $11,713 |
| 01/2020 | $11,813 | $11,938 |
| 02/2020 | $12,081 | $12,153 |
| 03/2020 | $12,031 | $12,082 |
| 04/2020 | $12,238 | $12,297 |
| 05/2020 | $12,292 | $12,354 |
| 06/2020 | $12,393 | $12,432 |
| 07/2020 | $12,523 | $12,617 |
| 08/2020 | $12,476 | $12,515 |
| 09/2020 | $12,523 | $12,509 |
| 10/2020 | $12,452 | $12,453 |
| 11/2020 | $12,520 | $12,575 |
| 12/2020 | $12,527 | $12,592 |
| 01/2021 | $12,476 | $12,502 |
| 02/2021 | $12,292 | $12,321 |
| 03/2021 | $12,132 | $12,168 |
| 04/2021 | $12,262 | $12,264 |
| 05/2021 | $12,284 | $12,304 |
| 06/2021 | $12,353 | $12,390 |
| 07/2021 | $12,496 | $12,529 |
| 08/2021 | $12,481 | $12,505 |
| 09/2021 | $12,392 | $12,397 |
| 10/2021 | $12,402 | $12,393 |
| 11/2021 | $12,447 | $12,430 |
| 12/2021 | $12,395 | $12,398 |
| 01/2022 | $12,196 | $12,131 |
| 02/2022 | $12,033 | $11,996 |
| 03/2022 | $11,599 | $11,662 |
| 04/2022 | $11,164 | $11,220 |
| 05/2022 | $11,136 | $11,292 |
| 06/2022 | $10,913 | $11,115 |
| 07/2022 | $11,199 | $11,387 |
| 08/2022 | $10,878 | $11,065 |
| 09/2022 | $10,270 | $10,587 |
| 10/2022 | $9,973 | $10,450 |
| 11/2022 | $10,365 | $10,834 |
| 12/2022 | $10,340 | $10,785 |
| 01/2023 | $10,777 | $11,117 |
| 02/2023 | $10,481 | $10,829 |
| 03/2023 | $10,708 | $11,105 |
| 04/2023 | $10,794 | $11,172 |
| 05/2023 | $10,665 | $11,050 |
| 06/2023 | $10,575 | $11,011 |
| 07/2023 | $10,549 | $11,003 |
| 08/2023 | $10,434 | $10,933 |
| 09/2023 | $10,070 | $10,655 |
| 10/2023 | $9,822 | $10,487 |
| 11/2023 | $10,344 | $10,962 |
| 12/2023 | $10,861 | $11,381 |
| 01/2024 | $10,820 | $11,350 |
| 02/2024 | $10,658 | $11,190 |
| 03/2024 | $10,780 | $11,293 |
| 04/2024 | $10,425 | $11,008 |
| 05/2024 | $10,659 | $11,194 |
| 06/2024 | $10,810 | $11,300 |
| 07/2024 | $11,119 | $11,564 |
| 08/2024 | $11,346 | $11,731 |
| 09/2024 | $11,504 | $11,888 |
| 10/2024 | $11,130 | $11,593 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 13.32% | -0.87% | 1.08% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$1,894,033,333
- # of Portfolio Holdings432
- Portfolio Turnover Rate328%
- Total Advisory Fees Paid - Net$7,001,289
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Residential Mortgage-Backed Securities - Agency | 68.6% |
| Residential Mortgage-Backed Securities - Non-Agency | 26.0% |
| Commercial Mortgage-Backed Securities - Non-Agency | 15.1% |
| Asset-Backed Securities | 8.2% |
| U.S. Treasury Securities | 3.0% |
| Short-Term Investments | 2.0% |
| Liabilities in Excess of Other Assets | (22.9%) |
Top Ten Holdings (as a % of Net Assets)
| Uniform Mortgage-Backed Security, TBA, 3.50%, due 02/01/52 | 3.0% |
| Uniform Mortgage-Backed Security, TBA, 2.00%, due 11/01/51 | 2.7% |
| U.S. Treasury Notes, 4.13%, due 10/31/26 | 2.5% |
| Uniform Mortgage-Backed Security, TBA, 4.00%, due 04/01/52 | 2.4% |
| Government National Mortgage Association, TBA, 5.00%, due 06/01/54 | 2.0% |
| Uniform Mortgage-Backed Security, TBA, 2.50%, due 12/01/51 | 2.0% |
| Federal National Mortgage Association, 2.00%, due 01/01/52 | 1.8% |
| Federal National Mortgage Association, 2.00%, due 03/01/52 | 1.7% |
| Government National Mortgage Association, TBA, 2.50%, due 12/01/51 | 1.6% |
| Government National Mortgage Association, TBA, 4.50%, due 05/01/54 | 1.5% |
The TCW Total Return Bond Fund was renamed the TCW Securitized Bond Fund on August 19, 2024.
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Securitized Bond Fund
Annual Shareholder Report — October 31, 2024
TCW Securitized Bond Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Securitized Bond Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829). This report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class N | $75 | 0.70% |
How did the Fund perform last year and what affected its performance?
Relative performance was driven by the Fund’s duration position, which remained longer than the Bloomberg U.S. Aggregate Bond Index throughout the period and benefitted from the decline in rates across the curve. Lower rates and a steeper curve were also conducive to agency MBS (mortgage-backed securities) performance as the sector finished ahead of duration-matched Treasuries by over 200 bps (basis points), driven in large part by a decline in nominal yields and return of demand from both banks and money managers. Non-agency MBS issues in the Fund further benefitted relative performance given the steady cash flows and attractive yields, especially among legacy (pre-2008 vintage) profiles. Elsewhere in securitized markets, exposure to both ABS (asset-backed securities) and CMBS (commercial MBS) was rewarded as both sectors experienced an increase in prices and improvement in valuations alongside ongoing risk-on investor sentiment, particularly CMBS as negative headline risk from early 2023 lightened. From an issue selection standpoint, returns were boosted by the focus on non-agency single asset single borrower CMBS deals, which provided targeted exposure to high-quality collateral offering robust yield premiums. Finally, the securitized emphasis of the Fund and lack of corporate exposure was a modest headwind as valuations across corporate markets continued to improve, highlighted by nearly 440 bps of duration-adjusted outperformance versus Treasuries for the sector.
| Class N | Bloomberg U.S. Aggregate Bond Index |
|---|
| 10/2014 | $10,000 | $10,000 |
| 11/2014 | $10,063 | $10,071 |
| 12/2014 | $10,070 | $10,080 |
| 01/2015 | $10,197 | $10,292 |
| 02/2015 | $10,135 | $10,195 |
| 03/2015 | $10,187 | $10,242 |
| 04/2015 | $10,173 | $10,206 |
| 05/2015 | $10,168 | $10,181 |
| 06/2015 | $10,097 | $10,070 |
| 07/2015 | $10,151 | $10,140 |
| 08/2015 | $10,149 | $10,125 |
| 09/2015 | $10,204 | $10,194 |
| 10/2015 | $10,183 | $10,196 |
| 11/2015 | $10,162 | $10,169 |
| 12/2015 | $10,142 | $10,136 |
| 01/2016 | $10,285 | $10,275 |
| 02/2016 | $10,332 | $10,348 |
| 03/2016 | $10,349 | $10,443 |
| 04/2016 | $10,367 | $10,483 |
| 05/2016 | $10,375 | $10,486 |
| 06/2016 | $10,539 | $10,674 |
| 07/2016 | $10,598 | $10,742 |
| 08/2016 | $10,590 | $10,729 |
| 09/2016 | $10,601 | $10,723 |
| 10/2016 | $10,524 | $10,641 |
| 11/2016 | $10,276 | $10,389 |
| 12/2016 | $10,264 | $10,404 |
| 01/2017 | $10,283 | $10,425 |
| 02/2017 | $10,333 | $10,495 |
| 03/2017 | $10,342 | $10,489 |
| 04/2017 | $10,421 | $10,570 |
| 05/2017 | $10,503 | $10,651 |
| 06/2017 | $10,482 | $10,641 |
| 07/2017 | $10,513 | $10,686 |
| 08/2017 | $10,626 | $10,782 |
| 09/2017 | $10,566 | $10,731 |
| 10/2017 | $10,567 | $10,737 |
| 11/2017 | $10,550 | $10,723 |
| 12/2017 | $10,579 | $10,773 |
| 01/2018 | $10,445 | $10,649 |
| 02/2018 | $10,373 | $10,548 |
| 03/2018 | $10,458 | $10,615 |
| 04/2018 | $10,381 | $10,536 |
| 05/2018 | $10,463 | $10,612 |
| 06/2018 | $10,472 | $10,598 |
| 07/2018 | $10,439 | $10,601 |
| 08/2018 | $10,522 | $10,669 |
| 09/2018 | $10,425 | $10,600 |
| 10/2018 | $10,360 | $10,517 |
| 11/2018 | $10,433 | $10,580 |
| 12/2018 | $10,634 | $10,774 |
| 01/2019 | $10,718 | $10,888 |
| 02/2019 | $10,695 | $10,882 |
| 03/2019 | $10,898 | $11,091 |
| 04/2019 | $10,875 | $11,094 |
| 05/2019 | $11,101 | $11,291 |
| 06/2019 | $11,198 | $11,432 |
| 07/2019 | $11,206 | $11,458 |
| 08/2019 | $11,509 | $11,755 |
| 09/2019 | $11,434 | $11,692 |
| 10/2019 | $11,443 | $11,727 |
| 11/2019 | $11,424 | $11,721 |
| 12/2019 | $11,381 | $11,713 |
| 01/2020 | $11,616 | $11,938 |
| 02/2020 | $11,881 | $12,153 |
| 03/2020 | $11,831 | $12,082 |
| 04/2020 | $12,037 | $12,297 |
| 05/2020 | $12,087 | $12,354 |
| 06/2020 | $12,181 | $12,432 |
| 07/2020 | $12,314 | $12,617 |
| 08/2020 | $12,255 | $12,515 |
| 09/2020 | $12,298 | $12,509 |
| 10/2020 | $12,228 | $12,453 |
| 11/2020 | $12,291 | $12,575 |
| 12/2020 | $12,295 | $12,592 |
| 01/2021 | $12,245 | $12,502 |
| 02/2021 | $12,068 | $12,321 |
| 03/2021 | $11,903 | $12,168 |
| 04/2021 | $12,025 | $12,264 |
| 05/2021 | $12,043 | $12,304 |
| 06/2021 | $12,107 | $12,390 |
| 07/2021 | $12,253 | $12,529 |
| 08/2021 | $12,237 | $12,505 |
| 09/2021 | $12,151 | $12,397 |
| 10/2021 | $12,157 | $12,393 |
| 11/2021 | $12,199 | $12,430 |
| 12/2021 | $12,148 | $12,398 |
| 01/2022 | $11,945 | $12,131 |
| 02/2022 | $11,788 | $11,996 |
| 03/2022 | $11,363 | $11,662 |
| 04/2022 | $10,924 | $11,220 |
| 05/2022 | $10,896 | $11,292 |
| 06/2022 | $10,683 | $11,115 |
| 07/2022 | $10,964 | $11,387 |
| 08/2022 | $10,647 | $11,065 |
| 09/2022 | $10,046 | $10,587 |
| 10/2022 | $9,763 | $10,450 |
| 11/2022 | $10,133 | $10,834 |
| 12/2022 | $10,110 | $10,785 |
| 01/2023 | $10,535 | $11,117 |
| 02/2023 | $10,242 | $10,829 |
| 03/2023 | $10,457 | $11,105 |
| 04/2023 | $10,551 | $11,172 |
| 05/2023 | $10,416 | $11,050 |
| 06/2023 | $10,318 | $11,011 |
| 07/2023 | $10,305 | $11,003 |
| 08/2023 | $10,185 | $10,933 |
| 09/2023 | $9,827 | $10,655 |
| 10/2023 | $9,592 | $10,487 |
| 11/2023 | $10,098 | $10,962 |
| 12/2023 | $10,600 | $11,381 |
| 01/2024 | $10,562 | $11,350 |
| 02/2024 | $10,395 | $11,190 |
| 03/2024 | $10,524 | $11,293 |
| 04/2024 | $10,162 | $11,008 |
| 05/2024 | $10,382 | $11,194 |
| 06/2024 | $10,525 | $11,300 |
| 07/2024 | $10,830 | $11,564 |
| 08/2024 | $11,057 | $11,731 |
| 09/2024 | $11,206 | $11,888 |
| 10/2024 | $10,840 | $11,593 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class N | 13.01% | -1.08% | 0.81% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$1,894,033,333
- # of Portfolio Holdings432
- Portfolio Turnover Rate328%
- Total Advisory Fees Paid - Net$7,001,289
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Residential Mortgage-Backed Securities - Agency | 68.6% |
| Residential Mortgage-Backed Securities - Non-Agency | 26.0% |
| Commercial Mortgage-Backed Securities - Non-Agency | 15.1% |
| Asset-Backed Securities | 8.2% |
| U.S. Treasury Securities | 3.0% |
| Short-Term Investments | 2.0% |
| Liabilities in Excess of Other Assets | (22.9%) |
Top Ten Holdings (as a % of Net Assets)
| Uniform Mortgage-Backed Security, TBA, 3.50%, due 02/01/52 | 3.0% |
| Uniform Mortgage-Backed Security, TBA, 2.00%, due 11/01/51 | 2.7% |
| U.S. Treasury Notes, 4.13%, due 10/31/26 | 2.5% |
| Uniform Mortgage-Backed Security, TBA, 4.00%, due 04/01/52 | 2.4% |
| Government National Mortgage Association, TBA, 5.00%, due 06/01/54 | 2.0% |
| Uniform Mortgage-Backed Security, TBA, 2.50%, due 12/01/51 | 2.0% |
| Federal National Mortgage Association, 2.00%, due 01/01/52 | 1.8% |
| Federal National Mortgage Association, 2.00%, due 03/01/52 | 1.7% |
| Government National Mortgage Association, TBA, 2.50%, due 12/01/51 | 1.6% |
| Government National Mortgage Association, TBA, 4.50%, due 05/01/54 | 1.5% |
The TCW Total Return Bond Fund was renamed the TCW Securitized Bond Fund on August 19, 2024.
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Securitized Bond Fund
Annual Shareholder Report — October 31, 2024
TCW Securitized Bond Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Securitized Bond Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829). This report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class P | $47 | 0.44% |
How did the Fund perform last year and what affected its performance?
Relative performance was driven by the Fund’s duration position, which remained longer than the Bloomberg U.S. Aggregate Bond Index throughout the period and benefitted from the decline in rates across the curve. Lower rates and a steeper curve were also conducive to agency MBS (mortgage-backed securities) performance as the sector finished ahead of duration-matched Treasuries by over 200 bps (basis points), driven in large part by a decline in nominal yields and return of demand from both banks and money managers. Non-agency MBS issues in the Fund further benefitted relative performance given the steady cash flows and attractive yields, especially among legacy (pre-2008 vintage) profiles. Elsewhere in securitized markets, exposure to both ABS (asset-backed securities) and CMBS (commercial MBS) was rewarded as both sectors experienced an increase in prices and improvement in valuations alongside ongoing risk-on investor sentiment, particularly CMBS as negative headline risk from early 2023 lightened. From an issue selection standpoint, returns were boosted by the focus on non-agency single asset single borrower CMBS deals, which provided targeted exposure to high-quality collateral offering robust yield premiums. Finally, the securitized emphasis of the Fund and lack of corporate exposure was a modest headwind as valuations across corporate markets continued to improve, highlighted by nearly 440 bps of duration-adjusted outperformance versus Treasuries for the sector.
| Class P | Bloomberg U.S. Aggregate Bond Index |
|---|
| 02/2020 | $10,000 | $10,000 |
| 03/2020 | $9,961 | $9,941 |
| 04/2020 | $10,122 | $10,118 |
| 05/2020 | $10,177 | $10,165 |
| 06/2020 | $10,252 | $10,229 |
| 07/2020 | $10,379 | $10,382 |
| 08/2020 | $10,331 | $10,298 |
| 09/2020 | $10,370 | $10,292 |
| 10/2020 | $10,322 | $10,246 |
| 11/2020 | $10,389 | $10,347 |
| 12/2020 | $10,395 | $10,361 |
| 01/2021 | $10,353 | $10,287 |
| 02/2021 | $10,212 | $10,138 |
| 03/2021 | $10,070 | $10,012 |
| 04/2021 | $10,178 | $10,091 |
| 05/2021 | $10,196 | $10,124 |
| 06/2021 | $10,254 | $10,195 |
| 07/2021 | $10,373 | $10,309 |
| 08/2021 | $10,371 | $10,289 |
| 09/2021 | $10,288 | $10,200 |
| 10/2021 | $10,296 | $10,197 |
| 11/2021 | $10,335 | $10,228 |
| 12/2021 | $10,302 | $10,201 |
| 01/2022 | $10,128 | $9,982 |
| 02/2022 | $9,994 | $9,870 |
| 03/2022 | $9,635 | $9,596 |
| 04/2022 | $9,277 | $9,232 |
| 05/2022 | $9,244 | $9,291 |
| 06/2022 | $9,060 | $9,146 |
| 07/2022 | $9,307 | $9,369 |
| 08/2022 | $9,032 | $9,104 |
| 09/2022 | $8,530 | $8,711 |
| 10/2022 | $8,295 | $8,598 |
| 11/2022 | $8,620 | $8,914 |
| 12/2022 | $8,589 | $8,874 |
| 01/2023 | $8,951 | $9,147 |
| 02/2023 | $8,707 | $8,911 |
| 03/2023 | $8,895 | $9,137 |
| 04/2023 | $8,967 | $9,192 |
| 05/2023 | $8,861 | $9,092 |
| 06/2023 | $8,787 | $9,060 |
| 07/2023 | $8,755 | $9,054 |
| 08/2023 | $8,661 | $8,996 |
| 09/2023 | $8,360 | $8,767 |
| 10/2023 | $8,156 | $8,629 |
| 11/2023 | $8,588 | $9,020 |
| 12/2023 | $9,027 | $9,365 |
| 01/2024 | $8,989 | $9,339 |
| 02/2024 | $8,850 | $9,207 |
| 03/2024 | $8,962 | $9,292 |
| 04/2024 | $8,658 | $9,057 |
| 05/2024 | $8,852 | $9,211 |
| 06/2024 | $8,978 | $9,298 |
| 07/2024 | $9,233 | $9,515 |
| 08/2024 | $9,421 | $9,652 |
| 09/2024 | $9,564 | $9,781 |
| 10/2024 | $9,244 | $9,539 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | Since Inception 2/28/20 |
|---|
| Class P | 13.35% | -1.67% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -1.00% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$1,894,033,333
- # of Portfolio Holdings432
- Portfolio Turnover Rate328%
- Total Advisory Fees Paid - Net$7,001,289
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Residential Mortgage-Backed Securities - Agency | 68.6% |
| Residential Mortgage-Backed Securities - Non-Agency | 26.0% |
| Commercial Mortgage-Backed Securities - Non-Agency | 15.1% |
| Asset-Backed Securities | 8.2% |
| U.S. Treasury Securities | 3.0% |
| Short-Term Investments | 2.0% |
| Liabilities in Excess of Other Assets | (22.9%) |
Top Ten Holdings (as a % of Net Assets)
| Uniform Mortgage-Backed Security, TBA, 3.50%, due 02/01/52 | 3.0% |
| Uniform Mortgage-Backed Security, TBA, 2.00%, due 11/01/51 | 2.7% |
| U.S. Treasury Notes, 4.13%, due 10/31/26 | 2.5% |
| Uniform Mortgage-Backed Security, TBA, 4.00%, due 04/01/52 | 2.4% |
| Government National Mortgage Association, TBA, 5.00%, due 06/01/54 | 2.0% |
| Uniform Mortgage-Backed Security, TBA, 2.50%, due 12/01/51 | 2.0% |
| Federal National Mortgage Association, 2.00%, due 01/01/52 | 1.8% |
| Federal National Mortgage Association, 2.00%, due 03/01/52 | 1.7% |
| Government National Mortgage Association, TBA, 2.50%, due 12/01/51 | 1.6% |
| Government National Mortgage Association, TBA, 4.50%, due 05/01/54 | 1.5% |
The TCW Total Return Bond Fund was renamed the TCW Securitized Bond Fund on August 19, 2024.
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
TCW Securitized Bond Fund
Annual Shareholder Report — October 31, 2024
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Select Equities Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class I | $97 | 0.78% |
How did the Fund perform last year and what affected its performance?
The Fund’s outperformance relative to the S&P 500 in 2024 was driven by positive security selection effects, primarily in the Information Technology, Health Care and Consumer Staples sectors. Rather than anchor to a macro call (soft or hard landing in 2024), the Fund maintained its offensive/uncorrelated growth ballast focused on companies with business model advantages in growing end markets that could adapt under either scenario. Discerning the quality growth companies benefiting from broad secular trends to which the Fund is levered (Artificial Intelligence, Ubiquitous Connectivity, Digital Transformation) contributed to performance during the period. While the lack of market breadth (narrowness) was a hallmark of S&P 500 returns during the year, the Fund’s concentrated portfolio of securities outperformed the broader equity market, despite its underweight the “Magnificent 7*.” Economic conditions were marked by slowing growth and tighter monetary conditions. As inflation moderated towards the Fed’s 2% mandate (and meaningfully lower from the 9.1% Consumer Price Index clip in mid-2022), the Fed delivered a 50 basis point cut in September. This was the Fed’s first rate cut since 2020 (second longest “pause” on record), and the greatest gain in the S&P 500 in between Fed moves. This also marked the highest forward P/E (Price to Earnings) ratio multiple at the start of a Fed cutting cycle in over 60 years and occurred a scant two months prior to the U.S. election. *Alphabet, Amazon, Apple, NVIDIA, Meta, Microsoft, Tesla.
| Class I | S&P 500 Index | Russell 1000® Growth Index |
|---|
| 10/2014 | $10,000 | $10,000 | $10,000 |
| 11/2014 | $10,172 | $10,269 | $10,317 |
| 12/2014 | $10,171 | $10,243 | $10,209 |
| 01/2015 | $9,932 | $9,936 | $10,053 |
| 02/2015 | $10,623 | $10,507 | $10,723 |
| 03/2015 | $10,496 | $10,340 | $10,601 |
| 04/2015 | $10,542 | $10,440 | $10,654 |
| 05/2015 | $10,612 | $10,574 | $10,804 |
| 06/2015 | $10,670 | $10,369 | $10,614 |
| 07/2015 | $11,543 | $10,586 | $10,974 |
| 08/2015 | $10,755 | $9,948 | $10,307 |
| 09/2015 | $10,415 | $9,702 | $10,052 |
| 10/2015 | $11,454 | $10,520 | $10,918 |
| 11/2015 | $11,477 | $10,551 | $10,949 |
| 12/2015 | $11,411 | $10,385 | $10,788 |
| 01/2016 | $10,286 | $9,869 | $10,186 |
| 02/2016 | $9,979 | $9,856 | $10,181 |
| 03/2016 | $10,506 | $10,525 | $10,868 |
| 04/2016 | $10,498 | $10,566 | $10,769 |
| 05/2016 | $10,784 | $10,755 | $10,978 |
| 06/2016 | $10,627 | $10,783 | $10,935 |
| 07/2016 | $11,311 | $11,181 | $11,451 |
| 08/2016 | $11,216 | $11,196 | $11,394 |
| 09/2016 | $11,158 | $11,199 | $11,436 |
| 10/2016 | $10,817 | $10,994 | $11,167 |
| 11/2016 | $10,560 | $11,401 | $11,410 |
| 12/2016 | $10,490 | $11,627 | $11,551 |
| 01/2017 | $11,061 | $11,847 | $11,941 |
| 02/2017 | $11,517 | $12,318 | $12,437 |
| 03/2017 | $11,814 | $12,332 | $12,580 |
| 04/2017 | $12,203 | $12,459 | $12,868 |
| 05/2017 | $12,442 | $12,634 | $13,203 |
| 06/2017 | $12,473 | $12,713 | $13,168 |
| 07/2017 | $12,951 | $12,974 | $13,518 |
| 08/2017 | $13,150 | $13,014 | $13,766 |
| 09/2017 | $13,212 | $13,283 | $13,945 |
| 10/2017 | $13,465 | $13,593 | $14,485 |
| 11/2017 | $13,850 | $14,009 | $14,925 |
| 12/2017 | $13,931 | $14,165 | $15,041 |
| 01/2018 | $15,015 | $14,976 | $16,107 |
| 02/2018 | $14,685 | $14,424 | $15,684 |
| 03/2018 | $14,518 | $14,058 | $15,254 |
| 04/2018 | $14,887 | $14,112 | $15,308 |
| 05/2018 | $15,462 | $14,451 | $15,978 |
| 06/2018 | $15,613 | $14,540 | $16,132 |
| 07/2018 | $16,032 | $15,081 | $16,606 |
| 08/2018 | $16,904 | $15,573 | $17,514 |
| 09/2018 | $16,921 | $15,662 | $17,612 |
| 10/2018 | $15,160 | $14,591 | $16,037 |
| 11/2018 | $15,524 | $14,888 | $16,207 |
| 12/2018 | $14,240 | $13,544 | $14,814 |
| 01/2019 | $15,786 | $14,629 | $16,145 |
| 02/2019 | $16,374 | $15,099 | $16,723 |
| 03/2019 | $16,968 | $15,393 | $17,199 |
| 04/2019 | $17,888 | $16,016 | $17,976 |
| 05/2019 | $17,007 | $14,998 | $16,840 |
| 06/2019 | $17,999 | $16,055 | $17,997 |
| 07/2019 | $18,142 | $16,286 | $18,403 |
| 08/2019 | $17,809 | $16,028 | $18,262 |
| 09/2019 | $17,620 | $16,328 | $18,265 |
| 10/2019 | $18,038 | $16,681 | $18,779 |
| 11/2019 | $18,899 | $17,287 | $19,613 |
| 12/2019 | $19,369 | $17,809 | $20,204 |
| 01/2020 | $20,088 | $17,802 | $20,656 |
| 02/2020 | $19,163 | $16,336 | $19,249 |
| 03/2020 | $17,114 | $14,319 | $17,356 |
| 04/2020 | $19,753 | $16,154 | $19,924 |
| 05/2020 | $21,496 | $16,923 | $21,261 |
| 06/2020 | $22,400 | $17,260 | $22,187 |
| 07/2020 | $23,815 | $18,233 | $23,894 |
| 08/2020 | $25,785 | $19,544 | $26,360 |
| 09/2020 | $24,790 | $18,801 | $25,120 |
| 10/2020 | $24,277 | $18,301 | $24,267 |
| 11/2020 | $26,746 | $20,305 | $26,751 |
| 12/2020 | $26,987 | $21,085 | $27,982 |
| 01/2021 | $26,293 | $20,872 | $27,775 |
| 02/2021 | $26,926 | $21,448 | $27,768 |
| 03/2021 | $27,063 | $22,387 | $28,245 |
| 04/2021 | $29,449 | $23,582 | $30,167 |
| 05/2021 | $29,106 | $23,747 | $29,750 |
| 06/2021 | $31,384 | $24,301 | $31,616 |
| 07/2021 | $32,512 | $24,878 | $32,658 |
| 08/2021 | $33,930 | $25,635 | $33,879 |
| 09/2021 | $31,956 | $24,443 | $31,982 |
| 10/2021 | $34,067 | $26,155 | $34,752 |
| 11/2021 | $33,945 | $25,974 | $34,964 |
| 12/2021 | $33,962 | $27,138 | $35,704 |
| 01/2022 | $30,343 | $25,734 | $32,639 |
| 02/2022 | $28,581 | $24,963 | $31,253 |
| 03/2022 | $29,226 | $25,890 | $32,476 |
| 04/2022 | $24,980 | $23,632 | $28,554 |
| 05/2022 | $24,197 | $23,676 | $27,890 |
| 06/2022 | $22,547 | $21,721 | $25,681 |
| 07/2022 | $24,851 | $23,724 | $28,763 |
| 08/2022 | $23,596 | $22,757 | $27,423 |
| 09/2022 | $21,026 | $20,661 | $24,757 |
| 10/2022 | $22,169 | $22,334 | $26,204 |
| 11/2022 | $23,183 | $23,582 | $27,398 |
| 12/2022 | $21,609 | $22,223 | $25,301 |
| 01/2023 | $23,858 | $23,619 | $27,409 |
| 02/2023 | $23,174 | $23,043 | $27,084 |
| 03/2023 | $24,614 | $23,889 | $28,935 |
| 04/2023 | $24,956 | $24,262 | $29,221 |
| 05/2023 | $26,252 | $24,367 | $30,553 |
| 06/2023 | $27,786 | $25,977 | $32,642 |
| 07/2023 | $28,781 | $26,812 | $33,742 |
| 08/2023 | $28,439 | $26,385 | $33,439 |
| 09/2023 | $26,780 | $25,127 | $31,620 |
| 10/2023 | $26,293 | $24,599 | $31,170 |
| 11/2023 | $29,858 | $26,845 | $34,568 |
| 12/2023 | $31,187 | $28,065 | $36,098 |
| 01/2024 | $32,804 | $28,536 | $36,999 |
| 02/2024 | $34,793 | $30,060 | $39,523 |
| 03/2024 | $35,410 | $31,027 | $40,219 |
| 04/2024 | $33,537 | $29,760 | $38,513 |
| 05/2024 | $35,259 | $31,236 | $40,819 |
| 06/2024 | $38,062 | $32,356 | $43,571 |
| 07/2024 | $36,771 | $32,750 | $42,830 |
| 08/2024 | $37,876 | $33,545 | $43,722 |
| 09/2024 | $38,597 | $34,261 | $44,961 |
| 10/2024 | $38,888 | $33,950 | $44,812 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 47.90% | 16.61% | 14.55% |
| S&P 500 Index | 38.02% | 15.26% | 13.00% |
Russell 1000® Growth Index | 43.77% | 18.99% | 16.18% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$683,236,759
- # of Portfolio Holdings29
- Portfolio Turnover Rate13%
- Total Advisory Fees Paid - Net$4,083,460
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Information Technology | 44.5% |
| Communication Services | 14.0% |
| Health Care | 11.5% |
| Consumer Discretionary | 10.0% |
| Financials | 10.0% |
| Industrials | 3.5% |
| Consumer Staples | 3.3% |
| Short-Term Investments | 2.3% |
OtherFootnote Reference* | 1.4% |
| Liabilities in Excess of Other Assets | (0.5%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| NVIDIA Corp. | 15.4% |
| ServiceNow, Inc. | 7.1% |
| Alphabet, Inc., Class C | 7.0% |
| Microsoft Corp. | 6.7% |
| Amazon.com, Inc. | 6.4% |
| Meta Platforms, Inc., Class A | 4.7% |
| Visa, Inc., Class A | 3.8% |
| Mastercard, Inc., Class A | 3.5% |
| Costco Wholesale Corp. | 3.3% |
| Intuitive Surgical, Inc. | 2.9% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
Annual Shareholder Report — October 31, 2024
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about the TCW Select Equities Fund for the period ended October 31, 2024. You can find additional information about the Fund at www.tcw.com/Literature/Fund-Literature. You can also request this information by contacting us at 800-FUND-TCW (800-386-3829).
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Cost paid as a percentage of a $10,000 investment |
|---|
| Class N | $115 | 0.93% |
How did the Fund perform last year and what affected its performance?
The Fund’s outperformance relative to the S&P 500 in 2024 was driven by positive security selection effects, primarily in the Information Technology, Health Care and Consumer Staples sectors. Rather than anchor to a macro call (soft or hard landing in 2024), the Fund maintained its offensive/uncorrelated growth ballast focused on companies with business model advantages in growing end markets that could adapt under either scenario. Discerning the quality growth companies benefiting from broad secular trends to which the Fund is levered (Artificial Intelligence, Ubiquitous Connectivity, Digital Transformation) contributed to performance during the period. While the lack of market breadth (narrowness) was a hallmark of S&P 500 returns during the year, the Fund’s concentrated portfolio of securities outperformed the broader equity market, despite its underweight the “Magnificent 7*.” Economic conditions were marked by slowing growth and tighter monetary conditions. As inflation moderated towards the Fed’s 2% mandate (and meaningfully lower from the 9.1% Consumer Price Index clip in mid-2022), the Fed delivered a 50 basis point cut in September. This was the Fed’s first rate cut since 2020 (second longest “pause” on record), and the greatest gain in the S&P 500 in between Fed moves. This also marked the highest forward P/E (Price to Earnings) ratio multiple at the start of a Fed cutting cycle in over 60 years and occurred a scant two months prior to the U.S. election. *Alphabet, Amazon, Apple, NVIDIA, Meta, Microsoft, Tesla.
| Class N | S&P 500 Index | Russell 1000® Growth Index |
|---|
| 10/2014 | $10,000 | $10,000 | $10,000 |
| 11/2014 | $10,170 | $10,269 | $10,317 |
| 12/2014 | $10,170 | $10,243 | $10,209 |
| 01/2015 | $9,924 | $9,936 | $10,053 |
| 02/2015 | $10,612 | $10,507 | $10,723 |
| 03/2015 | $10,485 | $10,340 | $10,601 |
| 04/2015 | $10,530 | $10,440 | $10,654 |
| 05/2015 | $10,591 | $10,574 | $10,804 |
| 06/2015 | $10,648 | $10,369 | $10,614 |
| 07/2015 | $11,516 | $10,586 | $10,974 |
| 08/2015 | $10,730 | $9,948 | $10,307 |
| 09/2015 | $10,386 | $9,702 | $10,052 |
| 10/2015 | $11,422 | $10,520 | $10,918 |
| 11/2015 | $11,442 | $10,551 | $10,949 |
| 12/2015 | $11,377 | $10,385 | $10,788 |
| 01/2016 | $10,250 | $9,869 | $10,186 |
| 02/2016 | $9,945 | $9,856 | $10,181 |
| 03/2016 | $10,466 | $10,525 | $10,868 |
| 04/2016 | $10,458 | $10,566 | $10,769 |
| 05/2016 | $10,740 | $10,755 | $10,978 |
| 06/2016 | $10,581 | $10,783 | $10,935 |
| 07/2016 | $11,257 | $11,181 | $11,451 |
| 08/2016 | $11,160 | $11,196 | $11,394 |
| 09/2016 | $11,103 | $11,199 | $11,436 |
| 10/2016 | $10,758 | $10,994 | $11,167 |
| 11/2016 | $10,502 | $11,401 | $11,410 |
| 12/2016 | $10,432 | $11,627 | $11,551 |
| 01/2017 | $10,995 | $11,847 | $11,941 |
| 02/2017 | $11,449 | $12,318 | $12,437 |
| 03/2017 | $11,743 | $12,332 | $12,580 |
| 04/2017 | $12,126 | $12,459 | $12,868 |
| 05/2017 | $12,363 | $12,634 | $13,203 |
| 06/2017 | $12,391 | $12,713 | $13,168 |
| 07/2017 | $12,860 | $12,974 | $13,518 |
| 08/2017 | $13,058 | $13,014 | $13,766 |
| 09/2017 | $13,115 | $13,283 | $13,945 |
| 10/2017 | $13,361 | $13,593 | $14,485 |
| 11/2017 | $13,745 | $14,009 | $14,925 |
| 12/2017 | $13,823 | $14,165 | $15,041 |
| 01/2018 | $14,891 | $14,976 | $16,107 |
| 02/2018 | $14,568 | $14,424 | $15,684 |
| 03/2018 | $14,391 | $14,058 | $15,254 |
| 04/2018 | $14,763 | $14,112 | $15,308 |
| 05/2018 | $15,324 | $14,451 | $15,978 |
| 06/2018 | $15,471 | $14,540 | $16,132 |
| 07/2018 | $15,885 | $15,081 | $16,606 |
| 08/2018 | $16,746 | $15,573 | $17,514 |
| 09/2018 | $16,764 | $15,662 | $17,612 |
| 10/2018 | $15,013 | $14,591 | $16,037 |
| 11/2018 | $15,373 | $14,888 | $16,207 |
| 12/2018 | $14,092 | $13,544 | $14,814 |
| 01/2019 | $15,622 | $14,629 | $16,145 |
| 02/2019 | $16,202 | $15,099 | $16,723 |
| 03/2019 | $16,789 | $15,393 | $17,199 |
| 04/2019 | $17,695 | $16,016 | $17,976 |
| 05/2019 | $16,818 | $14,998 | $16,840 |
| 06/2019 | $17,797 | $16,055 | $17,997 |
| 07/2019 | $17,934 | $16,286 | $18,403 |
| 08/2019 | $17,601 | $16,028 | $18,262 |
| 09/2019 | $17,413 | $16,328 | $18,265 |
| 10/2019 | $17,826 | $16,681 | $18,779 |
| 11/2019 | $18,674 | $17,287 | $19,613 |
| 12/2019 | $19,131 | $17,809 | $20,204 |
| 01/2020 | $19,842 | $17,802 | $20,656 |
| 02/2020 | $18,923 | $16,336 | $19,249 |
| 03/2020 | $16,901 | $14,319 | $17,356 |
| 04/2020 | $19,490 | $16,154 | $19,924 |
| 05/2020 | $21,216 | $16,923 | $21,261 |
| 06/2020 | $22,103 | $17,260 | $22,187 |
| 07/2020 | $23,502 | $18,233 | $23,894 |
| 08/2020 | $25,436 | $19,544 | $26,360 |
| 09/2020 | $24,453 | $18,801 | $25,120 |
| 10/2020 | $23,933 | $18,301 | $24,267 |
| 11/2020 | $26,363 | $20,305 | $26,751 |
| 12/2020 | $26,594 | $21,085 | $27,982 |
| 01/2021 | $25,911 | $20,872 | $27,775 |
| 02/2021 | $26,525 | $21,448 | $27,768 |
| 03/2021 | $26,663 | $22,387 | $28,245 |
| 04/2021 | $29,007 | $23,582 | $30,167 |
| 05/2021 | $28,661 | $23,747 | $29,750 |
| 06/2021 | $30,901 | $24,301 | $31,616 |
| 07/2021 | $32,008 | $24,878 | $32,658 |
| 08/2021 | $33,392 | $25,635 | $33,879 |
| 09/2021 | $31,446 | $24,443 | $31,982 |
| 10/2021 | $33,521 | $26,155 | $34,752 |
| 11/2021 | $33,392 | $25,974 | $34,964 |
| 12/2021 | $33,411 | $27,138 | $35,704 |
| 01/2022 | $29,839 | $25,734 | $32,639 |
| 02/2022 | $28,108 | $24,963 | $31,253 |
| 03/2022 | $28,735 | $25,890 | $32,476 |
| 04/2022 | $24,556 | $23,632 | $28,554 |
| 05/2022 | $23,790 | $23,676 | $27,890 |
| 06/2022 | $22,158 | $21,721 | $25,681 |
| 07/2022 | $24,427 | $23,724 | $28,763 |
| 08/2022 | $23,193 | $22,757 | $27,423 |
| 09/2022 | $20,666 | $20,661 | $24,757 |
| 10/2022 | $21,780 | $22,334 | $26,204 |
| 11/2022 | $22,775 | $23,582 | $27,398 |
| 12/2022 | $21,241 | $22,223 | $25,301 |
| 01/2023 | $23,445 | $23,619 | $27,409 |
| 02/2023 | $22,772 | $23,043 | $27,084 |
| 03/2023 | $24,179 | $23,889 | $28,935 |
| 04/2023 | $24,515 | $24,262 | $29,221 |
| 05/2023 | $25,785 | $24,367 | $30,553 |
| 06/2023 | $27,279 | $25,977 | $32,642 |
| 07/2023 | $28,250 | $26,812 | $33,742 |
| 08/2023 | $27,914 | $26,385 | $33,439 |
| 09/2023 | $26,283 | $25,127 | $31,620 |
| 10/2023 | $25,810 | $24,599 | $31,170 |
| 11/2023 | $29,296 | $26,845 | $34,568 |
| 12/2023 | $30,592 | $28,065 | $36,098 |
| 01/2024 | $32,187 | $28,536 | $36,999 |
| 02/2024 | $34,127 | $30,060 | $39,523 |
| 03/2024 | $34,731 | $31,027 | $40,219 |
| 04/2024 | $32,891 | $29,760 | $38,513 |
| 05/2024 | $34,573 | $31,236 | $40,819 |
| 06/2024 | $37,317 | $32,356 | $43,571 |
| 07/2024 | $36,053 | $32,750 | $42,830 |
| 08/2024 | $37,130 | $33,545 | $43,722 |
| 09/2024 | $37,820 | $34,261 | $44,961 |
| 10/2024 | $38,107 | $33,950 | $44,812 |
The performance data quoted represents past performance and does not guarantee future results. The total returns do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. The Fund’s Average Total Returns are based on net asset values calculated for shareholder transactions which are not reflective of adjustments required pursuant to GAAP. Accordingly, differences may exist between this data and similar information reported in the financial statements.
Average Annual Total Returns (%)
| Name | 1 Year | 5 Years | 10 Years |
|---|
| Class N | 47.65% | 16.41% | 14.31% |
| S&P 500 Index | 38.02% | 15.26% | 13.00% |
Russell 1000® Growth Index | 43.77% | 18.99% | 16.18% |
Past Performance: Performance data represent past performance which does not guarantee future result.
- Total Net Assets$683,236,759
- # of Portfolio Holdings29
- Portfolio Turnover Rate13%
- Total Advisory Fees Paid - Net$4,083,460
What did the Fund invest in?
Asset Allocation (as a % of Net Assets)
| Information Technology | 44.5% |
| Communication Services | 14.0% |
| Health Care | 11.5% |
| Consumer Discretionary | 10.0% |
| Financials | 10.0% |
| Industrials | 3.5% |
| Consumer Staples | 3.3% |
| Short-Term Investments | 2.3% |
OtherFootnote Reference* | 1.4% |
| Liabilities in Excess of Other Assets | (0.5%) |
| Footnote | Description |
Footnote* | Please refer to the Fund’s Annual Financial Statements which are available on the Fund’s website at www.tcw.com/Literature/Fund-Literature for a complete listing of all categories. |
Top Ten Holdings (as a % of Net Assets)
| NVIDIA Corp. | 15.4% |
| ServiceNow, Inc. | 7.1% |
| Alphabet, Inc., Class C | 7.0% |
| Microsoft Corp. | 6.7% |
| Amazon.com, Inc. | 6.4% |
| Meta Platforms, Inc., Class A | 4.7% |
| Visa, Inc., Class A | 3.8% |
| Mastercard, Inc., Class A | 3.5% |
| Costco Wholesale Corp. | 3.3% |
| Intuitive Surgical, Inc. | 2.9% |
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact 800-FUND-TCW (800-386-3829).
If you wish to view additional information about the Fund, including but not limited to the Fund's prospectus, financial information, holdings, and proxy voting information, please visit www.tcw.com/Literature/Fund-Literature.
Phone: 800-FUND-TCW (800-386-3829)
Annual Shareholder Report — October 31, 2024
| (a) | The Registrant has adopted a code of ethics that applies to its principal executive officer and principal financial officer or persons performing similar functions. |
| (b) | No disclosures are required by this Item 2(b). |
| (c) | The Registrant has made no material changes to its code of ethics. |
| (d) | The Registrant has not granted any waivers from any provisions of its code of ethics during the period covered by this Form N-CSR. |
| (f) | A copy of the Registrant’s code of ethics is filed as Exhibit 19(a)(1) to this Form N-CSR. |
| Item 3. | Audit Committee Financial Expert. |
| | |
| (a)(1) | | The Registrant’s Board of Directors (the “Board”) has determined that the Registrant has at least one member serving on the Registrant’s Audit Committee that possesses the attributes identified in Form N-CSR to qualify as an “audit committee financial expert.” |
| |
| (a)(2) | | The audit committee financial experts are Victoria B. Rogers, Robert Rooney, and Michael Swell. Each has been deemed to be “independent” as that term is defined in Form N-CSR. |
| |
| (a)(3) | | Not applicable. |
| Item 4. | Principal Accountant Fees and Services. |
The firm of Deloitte & Touche LLP (“Deloitte”) serves as the independent registered public accounting firm for the Registrant.
For the fiscal years ended October 31, 2024 and October 31, 2023, the aggregate fees billed for professional services rendered by Deloitte for the audit of the Registrant’s annual financial statements or for services that are normally provided by Deloitte in connection with statutory and regulatory filings or engagements were:
| | | | |
2024 | | 2023 | |
$317,000 | | $ | 522,274 | |
(b) Audit-Related Fees
For the fiscal years October 31, 2024 and October 31, 2023, the aggregate fees billed for assurance and related services rendered by Deloitte that are reasonably related to the performance of the audit or review of the Registrant’s financial statements and that are not reported under Audit Fees above were:
For the fiscal years ended October 31, 2024 and October 31, 2023, the aggregate fees billed for tax compliance, tax advice and tax planning by Deloitte were:
| | | | |
2024 | | 2023 | |
$52,140 | | $ | 103,506 | |
These services consisted of tax return review, tax advice and tax planning.
For the fiscal years ended October 31, 2024 and October 31, 2023, the aggregate fees billed by Deloitte to the Registrant for all services other than services reported under Audit Fees, Audit-Related Fees, and Tax Fees were:
Fees were for Passive Foreign Investment Company analysis.
| | |
| (e)(1) | | Pursuant to the Registrant’s Audit Committee Charter that has been adopted by the audit committee, the audit committee shall approve all audit and permissible non-audit services to be provided to the Registrant and all permissible non-audit services to be provided to its investment adviser or any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant if the engagement relates directly to the operations and financial reporting of the Registrant. The audit committee has delegated to its Chairman the approval of such services subject to reports to the full audit committee at its next subsequent meeting. |
| |
| (e)(2) | | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, with respect to: Audit-Related Fees were 0%; Tax Fees were 0%; and Other Fees were 0% for the fiscal years ended October 31, 2023 and October 31, 2024, respectively. |
| (g) | For the fiscal years ended October 31, 2024 and October 31, 2023, aggregate non-audit fees billed by Deloitte for services rendered to the Registrant were: |
| | | | |
2024 | | 2023 | |
$58,701 | | $ | 112,956 | |
For the twelve month periods ended October 31, 2024 and October 31, 2023, aggregate non-audit fees billed by Deloitte for services rendered to the Registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant were $331,979 and $554,743, respectively.
| Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
| (a) | The Schedule of Investments is included as part of the Report to Shareholders filed under Item 7(a) of this Form N-CSR. |
| Item 7. | Financial Statements and Financial Highlights for Open-End Management Investment Companies. |
| (a) | The Registrant’s Financial Statements are attached herewith. |
EQUITY FUNDS
TCW Global Real Estate Fund
TCW Relative Value Large Cap Fund
TCW Relative Value Mid Cap Fund
TCW Select Equities Fund
ASSET ALLOCATION FUND
TCW Conservative Allocation Fund
TCW Funds, Inc.
Table of Contents
TCW Conservative Allocation Fund
Schedule of Investments | October 31, 2024 |
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
INVESTMENT COMPANIES — 99.7% | |
|
| Diversified Equity Funds — 19.2% | |
| | |
TCW Global Real Estate Fund — I Class (1) | | | 103,244 | | | $ | 1,299,842 | |
| | |
TCW Relative Value Large Cap Fund — I Class (1) | | | 190,297 | | | | 3,136,088 | |
| | |
TCW Relative Value Mid Cap Fund — I Class (1) | | | 5,368 | | | | 163,066 | |
| | |
TCW Select Equities Fund — I Class (1) | | | 51,838 | | | | 1,732,949 | |
| | | | | | | | |
| |
| | | | 6,331,945 | |
| | | | | | | | |
|
| Diversified Fixed Income Funds — 66.0% | |
| | |
TCW Emerging Markets Income Fund — I Class (1) | | | 31,569 | | | | 208,039 | |
| | |
TCW Global Bond Fund — I Class (1) | | | 136,292 | | | | 1,123,044 | |
| | |
TCW MetWest High Yield Bond Fund — I Class (1) | | | 17,580 | | | | 164,199 | |
| | |
TCW MetWest Low Duration Bond Fund — I Class (1) | | | 161,041 | | | | 1,343,078 | |
| | |
TCW MetWest Total Return Bond Fund — I Class (1) | | | 791,634 | | | | 7,140,535 | |
| | |
TCW MetWest Unconstrained Bond Fund — I Class (1) | | | 324,688 | | | | 3,347,535 | |
| | |
TCW Securitized Bond Fund (formerly TCW Total Return Bond Fund) — I Class (1) | | | 1,071,414 | | | | 8,410,602 | |
| | | | | | | | |
| |
| | | | 21,737,032 | |
| | | | | | | | |
|
| Exchange-Traded Funds — 13.5% | |
| | |
iShares Gold Trust (2) | | | 7,055 | | | | 365,731 | |
| | |
iShares MSCI EAFE ETF | | | 5,280 | | | | 418,282 | |
| | |
TCW Artificial Intelligence ETF (1) | | | 5,812 | | | | 157,796 | |
| | |
TCW Compounders ETF (1) | | | 87,434 | | | | 3,184,346 | |
| | |
TCW Transform Supply Chain ETF (1) | | | 2,470 | | | | 161,305 | |
| | |
TCW Transform Systems ETF (1) | | | 2,370 | | | | 172,891 | |
| | | | | | | | |
| |
| | | | 4,460,351 | |
| | | | | | | | |
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
| Exchange-Traded Notes — 1.0% | |
| | |
iPath Bloomberg Commodity Index Total Return ETN (2) | | | 10,520 | | | $ | 334,010 | |
| | | | | | | | |
| | |
Total Exchange-traded Notes | | | | | | | 334,010 | |
| | | | | | | | |
|
Total Investment Companies | |
| |
(Cost: $29,834,811) | | | | 32,863,338 | |
| | | | | | | | |
|
MONEY MARKET INVESTMENTS — 0.3% | |
| | |
State Street Institutional U.S. Government Money Market Fund — Premier Class, 4.82% (3) | | | 88,949 | | | | 88,949 | |
| | | | | | | | |
|
Total Money Market Investments | |
| |
(Cost: $88,949) | | | | 88,949 | |
| | | | | | | | |
| | |
Total Investments (100.0%) | | | | | | | | |
| |
(Cost: $29,923,760) | | | | 32,952,287 | |
| |
Liabilities In Excess Of Other Assets (0.0%) | | | | (1,595 | ) |
| | | | | | | | |
| |
Net Assets (100.0%) | | | $ | 32,950,692 | |
| | | | | | | | |
Notes to the Schedule of Investments:
| ETF | | Exchange-Traded Fund. |
| ETN | | Exchange-Traded Note. |
| (2) | | Non-income producing security. |
| (3) | | Rate disclosed is the 7-day net yield as of October 31, 2024. |
See accompanying Notes to Financial Statements.
1
TCW Conservative Allocation Fund
Schedule of Investments (Continued)
The summary of the TCW Conservative Allocation Fund transactions in the affiliated funds for the period ended October 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Name of
Affiliated
Fund | | Value at
October 31,
2023 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Number
of Shares
Held
October 31,
2024 | | | Value at
October 31,
2024 | | | Dividends and
Interest
Income
Received | | | Distributions
Received from
Net Realized
Gain | | | Net Realized
Gain (Loss)
on
Investments | | | Net change in
Unrealized
Gain (Loss)
on
Investments | |
TCW Artificial Intelligence ETF | |
| | $ | — | | | $ | 140,863 | | | $ | 257,850 | | | | 5,812 | | | $ | 157,796 | | | $ | — | | | $ | — | | | $ | 170,007 | | | $ | 104,776 | |
TCW Artificial Intelligence Equity Fund—I Class | |
| | | 288,774 | | | | — | | | | 145,071 | | | | — | | | | — | | | | — | | | | — | | | | (140,107 | ) | | | (3,596 | ) |
TCW Compounders ETF | |
| | | — | | | | 1,240,769 | | | | 33,437 | | | | 87,434 | | | | 3,184,346 | | | | 675 | | | | — | | | | 27,950 | | | | 1,949,064 | |
TCW Emerging Markets Income Fund—I Class | |
| | | 365,767 | | | | 19,311 | | | | 222,520 | | | | 31,569 | | | | 208,039 | | | | 18,687 | | | | — | | | | (31,383 | ) | | | 76,864 | |
TCW Enhanced Commodity Strategy Fund—I Class | |
| | | 683,702 | | | | 23,731 | | | | 688,826 | | | | — | | | | — | | | | 23,731 | | | | — | | | | (40,228 | ) | | | 21,621 | |
TCW Global Bond Fund—I Class | |
| | | 958,033 | | | | 130,677 | | | | 40,482 | | | | 136,292 | | | | 1,123,044 | | | | 32,808 | | | | — | | | | (9,381 | ) | | | 84,197 | |
TCW Global Real Estate Fund—I Class | |
| | | 1,149,963 | | | | 219,538 | | | | 447,119 | | | | 103,244 | | | | 1,299,842 | | | | 27,115 | | | | — | | | | 63,449 | | | | 314,011 | |
TCW MetWest High Yield Bond Fund—I Class | |
| | | 292,786 | | | | 14,664 | | | | 162,049 | | | | 17,580 | | | | 164,199 | | | | 14,358 | | | | — | | | | (2,818 | ) | | | 21,616 | |
TCW MetWest Low Duration Bond Fund—I Class | |
| | | 1,696,769 | | | | 247,164 | | | | 665,962 | | | | 161,041 | | | | 1,343,078 | | | | 78,455 | | | | — | | | | (29,077 | ) | | | 94,184 | |
TCW MetWest Total Return Bond Fund—I Class | |
| | | 5,502,102 | | | | 1,642,213 | | | | 369,132 | | | | 791,634 | | | | 7,140,535 | | | | 281,406 | | | | — | | | | (82,616 | ) | | | 447,968 | |
TCW MetWest Unconstrained Bond Fund—I Class | |
| | | 2,593,970 | | | | 2,188,389 | | | | 1,526,150 | | | | 324,688 | | | | 3,347,535 | | | | 146,239 | | | | — | | | | (231,579 | ) | | | 322,905 | |
TCW New America Premier Equities Fund—I Class | |
| | | 2,780,908 | | | | 3,805 | | | | 1,706,880 | | | | — | | | | — | | | | 3,805 | | | | — | | | | 265,145 | | | | (1,342,978 | ) |
TCW Relative Value Large Cap Fund—I Class | |
| | | 2,197,046 | | | | 690,877 | | | | 499,666 | | | | 190,297 | | | | 3,136,088 | | | | 37,293 | | | | 90,114 | | | | 40,668 | | | | 707,163 | |
TCW Relative Value Mid Cap Fund—I Class | |
| | | 372,130 | | | | 502,532 | | | | 833,399 | | | | 5,368 | | | | 163,066 | | | | 4,335 | | | | 8,585 | | | | 82,684 | | | | 39,119 | |
TCW Select Equities Fund—I Class | |
| | | 2,201,355 | | | | 282,019 | | | | 1,427,018 | | | | 51,838 | | | | 1,732,949 | | | | — | | | | 248,194 | | | | 390,216 | | | | 286,377 | |
TCW Securitized Bond Fund (formerly Total Return Bond Fund)—I Class | |
| | | 5,181,172 | | | | 3,406,514 | | | | 456,421 | | | | 1,071,414 | | | | 8,410,602 | | | | 479,006 | | | | — | | | | (109,168 | ) | | | 388,505 | |
TCW Transform Supply Chain ETF | |
| | | — | | | | 162,057 | | | | — | | | | 2,470 | | | | 161,305 | | | | — | | | | — | | | | — | | | | (752 | ) |
TCW Transform Systems ETF | |
| | | — | | | | 163,028 | | | | — | | | | 2,370 | | | | 172,891 | | | | 145 | | | | — | | | | — | | | | 9,863 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 31,745,315 | | | $ | 1,148,058 | | | $ | 346,893 | | | $ | 363,762 | | | $ | 3,520,907 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
2
TCW Conservative Allocation Fund
Fair Valuation Summary | October 31, 2024 |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
Description | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | | Other
Significant
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Total | |
Investment Companies | | $ | 32,863,338 | | | $ | — | | | $ | — | | | $ | 32,863,338 | |
Money Market Investments | | | 88,949 | | | | — | | | | — | | | | 88,949 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 32,952,287 | | | $ | — | | | $ | — | | | $ | 32,952,287 | |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
3
TCW Global Real Estate Fund
Schedule of Investments
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
COMMON STOCK — 97.0% of Net Assets | |
|
| Australia — 7.8% | |
| | |
Dexus | | | 223,254 | | | $ | 1,042,848 | |
| | |
Goodman Group | | | 61,353 | | | | 1,458,177 | |
| | |
Mirvac Group | | | 502,806 | | | | 699,580 | |
| | | | | | | | |
| | |
Total Australia | | | | | | | | |
| | |
(Cost: $2,803,866) | | | | | | | 3,200,605 | |
| | | | | | | | |
|
| Belgium — 2.0% (Cost: $844,232) | |
| | |
Shurgard Self Storage Ltd. | | | 19,206 | | | | 820,893 | |
| | | | | | | | |
|
| Canada — 5.1% | |
| | |
BSR Real Estate Investment Trust | | | 67,712 | | | | 876,193 | |
| | |
Killam Apartment Real Estate Investment Trust | | | 91,983 | | | | 1,233,963 | |
| | | | | | | | |
|
Total Canada | |
| |
(Cost: $2,270,675) | | | | 2,110,156 | |
| | | | | | | | |
|
| Japan — 4.3% | |
| | |
Mitsubishi Estate Co. Ltd. | | | 61,400 | | | | 905,690 | |
| | |
Mitsui Fudosan Co. Ltd. | | | 103,900 | | | | 884,270 | |
| | | | | | | | |
|
Total Japan | |
| |
(Cost: $1,716,088) | | | | 1,789,960 | |
| | | | | | | | |
|
| Singapore — 2.0% (Cost: $924,831) | |
| | |
CapitaLand Ascendas REIT | | | 414,000 | | | | 837,452 | |
| | | | | | | | |
|
| Spain — 6.4% | |
| | |
Cellnex Telecom SA (1) | | | 37,428 | | | | 1,371,918 | |
| | |
Merlin Properties Socimi SA | | | 113,345 | | | | 1,262,296 | |
| | | | | | | | |
| | |
Total Spain | | | | | | | | |
| | |
(Cost: $2,811,773) | | | | | | | 2,634,214 | |
| | | | | | | | |
|
| United Kingdom — 2.9% (Cost: $1,360,254) | |
| | |
Segro PLC | | | 118,481 | | | | 1,196,955 | |
| | | | | | | | |
|
| United States — 66.5% | |
| | |
American Homes 4 Rent | | | 18,455 | | | | 650,354 | |
| | |
American Tower Corp. | | | 7,703 | | | | 1,644,899 | |
| | |
Americold Realty Trust, Inc. | | | 61,787 | | | | 1,586,690 | |
| | |
CBRE Group, Inc. (1) | | | 10,042 | | | | 1,315,201 | |
| | |
Cousins Properties, Inc. | | | 30,670 | | | | 939,422 | |
| | |
Crown Castle, Inc. | | | 6,341 | | | | 681,594 | |
| | |
Digital Realty Trust, Inc. | | | 10,773 | | | | 1,920,072 | |
| | |
DR Horton, Inc. | | | 4,313 | | | | 728,897 | |
| | |
Equinix, Inc. | | | 1,179 | | | | 1,070,626 | |
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
| United States (Continued) | |
| | |
Gaming & Leisure Properties, Inc. | | | 21,056 | | | $ | 1,056,801 | |
| | |
Innovative Industrial Properties, Inc. | | | 7,703 | | | | 995,151 | |
| | |
Jones Lang LaSalle, Inc. (1) | | | 2,740 | | | | 742,430 | |
| | |
LXP Industrial Trust | | | 68,381 | | | | 645,517 | |
| | |
Mid-America Apartment Communities, Inc. | | | 8,472 | | | | 1,282,152 | |
| | |
NexPoint Residential Trust, Inc. | | | 33,542 | | | | 1,397,024 | |
| | |
PotlatchDeltic Corp. | | | 40,991 | | | | 1,703,996 | |
| | |
Prologis, Inc. | | | 16,526 | | | | 1,866,446 | |
| | |
Simon Property Group, Inc. | | | 4,150 | | | | 701,848 | |
| | |
Toll Brothers, Inc. | | | 5,311 | | | | 777,743 | |
| | |
Travel & Leisure Co. | | | 23,241 | | | | 1,111,152 | |
| | |
VICI Properties, Inc. | | | 32,504 | | | | 1,032,327 | |
| | |
Welltower, Inc. | | | 14,362 | | | | 1,937,147 | |
| | |
Weyerhaeuser Co. | | | 30,428 | | | | 948,136 | |
| | |
Wyndham Hotels & Resorts, Inc. | | | 7,208 | | | | 636,611 | |
| | | | | | | | |
|
Total United States | |
| |
(Cost: $25,275,926) | | | | 27,372,236 | |
| | | | | | | | |
|
Total Common Stock | |
| |
(Cost: $38,007,645) | | | | 39,962,471 | |
| | | | | | | | |
|
| MONEY MARKET INVESTMENTS — 3.5% | |
| | |
State Street Institutional U.S. Government Money Market Fund — Premier Class, 4.82% (2) | | | 1,429,099 | | | | 1,429,099 | |
| | | | | | | | |
|
Total Money Market Investments | |
| |
(Cost: $1,429,099) | | | | 1,429,099 | |
| | | | | | | | |
| | |
Total Investments (100.5%) | | | | | | | | |
| |
(Cost: $39,436,744) | | | | 41,391,570 | |
| |
Liabilities In Excess Of Other Assets (-0.5%) | | | | (222,714 | ) |
| | | | | | | | |
| |
Net Assets (100.0%) | | | $ | 41,168,856 | |
| | | | | | | | |
Notes to the Schedule of Investments:
| REIT | | Real Estate Investment Trust. |
| (1) | | Non-income producing security. |
| (2) | | Rate disclosed is the 7-day net yield as of October 31, 2024. |
See accompanying Notes to Financial Statements.
4
TCW Global Real Estate Fund
Fair Valuation Summary | October 31, 2024 |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
Description | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | | Other
Significant
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Total | |
Common Stock | | | | | | | | | | | | | | | | |
Industrial REITs | | $ | 4,098,653 | | | $ | 3,492,584 | | | $ | — | | | $ | 7,591,237 | |
Specialized REITs | | | 6,434,383 | | | | — | | | | — | | | | 6,434,383 | |
Diversified REITs | | | 1,645,505 | | | | 1,961,876 | | | | — | | | | 3,607,381 | |
Multi-Family Residential REITs | | | 2,516,115 | | | | 876,193 | | | | — | | | | 3,392,308 | |
Real Estate Services | | | 2,057,631 | | | | — | | | | — | | | | 2,057,631 | |
Office REITs | | | 939,422 | | | | 1,042,848 | | | | — | | | | 1,982,270 | |
Health Care REITs | | | 1,937,147 | | | | — | | | | — | | | | 1,937,147 | |
Data Center REITs | | | 1,920,072 | | | | — | | | | — | | | | 1,920,072 | |
Diversified Real Estate Activities | | | — | | | | 1,789,960 | | | | — | | | | 1,789,960 | |
Timber REITs | | | 1,703,996 | | | | — | | | | — | | | | 1,703,996 | |
Homebuilding | | | 1,506,640 | | | | — | | | | — | | | | 1,506,640 | |
Single-Family Residential REITs | | | 1,397,024 | | | | — | | | | — | | | | 1,397,024 | |
Wireless Telecommunication Services | | | — | | | | 1,371,918 | | | | — | | | | 1,371,918 | |
Hotels, Resorts & Cruise Lines | | | 1,111,152 | | | | — | | | | — | | | | 1,111,152 | |
Self Storage REITs | | | — | | | | 820,893 | | | | — | | | | 820,893 | |
Retail REITs | | | 701,848 | | | | — | | | | — | | | | 701,848 | |
Hotel & Resort REITs | | | 636,611 | | | | — | | | | — | | | | 636,611 | |
| | | | | | | | | | | | | | | | |
Total Common Stock | | | 28,606,199 | | | | 11,356,272 | | | | — | | | | 39,962,471 | |
| | | | | | | | | | | | | | | | |
Money Market Investments | | | 1,429,099 | | | | — | | | | — | | | | 1,429,099 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 30,035,298 | | | $ | 11,356,272 | | | $ | — | | | $ | 41,391,570 | |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
5
TCW Relative Value Large Cap Fund
Schedule of Investments
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
| COMMON STOCK — 98.0% of Net Assets | |
|
| Aerospace & Defense — 4.8% | |
| | |
General Electric Co. | | | 91,898 | | | $ | 15,786,239 | |
| | |
Textron, Inc. | | | 78,936 | | | | 6,348,033 | |
| | | | | | | | |
| | |
| | | | | | | 22,134,272 | |
| | | | | | | | |
|
| Air Freight & Logistics — 0.7% | |
| | |
United Parcel Service, Inc. — Class B | | | 24,933 | | | | 3,342,518 | |
| | | | | | | | |
|
| Automobiles — 1.9% | |
| | |
General Motors Co. | | | 173,267 | | | | 8,795,033 | |
| | | | | | | | |
|
| Banks — 5.5% | |
| | |
JPMorgan Chase & Co. | | | 81,245 | | | | 18,029,890 | |
| | |
Wells Fargo & Co. | | | 113,682 | | | | 7,380,236 | |
| | | | | | | | |
| | |
| | | | | | | 25,410,126 | |
| | | | | | | | |
|
| Beverages — 2.2% | |
| | |
PepsiCo, Inc. | | | 60,869 | | | | 10,109,123 | |
| | | | | | | | |
|
| Biotechnology — 5.2% | |
| | |
AbbVie, Inc. | | | 58,635 | | | | 11,953,918 | |
| | |
Amgen, Inc. | | | 36,689 | | | | 11,746,350 | |
| | | | | | | | |
| | |
| | | | | | | 23,700,268 | |
| | | | | | | | |
|
| Building Products — 3.0% | |
| | |
Carlisle Cos., Inc. | | | 10,290 | | | | 4,344,747 | |
| | |
Johnson Controls International PLC (Ireland) | | | 126,206 | | | | 9,534,863 | |
| | | | | | | | |
| | |
| | | | | | | 13,879,610 | |
| | | | | | | | |
|
| Capital Markets — 12.6% | |
| | |
Ameriprise Financial, Inc. | | | 18,884 | | | | 9,636,505 | |
| | |
Bank of New York Mellon Corp. | | | 173,091 | | | | 13,044,138 | |
| | |
Blackstone, Inc. | | | 11,212 | | | | 1,880,813 | |
| | |
Intercontinental Exchange, Inc. | | | 94,568 | | | | 14,740,314 | |
| | |
KKR & Co., Inc. | | | 44,025 | | | | 6,086,016 | |
| | |
Morgan Stanley | | | 104,918 | | | | 12,196,718 | |
| | | | | | | | |
| | |
| | | | | | | 57,584,504 | |
| | | | | | | | |
|
| Chemicals — 2.3% | |
| | |
Corteva, Inc. | | | 35,974 | | | | 2,191,536 | |
| | |
DuPont de Nemours, Inc. | | | 102,933 | | | | 8,542,410 | |
| | | | | | | | |
| | |
| | | | | | | 10,733,946 | |
| | | | | | | | |
|
| Consumer Staples Distribution & Retail — 1.7% | |
| | |
Target Corp. | | | 52,047 | | | | 7,809,132 | |
| | | | | | | | |
|
| Diversified Telecommunication Services — 1.1% | |
| | |
AT&T, Inc. | | | 227,382 | | | | 5,125,190 | |
| | | | | | | | |
|
| Electrical Equipment — 2.7% | |
| | |
GE Vernova, Inc. (1) | | | 21,182 | | | | 6,389,762 | |
| | |
nVent Electric PLC (Ireland) | | | 82,610 | | | | 6,160,228 | |
| | | | | | | | |
| | |
| | | | | | | 12,549,990 | |
| | | | | | | | |
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
| Electronic Equipment, Instruments & Components — 1.7% | |
| | |
Flex Ltd. (1) | | | 225,879 | | | $ | 7,831,225 | |
| | | | | | | | |
|
| Energy Equipment & Services — 1.7% | |
| | |
Baker Hughes Co. | | | 207,819 | | | | 7,913,747 | |
| | | | | | | | |
|
| Entertainment — 2.0% | |
| | |
Walt Disney Co. | | | 94,403 | | | | 9,081,569 | |
| | | | | | | | |
|
| Financial Services — 4.5% | |
| | |
Apollo Global Management, Inc. | | | 60,315 | | | | 8,640,727 | |
| | |
Fiserv, Inc. (1) | | | 59,698 | | | | 11,814,234 | |
| | | | | | | | |
| | |
| | | | | | | 20,454,961 | |
| | | | | | | | |
|
| Health Care Equipment & Supplies — 1.7% | |
| | |
GE HealthCare Technologies, Inc. | | | 86,693 | | | | 7,572,634 | |
| | | | | | | | |
|
| Health Care Providers & Services — 3.9% | |
| | |
Elevance Health, Inc. | | | 9,538 | | | | 3,870,139 | |
| | |
McKesson Corp. | | | 27,527 | | | | 13,779,741 | |
| | | | | | | | |
| | |
| | | | | | | 17,649,880 | |
| | | | | | | | |
|
| Household Durables — 3.5% | |
| | |
Lennar Corp. | | | 93,307 | | | | 15,890,182 | |
| | | | | | | | |
|
| Independent Power and Renewable Electricity Producers — 1.3% | |
| | |
AES Corp. | | | 372,052 | | | | 6,135,137 | |
| | | | | | | | |
|
| Insurance — 2.2% | |
| | |
MetLife, Inc. | | | 126,405 | | | | 9,912,680 | |
| | | | | | | | |
|
| IT Services — 4.4% | |
| | |
International Business Machines Corp. | | | 97,521 | | | | 20,159,541 | |
| | | | | | | | |
|
| Machinery — 1.6% | |
| | |
Xylem, Inc. | | | 59,138 | | | | 7,201,826 | |
| | | | | | | | |
|
| Media — 2.1% | |
| | |
Comcast Corp. | | | 214,685 | | | | 9,375,294 | |
| | | | | | | | |
|
| Metals & Mining — 1.3% | |
| | |
Freeport-McMoRan, Inc. | | | 135,804 | | | | 6,113,896 | |
| | | | | | | | |
|
| Multi-Utilities — 1.5% | |
| | |
NiSource, Inc. | | | 198,665 | | | | 6,985,061 | |
| | | | | | | | |
|
| Oil, Gas & Consumable Fuels — 2.8% | |
| | |
Exxon Mobil Corp. | | | 98,060 | | | | 11,451,447 | |
| | |
Marathon Petroleum Corp. | | | 8,426 | | | | 1,225,730 | |
| | | | | | | | |
| | |
| | | | | | | 12,677,177 | |
| | | | | | | | |
|
| Pharmaceuticals — 2.6% | |
| | |
Merck & Co., Inc. | | | 38,172 | | | | 3,905,759 | |
| | |
Novartis AG (SP ADR) (Switzerland) | | | 73,639 | | | | 7,982,468 | |
| | | | | | | | |
| | |
| | | | | | | 11,888,227 | |
| | | | | | | | |
|
| Real Estate Management & Development — 1.1% | |
| | |
Jones Lang LaSalle, Inc. (1) | | | 19,029 | | | | 5,156,098 | |
| | | | | | | | |
|
| Retail REITs — 2.2% | |
| | |
Simon Property Group, Inc. | | | 58,402 | | | | 9,876,946 | |
| | | | | | | | |
See accompanying Notes to Financial Statements.
6
TCW Relative Value Large Cap Fund
Schedule of Investments | October 31, 2024 |
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
| Semiconductors & Semiconductor Equipment — 3.5% | |
| | |
Broadcom, Inc. | | | 93,626 | | | $ | 15,894,886 | |
| | | | | | | | |
|
| Software — 1.5% | |
| | |
Salesforce, Inc. | | | 24,111 | | | | 7,025,222 | |
| | | | | | | | |
|
| Specialty Retail — 2.9% | |
| | |
Best Buy Co., Inc. | | | 63,934 | | | | 5,781,551 | |
| | |
Dick’s Sporting Goods, Inc. | | | 38,581 | | | | 7,552,231 | |
| | | | | | | | |
| | |
| | | | | | | 13,333,782 | |
| | | | | | | | |
|
| Technology Hardware, Storage & Peripherals — 3.8% | |
| | |
NetApp, Inc. | | | 78,127 | | | | 9,008,824 | |
| | |
Seagate Technology Holdings PLC | | | 83,846 | | | | 8,415,623 | |
| | | | | | | | |
| | |
| | | | | | | 17,424,447 | |
| | | | | | | | |
|
| Textiles, Apparel & Luxury Goods — 0.5% | |
| | |
Tapestry, Inc. | | | 46,946 | | | | 2,227,588 | |
| | | | | | | | |
|
Total Common Stock | |
| |
(Cost: $252,132,672) | | | | 448,955,718 | |
| | | | | | | | |
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
| MONEY MARKET INVESTMENTS — 1.8% | |
| | |
State Street Institutional U.S. Government Money Market Fund — Premier Class, 4.82% (2) | | | 8,197,010 | | | $ | 8,197,010 | |
| | | | | | | | |
| |
Total Money Market Investments | | | | | |
| |
(Cost: $8,197,010) | | | | 8,197,010 | |
| | | | | | | | |
| |
Total Investments (99.8%) | | | | | |
| | |
(Cost: $260,329,682) | | | | | | | 457,152,728 | |
| |
Excess Of Other Assets Over Liabilities (0.2%) | | | | 1,032,911 | |
| | | | | | | | |
| |
Net Assets (100.0%) | | | $ | 458,185,639 | |
| | | | | | | | |
Notes to the Schedule of Investments:
| REIT | | Real Estate Investment Trust. |
| SP ADR | | Sponsored American Depositary Receipt. ADRs are receipts, typically issued by a U.S. bank or trust company, evidencing ownership of underlying securities issued by a foreign corporation. Sponsored ADRs are ADRs issued with the cooperation of the foreign corporation. |
| (1) | | Non-income producing security. |
| (2) | | Rate disclosed is the 7-day net yield as of October 31, 2024. |
See accompanying Notes to Financial Statements.
7
TCW Relative Value Large Cap Fund
Fair Valuation Summary | October 31, 2024 |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
Description | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | | Other
Significant
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Total | |
Common Stock | | | | | | | | | | | | | | | | |
Capital Markets | | $ | 57,584,504 | | | $ | — | | | $ | — | | | $ | 57,584,504 | |
Banks | | | 25,410,126 | | | | — | | | | — | | | | 25,410,126 | |
Biotechnology | | | 23,700,268 | | | | — | | | | — | | | | 23,700,268 | |
Aerospace & Defense | | | 22,134,272 | | | | — | | | | — | | | | 22,134,272 | |
Financial Services | | | 20,454,961 | | | | — | | | | — | | | | 20,454,961 | |
IT Services | | | 20,159,541 | | | | — | | | | — | | | | 20,159,541 | |
Health Care Providers & Services | | | 17,649,880 | | | | — | | | | — | | | | 17,649,880 | |
Technology Hardware, Storage & Peripherals | | | 17,424,447 | | | | — | | | | — | | | | 17,424,447 | |
Semiconductors & Semiconductor Equipment | | | 15,894,886 | | | | — | | | | — | | | | 15,894,886 | |
Household Durables | | | 15,890,182 | | | | — | | | | — | | | | 15,890,182 | |
Building Products | | | 13,879,610 | | | | — | | | | — | | | | 13,879,610 | |
Specialty Retail | | | 13,333,782 | | | | — | | | | — | | | | 13,333,782 | |
Oil, Gas & Consumable Fuels | | | 12,677,177 | | | | — | | | | — | | | | 12,677,177 | |
Electrical Equipment | | | 12,549,990 | | | | — | | | | — | | | | 12,549,990 | |
Pharmaceuticals | | | 11,888,227 | | | | — | | | | — | | | | 11,888,227 | |
Chemicals | | | 10,733,946 | | | | — | | | | — | | | | 10,733,946 | |
Beverages | | | 10,109,123 | | | | — | | | | — | | | | 10,109,123 | |
Insurance | | | 9,912,680 | | | | — | | | | — | | | | 9,912,680 | |
Retail REITs | | | 9,876,946 | | | | — | | | | — | | | | 9,876,946 | |
Media | | | 9,375,294 | | | | — | | | | — | | | | 9,375,294 | |
Entertainment | | | 9,081,569 | | | | — | | | | — | | | | 9,081,569 | |
Automobiles | | | 8,795,033 | | | | — | | | | — | | | | 8,795,033 | |
Energy Equipment & Services | | | 7,913,747 | | | | — | | | | — | | | | 7,913,747 | |
Electronic Equipment, Instruments & Components | | | 7,831,225 | | | | — | | | | — | | | | 7,831,225 | |
Consumer Staples Distribution & Retail | | | 7,809,132 | | | | — | | | | — | | | | 7,809,132 | |
Health Care Equipment & Supplies | | | 7,572,634 | | | | — | | | | — | | | | 7,572,634 | |
Machinery | | | 7,201,826 | | | | — | | | | — | | | | 7,201,826 | |
Software | | | 7,025,222 | | | | — | | | | — | | | | 7,025,222 | |
Multi-Utilities | | | 6,985,061 | | | | — | | | | — | | | | 6,985,061 | |
Independent Power and Renewable Electricity Producers | | | 6,135,137 | | | | — | | | | — | | | | 6,135,137 | |
Metals & Mining | | | 6,113,896 | | | | — | | | | — | | | | 6,113,896 | |
Real Estate Management & Development | | | 5,156,098 | | | | — | | | | — | | | | 5,156,098 | |
Diversified Telecommunication Services | | | 5,125,190 | | | | — | | | | — | | | | 5,125,190 | |
Air Freight & Logistics | | | 3,342,518 | | | | — | | | | — | | | | 3,342,518 | |
Textiles, Apparel & Luxury Goods | | | 2,227,588 | | | | — | | | | — | | | | 2,227,588 | |
| | | | | | | | | | | | | | | | |
Total Common Stock | | | 448,955,718 | | | | — | | | | — | | | | 448,955,718 | |
| | | | | | | | | | | | | | | | |
Money Market Investments | | | 8,197,010 | | | | — | | | | — | | | | 8,197,010 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 457,152,728 | | | $ | — | | | $ | — | | | $ | 457,152,728 | |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
8
TCW Relative Value Mid Cap Fund
Schedule of Investments | October 31, 2024 |
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
COMMON STOCK — 97.0% of Net Assets | |
|
| Aerospace & Defense — 2.2% | |
| | |
Textron, Inc. | | | 24,907 | | | $ | 2,003,021 | |
| | | | | | | | |
|
| Air Freight & Logistics — 3.9% | |
| | |
CH Robinson Worldwide, Inc. | | | 13,812 | | | | 1,423,188 | |
| | |
FedEx Corp. | | | 7,707 | | | | 2,110,562 | |
| | | | | | | | |
| |
| | | | 3,533,750 | |
| | | | | | | | |
|
| Banks — 6.7% | |
| | |
First Citizens BancShares, Inc. | | | 490 | | | | 949,302 | |
| | |
Popular, Inc. | | | 41,173 | | | | 3,673,867 | |
| | |
Western Alliance Bancorp | | | 17,949 | | | | 1,493,536 | |
| | | | | | | | |
| |
| | | | 6,116,705 | |
| | | | | | | | |
|
| Broadline Retail — 1.4% | |
| | |
eBay, Inc. | | | 22,125 | | | | 1,272,409 | |
| | | | | | | | |
|
| Capital Markets — 2.1% | |
| | |
Interactive Brokers Group, Inc. | | | 12,280 | | | | 1,873,682 | |
| | | | | | | | |
|
| Chemicals — 3.0% | |
| | |
Corteva, Inc. | | | 18,085 | | | | 1,101,738 | |
| | |
DuPont de Nemours, Inc. | | | 20,331 | | | | 1,687,270 | |
| | | | | | | | |
| |
| | | | 2,789,008 | |
| | | | | | | | |
|
| Construction & Engineering — 2.2% | |
| | |
Arcosa, Inc. | | | 21,891 | | | | 2,049,873 | |
| | | | | | | | |
|
| Consumer Finance — 1.7% | |
| | |
OneMain Holdings, Inc. | | | 30,340 | | | | 1,506,988 | |
| | | | | | | | |
|
| Consumer Staples Distribution & Retail — 1.9% | |
| | |
Sprouts Farmers Market, Inc. (1) | | | 13,503 | | | | 1,734,190 | |
| | | | | | | | |
|
| Electronic Equipment, Instruments & Components — 5.2% | |
| | |
Avnet, Inc. | | | 30,769 | | | | 1,667,987 | |
| | |
Flex Ltd. (1) | | | 88,559 | | | | 3,070,341 | |
| | | | | | | | |
| |
| | | | 4,738,328 | |
| | | | | | | | |
|
| Energy Equipment & Services — 3.4% | |
| | |
Baker Hughes Co. | | | 42,302 | | | | 1,610,860 | |
| | |
NOV, Inc. | | | 55,896 | | | | 866,947 | |
| | |
TechnipFMC PLC | | | 23,954 | | | | 639,332 | |
| | | | | | | | |
| |
| | | | 3,117,139 | |
| | | | | | | | |
|
| Financial Services — 11.1% | |
| | |
Apollo Global Management, Inc. | | | 29,206 | | | | 4,184,051 | |
| | |
Corpay, Inc. (1) | | | 8,937 | | | | 2,946,708 | |
| | |
Equitable Holdings, Inc. | | | 67,386 | | | | 3,055,281 | |
| | | | | | | | |
| |
| | | | 10,186,040 | |
| | | | | | | | |
|
| Health Care Providers & Services — 2.3% | |
| | |
Centene Corp. (1) | | | 18,262 | | | | 1,136,992 | |
| | |
Henry Schein, Inc. (1) | | | 14,091 | | | | 989,611 | |
| | | | | | | | |
| |
| | | | 2,126,603 | |
| | | | | | | | |
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
| Health Care REITs — 2.5% | |
| | |
Welltower, Inc. | | | 16,775 | | | $ | 2,262,612 | |
| | | | | | | | |
|
| Hotels, Restaurants & Leisure — 1.6% | |
| | |
Darden Restaurants, Inc. | | | 2,169 | | | | 347,084 | |
| | |
Travel & Leisure Co. | | | 23,846 | | | | 1,140,077 | |
| | | | | | | | |
| |
| | | | 1,487,161 | |
| | | | | | | | |
|
| Household Durables — 5.3% | |
| | |
Lennar Corp. | | | 6,937 | | | | 1,181,371 | |
| | |
Toll Brothers, Inc. | | | 24,896 | | | | 3,645,770 | |
| | | | | | | | |
| |
| | | | 4,827,141 | |
| | | | | | | | |
|
| Independent Power and Renewable Electricity Producers — 1.4% | |
| | |
AES Corp. | | | 79,294 | | | | 1,307,558 | |
| | | | | | | | |
|
| Insurance — 4.8% | |
| | |
Arch Capital Group Ltd. (1) | | | 35,965 | | | | 3,544,710 | |
| | |
Assured Guaranty Ltd. | | | 9,702 | | | | 809,729 | |
| | | | | | | | |
| |
| | | | 4,354,439 | |
| | | | | | | | |
|
| Machinery — 3.7% | |
| | |
AGCO Corp. | | | 1,994 | | | | 199,081 | |
| | |
Manitowoc Co., Inc. (1) | | | 18,530 | | | | 173,070 | |
| | |
Westinghouse Air Brake Technologies Corp. | | | 16,266 | | | | 3,057,683 | |
| | | | | | | | |
| |
| | | | 3,429,834 | |
| | | | | | | | |
|
| Marine Transportation — 1.6% | |
| | |
Kirby Corp. (1) | | | 13,103 | | | | 1,503,700 | |
| | | | | | | | |
|
| Media — 2.2% | |
| | |
Interpublic Group of Cos., Inc. | | | 29,944 | | | | 880,354 | |
| | |
Omnicom Group, Inc. | | | 11,430 | | | | 1,154,430 | |
| | | | | | | | |
| |
| | | | 2,034,784 | |
| | | | | | | | |
|
| Metals & Mining — 1.3% | |
| | |
Freeport-McMoRan, Inc. | | | 27,174 | | | | 1,223,373 | |
| | | | | | | | |
|
| Multi-Utilities — 3.9% | |
| | |
NiSource, Inc. | | | 63,274 | | | | 2,224,714 | |
| | |
Sempra | | | 16,472 | | | | 1,373,270 | |
| | | | | | | | |
| |
| | | | 3,597,984 | |
| | | | | | | | |
|
| Oil, Gas & Consumable Fuels — 2.6% | |
| | |
ConocoPhillips | | | 6,671 | | | | 730,741 | |
| | |
Expand Energy Corp. | | | 5,895 | | | | 499,425 | |
| | |
Marathon Petroleum Corp. | | | 6,265 | | | | 911,370 | |
| | |
Range Resources Corp. | | | 7,708 | | | | 231,471 | |
| | | | | | | | |
| |
| | | | 2,373,007 | |
| | | | | | | | |
|
| Passenger Airlines — 2.1% | |
| | |
United Airlines Holdings, Inc. (1) | | | 24,281 | | | | 1,900,231 | |
| | | | | | | | |
|
| Personal Care Products — 1.3% | |
| | |
Coty, Inc. (1) | | | 154,948 | | | | 1,152,813 | |
| | | | | | | | |
See accompanying Notes to Financial Statements.
9
TCW Relative Value Mid Cap Fund
Schedule of Investments (Continued)
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
| Pharmaceuticals — 1.0% | |
| | |
Teva Pharmaceutical Industries, Ltd. (SP ADR) (Israel) (1) | | | 47,176 | | | $ | 869,925 | |
| | | | | | | | |
|
| Professional Services — 1.6% | |
| | |
Jacobs Solutions, Inc. | | | 10,331 | | | | 1,452,332 | |
| | | | | | | | |
|
| Real Estate Management & Development — 3.8% | |
| | |
Jones Lang LaSalle, Inc. (1) | | | 12,911 | | | | 3,498,365 | |
| | | | | | | | |
|
| Retail REITs — 1.4% | |
| | |
Curbline Properties Corp. (1) | | | 57,655 | | | | 1,304,733 | |
| | | | | | | | |
|
| Semiconductors & Semiconductor Equipment — 1.3% | |
| | |
Analog Devices, Inc. | | | 4,598 | | | | 1,025,860 | |
| | |
Qorvo, Inc. (1) | | | 2,772 | | | | 197,533 | |
| | | | | | | | |
| |
| | | | 1,223,393 | |
| | | | | | | | |
|
| Specialty Retail — 3.4% | |
| | |
Dick’s Sporting Goods, Inc. | | | 6,663 | | | | 1,304,282 | |
| | |
Gap, Inc. | | | 39,186 | | | | 813,893 | |
| | |
Guess?, Inc. | | | 22,546 | | | | 383,057 | |
| | |
Williams-Sonoma, Inc. | | | 4,370 | | | | 586,148 | |
| | | | | | | | |
| |
| | | | 3,087,380 | |
| | | | | | | | |
|
| Technology Hardware, Storage & Peripherals — 1.8% | |
| | |
Seagate Technology Holdings PLC | | | 16,745 | | | | 1,680,696 | |
| | | | | | | | |
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
| Textiles, Apparel & Luxury Goods — 1.3% | |
| | |
Tapestry, Inc. | | | 25,399 | | | $ | 1,205,183 | |
| | | | | | | | |
|
Total Common Stock | |
| |
(Cost: $52,421,896) | | | | 88,824,380 | |
| | | | | | | | |
|
MONEY MARKET INVESTMENTS — 3.3% | |
| | |
State Street Institutional U.S. Government Money Market Fund — Premier Class, 4.82% (2) | | | 3,046,973 | | | | 3,046,973 | |
| | | | | | | | |
| |
| | | | 3,046,973 | |
| | | | | | | | |
|
Total Money Market Investments | |
| |
(Cost: $3,046,973) | | | | 3,046,973 | |
| | | | | | | | |
| | |
Total Investments (100.3%) | | | | | | | | |
| |
(Cost: $55,468,869) | | | | 91,871,353 | |
| |
Liabilities In Excess Of Other Assets (-0.3%) | | | | (234,531 | ) |
| | | | | | | | |
| |
Net Assets (100.0%) | | | $ | 91,636,822 | |
| | | | | | | | |
Notes to the Schedule of Investments:
| REIT | | Real Estate Investment Trust. |
| SP ADR | | Sponsored American Depositary Receipt. ADRs are receipts, typically issued by a U.S. bank or trust company, evidencing ownership of underlying securities issued by a foreign corporation. Sponsored ADRs are ADRs issued with the cooperation of the foreign corporation. |
| (1) | | Non-income producing security. |
| (2) | | Rate disclosed is the 7-day net yield as of October 31, 2024. |
See accompanying Notes to Financial Statements.
10
TCW Relative Value Mid Cap Fund
Fair Valuation Summary | October 31, 2024 |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
Description | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | | Other
Significant
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Total | |
Common Stock | | | | | | | | | | | | | | | | |
Financial Services | | $ | 10,186,040 | | | $ | — | | | $ | — | | | $ | 10,186,040 | |
Banks | | | 6,116,705 | | | | — | | | | — | | | | 6,116,705 | |
Household Durables | | | 4,827,141 | | | | — | | | | — | | | | 4,827,141 | |
Electronic Equipment, Instruments & Components | | | 4,738,328 | | | | — | | | | — | | | | 4,738,328 | |
Insurance | | | 4,354,439 | | | | — | | | | — | | | | 4,354,439 | |
Multi-Utilities | | | 3,597,984 | | | | — | | | | — | | | | 3,597,984 | |
Air Freight & Logistics | | | 3,533,750 | | | | — | | | | — | | | | 3,533,750 | |
Real Estate Management & Development | | | 3,498,365 | | | | — | | | | — | | | | 3,498,365 | |
Machinery | | | 3,429,834 | | | | — | | | | — | | | | 3,429,834 | |
Energy Equipment & Services | | | 3,117,139 | | | | — | | | | — | | | | 3,117,139 | |
Specialty Retail | | | 3,087,380 | | | | — | | | | — | | | | 3,087,380 | |
Chemicals | | | 2,789,008 | | | | — | | | | — | | | | 2,789,008 | |
Oil, Gas & Consumable Fuels | | | 2,373,007 | | | | — | | | | — | | | | 2,373,007 | |
Health Care REITs | | | 2,262,612 | | | | — | | | | — | | | | 2,262,612 | |
Health Care Providers & Services | | | 2,126,603 | | | | — | | | | — | | | | 2,126,603 | |
Construction & Engineering | | | 2,049,873 | | | | — | | | | — | | | | 2,049,873 | |
Media | | | 2,034,784 | | | | — | | | | — | | | | 2,034,784 | |
Aerospace & Defense | | | 2,003,021 | | | | — | | | | — | | | | 2,003,021 | |
Passenger Airlines | | | 1,900,231 | | | | — | | | | — | | | | 1,900,231 | |
Capital Markets | | | 1,873,682 | | | | — | | | | — | | | | 1,873,682 | |
Consumer Staples Distribution & Retail | | | 1,734,190 | | | | — | | | | — | | | | 1,734,190 | |
Technology Hardware, Storage & Peripherals | | | 1,680,696 | | | | — | | | | — | | | | 1,680,696 | |
Consumer Finance | | | 1,506,988 | | | | — | | | | — | | | | 1,506,988 | |
Marine Transportation | | | 1,503,700 | | | | — | | | | — | | | | 1,503,700 | |
Hotels, Restaurants & Leisure | | | 1,487,161 | | | | — | | | | — | | | | 1,487,161 | |
Professional Services | | | 1,452,332 | | | | — | | | | — | | | | 1,452,332 | |
Independent Power and Renewable Electricity Producers | | | 1,307,558 | | | | — | | | | — | | | | 1,307,558 | |
Retail REITs | | | 1,304,733 | | | | — | | | | — | | | | 1,304,733 | |
Broadline Retail | | | 1,272,409 | | | | — | | | | — | | | | 1,272,409 | |
Semiconductors & Semiconductor Equipment | | | 1,223,393 | | | | — | | | | — | | | | 1,223,393 | |
Metals & Mining | | | 1,223,373 | | | | — | | | | — | | | | 1,223,373 | |
Textiles, Apparel & Luxury Goods | | | 1,205,183 | | | | — | | | | — | | | | 1,205,183 | |
Personal Care Products | | | 1,152,813 | | | | — | | | | — | | | | 1,152,813 | |
Pharmaceuticals | | | 869,925 | | | | — | | | | — | | | | 869,925 | |
| | | | | | | | | | | | | | | | |
Total Common Stock | | | 88,824,380 | | | | — | | | | — | | | | 88,824,380 | |
| | | | | | | | | | | | | | | | |
Money Market Investments | | | 3,046,973 | | | | — | | | | — | | | | 3,046,973 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 91,871,353 | | | $ | — | | | $ | — | | | $ | 91,871,353 | |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
11
TCW Select Equities Fund
Schedule of Investments
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
COMMON STOCK — 98.2% of Net Assets | |
|
| Aerospace & Defense — 1.5% | |
| | |
General Electric Co. | | | 59,484 | | | $ | 10,218,161 | |
| | | | | | | | |
|
| Broadline Retail — 6.4% | |
| | |
Amazon.com, Inc. (1) | | | 234,633 | | | | 43,735,591 | |
| | | | | | | | |
|
| Capital Markets — 2.7% | |
| | |
S&P Global, Inc. | | | 37,975 | | | | 18,241,671 | |
| | | | | | | | |
|
| Commercial Services & Supplies — 2.0% | |
| | |
Waste Connections, Inc. (Canada) | | | 78,510 | | | | 13,876,642 | |
| | | | | | | | |
|
| Consumer Staples Distribution & Retail — 3.3% | |
| | |
Costco Wholesale Corp. | | | 25,816 | | | | 22,567,831 | |
| | | | | | | | |
|
| Financial Services — 7.3% | |
| | |
Mastercard, Inc. | | | 47,349 | | | | 23,655,087 | |
| | |
Visa, Inc. | | | 90,794 | | | | 26,316,641 | |
| | | | | | | | |
| |
| | | | 49,971,728 | |
| | | | | | | | |
|
| Health Care Equipment & Supplies — 6.7% | |
| | |
Boston Scientific Corp. (1) | | | 214,159 | | | | 17,993,639 | |
| | |
Dexcom, Inc. (1) | | | 114,913 | | | | 8,099,069 | |
| | |
Intuitive Surgical, Inc. (1) | | | 38,968 | | | | 19,633,637 | |
| | | | | | | | |
| |
| | | | 45,726,345 | |
| | | | | | | | |
|
| Health Care Providers & Services — 2.7% | |
| | |
UnitedHealth Group, Inc. | | | 32,545 | | | | 18,371,652 | |
| | | | | | | | |
|
| Interactive Media & Services — 11.7% | |
| | |
Alphabet, Inc. — Class C | | | 276,595 | | | | 47,765,191 | |
| | |
Meta Platforms, Inc. | | | 56,973 | | | | 32,336,735 | |
| | | | | | | | |
| |
| | | | 80,101,926 | |
| | | | | | | | |
|
| IT Services — 4.0% | |
| | |
Gartner, Inc. (1) | | | 27,791 | | | | 13,964,977 | |
| | |
Shopify, Inc. (1) | | | 171,266 | | | | 13,394,714 | |
| | | | | | | | |
| |
| | | | 27,359,691 | |
| | | | | | | | |
|
| Media — 2.3% | |
| | |
Trade Desk, Inc. (1) | | | 129,974 | | | | 15,624,175 | |
| | | | | | | | |
|
| Pharmaceuticals — 2.1% | |
| | |
Zoetis, Inc. | | | 80,627 | | | | 14,414,495 | |
| | | | | | | | |
| | | | | | | | |
| Issues | | Shares | | | Value | |
|
| Semiconductors & Semiconductor Equipment — 17.3% | |
| | |
ASML Holding NV (Netherlands) | | | 19,159 | | | $ | 12,885,385 | |
| | |
NVIDIA Corp. | | | 790,005 | | | | 104,881,064 | |
| | | | | | | | |
| |
| | | | 117,766,449 | |
| | | | | | | | |
|
| Software — 23.2% | |
| | |
Adobe, Inc. (1) | | | 28,684 | | | | 13,713,247 | |
| | |
Cadence Design Systems, Inc. (1) | | | 53,736 | | | | 14,837,584 | |
| | |
Crowdstrike Holdings, Inc. (1) | | | 60,958 | | | | 18,096,601 | |
| | |
Microsoft Corp. | | | 112,399 | | | | 45,673,334 | |
| | |
Palo Alto Networks, Inc. (1) | | | 48,950 | | | | 17,638,154 | |
| | |
ServiceNow, Inc. (1) | | | 51,783 | | | | 48,313,021 | |
| | | | | | | | |
| |
| | | | 158,271,941 | |
| | | | | | | | |
|
| Specialized REITs — 1.4% | |
| | |
American Tower Corp. | | | 45,622 | | | | 9,742,122 | |
| | | | | | | | |
|
| Specialty Retail — 3.6% | |
| | |
Home Depot, Inc. | | | 22,217 | | | | 8,747,944 | |
| | |
O’Reilly Automotive, Inc. (1) | | | 13,777 | | | | 15,886,810 | |
| | | | | | | | |
| |
| | | | 24,634,754 | |
| | | | | | | | |
|
Total Common Stock | |
| |
(Cost: $224,407,081) | | | | 670,625,174 | |
| | | | | | | | |
|
| MONEY MARKET INVESTMENTS — 2.3% | |
| | |
State Street Institutional U.S. Government Money Market Fund — Premier Class, 4.82% (2) | | | 15,796,891 | | | | 15,796,891 | |
| | | | | | | | |
|
Total Money Market Investments | |
| |
(Cost: $15,796,891) | | | | 15,796,891 | |
| | | | | | | | |
|
Total Investments (100.5%) | |
| |
(Cost: $240,203,972) | | | | 686,422,065 | |
| |
Liabilities In Excess Of Other Assets (-0.5%) | | | | (3,185,306 | ) |
| | | | | | | | |
| |
Net Assets (100.0%) | | | $ | 683,236,759 | |
| | | | | | | | |
Notes to the Schedule of Investments:
| REIT | | Real Estate Investment Trust. |
| (1) | | Non-income producing security. |
| (2) | | Rate disclosed is the 7-day net yield as of October 31, 2024. |
See accompanying Notes to Financial Statements.
12
TCW Select Equities Fund
Fair Valuation Summary | October 31, 2024 |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
Description | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | | Other
Significant
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Total | |
Common Stock | | | | | | | | | | | | | | | | |
Software | | $ | 158,271,941 | | | $ | — | | | $ | — | | | $ | 158,271,941 | |
Semiconductors & Semiconductor Equipment | | | 117,766,449 | | | | — | | | | — | | | | 117,766,449 | |
Interactive Media & Services | | | 80,101,926 | | | | — | | | | — | | | | 80,101,926 | |
Financial Services | | | 49,971,728 | | | | — | | | | — | | | | 49,971,728 | |
Health Care Equipment & Supplies | | | 45,726,345 | | | | — | | | | — | | | | 45,726,345 | |
Broadline Retail | | | 43,735,591 | | | | — | | | | — | | | | 43,735,591 | |
IT Services | | | 27,359,691 | | | | — | | | | — | | | | 27,359,691 | |
Specialty Retail | | | 24,634,754 | | | | — | | | | — | | | | 24,634,754 | |
Consumer Staples Distribution & Retail | | | 22,567,831 | | | | — | | | | — | | | | 22,567,831 | |
Health Care Providers & Services | | | 18,371,652 | | | | — | | | | — | | | | 18,371,652 | |
Capital Markets | | | 18,241,671 | | | | — | | | | — | | | | 18,241,671 | |
Media | | | 15,624,175 | | | | — | | | | — | | | | 15,624,175 | |
Pharmaceuticals | | | 14,414,495 | | | | — | | | | — | | | | 14,414,495 | |
Commercial Services & Supplies | | | 13,876,642 | | | | — | | | | — | | | | 13,876,642 | |
Aerospace & Defense | | | 10,218,161 | | | | — | | | | — | | | | 10,218,161 | |
Specialized REITs | | | 9,742,122 | | | | — | | | | — | | | | 9,742,122 | |
| | | | | | | | | | | | | | | | |
Total Common Stock | | | 670,625,174 | | | | — | | | | — | | | | 670,625,174 | |
| | | | | | | | | | | | | | | | |
Money Market Investments | | | 15,796,891 | | | | — | | | | — | | | | 15,796,891 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 686,422,065 | | | $ | — | | | $ | — | | | $ | 686,422,065 | |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
13
TCW Funds, Inc.
Statements of Assets and Liabilities | October 31, 2024 |
| | | | | | | | | | | | |
| | | TCW
Conservative
Allocation
Fund | | | TCW
Global
Real Estate
Fund | | | TCW
Relative Value
Large Cap
Fund | |
ASSETS | |
Investments, at Value (1) | | $ | 1,206,972 | | | $ | 41,391,570 | | | $ | 457,152,728 | |
Investment in Affiliated Issuers, at Value | | | 31,745,315 | (2) | | | — | | | | — | |
Receivable for Securities Sold | | | — | | | | 3,162 | | | | 1,373,099 | |
Receivable for Fund Shares Sold | | | — | | | | 87,822 | | | | 170,117 | |
Interest and Dividends Receivable | | | 52,880 | | | | 27,243 | | | | 434,853 | |
Foreign Tax Reclaims Receivable | | | — | | | | 18,161 | | | | 258,326 | |
Receivable from Investment Advisor | | | 2,662 | | | | 19,822 | | | | 102,532 | |
Prepaid Expenses | | | 26,782 | | | | 27,687 | | | | 36,885 | |
| | | | | | | | | | | | |
Total Assets | | | 33,034,611 | | | | 41,575,467 | | | | 459,528,540 | |
| | | | | | | | | | | | |
LIABILITIES | |
Payable for Securities Purchased | | | — | | | | 293,804 | | | | 690,994 | |
Payable for Fund Shares Redeemed | | | — | | | | 2,288 | | | | 110,157 | |
Accrued Directors’ Fees and Expenses | | | 19,335 | | | | 19,336 | | | | 22,791 | |
Deferred Accrued Directors’ Fees and Expenses | | | 7,287 | | | | 7,287 | | | | 7,287 | |
Accrued Management Fees | | | — | | | | 27,743 | | | | 238,027 | |
Accrued Distribution Fees | | | 116 | | | | 2,223 | | | | 47,639 | |
Transfer Agent Fees Payable | | | 7,235 | | | | 9,519 | | | | 60,821 | |
Administration Fee Payable | | | 6,961 | | | | 6,871 | | | | 24,036 | |
Audit Fees Payable | | | 14,629 | | | | 17,958 | | | | 38,771 | |
Accounting Fees Payable | | | 2,304 | | | | 2,467 | | | | 11,108 | |
Custodian Fees Payable | | | 6,563 | | | | 4,892 | | | | 23,248 | |
Legal Fees Payable | | | 960 | | | | 863 | | | | 51,314 | |
Other Accrued Expenses | | | 18,529 | | | | 11,360 | | | | 16,708 | |
| | | | | | | | | | | | |
Total Liabilities | | | 83,919 | | | | 406,611 | | | | 1,342,901 | |
| | | | | | | | | | | | |
NET ASSETS | | $ | 32,950,692 | | | $ | 41,168,856 | | | $ | 458,185,639 | |
| | | | | | | | | | | | |
NET ASSETS CONSIST OF: | |
Paid-in Capital | | $ | 28,788,372 | | | $ | 46,913,050 | | | $ | 236,266,682 | |
Accumulated Earnings (Loss) | | | 4,162,320 | | | | (5,744,194 | ) | | | 221,918,957 | |
| | | | | | | | | | | | |
NET ASSETS | | $ | 32,950,692 | | | $ | 41,168,856 | | | $ | 458,185,639 | |
| | | | | | | | | | | | |
NET ASSETS ATTRIBUTABLE TO: | |
I Class Share | | $ | 32,411,930 | | | $ | 31,080,732 | | | $ | 238,896,936 | |
N Class Share | | $ | 538,762 | | | $ | 10,088,124 | | | $ | 219,288,703 | |
CAPITAL SHARES OUTSTANDING: (3) | |
I Class Share | | | 2,651,802 | | | | 2,468,910 | | | | 14,494,503 | |
N Class Share | | | 43,997 | | | | 802,329 | | | | 13,362,875 | |
NET ASSET VALUE PER SHARE: (4) | |
I Class Share | | $ | 12.22 | | | $ | 12.59 | | | $ | 16.48 | |
N Class Share | | $ | 12.25 | | | $ | 12.57 | | | $ | 16.41 | |
| (1) | The identified cost for the TCW Conservative Allocation Fund, the TCW Global Real Estate Fund and the TCW Relative Value Large Cap Fund at October 31, 2024 was $1,014,239, $39,436,744 and $260,329,682, respectively. |
| (2) | The identified cost for the TCW Conservative Allocation Fund at October 31, 2024 was $28,909,521. |
| (3) | The number of authorized shares, with a par value of $0.001 per share, is 4,000,000,000 for each of the I Class and N Class shares. |
| (4) | Represents offering price and redemption price per share. |
See accompanying Notes to Financial Statements.
14
TCW Funds, Inc.
Statements of Assets and Liabilities | October 31, 2024 |
| | | | | | | | |
| | | TCW
Relative Value
Mid Cap
Fund | | | TCW
Select Equities
Fund | |
ASSETS | |
Investments, at Value (1) | | $ | 91,871,353 | | | $ | 686,422,065 | |
Receivable for Securities Sold | | | 107,047 | | | | — | |
Receivable for Fund Shares Sold | | | 180 | | | | 303,305 | |
Interest and Dividends Receivable | | | 38,021 | | | | 149,433 | |
Receivable from Investment Advisor | | | 18,247 | | | | 22,655 | |
Prepaid Expenses | | | 25,112 | | | | 25,768 | |
| | | | | | | | |
Total Assets | | | 92,059,960 | | | | 686,923,226 | |
| | | | | | | | |
LIABILITIES | |
Payable for Securities Purchased | | | 256,970 | | | | 2,414,597 | |
Payable for Fund Shares Redeemed | | | 1 | | | | 489,397 | |
Accrued Directors’ Fees and Expenses | | | 19,311 | | | | 19,025 | |
Deferred Accrued Directors’ Fees and Expenses | | | 7,287 | | | | 7,287 | |
Accrued Management Fees | | | 55,327 | | | | 382,991 | |
Accrued Distribution Fees | | | 3,142 | | | | 29,498 | |
Transfer Agent Fees Payable | | | 23,619 | | | | 139,206 | |
Administration Fee Payable | | | 8,497 | | | | 25,083 | |
Audit Fees Payable | | | 19,830 | | | | 21,303 | |
Accounting Fees Payable | | | 3,514 | | | | 48,191 | |
Custodian Fees Payable | | | 10,264 | | | | 51,337 | |
Legal Fees Payable | | | 2,594 | | | | 19,817 | |
Other Accrued Expenses | | | 12,782 | | | | 38,735 | |
| | | | | | | | |
Total Liabilities | | | 423,138 | | | | 3,686,467 | |
| | | | | | | | |
NET ASSETS | | $ | 91,636,822 | | | $ | 683,236,759 | |
| | | | | | | | |
NET ASSETS CONSIST OF: | |
Paid-in Capital | | $ | 47,089,496 | | | $ | 137,766,428 | |
Accumulated Earnings (Loss) | | | 44,547,326 | | | | 545,470,331 | |
| | | | | | | | |
NET ASSETS | | $ | 91,636,822 | | | $ | 683,236,759 | |
| | | | | | | | |
NET ASSETS ATTRIBUTABLE TO: | |
I Class Share | | $ | 77,196,967 | | | $ | 546,750,683 | |
N Class Share | | $ | 14,439,855 | | | $ | 136,486,076 | |
CAPITAL SHARES OUTSTANDING: (2) | |
I Class Share | | | 2,540,791 | | | | 16,357,785 | |
N Class Share | | | 491,968 | | | | 5,147,575 | |
NET ASSET VALUE PER SHARE: (3) | |
I Class Share | | $ | 30.38 | | | $ | 33.42 | |
N Class Share | | $ | 29.35 | | | $ | 26.51 | |
| (1) | The identified cost for the TCW Relative Value Mid Cap Fund and the TCW Select Equities Fund at October 31, 2024 was $55,468,869 and $240,203,972, respectively. |
| (2) | The number of authorized shares, with a par value of $0.001 per share, is 4,000,000,000 for each of the I Class and N Class shares. |
| (3) | Represents offering price and redemption price per share. |
See accompanying Notes to Financial Statements.
15
TCW Funds, Inc.
Statements of Operations | Year Ended October 31, 2024 |
| | | | | | | | | | | | |
| | | TCW
Conservative
Allocation
Fund | | | TCW
Global
Real Estate
Fund | | | TCW
Relative Value
Large Cap
Fund | |
INVESTMENT INCOME | |
Income: | |
Dividends | | $ | 36,989 | | | $ | 955,846 | (1) | | $ | 4,787,837 | |
Dividends from Investment in Affiliated Issuers | | | 1,148,058 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | | 1,185,047 | | | | 955,846 | | | | 4,787,837 | |
| | | | | | | | | | | | |
Expenses: | |
Management Fees | | | — | | | | 243,564 | | | | 1,509,642 | |
Accounting Services Fees | | | 7,079 | | | | 7,352 | | | | 5,369 | |
Administration Fees | | | 26,087 | | | | 25,731 | | | | 32,536 | |
Transfer Agent Fees: | |
I Class | | | 10,271 | | | | 13,546 | | | | 91,982 | |
N Class | | | 8,307 | | | | 10,785 | | | | 60,921 | |
Custodian Fees | | | 5,872 | | | | 8,014 | | | | 5,444 | |
Professional Fees | | | 17,673 | | | | 23,006 | | | | 122,847 | |
Directors’ Fees and Expenses | | | 74,298 | | | | 74,298 | | | | 55,440 | |
Registration Fees: | |
I Class | | | 17,890 | | | | 17,414 | | | | 22,354 | |
N Class | | | 17,890 | | | | 17,295 | | | | 18,260 | |
Distribution Fees: | |
N Class | | | 1,279 | | | | 21,583 | | | | 221,294 | |
Compliance Expense | | | 582 | | | | 582 | | | | 582 | |
Shareholder Reporting Expense | | | 1,613 | | | | 2,260 | | | | 5,482 | |
Other | | | 4,251 | | | | 4,035 | | | | 31,362 | |
| | | | | | | | | | | | |
Total | | | 193,092 | | | | 469,465 | | | | 2,183,515 | |
| | | | | | | | | | | | |
Less Expenses Borne by Investment Advisor: | |
I Class | | | — | | | | (113,023 | ) | | | (109,195 | ) |
N Class | | | (27,625 | ) | | | (73,793 | ) | | | (178,599 | ) |
| | | | | | | | | | | | |
Net Expenses | | | 165,467 | | | | 282,649 | | | | 1,895,721 | |
| | | | | | | | | | | | |
Net Investment Income | | | 1,019,580 | | | | 673,197 | | | | 2,892,116 | |
| | | | | | | | | | | | |
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | | | | | | | | | | | | |
Net Realized Gain (Loss) on: | | | | | | | | | | | | |
Investments | | | 152,425 | | | | 2,226,492 | | | | 27,791,035 | |
Investments in Affiliated Issuers | | | 363,762 | | | | — | | | | — | |
Realized Gain Received as Distribution from Affiliated Issuers | | | 346,893 | | | | — | | | | — | |
Foreign Currency | | | — | | | | (28,910 | ) | | | — | |
Options Written | | | — | | | | 31,939 | | | | — | |
Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | |
Investments | | | 149,284 | | | | 4,717,055 | | | | 31,869,036 | |
Foreign Currency | | | — | | | | (358 | ) | | | — | |
Investments in Affiliated Issuers | | | 3,520,907 | | | | — | | | | — | |
Options Written | | | — | | | | (18,742 | ) | | | — | |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 4,533,271 | | | | 6,927,476 | | | | 59,660,071 | |
| | | | | | | | | | | | |
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 5,552,851 | | | $ | 7,600,673 | | | $ | 62,552,187 | |
| | | | | | | | | | | | |
| (1) | Net of foreign taxes withheld of $24,855 for the TCW Global Real Estate Fund. |
See accompanying Notes to Financial Statements.
16
TCW Funds, Inc.
Statements of Operations | Year Ended October 31, 2024 |
| | | | | | | | |
| | | TCW
Relative Value
Mid Cap
Fund | | | TCW
Select Equities
Fund | |
INVESTMENT INCOME | |
Income: | |
Dividends | | $ | 1,442,209 | (1) | | $ | 3,960,427 | (1) |
Non-Cash Dividend Income | | | 1,170,774 | | | | — | |
| | | | | | | | |
Total | | | 2,612,983 | | | | 3,960,427 | |
| | | | | | | | |
Expenses: | |
Management Fees | | | 603,573 | | | | 4,267,001 | |
Accounting Services Fees | | | 8,367 | | | | 26,989 | |
Administration Fees | | | 27,754 | | | | 47,697 | |
Transfer Agent Fees: | |
I Class | | | 61,449 | | | | 389,422 | |
N Class | | | 17,010 | | | | 127,729 | |
Custodian Fees | | | 6,341 | | | | 20,829 | |
Professional Fees | | | 30,476 | | | | 75,133 | |
Directors’ Fees and Expenses | | | 74,302 | | | | 74,343 | |
Registration Fees: | |
I Class | | | 17,790 | | | | 30,166 | |
N Class | | | 17,579 | | | | 19,104 | |
Distribution Fees: | |
N Class | | | 34,307 | | | | 331,014 | |
Compliance Expense | | | 582 | | | | 582 | |
Shareholder Reporting Expense | | | 5,431 | | | | 7,288 | |
Other | | | 5,769 | | | | 60,736 | |
| | | | | | | | |
Total | | | 910,730 | | | | 5,478,033 | |
| | | | | | | | |
Less Expenses Borne by Investment Advisor: | |
I Class | | | (103,203 | ) | | | (2,861 | ) |
N Class | | | (60,890 | ) | | | (180,680 | ) |
| | | | | | | | |
Net Expenses | | | 746,637 | | | | 5,294,492 | |
| | | | | | | | |
Net Investment Income (Loss) | | | 1,866,346 | | | | (1,334,065 | ) |
| | | | | | | | |
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | | | | | | | | |
Net Realized Gain (Loss) on: | | | | | | | | |
Investments | | | 7,724,279 | | | | 112,121,018 | |
Foreign Currency | | | — | | | | (234 | ) |
Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | |
Investments | | | 14,200,695 | | | | 133,121,432 | |
| | | | | | | | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 21,924,974 | | | | 245,242,216 | |
| | | | | | | | |
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 23,791,320 | | | $ | 243,908,151 | |
| | | | | | | | |
| (1) | Net of foreign taxes withheld of $10,384 and $38,785 for the TCW Relative Value Mid Cap Fund and the TCW Select Equities Fund, respectively. |
See accompanying Notes to Financial Statements.
17
TCW Funds, Inc.
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | |
| | | TCW
Conservative Allocation
Fund | | | TCW
Global Real Estate
Fund | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | |
OPERATIONS | |
Net Investment Income | | $ | 1,019,580 | | | $ | 862,451 | | | $ | 673,197 | | | $ | 733,837 | |
Net Realized Gain (Loss) on Investments, Options Written and Foreign Currency Transactions | | | 863,080 | | | | (250,522 | ) | | | 2,229,521 | | | | (2,539,961 | ) |
Change in Unrealized Appreciation on Investments, Options Written and Foreign Currency Transactions | | | 3,670,191 | | | | 528,793 | | | | 4,697,955 | | | | 701,592 | |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets Resulting from Operations | | | 5,552,851 | | | | 1,140,722 | | | | 7,600,673 | | | | (1,104,532 | ) |
| | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | | | | | | | | | | | | | | | | |
Distributions to Shareholders | | | (911,223 | ) | | | (1,303,274 | ) | | | (560,069 | ) | | | (424,761 | ) |
| | | | | | | | | | | | | | | | |
NET CAPITAL SHARE TRANSACTIONS | | | | | | | | | | | | | | | | |
I Class | | | 668,211 | | | | (297,406 | ) | | | 10,222,474 | | | | (609,032 | ) |
N Class | | | 158,068 | | | | (28,153 | ) | | | 309,252 | | | | (3,614,047 | ) |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets Resulting from Net Capital Shares Transactions | | | 826,279 | | | | (325,559 | ) | | | 10,531,726 | | | | (4,223,079 | ) |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets | | | 5,467,907 | | | | (488,111 | ) | | | 17,572,330 | | | | (5,752,372 | ) |
NET ASSETS | | | | | | | | | | | | | | | | |
Beginning of year | | | 27,482,785 | | | | 27,970,896 | | | | 23,596,526 | | | | 29,348,898 | |
| | | | | | | | | | | | | | | | |
End of year | | $ | 32,950,692 | | | $ | 27,482,785 | | | $ | 41,168,856 | | | $ | 23,596,526 | |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
18
TCW Funds, Inc.
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | |
| | | TCW
Relative Value Large Cap
Fund | | | TCW
Relative Value Mid Cap
Fund | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | |
OPERATIONS | | | | | | | | | | | | | | | | |
Net Investment Income | | $ | 2,892,116 | | | $ | 1,701,291 | | | $ | 1,866,346 | | | $ | 648,412 | |
Net Realized Gain on Investments | | | 27,791,035 | | | | 4,506,070 | | | | 7,724,279 | | | | 1,275,486 | |
Change in Unrealized Appreciation (Depreciation) on Investments | | | 31,869,036 | | | | (1,916,031 | ) | | | 14,200,695 | | | | (941,368 | ) |
| | | | | | | | | | | | | | | | |
Increase in Net Assets Resulting from Operations | | | 62,552,187 | | | | 4,291,330 | | | | 23,791,320 | | | | 982,530 | |
| | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | | | | | | | | | | | | | | | | |
Distributions to Shareholders | | | (5,565,055 | ) | | | (7,648,805 | ) | | | (1,888,881 | ) | | | (1,893,519 | ) |
| | | | | | | | | | | | | | | | |
NET CAPITAL SHARE TRANSACTIONS | | | | | | | | | | | | | | | | |
I Class | | | 103,089,129 | | | | (825,922 | ) | | | (822,564 | ) | | | (2,312,629 | ) |
N Class | | | 192,603,072 | | | | (405,636 | ) | | | (890,660 | ) | | | (1,236,101 | ) |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets Resulting from Net Capital Shares Transactions | | | 295,692,201 | | | | (1,231,558 | ) | | | (1,713,224 | ) | | | (3,548,730 | ) |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets | | | 352,679,333 | | | | (4,589,033 | ) | | | 20,189,215 | | | | (4,459,719 | ) |
NET ASSETS | | | | | | | | | | | | | | | | |
Beginning of year | | | 105,506,306 | | | | 110,095,339 | | | | 71,447,607 | | | | 75,907,326 | |
| | | | | | | | | | | | | | | | |
End of year | | $ | 458,185,639 | | | $ | 105,506,306 | | | $ | 91,636,822 | | | $ | 71,447,607 | |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
19
TCW Funds, Inc.
Statements of Changes in Net Assets
| | | | | | | | |
| | | TCW
Select Equities Fund | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | |
OPERATIONS | |
Net Investment Loss | | $ | (1,334,065 | ) | | $ | (1,062,270 | ) |
Net Realized Gain on Investments and Foreign Currency Transactions | | | 112,120,784 | | | | 79,884,872 | |
Change in Unrealized Appreciation on Investments | | | 133,121,432 | | | | 15,375,183 | |
| | | | | | | | |
Increase in Net Assets Resulting from Operations | | | 243,908,151 | | | | 94,197,785 | |
| | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | |
Distributions to Shareholders | | | (71,728,687 | ) | | | (90,886,566 | ) |
| | | | | | | | |
NET CAPITAL SHARE TRANSACTIONS | |
I Class | | | (22,666,924 | ) | | | (38,612,039 | ) |
N Class | | | (1,803,936 | ) | | | 3,302,527 | |
| | | | | | | | |
Decrease in Net Assets Resulting from Net Capital Shares Transactions | | | (24,470,860 | ) | | | (35,309,512 | ) |
| | | | | | | | |
Increase (Decrease) in Net Assets | | | 147,708,604 | | | | (31,998,293 | ) |
NET ASSETS | | | | | | | | |
Beginning of year | | | 535,528,155 | | | | 567,526,448 | |
| | | | | | | | |
End of year | | $ | 683,236,759 | | | $ | 535,528,155 | |
| | | | | | | | |
See accompanying Notes to Financial Statements.
20
TCW Funds, Inc.
Notes to Financial Statements | October 31, 2024 |
Note 1 — Organization
TCW Funds, Inc. (the “Company”), a Maryland corporation, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2024, the Company consisted of 12 no-load mutual funds (each series, a “Fund” and collectively, the “Funds”). TCW Investment Management Company LLC (the “Advisor”) is the investment advisor to and an affiliate of the Funds and is registered under the Investment Advisers Act of 1940, as amended. Each Fund has its own investment objective and strategies. The following is a brief description of the investment objectives and principal investment strategies for the Funds that are covered in this report:
| | |
TCW Fund | | Investment Objectives and Principal Investment
Strategies |
| Diversified U.S. Equity Funds |
| |
| TCW Global Real Estate Fund | | Seeks to maximize total return from current income and long-term capital growth by investing at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities of real estate investment trusts (“REITs”) and real estate companies. Under normal market conditions, the Fund invests in securities of issuers located in at least three different countries (one of which may be the United States) and invests at least 30% of its net assets, plus any borrowings for investment purposes, in securities of issuers domiciled outside the United States or whose primary business operations are outside the United States, including pooled investment vehicles domiciled in the United States that invest principally in non-U.S. securities. |
| |
| TCW Relative Value Large Cap Fund | | Seeks capital appreciation, with a secondary goal of current income, by investing at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities of large-capitalization companies. During the reporting period, the Fund defined large capitalization companies as those with a market capitalization of greater than $1 billion at the time of purchase. Effective May 1, 2024, the Fund’s definition of large-capitalization companies changed to those with market capitalizations, at the time of acquisition, within the capitalization range of the companies comprising the Russell 1000 Value® Index, the Fund’s benchmark index. |
| Diversified U.S. Equity Funds |
| |
| TCW Relative Value Mid Cap Fund | | Seeks to provide long-term capital appreciation by investing at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities of mid-capitalization companies (i.e., companies with market capitalizations, at the |
21
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 1 — Organization (Continued)
| | |
TCW Fund | | Investment Objectives and Principal Investment
Strategies |
| | time of acquisition, within the capitalization range of the companies comprising the Russell MidCap® Index). |
| |
| TCW Select Equities Fund | | Seeks to provide long-term capital appreciation by investing at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities. The Fund invests primarily in equity securities of mid- and large-capitalization companies. |
| Fund of Funds |
| |
| TCW Conservative Allocation Fund | | Seeks to provide current income, and secondarily, long-term capital appreciation by investing in a combination of fixed income funds and equity funds that utilize diverse investment styles, such as growth and/or value investing. |
All of the Funds currently offer two classes of shares: I Class and N Class. The two classes of a Fund are substantially the same except that the N Class shares are subject to a distribution fee (see Note 7).
The TCW Conservative Allocation Fund is a “fund of funds” that invests in affiliated and unaffiliated funds which are identified on the Schedule of Investments.
Note 2 — Significant Accounting Policies
The following is a summary of significant accounting policies which are in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and which are consistently followed by the Funds in the preparation of their financial statements. Each Fund is considered an investment company under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 946, Financial Services — Investment Companies. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements.
Principles of Accounting: The Funds use the accrual method of accounting for financial reporting purposes.
Net Asset Value: The net asset value (“NAV”) per share of each class of a Fund is determined by dividing the Fund’s net assets attributable to each class by the number of shares issued and outstanding of that class on each day the New York Stock Exchange (“NYSE”) is open for trading.
Security Valuations: Securities listed or traded on the NYSE and other stock exchanges were valued at the latest sale price on the exchange. Securities traded on the NASDAQ stock market (“NASDAQ”) were valued during the period using official closing prices as reported by NASDAQ, which may not have been the last sale price. Options on equity securities and options on indexes were valued using mid prices (average of bid and ask prices) as reported by the exchange or pricing service. Investments in open-end mutual funds including money market funds were valued based on the NAV per share as reported by the investment companies. All other securities for which over-the-counter (“OTC”) market quotations were readily available, including short-term securities, swap agreements and forward currency exchange contracts, were valued with prices furnished by independent pricing services or by broker-dealers.
22
TCW Funds, Inc.
October 31, 2024
Note 2 — Significant Accounting Policies (Continued)
Pursuant to Rule 2a-5 under the 1940 Act, the Company’s Board of Directors (the “Board”, and each member thereof, a “Director”) has designated the Advisor as the “valuation designee” with respect to the fair valuation of the Fund’s portfolio securities, subject to oversight by and periodic reporting to the Board. Fair valued securities are those for which market quotations were not readily available, including in circumstances under which it was determined by the Advisor that prices received were not reflective of their market values.
The Advisor, as the valuation designee, uses a fair valuation methodology for foreign equity securities (exclusive of certain Latin American and Canadian equity securities). This methodology is designed to address the effect of movements in the U.S. market on the securities traded on foreign exchanges that have been closed for a period of time due to time zone differences. The utilization of the fair value model may result in the adjustment of prices taking into account fluctuations in the U.S. market. The fair value model was utilized each trading day and was not dependent on certain thresholds or triggers.
Fair value is defined as the price that a Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Funds disclose investments in their financial statements in a three-tier hierarchy. This hierarchy is utilized to establish classification of fair value measurements based on inputs. Inputs that go into fair value measurement refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the inputs market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances.
The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
| | |
| Level 1 — | | quoted prices in active markets for identical investments. |
| Level 2 — | | other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.). |
| Level 3 — | | significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). |
Changes in valuation techniques may result in transfers in or out of an investment’s assigned Level within the hierarchy. The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to each security.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized as Level 3.
23
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition, as well as changes related to liquidity of investments, could cause a security to be reclassified between Level 1, Level 2, or Level 3.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement.
Fair Value Measurements: Descriptions of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value on a recurring basis are as follows:
Equity securities. Securities are generally valued based on quoted prices from the applicable exchange. To the extent these securities are actively traded and valuation adjustments are not applied, they are generally categorized as Level 1 of the fair value hierarchy. Restricted securities issued by publicly held companies are generally categorized as Level 2 of the fair value hierarchy; if a discount is applied and significant, they are categorized as Level 3. Restricted securities held in non-public entities are categorized as Level 3 of the fair value hierarchy because they trade infrequently, and therefore the inputs are unobservable. Certain foreign securities that are fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets are categorized as Level 2 of the fair value hierarchy.
Mutual funds. Open-end mutual funds including money market funds are valued using the NAV as reported by the fund companies. As such, they are categorized as Level 1.
Options contracts. Options contracts traded on securities exchanges are fair valued using market mid prices; as such, they are categorized as Level 1. Option contracts traded OTC are fair valued based on pricing models and incorporate various inputs such as interest rates, credit spreads, currency exchange rates and volatility measurements for in-the-money, at-the-money, and out-of-the-money contracts on a given strike price. To the extent that these inputs are observable and timely, the fair value of OTC option contracts would be categorized as Level 2; otherwise, the fair values would be categorized as Level 3.
Restricted securities. Restricted securities, including illiquid Rule 144A securities, issued by non-public entities are categorized as Level 3 of the fair value hierarchy because they trade infrequently, and therefore the inputs are unobservable. Any other restricted securities valued similar to publicly traded securities may be categorized as Level 2 or 3 of the fair value hierarchy depending on whether a discount is applied and significant to the fair value.
Warrants. Warrants are generally valued based on quoted prices from the applicable exchange. To the extent these securities are actively traded, and valuation adjustments are not applied, they are generally categorized as Level 1 of the fair value hierarchy.
The summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Funds’ investments is listed after the Schedule of Investments for each Fund.
24
TCW Funds, Inc.
October 31, 2024
Note 2 — Significant Accounting Policies (Continued)
Security Transactions and Related Investment Income: Dividend income is recorded on the ex-dividend date. Interest income is recognized on an accrual basis. Realized gains and losses on investments are recorded on the basis of specific identification.
Allocation of Operating Activity for Multiple Classes: Investment income, common expenses and realized and unrealized gains and losses are allocated among the share classes of the Funds based on the relative net assets of each class. Distribution fees, which are directly attributable to a class of shares, are charged to the operations of that class. All other expenses are charged to each Fund or class as incurred on a specific identification basis. Differences in class- specific fees and expenses will result in differences in net investment income for each class, and in turn differences in dividends paid by each class.
Dividends and Distributions: Dividends and distributions to shareholders are recorded on the ex-dividend date. The TCW Global Real Estate Fund declares and pays, or reinvests, dividends from net investment income quarterly. The other Equity Funds and TCW Conservative Allocation Fund declare and pay, or reinvest, dividends from net investment income annually. Capital gains realized by a Fund will be distributed at least annually.
Income and capital gain distributions are determined in accordance with income tax regulations which may differ from GAAP. These differences are primarily due to differing treatments for foreign currency transactions, derivative transactions, market discount and premium, losses deferred due to wash sales, excise tax regulations and employing equalization in determining amounts to be distributed to Fund shareholders. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications between paid-in capital, undistributed net investment income (loss), and/or undistributed accumulated realized gain (loss). Undistributed net investment income or loss may include temporary book and tax basis differences which will reverse in subsequent periods. Any taxable income or capital gain remaining at fiscal year-end is distributed in the following year. Distributions received from real estate investment trusts may include return of capital which is treated as a reduction in the cost basis of those investments. Distributions received, if any, in excess of the cost basis of a security is recognized as capital gain.
Use of Estimates: The preparation of the accompanying financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates.
Foreign Currency Translation: The books and records of each Fund are maintained in U.S. dollars as follows: (1) foreign currency denominated securities and other assets and liabilities stated in foreign currencies, are translated using the daily spot rate; and (2) purchases, sales, income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions. The resultant exchange gains and losses are included in net realized or net unrealized gain (loss) in the Statements of Operations. Pursuant to U.S. federal income tax regulations, certain foreign exchange gains and losses included in realized and unrealized gains and losses are included in, or are a reduction of, ordinary income for federal income tax purposes.
25
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
Foreign Taxes: The Funds may be subject to withholding taxes on income and capital gains imposed by certain countries in which they invest. The withholding tax on income is netted against the income accrued or received. Any reclaimable taxes are recorded as income. The withholding tax on realized or unrealized gain is recorded as a liability.
Derivative Instruments: Derivatives are financial instruments which are valued based on the values of one or more indicators, such as a security, asset, currency, interest rate, or index. Derivative transactions can create investment leverage and may be highly volatile. A derivative contract may result in a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. It is possible that a derivative transaction will result in a loss greater than the principal amount invested. The Funds may not be able to close out a derivative transaction at a favorable time or price.
For the year ended October 31, 2024, the TCW Global Real Estate Fund had derivatives and transactions in derivatives, grouped in the following risk categories:
| | | | |
| TCW Global Real Estate Fund | | Equity Risk | |
Statement of Operations: | |
Net Realized Gain (Loss) | |
Investments (1) | | | 121,035 | |
Options Written | | | 31,939 | |
| | | | |
Net Realized Gain (Loss) | | $ | 152,974 | |
Net Change in Appreciation (Depreciation) | |
Investments (2) | | | (20,923 | ) |
Options Written | | | (18,742 | ) |
| | | | |
Net Change in Appreciation (Depreciation) | | $ | (39,665 | ) |
Number of Contracts (3) | |
Options Purchased | | | 356 | |
Options Written | | | 135 | |
| (1) | Represents realized gain (loss) for purchased options. |
| (2) | Represents change in unrealized appreciation (depreciation) for purchased options during the year. |
| (3) | Amount disclosed represents average notional amounts which are representative of the volume traded for the year ended October 31, 2024. |
Counterparty Credit Risk: Derivative contracts may be exposed to counterparty risk. Losses can occur if the counterparty does not perform under the contract.
The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds.
With exchange-traded futures and centrally cleared swaps, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Funds do not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
26
TCW Funds, Inc.
October 31, 2024
Note 2 — Significant Accounting Policies (Continued)
For OTC derivatives, the Funds mitigate their counterparty risk by entering into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with each counterparty. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/ or termination event. Under an ISDA Master Agreement, the Funds may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event a Fund’s net assets declines by a stated percentage or a Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the counterparty.
Collateral requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral pledged or received by a Fund.
Cash collateral that has been pledged to cover obligations of a Fund is reported separately on the Statement of Assets and Liabilities. Non-cash collateral pledged by a Fund, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold, typically $250,000 or $500,000, before a transfer is required, which is determined at the close of each business day and the collateral is transferred on the next business day. To the extent amounts due to a Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by entering into agreements only with counterparties that the Advisor believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities. The Funds have implemented the disclosure requirements pursuant to ASC 210 Balance Sheet (“ASC 210”), Disclosures about Offsetting Assets and Liabilities that requires disclosures to make financial statements that are prepared under GAAP more comparable to those prepared under International Financial Reporting Standards.
Master Agreements and Netting Arrangements. Certain Funds are parties to various agreements, including but not limited to International Swaps and Derivatives Association Agreements and related Credit Support Annex, Master Repurchase Agreements, and Master Securities Forward Transactions Agreements (collectively “Master Agreements”), which govern the terms of certain transactions with select counterparties. These Master Agreements generally include provisions for general obligations, representations, agreements, collateral, and certain events of default or termination. These Master Agreements also include provisions for netting arrangements that help reduce credit and counterparty risk associated with relevant transactions (“netting arrangements”). The netting arrangements are generally tied to credit-related events that, if triggered, would cause an event of default or termination giving a Fund
27
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
or counterparty the right to terminate early and cause settlement, on a net basis, of all transactions under the applicable Master Agreement. In the event of an early termination as a result of an event of default under the Master Agreement, the total value exposure of all transactions will be offset against collateral exchanged to date, which would result in a net receivable or payable that would be due from or to the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in the event of a bankruptcy or insolvency of the counterparty. Credit-related events include, but are not limited to, bankruptcy, failure to make timely payments, restructuring, obligation acceleration, obligation default, a material decline in net assets, decline in credit rating or repudiation/moratorium. Any election made by a counterparty to early terminate the transactions under a Master Agreement could have a material adverse impact on a Fund’s financial statements. A Fund’s overall exposure to credit risk, subject to netting arrangements, can change substantially within a short period, as it is affected by each transaction subject to the arrangement.
Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under the Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions under the relevant Master Agreement with a counterparty in a given Fund exceeds a specified threshold, net of collateral already in place, typically $250,000 or $500,000 depending on the counterparty and the type of Master Agreement. Collateral under the Master Agreements is usually in the form of cash or U.S. Treasury Bills but could include other types of securities. If permitted under the Master Agreement, certain funds may rehypothecate cash collateral received from a counterparty. The value of all derivative transactions outstanding under a Master Agreement is calculated daily to determine the amount of collateral to be received or pledged by the counterparty. Posting of collateral for OTC derivative transactions are covered under tri-party collateral agreements between the Fund, the Fund’s custodian, and each counterparty. Collateral for centrally cleared derivatives transactions are posted with the applicable derivatives clearing organization.
The Funds had no OTC derivatives for offset under an ISDA Master Agreement or similar agreements as of October 31, 2024.
Note 3 — Portfolio Investments
When-Issued, Delayed-Delivery and Forward Commitment Transactions: The Funds, with the exception of the TCW Conservative Allocation Fund, may enter into when-issued, delayed-delivery, or forward commitment transactions in order to lock in the purchase price of the underlying security or to adjust the interest rate exposure of each Fund’s existing portfolio. In when-issued, delayed delivery, or forward commitment transactions, a Fund commits to purchase or sell particular securities, with payment and delivery to take place at a future date. Although the Fund does not pay for the securities or start earning interest on them until they are delivered, it immediately assumes the risks of ownership, including the risk of price fluctuation. If a Fund’s counterparty fails to deliver a security purchased on a when issued, delayed-delivery, or forward commitment basis, there may be a loss, and the Fund may have missed an opportunity to make an alternative investment.
Prior to settlement of these transactions, the value of the subject securities will fluctuate with market conditions. In addition, because the Fund is not required to pay for when-issued, delayed-delivery or forward commitment securities until the delivery date, they may result in a form of leverage to the extent the Fund does not set aside liquid assets to cover the commitment. To guard against this deemed leverage,
28
TCW Funds, Inc.
October 31, 2024
Note 3 — Portfolio Investments (Continued)
the Fund monitors the obligations under these transactions on a daily basis and ensures that the Fund has sufficient liquid assets to cover them. There were no when-issued, delayed-delivery or forward commitment transactions in the Funds during the year ended October 31, 2024.
Repurchase Agreements: The Funds may enter into repurchase agreements under the terms of a Master Repurchase Agreement (“MRA”). In a repurchase agreement, the Funds purchase a security from a counterparty who agrees to repurchase the same security at a mutually agreed upon date and price. The MRA permits each Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from each Fund. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Pursuant to the terms of the MRA, each Fund receives securities as collateral with a market value in excess of the repurchase price. Upon a bankruptcy or insolvency of the MRA counterparty, the Fund recognizes a liability with respect to such excess collateral to reflect the Fund’s obligation under bankruptcy law to return the excess to the counterparty. There were no repurchase agreements outstanding as of October 31, 2024.
Securities Lending: The Funds may lend their securities to qualified brokers. The loans must be collateralized at all times primarily with cash although the Funds can accept money market instruments or U.S. Government securities with a market value at least equal to the market value of the securities on loan. As with any extensions of credit, the Funds may bear the risk of delay in recovery or even loss of rights in the collateral if the borrowers of the securities fail financially. The Funds earn additional income for lending their securities by investing the cash collateral in short-term investments. The Funds did not lend any securities during the year ended October 31, 2024.
Derivatives:
Options: The Funds may purchase and sell put and call options on a security or an index of securities to enhance investment performance and/or to protect against changes in market prices. The Funds may also enter into currency options to hedge against or to take advantage of currency fluctuations.
A call option gives the holder the right to purchase, and obligates the writer to sell, a security at the strike price at any time before the expiration date. A put option gives the holder the right to sell, and obligates the writer to buy, a security at the exercise price at any time before the expiration date. A Fund may purchase put options to protect portfolio holdings against a decline in market value of a security or securities held by it. A Fund may also purchase a put option hoping to profit from an anticipated decline in the value of the underlying security. If a Fund holds the security underlying the option, the option premium and any transaction costs will reduce any profit the Fund might have realized had it sold the underlying security instead of buying the put option. A Fund may purchase call options to hedge against an increase in the price of securities that the Fund ultimately wants to buy. A Fund may also purchase a call option as a long directional investment hoping to profit from an anticipated increase in the value of the underlying security. In order for a call option to be profitable, the market price of the underlying security must rise sufficiently above the exercise price to cover the premium and transaction costs. These costs will reduce any profit a Fund might have realized had it bought the underlying security at the time it purchased the call option.
29
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 3 — Portfolio Investments (Continued)
Purchasing foreign currency options gives a Fund the right, but not the obligation, to buy or sell specified amounts of currency at a rate of exchange that may be exercised by a certain date. These currency options may be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.
When a Fund purchases an option, it runs the risk that it will lose its entire investment in the option in a relatively short period of time, unless the Fund exercises the option or enters into a closing sale transaction before the option’s expiration. If the price of the underlying security does not rise (in the case of a call) or fall (in the case of a put) to an extent sufficient to cover the option premium and transaction costs, the Fund will lose part or all of its investment in the option. Premiums paid for purchasing options that expire are treated as realized losses.
Options purchased or sold by a Fund may be traded on a securities or options exchange. Such options typically have minimal exposure to counterparty risk. However, an exchange or market may at times find it necessary to impose restrictions on particular types of options transactions, such as opening transactions. If an underlying security ceases to meet qualifications imposed by an exchange or the Options Clearing Corporation, new series of options on that security will no longer be opened to replace the expiring series, and opening transactions in existing series may be prohibited.
OTC options are options not traded on exchanges or backed by clearinghouses. Rather, they are entered into directly between a Fund and the counterparty to the option. In the case of an OTC option purchased by a Fund, the value of the option to the Fund will depend on the willingness and ability of the option writer to perform its obligations to the Fund. In addition, OTC options may not be transferable and there may be little or no secondary market for them, so they may be considered illiquid. It may not be possible to enter into closing transactions with respect to OTC options or otherwise to terminate such options, and as a result a Fund may be required to remain obligated on an unfavorable OTC option until its expiration.
During the year ended October 31, 2024, the TCW Global Real Estate Fund entered into option contracts to hedge the Fund’s investments from market volatility in the real estate sector.
Note 4 — Risk Considerations
Market Risk: The Funds’ investments will fluctuate with market conditions, and so will the value of your investment in the Funds. You could lose money on your investment in the Funds or the Funds could underperform other investments.
Liquidity Risk: The Funds’ investments in illiquid securities may reduce the returns of the Funds because they may not be able to sell the illiquid securities at an advantageous time or price. Investments in high-yield securities, foreign securities, derivatives or other securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risk. Certain investments in private placements and Rule 144A securities may be considered illiquid investments. The Funds may invest in private placements and Rule 144A securities.
Counterparty Risk: The Funds may be exposed to counterparty risk, the risk that an entity with which the Funds have unsettled or open transactions may not fulfill its obligations.
Investment Style Risk: Certain Funds may also be subject to investment style risk. The Advisor’s investment styles may be out of favor at times or may not produce the best results over short or longer time periods and may increase the volatility of a Fund’s share price.
30
TCW Funds, Inc.
October 31, 2024
Note 4 — Risk Considerations (Continued)
Equity Risk: Equity securities may include common stock, preferred stock or other securities representing an ownership interest or the right to acquire an ownership interest in an issuer. Equity risk is the risk that stocks and other equity securities generally fluctuate in value more than bonds and can decline in value over short or extended periods. The value of stocks and other equity securities will be affected by changes in a company’s financial condition and in overall market, economic and political conditions.
Concentration Risk: Although the TCW Select Equities Fund technically remains a diversified fund, as of the end of the reporting period, the relative increase in the market value of certain holdings has made the Fund’s portfolio sufficiently concentrated that investors in the Fund are now subject to the same risks as investing in a non-diversified mutual fund. Non-diversification risk is the risk that the Fund may be more susceptible to any single economic, political or regulatory event than a diversified fund because a higher percentage of the Fund’s assets may be invested in the securities of a limited number of issuers. There can be no assurances as to when or whether the Fund will become less concentrated.
Note 5 — Federal Income Taxes
It is the policy of each Fund to comply with the requirements under Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net taxable income, including any net realized gains on investments, to its shareholders. Therefore, no federal income tax provision is required.
At October 31, 2024, the components of distributable earnings on a tax basis were as follows:
| | | | | | | | | | | | |
| | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Gain | | | Total
Distributable
Earnings | |
TCW Conservative Allocation Fund | | $ | 899,653 | | | $ | 774,287 | | | $ | 1,673,940 | |
TCW Global Real Estate Fund | | | 81,689 | | | | — | | | | 81,689 | |
TCW Relative Value Large Cap Fund | | | 2,524,140 | | | | 25,541,989 | | | | 28,066,129 | |
TCW Relative Value Mid Cap Fund | | | 1,309,323 | | | | 7,025,819 | | | | 8,335,142 | |
TCW Select Equities Fund | | | — | | | | 101,403,990 | | | | 101,403,990 | |
At the end of the previous fiscal year ended October 31, 2023, the components of distributable earnings on a tax basis were as follows:
| | | | | | | | | | | | |
| | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Gain | | | Total
Distributable
Earnings | |
TCW Conservative Allocation Fund | | $ | 673,081 | | | $ | — | | | $ | 673,081 | |
TCW Global Real Estate Fund | | | 96,484 | | | | — | | | | 96,484 | |
TCW Relative Value Large Cap Fund | | | 1,311,495 | | | | 3,949,839 | | | | 5,261,334 | |
TCW Relative Value Mid Cap Fund | | | 114,490 | | | | 1,266,145 | | | | 1,380,635 | |
TCW Select Equities Fund | | | — | | | | 71,729,770 | | | | 71,729,770 | |
31
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 5 — Federal Income Taxes (Continued)
Permanent differences incurred during the year ended October 31, 2024 resulting from differences in book and tax accounting, have been reclassified at year-end between undistributed net investment income (loss), undistributed (accumulated) net realized gain (loss) and paid-in capital as follows, with no impact to the net asset value per share:
| | | | | | | | | | | | |
| | | Undistributed
Net Investment
Income (Loss) | | | Undistributed
Accumulated
Net Realized
Gain (Loss) | | | Paid-in
Capital | |
TCW Conservative Allocation Fund | | $ | (6,295 | ) | | $ | (40,898 | ) | | $ | 47,193 | |
TCW Global Real Estate Fund | | | (127,923 | ) | | | 127,923 | | | | — | |
TCW Relative Value Large Cap Fund | | | (64,465 | ) | | | (4,236,385 | ) | | | 4,300,850 | |
TCW Relative Value Mid Cap Fund | | | (48,808 | ) | | | (225,030 | ) | | | 273,838 | |
TCW Select Equities Fund | | | 766,304 | | | | (11,003,561 | ) | | | 10,237,257 | |
During the year ended October 31, 2024, the tax character of distributions paid was as follows:
| | | | | | | | | | | | |
| | | Ordinary
Income | | | Long-Term
Capital Gain | | | Total
Distributions | |
TCW Conservative Allocation Fund | | | 911,223 | | | | — | | | | 911,223 | |
TCW Global Real Estate Fund | | | 560,069 | | | | — | | | | 560,069 | |
TCW Relative Value Large Cap Fund | | | 1,615,006 | | | | 3,950,049 | | | | 5,565,055 | |
TCW Relative Value Mid Cap Fund | | | 622,705 | | | | 1,266,176 | | | | 1,888,881 | |
TCW Select Equities Fund | | | — | | | | 71,728,687 | | | | 71,728,687 | |
During the previous fiscal year ended October 31, 2023, the tax character of distributions paid was as follows:
| | | | | | | | | | | | |
| | | Ordinary
Income | | | Long-Term
Capital Gain | | | Total
Distributions | |
TCW Conservative Allocation Fund | | $ | 569,886 | | | $ | 733,388 | | | $ | 1,303,274 | |
TCW Global Real Estate Fund | | | 424,761 | | | | — | | | | 424,761 | |
TCW Relative Value Large Cap Fund | | | 1,637,144 | | | | 6,011,662 | | | | 7,648,806 | |
TCW Relative Value Mid Cap Fund | | | 634,208 | | | | 1,259,311 | | | | 1,893,519 | |
TCW Select Equities Fund | | | — | | | | 90,886,566 | | | | 90,886,566 | |
At October 31, 2024, net unrealized appreciation (depreciation) on investments for federal income tax purposes was as follows:
| | | | | | | | | | | | | | | | |
| | | Unrealized
Appreciation | | | Unrealized
(Depreciation) | | | Net Unrealized
Appreciation
(Depreciation) | | | Cost of
Investments for
Federal Income
Tax Purposes | |
TCW Conservative Allocation Fund | | $ | 4,049,418 | | | $ | (1,561,037 | ) | | $ | 2,488,381 | | | $ | 30,463,906 | |
TCW Global Real Estate Fund | | | 3,239,982 | | | | (1,341,761 | ) | | | 1,898,221 | | | | 39,493,349 | |
TCW Relative Value Large Cap Fund | | | 197,102,925 | | | | (3,250,097 | ) | | | 193,852,828 | | | | 263,299,900 | |
TCW Relative Value Mid Cap Fund | | | 36,531,106 | | | | (318,926 | ) | | | 36,212,180 | | | | 55,659,173 | |
TCW Select Equities Fund | | | 447,969,024 | | | | (2,290,944 | ) | | | 445,678,080 | | | | 240,743,985 | |
At October 31, 2024, the following Funds had net realized losses that will be carried forward indefinitely for federal income tax purposes:
| | | | | | | | | | | | |
| | | Short-Term
Capital Losses | | | Long-Term
Capital
Losses | | | Total | |
TCW Global Real Estate Fund | | $ | 7,402,955 | | | $ | 319,754 | | | $ | 7,722,709 | |
The Funds did not have any unrecognized tax benefits at October 31, 2024, nor were there any increases or decreases in unrecognized tax benefits for the year ended October 31, 2024. The Funds are subject to examination by the U.S. Federal and state tax authorities for returns filed for the prior three and four fiscal years, respectively.
32
TCW Funds, Inc.
October 31, 2024
Note 6 — Fund Management Fees and Other Expenses
The Funds pay to the Advisor, as compensation for services rendered, facilities furnished and expenses borne by it, the following annual management fees as a percentage of daily net assets:
| | | | |
TCW Global Real Estate Fund | | | 0.80% | |
TCW Relative Value Large Cap Fund | | | 0.60% | |
TCW Relative Value Mid Cap Fund | | | 0.70% | |
TCW Select Equities Fund | | | 0.65% | |
The TCW Conservative Allocation Fund does not pay management fees to the Advisor; however, the Fund pays management fees indirectly as a shareholder in the underlying affiliated funds.
The Advisor limits the operating expenses of the Funds not to exceed the following expense ratios relative to the Funds’ average daily net assets:
| | | | |
TCW Conservative Allocation Fund | | | | |
I Class | | | 0.85 | % (1) |
N Class | | | 0.85 | % (1) |
TCW Global Real Estate Fund | | | | |
I Class | | | 0.90 | % (1) |
N Class | | | 1.00 | % (1) |
TCW Relative Value Large Cap Fund | | | | |
I Class | | | 0.70 | % (1) |
N Class | | | 0.85 | % (1) |
TCW Relative Value Mid Cap Fund | | | | |
I Class | | | 0.85 | % (1) |
N Class | | | 0.95 | % (1) |
TCW Select Equities Fund | | | | |
I Class | | | 0.80 | % (1) |
N Class | | | 1.00 | % (1) |
| (1) | These limitations are based on an agreement between the Advisor and the Company. |
Any advisory fee reduced or withheld, or expense reimbursement paid, pursuant to the Expense Limitation Agreement will be reimbursed by the appropriate Fund to the Advisor in the first, second or third fiscal year after the fiscal year of the reduction or reimbursement. The Advisor may not receive reimbursement for previous reductions or reimbursements before payment of a Fund’s operating expenses for the current year, and cannot cause a Fund to exceed the expense limitation in effect for that Fund (i) at the time the fees and expenses would have been incurred or (ii) at the time the Advisor would recoup that reduction or reimbursement. In addition, any recoupment may not exceed any more restrictive limitation to which the Advisor has agreed.
At October 31, 2024, the balance of recoupable expenses with expiration dates for the Funds were as follows:
| | | | | | | | | | | | |
Fund | | Expires
10/31/2026 | | | Expires
10/31/2027 | | | Total | |
TCW Conservative Allocation Fund | | $ | 21,985 | | | $ | 27,624 | | | $ | 49,609 | |
TCW Global Real Estate Fund | | | 78,729 | | | | 75,928 | | | | 154,657 | |
TCW Relative Value Large Cap Fund | | | 110,649 | | | | 302,845 | | | | 413,494 | |
TCW Relative Value Mid Cap Fund | | | 120,182 | | | | 139,689 | | | | 259,871 | |
TCW Select Equities Fund | | | 139,470 | | | | 183,540 | | | | 323,010 | |
| | | | | | | | | | | | |
Total | | $ | 471,015 | | | $ | 729,626 | | | $ | 1,200,641 | |
| | | | | | | | | | | | |
33
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 6 — Fund Management Fees and Other Expenses (Continued)
Directors’ Fees: Directors who are not affiliated with the Advisor receive compensation from the Funds which are shown on the Statements of Operations. Directors may elect to defer receipt of their fees in accordance with the terms of a Non-Qualified Deferred Compensation Plan. Deferred compensation is included within directors’ fees and expenses in the Statements of Assets and Liabilities.
Note 7 — Distribution Plan
TCW Funds Distributors LLC (“Distributor”), an affiliate of the Advisor and the Funds, serves as the nonexclusive distributor of each class of the Funds’ shares. The Funds have a distribution plan pursuant to Rule 12b-1 under the 1940 Act with respect to the N Class shares of each Fund. Under the terms of the plan, each Fund compensates the Distributor at a rate equal to 0.25% of the average daily net assets of the Fund attributable to its N Class shares for distribution and related services.
Note 8 — Transactions with Affiliates
The ownership percentage of the TCW Conservative Allocation Fund in each of the affiliated underlying funds at October 31, 2024 is as follows:
| | | | |
Name of Affiliated Fund | | Ownership
Percentage (1) | |
TCW Artificial Intelligence ETF | | | 0.28 | % |
TCW Compounders ETF | | | 1.87 | % |
TCW Emerging Markets Income Fund | | | 0.01 | % |
TCW Global Bond Fund | | | 5.74 | % |
TCW Global Real Estate Fund | | | 3.16 | % |
TCW MetWest High Yield Bond Fund | | | 0.04 | % |
TCW MetWest Low Duration Bond Fund | | | 0.13 | % |
TCW MetWest Total Return Bond Fund | | | 0.02 | % |
TCW MetWest Unconstrained Bond Fund | | | 0.13 | % |
TCW Relative Value Large Cap Fund | | | 0.68 | % |
TCW Relative Value Mid Cap Fund | | | 0.18 | % |
TCW Select Equities Fund | | | 0.25 | % |
TCW Securitized Bond Fund | | | 0.44 | % |
TCW Transform Supply Chain ETF | | | 0.75 | % |
TCW Transform Systems ETF | | | 0.08 | % |
| (1) | Percentage ownership based on total net assets of the underlying fund. |
The financial statements of the Funds not contained in this report are available by calling 800-FUND-TCW
(800-386-3829) or by going to the SEC website at www.sec.gov.
Note 9 — Purchases and Sales of Securities
Investment transactions (excluding short-term investments) for the year ended October 31, 2024 were as follows:
| | | | | | | | | | | | | | | | |
| | | Purchases
at Cost | | | Sales or Maturity
Proceeds | | | U.S. Government
Purchases at Cost | | | U.S. Government
Sales or Maturity
Proceeds | |
TCW Conservative Allocation Fund | | $ | 11,024,951 | | | $ | 9,768,354 | | | $ | — | | | $ | — | |
TCW Global Real Estate Fund | | | 31,886,719 | | | | 20,992,377 | | | | — | | | | — | |
TCW Relative Value Large Cap Fund | | | 97,445,223 | | | | 99,472,137 | | | | — | | | | — | |
TCW Relative Value Mid Cap Fund | | | 32,437,684 | | | | 36,081,840 | | | | — | | | | — | |
TCW Select Equities Fund | | | 81,357,536 | | | | 183,176,181 | | | | — | | | | — | |
34
TCW Funds, Inc.
October 31, 2024
Note 10 — Capital Share Transactions
Transactions in each Fund’s shares were as follows:
| | | | | | | | | | | | | | | | |
| TCW Conservative Allocation Fund | | Year Ended
October 31, 2024 | | | Year Ended
October 31, 2023 | |
| I Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 179,137 | | | $ | 2,091,148 | | | | 60,434 | | | $ | 653,546 | |
Shares Issued upon Reinvestment of Dividends | | | 78,307 | | | | 887,216 | | | | 122,846 | | | | 1,271,450 | |
Shares Redeemed | | | (198,108 | ) | | | (2,310,153 | ) | | | (205,301 | ) | | | (2,222,402 | ) |
| | | | | | | | | | | | | | | | |
Net Increase | | | 59,336 | | | $ | 668,211 | | | | (22,021 | ) | | $ | (297,406 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| N Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 15,934 | | | $ | 185,450 | | | | 2,051 | | | $ | 22,475 | |
Shares Issued upon Reinvestment of Dividends | | | 1,242 | | | | 14,106 | | | | 1,353 | | | | 14,048 | |
Shares Redeemed | | | (3,441 | ) | | | (41,488 | ) | | | (5,993 | ) | | | (64,676 | ) |
| | | | | | | | | | | | | | | | |
Net Increase | | | 13,735 | | | $ | 158,068 | | | | (2,589 | ) | | $ | (28,153 | ) |
| | | | | | | | | | | | | | | | |
| | |
| TCW Global Real Estate Fund | | Year Ended
October 31, 2024 | | | Year Ended
October 31, 2023 | |
| I Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 1,111,042 | | | $ | 13,854,352 | | | | 484,788 | | | $ | 5,181,030 | |
Shares Issued upon Reinvestment of Dividends | | | 31,123 | | | | 376,746 | | | | 24,560 | | | | 259,411 | |
Shares Redeemed | | | (339,407 | ) | | | (4,008,624 | ) | | | (563,913 | ) | | | (6,049,473 | ) |
| | | | | | | | | | | | | | | | |
Net Increase | | | 802,758 | | | $ | 10,222,474 | | | | (54,565 | ) | | $ | (609,032 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| N Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 210,139 | | | $ | 2,598,491 | | | | 134,772 | | | $ | 1,495,099 | |
Shares Issued upon Reinvestment of Dividends | | | 12,757 | | | | 153,570 | | | | 13,699 | | | | 144,573 | |
Shares Redeemed | | | (212,427 | ) | | | (2,442,809 | ) | | | (483,858 | ) | | | (5,253,719 | ) |
| | | | | | | | | | | | | | | | |
Net Increase | | | 10,469 | | | $ | 309,252 | | | | (335,387 | ) | | $ | (3,614,047 | ) |
| | | | | | | | | | | | | | | | |
| | |
| TCW Relative Value Large Cap Fund | | Year Ended
October 31, 2024 | | | Year Ended
October 31, 2023 | |
| I Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 2,100,549 | | | $ | 31,664,195 | | | | 888,849 | | | $ | 11,933,526 | |
Issued in connection with the merger of TCW Relative Value Dividend Appreciation Fund | | | 5,918,912 | | | | 90,272,293 | | | | — | | | | — | |
Shares Issued upon Reinvestment of Dividends | | | 359,478 | | | | 5,032,693 | | | | 554,769 | | | | 6,906,873 | |
Shares Redeemed | | | (1,560,373 | ) | | | (23,880,052 | ) | | | (1,485,040 | ) | | | (19,666,321 | ) |
| | | | | | | | | | | | | | | | |
Net Increase | | | 6,818,566 | | | $ | 103,089,129 | | | | (41,422 | ) | | $ | (825,922 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| N Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 337,487 | | | $ | 5,253,600 | | | | 58,321 | | | $ | 772,836 | |
Issued in connection with the merger of TCW Relative Value Dividend Appreciation Fund | | | 13,107,953 | | | | 199,159,616 | | | | — | | | | — | |
Shares Issued upon Reinvestment of Dividends | | | 27,896 | | | | 389,432 | | | | 47,736 | | | | 592,398 | |
Shares Redeemed | | | (772,097 | ) | | | (12,199,576 | ) | | | (135,143 | ) | | | (1,770,870 | ) |
| | | | | | | | | | | | | | | | |
Net Increase | | | 12,701,239 | | | $ | 192,603,072 | | | | (29,086 | ) | | $ | (405,636 | ) |
| | | | | | | | | | | | | | | | |
| | |
| TCW Relative Value Mid Cap Fund | | Year Ended
October 31, 2024 | | | Year Ended
October 31, 2023 | |
| I Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 94,043 | | | $ | 2,662,072 | | | | 52,011 | | | $ | 1,283,356 | |
Shares Issued upon Reinvestment of Dividends | | | 58,706 | | | | 1,557,469 | | | | 67,268 | | | | 1,543,805 | |
Shares Redeemed | | | (178,237 | ) | | | (5,042,105 | ) | | | (214,215 | ) | | | (5,139,790 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (25,488 | ) | | $ | (822,564 | ) | | | (94,936 | ) | | $ | (2,312,629 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| N Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 6,514 | | | $ | 179,387 | | | | 6,703 | | | $ | 152,630 | |
Shares Issued upon Reinvestment of Dividends | | | 11,479 | | | | 294,319 | | | | 14,014 | | | | 311,117 | |
Shares Redeemed | | | (51,407 | ) | | | (1,364,366 | ) | | | (73,691 | ) | | | (1,699,848 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (33,414 | ) | | $ | (890,660 | ) | | | (52,974 | ) | | $ | (1,236,101 | ) |
| | | | | | | | | | | | | | | | |
35
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 10 — Capital Share Transactions (Continued)
| | | | | | | | | | | | | | | | |
| | |
| TCW Select Equities Fund | | Year Ended
October 31, 2024 | | | Year Ended
October 31, 2023 | |
| I Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 2,174,544 | | | $ | 64,903,907 | | | | 2,779,100 | | | $ | 66,010,765 | |
Shares Issued upon Reinvestment of Dividends | | | 1,442,118 | | | | 38,648,774 | | | | 2,479,457 | | | | 50,630,514 | |
Shares Redeemed | | | (4,175,990 | ) | | | (126,219,605 | ) | | | (6,279,122 | ) | | | (155,253,318 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (559,328 | ) | | $ | (22,666,924 | ) | | | (1,020,565 | ) | | $ | (38,612,039 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| N Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 340,520 | | | $ | 8,119,727 | | | | 223,311 | | | $ | 4,640,869 | |
Shares Issued upon Reinvestment of Dividends | | | 758,599 | | | | 16,150,575 | | | | 1,132,993 | | | | 18,932,316 | |
Shares Redeemed | | | (1,079,726 | ) | | | (26,074,238 | ) | | | (1,017,188 | ) | | | (20,270,658 | ) |
| | | | | | | | | | | | | | | | |
Net Increase | | | 19,393 | | | $ | (1,803,936 | ) | | | 339,116 | | | $ | 3,302,527 | |
| | | | | | | | | | | | | | | | |
Note 11 — Affiliate Ownership
As of October 31, 2024, affiliates of the Funds and Advisor owned 25.37% of the net assets of the TCW Global Real Estate Fund.
Note 12 — Restricted Securities
The Funds are permitted to invest in securities that have legal or contractual restrictions on resale. These securities may be sold privately, but are required to be registered before being sold to the public (exemption rules apply). Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). However, the Company considers 144A securities to be restricted if those securities have been deemed illiquid. Disposal of these securities may involve time consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. There were no restricted securities held by the Funds at October 31, 2024.
Note 13 — Committed Line Of Credit
The Funds have entered into a $100,000,000 committed revolving line of credit agreement with State Street Bank and Trust Company (the “Bank”) for temporary borrowing purposes, renewable annually. The interest rate on borrowing is the higher of the Federal Funds Effective Rate plus 0.10% plus 1.25% or the Overnight Bank Funding Rate plus 0.10% plus 1.25%. There were no borrowings from the line of credit as of or during the year ended October 31, 2024. The Funds pay the Bank a commitment fee equal to 0.25% per annum on any unused portion of the committed line amount. The commitment fees incurred by the Funds are presented in the Statements of Operations. The commitment fees are allocated to each applicable portfolio in proportion to its relative average daily net assets and the interest expenses are charged directly to the applicable portfolio.
Note 14 — Merger
On March 4, 2024, the Board approved the reorganization of the TCW Relative Value Dividend Appreciation Fund (the “Target Fund”) into the TCW Relative Value Large Cap Fund (the “Acquiring Fund”). On June 17, 2024, the Acquiring Fund acquired all of the net assets of the Target Fund in a tax-free exchange of shares. The objective of the merger was to provide shareholders with the benefit from the participation in a fund that has a large asset base that has the potential for lower total annual portfolio operating expenses through economies of scale.
36
TCW Funds, Inc.
October 31, 2024
Note 14 — Merger (Continued)
For financial reporting purposes, assets received and shares issued by TCW Relative Value Large Cap Fund were recorded at fair value; however, the cost basis of the investments received from TCW Relative Value Dividend Appreciation Fund was carried forward to align ongoing reporting of TCW Relative Value Large Cap Fund realized and unrealized gains and losses with amounts distributable to shareholders.
| | | | | | | | | | | | | | |
Fund | | Status | | Shares
Outstanding | | | Net Assets | | | Net asset
value
Per share | |
TCW Relative Value Large Cap Fund — I Class | | Acquiring Fund | | | 8,673,820 | | | $ | 132,289,363 | | | $ | 15.25 | |
TCW Relative Value Dividend Appreciation Fund — I Class | | Acquired Fund | | | 4,034,050 | * | | $ | 90,272,293 | | | $ | 22.38 | |
| * | All shares were exchanged at a ratio of 1.4672 to 1. |
| | | | | | | | | | | | | | |
Fund | | Status | | Shares
Outstanding | | | Net Assets | | | Net asset
value
Per share | |
TCW Relative Value Large Cap Fund — N Class | | Acquiring Fund | | | 612,595 | | | $ | 9,307,671 | | | $ | 15.19 | |
TCW Relative Value Dividend Appreciation Fund — N Class | | Acquired Fund | | | 8,690,692 | * | | $ | 199,159,616 | | | $ | 22.92 | |
| * | All shares were exchanged at a ratio of 1.5083 to 1. |
The combined net assets of the Acquiring Fund immediately after the reorganization were $431,028,943.
The cost, fair value, net unrealized appreciation, and composition of net assets of the investments of TCW Relative Value Dividend Appreciation Fund as of the date of the close of business on June 14, 2024, were as follows:
| | | | |
Investment securities, at value | | $ | 286,403,366 | |
Investment securities, at cost | | | 161,656,051 | |
Net unrealized appreciation | | | 124,747,315 | |
Accumulated Net Investment Income | | | 42,033 | |
Accumulated Net Realized loss | | | (1,652,379 | ) |
Paid-in Capital | | | 166,294,939 | |
Assuming the acquisition had been completed on November 1, 2023, the beginning of the annual reporting period of the Fund, the combined pro-forma results of operations for the year ended October 31, 2024, would have been as follows:
| | | | |
Net Investment income | | $ | 5,925,213 | |
Net Realized and Unrealized Gains on Investments | | | 120,266,914 | |
Net Increase in Net Assets resulting from Operations | | | 126,192,127 | |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Fund that has been included in the Acquiring Fund’s Statement of Operations as of October 31, 2024.
Note 15 — Indemnifications
Under the Company’s organizational documents, its Officers and Directors may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Company. In addition, the Company entered into an agreement with each of the Directors which provides that the Company will indemnify and hold harmless each Director against any expenses actually and reasonably incurred by such
37
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 15 — Indemnifications (Continued)
Director in any proceeding arising out of or in connection with the Director’s services to the Company, to the fullest extent permitted by the Company’s Articles of Incorporation and By-Laws, the Maryland General Corporation Law, the Securities Act, and the 1940 Act, each as now or hereinafter in force. Additionally, in the normal course of business, the Company enters into agreements with service providers that may contain indemnification clauses. The Company’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects the risk of loss to be remote. The Company has not accrued any liability in connection with such indemnification.
Note 16 — New Accounting Pronouncements
In June 2022, the FASB issued ASU No. 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”). ASU 2022-03 (1) clarifies the guidance in ASC 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and (2) requires specific disclosures related to such an equity security. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023 and interim periods within that fiscal year, with early adoption permitted. The Company early adopted and there have been no impacts to date.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). This change is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment’s profit or loss and assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity’s segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures and providing new disclosure requirements for entities with a single reportable segment, among other new disclosure requirements. The amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. There have been no impacts to date.
38
TCW Conservative Allocation Fund
Financial Highlights — I Class
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 10.48 | | | $ | 10.57 | | | $ | 13.96 | | | $ | 12.22 | | | $ | 12.09 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.38 | | | | 0.32 | | | | 0.23 | | | | 0.13 | | | | 0.18 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 1.71 | | | | 0.09 | | | | (2.35 | ) | | | 1.80 | | | | 0.76 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 2.09 | | | | 0.41 | | | | (2.12 | ) | | | 1.93 | | | | 0.94 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.35 | ) | | | (0.22 | ) | | | (0.30 | ) | | | (0.12 | ) | | | (0.71 | ) |
Distributions from Net Realized Gain | | | — | | | | (0.28 | ) | | | (0.97 | ) | | | (0.07 | ) | | | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.35 | ) | | | (0.50 | ) | | | (1.27 | ) | | | (0.19 | ) | | | (0.81 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 12.22 | | | $ | 10.48 | | | $ | 10.57 | | | $ | 13.96 | | | $ | 12.22 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 20.22 | % | | | 3.97 | % | | | (16.80 | %) | | | 15.92 | % | | | 8.19 | % |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 32,412 | | | $ | 27,165 | | | $ | 27,624 | | | $ | 35,264 | | | $ | 36,714 | |
|
Ratio of Expenses to Average Net Assets:(2) | |
| | | | | |
Before Expense Reimbursement | | | 0.52 | % | | | 0.44 | % | | | 0.41 | % | | | 0.44 | % | | | 0.39 | % |
| | | | | |
After Expense Reimbursement | | | N/A | | | | N/A | | | | 0.41 | % | | | N/A | | | | N/A | |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 3.23 | % | | | 3.00 | % | | | 1.96 | % | | | 0.94 | % | | | 1.56 | % |
| | | | | |
Portfolio Turnover Rate | | | 31.18 | % | | | 23.57 | % | | | 16.20 | % | | | 26.34 | % | | | 26.22 | % |
| (1) | Computed using average shares outstanding throughout the period. |
| (2) | Does not include expenses of the underlying affiliated funds. |
See accompanying Notes to Financial Statements.
39
TCW Conservative Allocation Fund
Financial Highlights — N Class
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 10.49 | | | $ | 10.57 | | | $ | 13.97 | | | $ | 12.22 | | | $ | 12.09 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.37 | | | | 0.30 | | | | 0.17 | | | | 0.09 | | | | 0.15 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 1.72 | | | | 0.09 | | | | (2.34 | ) | | | 1.81 | | | | 0.75 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 2.09 | | | | 0.39 | | | | (2.17 | ) | | | 1.90 | | | | 0.90 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.33 | ) | | | (0.19 | ) | | | (0.26 | ) | | | (0.08 | ) | | | (0.67 | ) |
Distributions from Net Realized Gain | | | — | | | | (0.28 | ) | | | (0.97 | ) | | | (0.07 | ) | | | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.33 | ) | | | (0.47 | ) | | | (1.23 | ) | | | (0.15 | ) | | | (0.77 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 12.25 | | | $ | 10.49 | | | $ | 10.57 | | | $ | 13.97 | | | $ | 12.22 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 20.02 | % | | | 3.78 | % | | | (17.08 | )% | | | 15.64 | % | | | 7.85 | % |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 539 | | | $ | 317 | | | $ | 347 | | | $ | 736 | | | $ | 452 | |
|
Ratio of Expenses to Average Net Assets: (2) | |
| | | | | |
Before Expense Reimbursement | | | 6.08 | % | | | 7.18 | % | | | 4.18 | % | | | 3.73 | % | | | 6.06 | % |
| | | | | |
After Expense Reimbursement | | | 0.68 | % | | | 0.67 | % | | | 0.67 | % | | | 0.68 | % | | | 0.70 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 3.11 | % | | | 2.75 | % | | | 1.41 | % | | | 0.70 | % | | | 1.23 | % |
| | | | | |
Portfolio Turnover Rate | | | 31.18 | % | | | 23.57 | % | | | 16.20 | % | | | 26.34 | % | | | 26.22 | % |
| (1) | Computed using average shares outstanding throughout the period. |
| (2) | Does not include expenses of the underlying affiliated funds. |
See accompanying Notes to Financial Statements.
40
TCW Global Real Estate Fund
Financial Highlights — I Class
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 9.60 | | | $ | 10.31 | | | $ | 15.45 | | | $ | 11.07 | | | $ | 11.16 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.27 | | | | 0.28 | | | | 0.27 | | | | 0.36 | | | | 0.17 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 2.94 | | | | (0.83 | ) | | | (3.98 | ) | | | 4.30 | | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 3.21 | | | | (0.55 | ) | | | (3.71 | ) | | | 4.66 | | | | 0.12 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.22 | ) | | | (0.16 | ) | | | (0.45 | ) | | | (0.28 | ) | | | (0.16 | ) |
Distributions from Return of Capital | | | — | | | | — | | | | (0.13 | ) | | | — | | | | (0.05 | ) |
Distributions from Net Realized Gain | | | — | | | | — | | | | (0.85 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.22 | ) | | | (0.16 | ) | | | (1.43 | ) | | | (0.28 | ) | | | (0.21 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 12.59 | | | $ | 9.60 | | | $ | 10.31 | | | $ | 15.45 | | | $ | 11.07 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 33.41 | % | | | (5.34 | %) | | | (26.38 | %) | | | 42.32 | % | | | 1.15 | % |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 31,081 | | | $ | 16,001 | | | $ | 17,741 | | | $ | 24,949 | | | $ | 9,175 | |
|
Ratio of Expenses to Average Net Assets: | |
| | | | | |
Before Expense Reimbursement | | | 1.42 | % | | | 1.34 | % | | | 1.32 | % | | | 1.45 | % | | | 2.80 | % |
| | | | | |
After Expense Reimbursement | | | 0.90 | % | | | 0.90 | % | | | 0.90 | % | | | 0.92 | % | | | 1.00 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 2.24 | % | | | 2.57 | % | | | 2.12 | % | | | 2.50 | % | | | 1.59 | % |
| | | | | |
Portfolio Turnover Rate | | | 71.48 | % | | | 65.26 | % | | | 167.41 | % | | | 164.29 | % | | | 136.71 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
41
TCW Global Real Estate Fund
Financial Highlights — N Class
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 9.59 | | | $ | 10.30 | | | $ | 15.43 | | | $ | 11.06 | | | $ | 11.16 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.25 | | | | 0.26 | | | | 0.25 | | | | 0.33 | | | | 0.13 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 2.94 | | | | (0.82 | ) | | | (3.97 | ) | | | 4.30 | | | | (0.03 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 3.19 | | | | (0.56 | ) | | | (3.72 | ) | | | 4.63 | | | | 0.10 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.21 | ) | | | (0.15 | ) | | | (0.44 | ) | | | (0.26 | ) | | | (0.15 | ) |
Distributions from Net Realized Gain | | | — | | | | — | | | | (0.85 | ) | | | — | | | | — | |
Distributions from Return of Capital | | | — | | | | — | | | | (0.12 | ) | | | — | | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.21 | ) | | | (0.15 | ) | | | (1.41 | ) | | | (0.26 | ) | | | (0.20 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 12.57 | | | $ | 9.59 | | | $ | 10.30 | | | $ | 15.43 | | | $ | 11.06 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 33.35 | % | | | (5.54 | )% | | | (26.43 | )% | | | 42.10 | % | | | 0.94 | % |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 10,088 | | | $ | 7,595 | | | $ | 11,608 | | | $ | 14,634 | | | $ | 4,370 | |
|
Ratio of Expenses to Average Net Assets: | |
| | | | | |
Before Expense Reimbursement | | | 1.85 | % | | | 1.71 | % | | | 1.64 | % | | | 1.90 | % | | | 5.14 | % |
| | | | | |
After Expense Reimbursement | | | 1.00 | % | | | 1.00 | % | | | 1.00 | % | | | 1.03 | % | | | 1.15 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 2.14 | % | | | 2.42 | % | | | 1.95 | % | | | 2.36 | % | | | 1.21 | % |
| | | | | |
Portfolio Turnover Rate | | | 71.48 | % | | | 65.26 | % | | | 167.41 | % | | | 164.29 | % | | | 136.71 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
42
TCW Relative Value Large Cap Fund
Financial Highlights — I Class
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 12.66 | | | $ | 13.10 | | | $ | 15.04 | | | $ | 10.84 | | | $ | 18.69 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.19 | | | | 0.20 | | | | 0.19 | | | | 0.18 | | | | 0.22 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 4.30 | | | | 0.26 | | | | (0.90 | ) | | | 5.07 | | | | (0.57 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 4.49 | | | | 0.46 | | | | (0.71 | ) | | | 5.25 | | | | (0.35 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.20 | ) | | | (0.20 | ) | | | (0.19 | ) | | | (0.22 | ) | | | (0.49 | ) |
Distributions from Net Realized Gain | | | (0.47 | ) | | | (0.70 | ) | | | (1.04 | ) | | | (0.83 | ) | | | (7.01 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.67 | ) | | | (0.90 | ) | | | (1.23 | ) | | | (1.05 | ) | | | (7.50 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 16.48 | | | $ | 12.66 | | | $ | 13.10 | | | $ | 15.04 | | | $ | 10.84 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 36.37 | % | | | 3.61 | % | | | (5.56 | %) | | | 50.84 | % | | | (7.02 | %) |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 238,897 | | | $ | 97,169 | | | $ | 101,088 | | | $ | 117,205 | | | $ | 83,765 | |
|
Ratio of Expenses to Average Net Assets: | |
| | | | | |
Before Expense Reimbursement | | | 0.77 | % | | | 0.82 | % | | | 0.83 | % | | | 0.80 | % | | | 0.80 | % |
| | | | | |
After Expense Reimbursement | | | 0.70 | % | | | 0.70 | % | | | 0.70 | % | | | 0.70 | % | | | 0.71 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 1.23 | % | | | 1.49 | % | | | 1.43 | % | | | 1.31 | % | | | 1.88 | % |
| | | | | |
Portfolio Turnover Rate | | | 38.69 | % (2) | | | 19.65 | % | | | 17.81 | % | | | 17.16 | % | | | 31.17 | % |
| (1) | Computed using average shares outstanding throughout the period. |
| (2) | The portfolio turnover calculation was adjusted to exclude the value of securities acquired in connection with the fund’s acquisition of the assets of the TCW Relative Value Dividend Appreciation Fund on June 17, 2024. The portfolio turnover rate would have been 39.50% without the adjustment. |
See accompanying Notes to Financial Statements.
43
TCW Relative Value Large Cap Fund
Financial Highlights — N Class
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 12.60 | | | $ | 13.04 | | | $ | 14.97 | | | $ | 10.79 | | | $ | 18.62 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.16 | | | | 0.17 | | | | 0.17 | | | | 0.15 | | | | 0.19 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 4.29 | | | | 0.26 | | | | (0.91 | ) | | | 5.05 | | | | (0.56 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 4.45 | | | | 0.43 | | | | (0.74 | ) | | | 5.20 | | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.17 | ) | | | (0.17 | ) | | | (0.15 | ) | | | (0.19 | ) | | | (0.45 | ) |
Distributions from Net Realized Gain | | | (0.47 | ) | | | (0.70 | ) | | | (1.04 | ) | | | (0.83 | ) | | | (7.01 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.64 | ) | | | (0.87 | ) | | | (1.19 | ) | | | (1.02 | ) | | | (7.46 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 16.41 | | | $ | 12.60 | | | $ | 13.04 | | | $ | 14.97 | | | $ | 10.79 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 36.17 | % | | | 3.41 | % | | | (5.72 | )% | | | 50.56 | % | | | (7.17 | )% |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 219,289 | | | $ | 8,337 | | | $ | 9,007 | | | $ | 10,506 | | | $ | 9,277 | |
|
Ratio of Expenses to Average Net Assets: | |
| | | | | |
Before Expense Reimbursement | | | 1.05 | % | | | 1.32 | % | | | 1.34 | % | | | 1.30 | % | | | 1.32 | % |
| | | | | |
After Expense Reimbursement | | | 0.85 | % | | | 0.90 | % | | | 0.90 | % | | | 0.90 | % | | | 0.91 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 1.01 | % | | | 1.29 | % | | | 1.23 | % | | | 1.11 | % | | | 1.67 | % |
| | | | | |
Portfolio Turnover Rate | | | 38.69 | % (2) | | | 19.65 | % | | | 17.81 | % | | | 17.16 | % | | | 31.17 | % |
| (1) | Computed using average shares outstanding throughout the period. |
| (2) | The portfolio turnover calculation was adjusted to exclude the value of securities acquired in connection with the fund’s acquisition of the assets of the TCW Relative Value Dividend Appreciation Fund on June 17, 2024. The portfolio turnover rate would have been 39.50% without the adjustment. |
See accompanying Notes to Financial Statements.
44
TCW Relative Value Mid Cap Fund
Financial Highlights — I Class
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 23.24 | | | $ | 23.57 | | | $ | 29.62 | | | $ | 18.90 | | | $ | 21.06 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.61 | | | | 0.21 | | | | 0.19 | | | | 0.17 | | | | 0.17 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 7.15 | | | | 0.05 | | | | (2.80 | ) | | | 10.72 | | | | (1.78 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 7.76 | | | | 0.26 | | | | (2.61 | ) | | | 10.89 | | | | (1.61 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.21 | ) | | | (0.20 | ) | | | (0.16 | ) | | | (0.17 | ) | | | (0.18 | ) |
Distributions from Net Realized Gain | | | (0.41 | ) | | | (0.39 | ) | | | (3.28 | ) | | | — | | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.62 | ) | | | (0.59 | ) | | | (3.44 | ) | | | (0.17 | ) | | | (0.55 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 30.38 | | | $ | 23.24 | | | $ | 23.57 | | | $ | 29.62 | | | $ | 18.90 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 33.77 | % | | | 1.15 | % | | | (10.35 | %) | | | 57.90 | % | | | (8.07 | %) |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 77,197 | | | $ | 59,647 | | | $ | 62,726 | | | $ | 72,545 | | | $ | 51,021 | |
| | | | | |
Ratio of Expenses to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Before Expense Reimbursement | | | 0.99 | % | | | 0.97 | % | | | 1.01 | % | | | 0.97 | % | | | 0.97 | % |
| | | | | |
After Expense Reimbursement | | | 0.85 | % | | | 0.85 | % | | | 0.85 | % | | | 0.85 | % | | | 0.87 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 2.18 | % | | | 0.86 | % | | | 0.75 | % | | | 0.63 | % | | | 0.90 | % |
| | | | | |
Portfolio Turnover Rate | | | 38.54 | % | | | 27.55 | % | | | 28.82 | % | | | 44.33 | % | | | 42.07 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
45
TCW Relative Value Mid Cap Fund
Financial Highlights — N Class
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 22.46 | | | $ | 22.79 | | | $ | 28.75 | | | $ | 18.34 | | | $ | 20.45 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.56 | | | | 0.18 | | | | 0.16 | | | | 0.14 | | | | 0.15 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 6.92 | | | | 0.05 | | | | (2.71 | ) | | | 10.42 | | | | (1.74 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 7.48 | | | | 0.23 | | | | (2.55 | ) | | | 10.56 | | | | (1.59 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.18 | ) | | | (0.17 | ) | | | (0.13 | ) | | | (0.15 | ) | | | (0.15 | ) |
Distributions from Net Realized Gain | | | (0.41 | ) | | | (0.39 | ) | | | (3.28 | ) | | | — | | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.59 | ) | | | (0.56 | ) | | | (3.41 | ) | | | (0.15 | ) | | | (0.52 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 29.35 | | | $ | 22.46 | | | $ | 22.79 | | | $ | 28.75 | | | $ | 18.34 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 33.66 | % | | | 1.05 | % | | | (10.45 | )% | | | 57.78 | % | | | (8.18 | )% |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 14,440 | | | $ | 11,801 | | | $ | 13,181 | | | $ | 16,708 | | | $ | 10,902 | |
| | | | | |
Ratio of Expenses to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Before Expense Reimbursement | | | 1.39 | % | | | 1.36 | % | | | 1.39 | % | | | 1.37 | % | | | 1.42 | % |
| | | | | |
After Expense Reimbursement | | | 0.95 | % | | | 0.95 | % | | | 0.95 | % | | | 0.95 | % | | | 0.97 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 2.08 | % | | | 0.76 | % | | | 0.65 | % | | | 0.54 | % | | | 0.81 | % |
| | | | | |
Portfolio Turnover Rate | | | 38.54 | % | | | 27.55 | % | | | 28.82 | % | | | 44.33 | % | | | 42.07 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
46
TCW Select Equities Fund
Financial Highlights — I Class
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 25.37 | | | $ | 25.79 | | | $ | 44.70 | | | $ | 34.13 | | | $ | 27.64 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Loss (1) | | | (0.05 | ) | | | (0.04 | ) | | | (0.12 | ) | | | (0.14 | ) | | | (0.08 | ) |
Net Realized and Unrealized Gain (Loss) on Investments | | | 11.38 | | | | 3.82 | | | | (13.71 | ) | | | 13.23 | | | | 9.04 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 11.33 | | | | 3.78 | | | | (13.83 | ) | | | 13.09 | | | | 8.96 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Realized Gain | | | (3.28 | ) | | | (4.20 | ) | | | (5.08 | ) | | | (2.52 | ) | | | (2.47 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 33.42 | | | $ | 25.37 | | | $ | 25.79 | | | $ | 44.70 | | | $ | 34.13 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 47.90 | % | | | 18.60 | % | | | (34.93 | %) | | | 40.32 | % | | | 34.59 | % |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 546,751 | | | $ | 429,236 | | | $ | 462,670 | | | $ | 801,597 | | | $ | 633,683 | |
| | | | | |
Ratio of Expenses to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Before Expense Reimbursement | | | 0.78 | % | | | 0.77 | % | | | 0.79 | % | | | 0.77 | % | | | 0.76 | % |
| | | | | |
After Expense Reimbursement | | | 0.78 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| | | | | |
Ratio of Net Investment Loss to Average Net Assets | | | (0.17 | %) | | | (0.16 | %) | | | (0.38 | %) | | | (0.37 | %) | | | (0.28 | %) |
| | | | | |
Portfolio Turnover Rate | | | 12.77 | % | | | 10.42 | % | | | 12.12 | % | | | 8.17 | % | | | 4.09 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
47
TCW Select Equities Fund
Financial Highlights — N Class
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 20.73 | | | $ | 21.89 | | | $ | 38.76 | | | $ | 29.95 | | | $ | 24.59 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Loss (1) | | | (0.08 | ) | | | (0.06 | ) | | | (0.15 | ) | | | (0.19 | ) | | | (0.13 | ) |
Net Realized and Unrealized Gain (Loss) on Investments | | | 9.14 | | | | 3.10 | | | | (11.64 | ) | | | 11.52 | | | | 7.96 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 9.06 | | | | 3.04 | | | | (11.79 | ) | | | 11.33 | | | | 7.83 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Realized Gain | | | (3.28 | ) | | | (4.20 | ) | | | (5.08 | ) | | | (2.52 | ) | | | (2.47 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 26.51 | | | $ | 20.73 | | | $ | 21.89 | | | $ | 38.76 | | | $ | 29.95 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 47.65 | % | | | 18.50 | % | | | (35.03 | )% | | | 40.06 | % | | | 34.26 | % |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 136,486 | | | $ | 106,292 | | | $ | 104,856 | | | $ | 193,727 | | | $ | 161,625 | |
| | | | | |
Ratio of Expenses to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Before Expense Reimbursement | | | 1.06 | % | | | 1.06 | % | | | 1.08 | % | | | 1.04 | % | | | 1.06 | % |
| | | | | |
After Expense Reimbursement | | | 0.93 | % | | | 0.93 | % | | | 0.94 | % | | | 0.96 | % | | | 0.99 | % |
| | | | | |
Ratio of Net Investment Loss to Average Net Assets | | | (0.33 | %) | | | (0.32 | %) | | | (0.53 | %) | | | (0.56 | %) | | | (0.51 | %) |
| | | | | |
Portfolio Turnover Rate | | | 12.77 | % | | | 10.42 | % | | | 12.12 | % | | | 8.17 | % | | | 4.09 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
48
TCW Funds, Inc.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of
TCW Funds, Inc.:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of TCW Global Real Estate Fund, TCW Relative Value Large Cap Fund, TCW Relative Value Mid Cap Fund, TCW Conservative Allocation Fund, and TCW Select Equities Fund, (collectively, the “Funds”) five of the twelve funds constituting TCW Funds, Inc., as of October 31, 2024, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the respective Funds as of October 31, 2024, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Los Angeles, California
December 23, 2024
We have served as the auditor of one or more TCW/Metropolitan West Funds investment companies since 1990.
49
Privacy Policy
The TCW Group, Inc. and Subsidiaries
TCW Investment Management Company LLC
TCW Asset Management Company LLC
Metropolitan West Asset Management, LLC
TCW PT Management Company LLC
TCW Asset Backed Finance Management Company LLC
| | | | |
TCW Funds, Inc. TCW Strategic Income Fund, Inc. TCW Metropolitan West Funds | | Sepulveda Management LLC TCW Direct Lending LLC TCW Direct Lending VII LLC | | TCW Direct Lending VIII LLC TCW Star Direct Lending LLC TCW ETF Trust TCW Spirit Direct Lending LLC |
Effective December 2024
WHAT YOU SHOULD KNOW
At TCW, we recognize the importance of keeping information about you secure and confidential. We do not sell or share your nonpublic personal and financial information with marketers or others outside our affiliated group of companies.
We carefully manage information among our affiliated group of companies to safeguard your privacy and to provide you with consistently excellent service.
We are providing this notice to you to comply with the requirements of Regulation S-P, “Privacy of Consumer Financial information,” issued by the United States Securities and Exchange Commission.
OUR PRIVACY POLICY
We, The TCW Group, Inc. and its subsidiaries, the TCW Funds, Inc., TCW Strategic Income Fund, Inc., the TCW Metropolitan West Funds, Sepulveda Management LLC, TCW Direct Lending LLC, TCW Direct Lending VII LLC, TCW Direct Lending VIII LLC, TCW Star Direct Lending LLC, TCW ETF Trust, and TCW Spirit Direct Lending LLC (collectively, “TCW”) are committed to protecting the nonpublic personal and financial information of our customers and consumers who obtain or seek to obtain financial products or services primarily for personal, family or household purposes. We fulfill our commitment by establishing and implementing policies and systems to protect the security and confidentiality of this information.
In our offices, we limit access to nonpublic personal and financial information about you to those TCW personnel who need to know the information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards to protect your nonpublic personal and financial information.
CATEGORIES OF INFORMATION WE COLLECT
We may collect the following types of nonpublic personal and financial information about you from the following sources:
| | ◾ | | Your name, address and identifying numbers, and other personal and financial information, from you and from identification cards and papers you submit to us, on applications, subscription agreements or other forms or communications. |
| | ◾ | | Information about your account balances and financial transactions with us, our affiliated entities, or nonaffiliated third parties, from our internal sources, from affiliated entities and from nonaffiliated third parties. |
| | ◾ | | Information about your account balances and financial transactions and other personal and financial information, from consumer credit reporting agencies or other nonaffiliated third parties, to verify information received from you or others. |
50
CATEGORIES OF INFORMATION WE DISCLOSE TO NONAFFILIATED THIRD PARTIES
We may disclose your name, address and account and other identifying numbers, as well as information about your pending or past transactions and other personal financial information, to nonaffiliated third parties, for our everyday business purposes such as necessary to execute, process, service and confirm your securities transactions and mutual fund transactions, to administer and service your account and commingled investment vehicles in which you are invested, to market our products and services through joint marketing arrangements or to respond to court orders and legal investigations.
We may disclose nonpublic personal and financial information concerning you to law enforcement agencies, federal regulatory agencies, self-regulatory organizations or other nonaffiliated third parties, if required or requested to do so by a court order, judicial subpoena or regulatory inquiry.
We do not otherwise disclose your nonpublic personal and financial information to nonaffiliated third parties, except where we believe in good faith that disclosure is required or permitted by law. Because we do not disclose your nonpublic personal and financial information to nonaffiliated third parties, our Customer Privacy Policy does not contain opt-out provisions.
CATEGORIES OF INFORMATION WE DISCLOSE TO OUR AFFILIATED ENTITIES
| | ◾ | | We may disclose your name, address and account and other identifying numbers, account balances, information about your pending or past transactions and other personal financial information to our affiliated entities for any purpose. |
| | ◾ | | We regularly disclose your name, address and account and other identifying numbers, account balances and information about your pending or past transactions to our affiliates to execute, process and confirm securities transactions or mutual fund transactions for you, to administer and service your account and commingled investment vehicles in which you are invested, or to market our products and services to you. |
INFORMATION ABOUT FORMER CUSTOMERS
We do not disclose nonpublic personal and financial information about former customers to nonaffiliated third parties unless required or requested to do so by a court order, judicial subpoena or regulatory inquiry, or otherwise where we believe in good faith that disclosure is required or permitted by law.
QUESTIONS
Should you have any questions about our Customer Privacy Policy, please contact us by email or by regular mail at the address at the end of this policy.
REMINDER ABOUT TCW’S FINANCIAL PRODUCTS
Financial products offered by The TCW Group, Inc. and its subsidiaries, the TCW Funds, Inc., TCW Strategic Income Fund, Inc., the TCW Metropolitan West Funds, Sepulveda Management LLC, TCW Direct Lending LLC, TCW Direct Lending VII LLC, TCW Direct Lending VIII LLC, TCW Star Direct Lending LLC, TCW ETF Trust, and TCW Spirit Direct Lending LLC.
| | ◾ | | Are not guaranteed by a bank; |
| | ◾ | | Are not obligations of The TCW Group, Inc. or of its subsidiaries; |
| | ◾ | | Are not insured by the Federal Deposit Insurance Corporation; and |
| | ◾ | | Are subject to investment risks, including possible loss of the principal amount committed or invested, and earnings thereon. |
| | |
THE TCW GROUP, INC. TCW FUNDS, INC. TCW STRATEGIC INCOME FUND INC. TCW METROPOLITAN WEST FUNDS SEPULVEDA MANAGEMENT LLC | | TCW DIRECT LENDING LLC TCW DIRECT LENDING VII LLC TCW DIRECT LENDING VIII LLC TCW STAR DIRECT LENDING LLC TCW ETF TRUST TCW SPIRIT DIRECT LENDING LLC |
Attention: Privacy Officer | 515 South Flower Street | Los Angeles, CA 90071 | email: privacy@tcw.com
51
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited)
Renewal of Investment Advisory and Management Agreement
TCW Funds, Inc. (the “Corporation”) and TCW Investment Management Company LLC (the “Advisor”) are parties to an Investment Advisory and Management Agreement (the “Agreement”), pursuant to which the Advisor is responsible for managing the investments of each separate investment series (each, a “Fund” and collectively, the “Funds”) of the Corporation. Unless terminated by either party, the Agreement continues in effect from year to year provided that the continuance is specifically approved at least annually by the vote of the holders of at least a majority of the outstanding shares of the Funds, or by the Board of Directors of the Corporation (the “Board”), and, in either event, by a majority of the Directors who are not “interested persons” of the Corporation, as such term is defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “Independent Directors”), casting votes in person at a meeting called for that purpose.
At an in-person meeting on September 9, 2024, the Board approved the renewal of the Agreement for an additional one-year term from February 6, 2025 through February 5, 2026. The renewal of the Agreement was approved by the Board (including by a majority of the Independent Directors) upon the recommendation of the Independent Directors. The Independent Directors also met by videoconference in a working session on August 22, 2024 to hear presentations by representatives of the Advisor, to ask related questions, to review and discuss materials provided by the Advisor for their consideration, and to meet separately with their independent legal counsel. On September 9, 2024, they also met separately with their independent legal counsel to review and discuss supplemental information that had been requested on their behalf by their independent legal counsel and presented by the Advisor. The information, material facts, and conclusions that formed the basis for the Independent Directors’ recommendation and the Board’s subsequent approval are described below.
1. Information received
Materials reviewed — During the course of each year, the Directors receive a wide variety of materials relating to the services provided by the Advisor, including reports on the Advisor’s investment processes, as well as on each Fund’s investment results, portfolio composition, portfolio trading practices, compliance monitoring, shareholder services, and other information relating to the nature, extent, and quality of services provided by the Advisor to the Funds. In addition, the Board reviewed information furnished to the Independent Directors in response to a detailed request sent to the Advisor on their behalf. The information in the Advisor’s responses included extensive materials regarding each Fund’s investment results, advisory fee comparisons to advisory fees charged by the Advisor to its institutional clients, financial and profitability information regarding the Advisor, descriptions of various services provided to the Funds and to other advisory and sub-advisory clients, descriptions of functions such as compliance monitoring and portfolio trading practices, and information about the personnel providing investment management services to each Fund. The Directors also considered information provided by an independent data provider, Broadridge, comparing the investment performance and the fee and expense levels of each Fund to those of appropriate peer groups of mutual funds selected by Broadridge. After reviewing this information, the Directors requested additional information from the Advisor, which the Advisor provided and the Directors considered.
Review process — The Directors’ determinations were made on the basis of each Director’s business judgment after consideration of all the information presented. The Independent Directors were advised by their independent legal counsel throughout the renewal process and received and reviewed advice from
52
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited)(Continued)
their independent legal counsel regarding legal and industry standards applicable to the renewal of the Agreement, including a legal memorandum from their independent legal counsel discussing their fiduciary duties related to their approval of the continuation of the Agreement. The Independent Directors also discussed the renewal of the Agreement with the Advisor’s representatives and in private sessions at which no representatives of the Advisor were present. In deciding to recommend the renewal of the Agreement with respect to each Fund, the Independent Directors did not identify any single piece of information or particular factor that, in isolation, was the controlling factor. Each Independent Director may also have weighed factors differently. This summary describes the most important, but not all, of the factors considered by the Board and the Independent Directors.
2. Nature, extent, and quality of services provided by the Advisor
The Board and the Independent Directors considered the depth and quality of the Advisor’s investment management process, including its research and strong analytical capabilities; the experience, capability, and integrity of its senior management and other personnel; the advance planning and transition arrangements put in place with respect to the changes in key portfolio management and other personnel; the overall resources available to the Advisor; and the ability of its organizational structure to address the fluctuations in assets that have been experienced over the past several years. The Board and the Independent Directors considered the Advisor’s continued commitment and ability to attract and retain well-qualified investment professionals, noting in particular the Advisor’s hiring of professionals in various areas over the past several years, including recruiting and hiring a highly qualified President and Chief Executive Officer to replace the outgoing head of The TCW Group, Inc., the parent company of the Advisor (“TCW”), and several additional executive-level personnel, continued upgrading of resources in its middle office and back office operations and other areas, as well as a continuing and extensive program of infrastructure and systems enhancements, including business continuity and cyber security, and budgeting for certain future initiatives. The Board and the Independent Directors noted the significant role played by the Advisor, as valuation designee, with respect to the valuation of portfolio securities, including research and analysis related to fair valued securities and due diligence and oversight of pricing vendors. The Board and the Independent Directors also considered that the Advisor made available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, operations, administration, research, portfolio accounting, and legal matters. They noted the substantial additional resources made available by TCW. The Board and the Independent Directors examined and discussed a detailed description of the extensive additional services provided to the Funds to support their operations and compliance, as compared to the much narrower range of services provided to the Advisor’s institutional and sub-advised clients, as well as the Advisor’s oversight and coordination of numerous outside service providers to the Funds. They further noted the high level of regular communication between the Advisor and the Independent Directors. The Advisor explained its responsibility to supervise the activities of the Funds’ various service providers, as well as supporting the Independent Directors and their meetings, regulatory filings, and various operational personnel, and the related costs.
The Board and the Independent Directors concluded that the nature, extent, and quality of the services provided by the Advisor are of a high quality and have benefited and should continue to benefit the Funds and their shareholders.
3. Investment results
The Board and the Independent Directors considered the investment results of each Fund in light of its investment objective(s) and principal investment strategies. They compared each Fund’s total returns with
53
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited)(Continued)
the total returns of other mutual funds in peer group reports prepared by Broadridge with respect to various longer and more recent periods all ended May 31, 2024, and, at the request of the Board, as of July 31, 2024. The Board and the Independent Directors reviewed information as to peer group selections presented by Broadridge and discussed the methodology for those selections with Broadridge. In reviewing each Fund’s relative performance, the Board and the Independent Directors took into account each Fund’s investment strategies, distinct characteristics, asset size and diversification.
The Board and the Independent Directors noted that each Fund’s performance was satisfactory over the relevant periods. The Board and the Independent Directors noted that the investment performance of the majority of the Funds was generally close to or above the median performance of the applicable peer group during the three-year period emphasized by Broadridge in the supplemental materials. For those Funds that lagged peer group averages, they noted that the Advisor had discussed with the Board the reasons for the underperformance, including the investment climate and prevailing market conditions during relevant periods as well as the Advisor’s discipline in maintaining a consistent investment style. The Board considered in particular the Advisor’s explanations for the performance of those Funds that ranked in the fourth or fifth quintile of their peer groups for the prior three-year period. The Board indicated that it would continue to monitor portfolio investment performance on a regular basis and discuss with the Advisor from time to time any instances of long-term underperformance as appropriate. The Board and the Independent Directors noted that the performance of some Funds for periods when they lagged their peer group averages remained satisfactory when assessed on a risk-adjusted basis because performance quintiles do not necessarily reflect the degree of risk employed by peer funds to achieve their returns. The Board also considered the Advisor’s assessment of the Funds’ performance during the recent period of significant market volatility and rising interest rates.
With respect to the fixed income Funds, the Board and the Independent Directors recognized the Advisor’s deliberate strategy to manage risk in light of its critical view of the fixed income securities markets and overall investment market conditions at present and in the near term. For that reason, the Board and the Independent Directors believed that relative performance also should be considered in light of future market conditions expected by the Advisor and positioning of the Funds’ portfolios in light of those expectations. The Board and the Independent Directors noted the Advisor’s view that longer term performance can be more meaningful for active fixed income funds than shorter term performance because fixed income market cycles are generally longer than three years.
For the U.S. fixed income Funds, the Board and the Independent Directors noted the conservative profile of certain of these Funds, which generally experienced less volatility compared to various other funds in the applicable peer group. They also noted the Advisor’s relatively conservative posture for these Funds with respect to duration and interest rate and credit risks.
For the Securitized Bond Fund, the Board and the Independent Directors noted that the Fund’s performance was in the second quintile for the ten-year period, the fourth quintile for the five-year period, and the fifth quintile for the three- and one-year periods. The Board and the Independent Directors considered the Advisor’s explanation that underperformance was driven by the Fund’s higher duration and greater exposure to mortgage-backed securities than its peers, which the Advisor believes may position the Fund for outperformance going forward. The Board noted that the Advisor had recommended, and the Board had approved, changes to the Fund’s name and principal investment strategies effective August 19, 2024.
54
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited)(Continued)
For the Core Fixed Income Fund, the Board and the Independent Directors noted that the Fund’s performance was in the fourth quintile for the ten- and five-year periods and the fifth quintile for the three- and one-year periods. The Board and the Independent Directors considered the Advisor’s explanation that underperformance was driven by the Fund’s higher duration and greater exposure to mortgage-backed securities than its peers, which the Advisor believes may position the Fund for outperformance going forward. The Board and the Independent Directors also considered its underperformance relative to its peers and its benchmark index for all periods reviewed.
For the High Yield Bond Fund, the Board and the Independent Directors noted that the Fund’s performance was in the first quintile for the ten-year period, second quintile for the five-year period, third quintile for the three-year period and fifth quintile for the one-year period. The Board noted that the Advisor had recommended, and the Board had approved, the reorganization of the Fund into the TCW High Yield Bond ETF, a newly created exchange-traded fund that is a series of TCW ETF Trust, estimated to occur later in the year.
For the Enhanced Commodity Strategy Fund, the Board and the Independent Directors noted that the Fund’s performance was in the third quintile for the ten- and three-year periods, the second quintile for the five-year period and the fourth quintile for the one-year period. The Board noted that the Advisor had recommended, and the Board had approved, the liquidation of the Fund effective on or about October 31, 2024.
For the Global Bond Fund, the Board and the Independent Directors noted that the Fund’s performance was in the fourth quintile for the ten-, five-, three- and one-year periods. The Board and the Independent Directors considered the Advisor’s explanation that underperformance for the three-year period was driven by the Fund’s higher duration as compared to many of its peers. The Board further considered that the Fund outperformed its benchmark index for the one-, five- and ten-year periods.
For the Short Term Bond Fund, the Board and the Independent Directors noted that the Fund’s performance was in the fourth quintile for the ten- and one-year periods, third quintile for the five-year period and first quintile for the three-year period. The Board noted that the Advisor had recommended, and the Board had approved, the liquidation of the Fund effective on or about October 31, 2024.
With respect to the U.S. equity Funds, the Board and the Independent Directors noted that the performance of the Funds for most of the various periods reviewed ranked in the first, second or third quintiles, except that one Fund, the Select Equities Fund, ranked in the fourth quintile over certain periods.
The Select Equities Fund ranked in the second quintile for the ten- and one-year periods and the fourth quintile for the five- and three-year periods. The Board and the Independent Directors considered the Advisor’s explanation that underperformance for the three-year period was driven in part by the Fund’s more modest positions in companies that were key contributors to the competitor funds’ returns. The Board and the Independent Directors also considered the Fund’s stronger performance over the ten- and one-year periods.
For the Relative Value Large Cap Fund, the Board and the Independent Directors noted that the Fund’s performance was in the second quintile for the ten-year period and the first quintile for the five-, three- and one-year periods.
For the Relative Value Mid Cap Fund, the Board and the Independent Directors noted that the Fund’s performance was in the third quintile for the ten- and three-year periods and in the first quintile for the five- and one-year periods.
55
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited)(Continued)
For the Global Real Estate Fund, the Board and the Independent Directors noted that the Fund’s performance was in the first quintile for the five-, three- and one-year periods.
For the Conservative Allocation Fund, an asset allocation Fund, the Board and the Independent Directors noted that the Fund’s performance was in the first quintile for the ten-, five, and one-year periods and the second quintile for the three-year period.
With respect to the international and emerging markets Funds, the Board and the Independent Directors noted that the performance of these Funds ranked in the fourth or fifth quintiles over many of the various time periods reviewed but had shown improvement over the one-year period. The Board and the Independent Directors considered the Advisor’s discussion of performance, including the challenging international and emerging market conditions in recent years and the impact of being overweight in emerging market properties during a period of rapid property rule change in China.
For the Emerging Markets Income Fund, the Board and the Independent Directors noted that the Fund’s performance was in the third quintile for the ten-year period, the fourth quintile for the five-year period, the fifth quintile for the three-year period and second quintile for the one-year period. The Board and the Independent Directors considered the Advisor’s discussion of performance, including that the Fund’s relative underperformance was driven by security selection in high yield, largely in Chinese real estate during the three-year period. The Board and the Independent Directors noted that more stringent limits were placed on the Fund’s high yield exposure to manage downside risk, boosting the Fund’s performance to the top quartile for the one-year period ended July 31, 2024.
For the Emerging Markets Local Currency Income Fund, the Board and the Independent Directors noted that the Fund’s performance was in the fourth quintile for the ten-year period, the fifth quintile for the five- and three-year periods and the third quintile for the one-year period. The Board and the Independent Directors considered the Advisor’s discussion of relative underperformance for the Fund for certain periods and the enhancements to the Fund’s investment process as a result.
The Board and the Independent Directors concluded that the Advisor was implementing each Fund’s investment objective(s) and that the Advisor’s record in managing the Funds indicated that its continued management should benefit each Fund and its shareholders over the long term.
4. Advisory fees and total expenses
The Board and the Independent Directors compared the management fees (which Broadridge defines to include the advisory fee and the administrative fee) and total expenses of each Fund (each as a percentage of average net assets) with the median management fee and operating expense level of the other mutual funds in the relevant Broadridge peer groups. These comparisons assisted the Board and the Independent Directors by providing a reasonable statistical measure to assess each Fund’s fees relative to its relevant peers. The Board and the Independent Directors observed that each Fund’s management fee, after giving effect to applicable waivers and/or reimbursements, was below or near the median of the peer group funds on a current basis. The Board and the Independent Directors also observed that each Fund’s total expenses, after giving effect to applicable waivers and/or reimbursements, were near or below the median of the peer group funds. The Board and the Independent Directors also noted the contractual expense limitations to which the Advisor has agreed with respect to each Fund and that the Advisor historically has absorbed any expenses in excess of these limits. The Board and the Independent Directors noted that for several Funds, their below-median management fee and total expenses were in part due to substantial
56
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited)(Continued)
waiver and/or reimbursement pursuant to the contractual expense limitations. The Board and the Independent Directors concluded that the competitive fees charged by the Advisor, and competitive expense ratios, should continue to benefit each Fund and its shareholders.
The Board and the Independent Directors also reviewed information regarding the advisory fees charged by the Advisor to its institutional and sub-advisory clients with similar investment mandates. The Board and the Independent Directors concluded that, although the fees paid by those clients generally were lower than advisory fees paid by the Funds, the differences appropriately reflected the more extensive services provided by the Advisor to the Funds and the Advisor’s significantly greater responsibilities and expenses with respect to the Funds, including the additional time spent by portfolio managers for reasons such as managing the more active cash flows from purchases and redemptions by shareholders, the additional risks of managing a pool of assets for public investors, administrative burdens, daily pricing, valuation and liquidity responsibilities, the supervision of vendors and service providers, and the costs of additional infrastructure and operational resources and personnel and of complying with and supporting the more comprehensive regulatory and governance regime applicable to mutual funds.
5. The Advisor’s costs, level of profits, and economies of scale
The Board and the Independent Directors reviewed information regarding the Advisor’s costs of providing services to the Funds, as well as the resulting level of profits to the Advisor. They reviewed the Advisor’s stated assumptions and methods of allocating certain costs, such as personnel costs, which constitute the Advisor’s largest operating cost. The Board and the Independent Directors recognized that the Advisor should be entitled to earn a reasonable level of profits for the services that it provides to each Fund. The Board and the Independent Directors also reviewed a comparison of the Advisor’s profitability with respect to the Funds to the profitability of certain unaffiliated publicly traded asset managers, which the Advisor believed supported its view that the Advisor’s profitability was reasonable. Based on their review, the Board and the Independent Directors concluded that they were satisfied that the Advisor’s level of profitability from its relationship with each Fund was not unreasonable or excessive.
The Board and the Independent Directors considered the extent to which potential economies of scale could be realized as the Funds grow and whether the advisory fees reflect those potential economies of scale. They recognized that the advisory fees for the Funds do not have breakpoints, which would otherwise result in lower advisory fee rates as the Funds grow larger. They also recognized the Advisor’s view that the advisory fees compare favorably to peer group fees and expenses and remain competitive even at higher asset levels and that the relatively low advisory fees reflect the potential economies of scale. The Board and the Independent Directors recognized the benefits of the Advisor’s substantial past and ongoing investment in the advisory business, such as successfully recruiting and retaining key professional talent, systems and technology upgrades, added resources dedicated to legal, compliance, risk management and cybersecurity programs, and improvements to the overall firm infrastructure, as well as the financial pressures of competing against much larger firms and passive investment products. The Board and the Independent Directors further noted the Advisor’s past and current subsidies of the operating expenses of newer and smaller Funds and the Advisor’s commitment to maintain reasonable overall operating expenses for each Fund. The Board and the Independent Directors also recognized that the Funds benefit from receiving investment advice from an organization with other types of advisory clients in addition to mutual funds. The Board and the Independent Directors considered the risk borne by the Advisor that the Funds’ net assets and thus the Advisor’s fees might decline in the event of redemptions and that smaller Funds might not grow to become profitable. The Board and the Independent Directors concluded that the
57
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited)(Continued)
Advisor was satisfactorily sharing potential economies of scale with the Funds through low fees and expenses, and through reinvesting in its capabilities for serving the Funds and their shareholders.
6. Ancillary benefits
The Board and the Independent Directors also considered ancillary benefits received or to be received by the Advisor and its affiliates as a result of the relationship of the Advisor with the Funds. The Board and the Independent Directors noted that, in addition to the fees the Advisor receives under the Agreement, the Advisor receives additional benefits in connection with management of the Funds in the form of reports, research and other services from brokers and their affiliates in return for brokerage commissions paid to such brokers. The Board and the Independent Directors concluded that any potential benefits received or to be derived by the Advisor from its relationships with the Funds are reasonably related to the services provided by the Advisor to the Funds.
7. Conclusions
Based on their overall review, including their consideration of each of the factors referred to above (and others), the Board and the Independent Directors concluded that the Agreement is fair and reasonable to each Fund and its shareholders, that each Fund’s shareholders received reasonable value in return for the advisory fees and other amounts paid to the Advisor by each Fund, and that the renewal of the Agreement was in the best interests of each Fund and its shareholders.
58
TCW Funds, Inc.
Supplemental Information
Proxy Voting Guidelines
The policies and procedures that the Company uses to determine how to vote proxies are available without charge. The Board has delegated the Company’s proxy voting authority to the Advisor.
Disclosure of Proxy Voting Guidelines
The proxy voting guidelines of the Advisor are available:
| | 1. | By calling 800-FUND-TCW (800-386-3829) to obtain a hard copy; or |
| | 2. | By going to the SEC website at http://www.sec.gov. |
When the Company receives a request for a description of the Advisor’s proxy voting guidelines, it will deliver the description that is disclosed in the Company’s Statement of Additional Information. This information will be sent out via first class mail (or other means designed to ensure equally prompt delivery) within three business days of receiving the request.
The Advisor, on behalf of the Company, prepares and files Form N-PX with the SEC not later than August 31 of each year, which includes the Company’s proxy voting record for the most recent twelve-month period ended June 30 of that year. The Company’s proxy voting record for the most recent twelve-month period ended June 30 is available:
| | 1. | By calling 800-FUND-TCW (800-386-3829) to obtain a hard copy; or |
| | 2. | By going to the SEC website at http://www.sec.gov. |
When the Company receives a request for the Company’s proxy voting record, it will send the information disclosed in the Company’s most recently filed report on Form N-PX via first class mail (or other means designed to ensure equally prompt delivery) within three business days of receiving the request.
The Company also discloses its proxy voting record on its website as soon as is reasonably practicable after its report on Form N-PX is filed with the SEC.
Availability of Quarterly Portfolio Schedule
The Company files a complete schedule of its portfolio holdings with the SEC for the first and third quarters of its fiscal year on Form NPORT-P. Such filings occur no later than 60 days after the end of the Funds’ first and third quarters and are available on the SEC’s website at www.sec.gov.
59
TCW Funds, Inc.
Shareholder Meeting Results (Unaudited)
Special Meeting of Shareholders to Approve Directors — Voting Results
On February 15, 2024, the Corporation held a Special Meeting of Shareholders to elect nine Directors of the Corporation. Shareholders of record on January 5, 2024 were entitled to vote on the proposal to elect Directors. All Funds voted together. Each nominee for Director named below was elected and will hold office until his or her successor has been duly elected and qualified. The following votes were recorded:
PROPOSAL: Election of Directors.
| | | | | | | | |
Director Nominee | | Shares Voted
For | | | Shares
Withheld | |
Patrick C. Haden | | | 778,061,060 | | | | 5,620,273 | |
Martin Luther King III | | | 778,550,805 | | | | 6,106,575 | |
Megan McClellan | | | 779,047,346 | | | | 5,392,670 | |
Peter McMillan | | | 777,261,038 | | | | 5,676,943 | |
Patrick Moore | | | 779,274,376 | | | | 5,718,850 | |
Victoria B. Rogers | | | 778,911,008 | | | | 5,469,537 | |
Robert G. Rooney | | | 780,047,992 | | | | 5,788,337 | |
Michael Swell | | | 780,102,419 | | | | 5,562,293 | |
Andrew Tarica | | | 778,119,775 | | | | 5,585,230 | |
60
TCW Funds, Inc.
Tax Information Notice (Unaudited)
On account of the year ended October 31, 2024, the following Funds paid a capital gain distribution within the meaning 852(b)(3)(c) of the Code. Each Fund also designates as a capital gain distribution a portion of earnings and profits paid to shareholders in redemption of their shares.
| | | | |
Fund | | Amounts per
Share | |
TCW Conservative Allocation Fund | | $ | 0.33 | |
TCW Relative Value Large Cap Fund | | $ | 0.92 | |
TCW Relative Value Mid Cap Fund | | $ | 2.32 | |
TCW Select Equities Fund | | $ | 4.71 | |
Under Section 854(b)(2) of the Code, the Funds hereby designate the following maximum amounts as qualified dividends for purposes of the maximum rate under Section 1(h)(11) of the Code for the fiscal year ended October 31, 2024.
| | | | |
Fund | | Qualified
Dividend Income | |
TCW Conservative Allocation Fund | | $ | 426,450 | |
TCW Global Real Estate Fund | | $ | 186,443 | |
TCW Relative Value Large Cap Fund | | $ | 4,745,620 | |
TCW Relative Value Mid Cap Fund | | $ | 1,246,437 | |
The following are dividend received deduction percentages for the Funds’ corporate shareholders:
| | | | |
Fund | | Dividends
Received Deductions | |
TCW Conservative Allocation Fund | | | 43.37% | |
TCW Global Real Estate Fund | | | 8.00% | |
TCW Relative Value Large Cap Fund | | | 100.00% | |
TCW Relative Value Mid Cap Fund | | | 100.00% | |
This information is given to meet certain requirements of the Code and should not be used by shareholders for preparing their income tax returns. In February 2025, shareholders will receive Form 1099-DIV which will show the actual distribution received and include their share of qualified dividends during the calendar year of 2024. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their individual tax returns.
61
TCW Funds, Inc.
515 South Flower Street
Los Angeles, California 90071
800 FUND TCW
(800 386 3829)
www.TCW.com
INVESTMENT ADVISOR
TCW Investment Management Company LLC
515 South Flower Street
Los Angeles, California 90071
TRANSFER AGENT
U.S. Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
555 West 5th Street
Los Angeles, California 90013
CUSTODIAN & ADMINISTRATOR
State Street Bank & Trust Company
One Congress Street, Suite 1
Boston, MA 02114-2016
DISTRIBUTOR
TCW Funds Distributors LLC
515 South Flower Street
Los Angeles, California 90071
DIRECTORS
Patrick C. Haden
Director and Vice Chairman of the Board
Martin Luther King III
Director
Megan McClellan
Director
Peter McMillan
Director
Patrick Moore
Director
Victoria B. Rogers
Director
Robert G. Rooney
Director
Michael Swell
Director
Andrew Tarica
Director and Chairman of the Board
OFFICERS
Megan McClellan
President and Principal Executive Officer
Drew Bowden
Executive Vice President
Richard M. Villa
Treasurer and Principal Financial and Accounting Officer
Gladys Xiques
Chief Compliance Officer and Anti-Money Laundering Officer
Lisa Eisen
Tax Officer
Eric W. Chan
Assistant Treasurer
Peter Davidson
Vice President and Secretary
TCW FAMILY OF FUNDS
EQUITY FUNDS
TCW Global Real Estate Fund
TCW Relative Value Large Cap Fund
TCW Relative Value Mid Cap Fund
TCW Select Equities Fund
ASSET ALLOCATION FUND
TCW Conservative Allocation Fund
FIXED INCOME FUNDS
TCW Central Cash Fund
TCW Core Fixed Income Fund
TCW Global Bond Fund
TCW High Yield Bond Fund
TCW Securitized Bond Fund
INTERNATIONAL FUNDS
TCW Emerging Markets Income Fund
TCW Emerging Markets Local Currency Income Fund
TO COME
INTERNATIONAL FUNDS
TCW Emerging Markets Income Fund
TCW Emerging Markets Local Currency Income Fund
TCW Funds, Inc.
Table of Contents
TCW Emerging Markets Income Fund
Schedule of Investments | October 31, 2024 |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
FIXED INCOME SECURITIES — 98.6% of Net Assets | |
|
| Angola — 1.1% | |
| |
Angola Government International Bonds | | | | | |
| | | |
8.00% (1) | | | 11/26/29 | | | $ | 7,483,000 | | | $ | 6,853,231 | |
| | | |
8.25% (1) | | | 05/09/28 | | | | 11,698,000 | | | | 11,180,714 | |
| | | |
8.75% (1) | | | 04/14/32 | | | | 9,979,000 | | | | 9,055,444 | |
| | | |
9.13% (1) | | | 11/26/49 | | | | 12,132,000 | | | | 10,147,690 | |
| | | |
9.50% (1) | | | 11/12/25 | | | | 1,735,000 | | | | 1,763,610 | |
| | | | | | | | | | | | |
| | | |
Total Angola | | | | | | | | | | | | |
| |
(Cost: $39,022,179) | | | | 39,000,689 | |
| | | | | | | | | | | | |
|
| Argentina — 2.3% | |
| |
Argentina Republic Government International Bonds | | | | | |
| | | |
0.75% | | | 07/09/30 | | | | 59,086,116 | | | | 39,798,635 | |
| | | |
4.13% | | | 07/09/35 | | | | 30,876,132 | | | | 17,118,963 | |
| | | |
5.00% | | | 01/09/38 | | | | 36,873,346 | | | | 22,083,447 | |
| | | | | | | | | | | | |
| | | |
Total Argentina | | | | | | | | | | | | |
| |
(Cost: $53,107,470) | | | | 79,001,045 | |
| | | | | | | | | | | | |
|
| Azerbaijan — 0.2% (Cost: $8,307,901) | |
| |
Republic of Azerbaijan International Bonds | | | | | |
| | | |
3.50% (1) | | | 09/01/32 | | | | 9,765,000 | | | | 8,485,199 | |
| | | | | | | | | | | | |
|
| Bahamas — 0.2% (Cost: $5,364,020) | |
| |
Bahamas Government International Bonds | | | | | |
| | | |
8.95% (1) | | | 10/15/32 | | | | 5,994,000 | | | | 6,162,791 | |
| | | | | | | | | | | | |
|
| Bahrain — 1.8% | |
| |
Bahrain Government International Bonds | | | | | |
| | | |
5.63% (1) | | | 05/18/34 | | | | 18,614,000 | | | | 17,258,901 | |
| | | |
6.75% (1) | | | 09/20/29 | | | | 23,724,000 | | | | 24,417,927 | |
| | | |
7.50% (2) | | | 02/12/36 | | | | 10,701,000 | | | | 11,237,869 | |
| |
CBB International Sukuk Programme Co. WLL | | | | | |
| | | |
6.00% (2) | | | 02/12/31 | | | | 11,286,000 | | | | 11,560,363 | |
| | | | | | | | | | | | |
| | | |
Total Bahrain | | | | | | | | | | | | |
| |
(Cost: $60,737,414) | | | | 64,475,060 | |
| | | | | | | | | | | | |
| | | |
| Brazil — 4.6% | | | | | | | | | |
| |
Acu Petroleo Luxembourg SARL | | | | | |
| | | |
7.50% (2) | | | 07/13/35 | | | | 13,230,888 | | | | 13,295,587 | |
| |
Aegea Finance SARL | | | | | |
| | | |
9.00% (2) | | | 01/20/31 | | | | 12,837,000 | | | | 13,679,107 | |
| |
Brazil Government International Bonds | | | | | |
| | | |
5.00% | | | 01/27/45 | | | | 24,910,000 | | | | 19,674,167 | |
| | | |
6.00% | | | 10/20/33 | | | | 22,625,000 | | | | 22,482,236 | |
| | | |
7.13% | | | 05/13/54 | | | | 29,486,000 | | | | 29,470,373 | |
| |
CSN Resources SA | | | | | |
| | | |
4.63% (2) | | | 06/10/31 | | | | 2,447,000 | | | | 1,941,572 | |
| | | |
8.88% (2) | | | 12/05/30 | | | | 8,378,000 | | | | 8,414,026 | |
| |
Minerva Luxembourg SA | | | | | |
| | | |
8.88% (2) | | | 09/13/33 | | | | 9,384,000 | | | | 9,834,807 | |
| |
Samarco Mineracao SA | | | | | |
| | | |
9.00% (2),(3) | | | 06/30/31 | | | | 23,820,866 | | | | 22,659,599 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| | | |
| Brazil (Continued) | | | | | | | | | |
| |
Yinson Boronia Production BV | | | | | |
| | | |
8.95% (2) | | | 07/31/42 | | | $ | 18,380,000 | | | $ | 19,467,545 | |
| | | | | | | | | | | | |
| | | |
Total Brazil | | | | | | | | | | | | |
| |
(Cost: $154,816,208) | | | | 160,919,019 | |
| | | | | | | | | | | | |
| | | |
| Chile — 3.9% | | | | | | | | | |
| |
AES Andes SA | | | | | |
| | | |
6.30% (2) | | | 03/15/29 | | | | 10,103,000 | | | | 10,315,769 | |
| | | |
8.15% (5 yr. CMT + 3.835%) (2),(4) | | | 06/10/55 | | | | 18,568,000 | | | | 18,986,708 | |
| | | |
Antofagasta PLC | | | | | | | | | | | | |
| | | |
6.25% (2) | | | 05/02/34 | | | | 12,078,000 | | | | 12,575,372 | |
| |
Corp. Nacional del Cobre de Chile | | | | | |
| | | |
3.70% (1) | | | 01/30/50 | | | | 10,227,000 | | | | 7,152,252 | |
| | | |
5.13% (1) | | | 02/02/33 | | | | 14,846,000 | | | | 14,338,861 | |
| | | |
6.30% (1) | | | 09/08/53 | | | | 36,039,000 | | | | 36,236,494 | |
| | | |
6.44% (1) | | | 01/26/36 | | | | 26,839,000 | | | | 27,956,308 | |
| |
Engie Energia Chile SA | | | | | |
| | | |
6.38% (2) | | | 04/17/34 | | | | 8,575,000 | | | | 8,759,362 | |
| | | | | | | | | | | | |
| | | |
Total Chile | | | | | | | | | | | | |
| |
(Cost: $133,487,523) | | | | 136,321,126 | |
| | | | | | | | | | | | |
| | | |
| China — 0.5% | | | | | | | | | |
| |
Fortune Star BVI Ltd. | | | | | |
| | | |
5.00% (1) | | | 05/18/26 | | | | 16,536,000 | | | | 15,841,157 | |
| | | |
5.05% (1) | | | 01/27/27 | | | | 2,810,000 | | | | 2,642,187 | |
| | | | | | | | | | | | |
| | | |
Total China | | | | | | | | | | | | |
| |
(Cost: $17,510,931) | | | | 18,483,344 | |
| | | | | | | | | | | | |
| | | |
| Colombia — 4.0% | | | | | | | | | |
| | | |
Aris Mining Corp. | | | | | | | | | | | | |
| | | |
8.00% (2) | | | 10/31/29 | | | | 8,855,000 | | | | 8,893,785 | |
|
Colombia Government International Bonds | |
| | | |
7.38% | | | 09/18/37 | | | | 13,711,000 | | | | 13,158,035 | |
| | | |
7.50% | | | 02/02/34 | | | | 11,746,000 | | | | 11,665,423 | |
| | | |
8.00% | | | 11/14/35 | | | | 8,155,000 | | | | 8,275,205 | |
| | | |
8.75% | | | 11/14/53 | | | | 18,536,000 | | | | 18,907,276 | |
| | | |
Ecopetrol SA | | | | | | | | | | | | |
| | | |
5.88% | | | 05/28/45 | | | | 20,143,000 | | | | 14,158,313 | |
| | | |
7.75% | | | 02/01/32 | | | | 11,075,000 | | | | 10,837,331 | |
| | | |
8.38% | | | 01/19/36 | | | | 27,480,000 | | | | 26,860,326 | |
| | | |
Gran Tierra Energy, Inc. | | | | | | | | | | | | |
| | | |
9.50% (2) | | | 10/15/29 | | | | 15,822,000 | | | | 14,645,634 | |
| | | |
Termocandelaria Power SA | | | | | | | | | | | | |
| | | |
7.75% (2) | | | 09/17/31 | | | | 12,940,000 | | | | 13,034,850 | |
| | | | | | | | | | | | |
| | | |
Total Colombia | | | | | | | | | | | | |
| |
(Cost: $141,157,285) | | | | 140,436,178 | |
| | | | | | | | | | | | |
| | | |
| Costa Rica — 0.9% | | | | | | | | | |
| |
Costa Rica Government International Bonds | | | | | |
| | | |
6.13% (1) | | | 02/19/31 | | | | 4,686,000 | | | | 4,780,376 | |
See accompanying Notes to Financial Statements.
1
TCW Emerging Markets Income Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| | |
| Costa Rica (Continued) | | | | | | | |
| | | |
6.55% (2) | | | 04/03/34 | | | $ | 8,351,000 | | | $ | 8,685,875 | |
| | | |
7.30% (2) | | | 11/13/54 | | | | 16,711,000 | | | | 17,732,711 | |
| | | | | | | | | | | | |
| | | |
Total Costa Rica | | | | | | | | | | | | |
| |
(Cost: $28,784,884) | | | | 31,198,962 | |
| | | | | | | | | | | | |
|
| Dominican Republic — 2.4% | |
| |
Dominican Republic International Bonds | | | | | |
| | | |
4.50% (2) | | | 01/30/30 | | | | 16,912,000 | | | | 15,711,079 | |
| | | |
4.88% (2) | | | 09/23/32 | | | | 21,120,000 | | | | 19,310,438 | |
| | | |
5.50% (2) | | | 02/22/29 | | | | 14,177,000 | | | | 13,911,890 | |
| | | |
6.40% (1) | | | 06/05/49 | | | | 12,919,000 | | | | 12,534,143 | |
| | | |
6.85% (1) | | | 01/27/45 | | | | 20,392,000 | | | | 20,798,617 | |
| | | | | | | | | | | | |
| | | |
Total Dominican Republic | | | | | | | | | | | | |
| |
(Cost: $76,214,032) | | | | 82,266,167 | |
| | | | | | | | | | | | |
| | | |
| Ecuador — 1.7% | | | | | | | | | |
| |
Ecuador Government International Bonds | | | | | |
| | | |
0.00% (1),(5) | | | 07/31/30 | | | | 11,782,578 | | | | 6,454,378 | |
| | | |
5.00% (1) | | | 07/31/40 | | | | 27,872,376 | | | | 14,156,380 | |
| | | |
5.50% (1) | | | 07/31/35 | | | | 6,152,893 | | | | 3,425,439 | |
| | | |
5.50% (2) | | | 07/31/35 | | | | 37,656,120 | | | | 20,963,915 | |
| | | |
6.90% (1) | | | 07/31/30 | | | | 20,508,869 | | | | 14,151,940 | |
| | | | | | | | | | | | |
| | | |
Total Ecuador | | | | | | | | | | | | |
| |
(Cost: $45,431,523) | | | | 59,152,052 | |
| | | | | | | | | | | | |
| | | |
| Egypt — 3.8% | | | | | | | | | |
| |
Egypt Government International Bonds | | | | | |
| | | |
5.88% (1) | | | 02/16/31 | | | | 34,454,000 | | | | 28,656,770 | |
| | | |
7.05% (2) | | | 01/15/32 | | | | 30,455,000 | | | | 26,231,501 | |
| | | |
7.30% (1) | | | 09/30/33 | | | | 33,836,000 | | | | 28,609,353 | |
| | | |
7.50% (1) | | | 02/16/61 | | | | 4,600,000 | | | | 3,257,168 | |
| | | |
7.63% (1) | | | 05/29/32 | | | | 25,527,000 | | | | 22,475,502 | |
| | | |
8.50% (1) | | | 01/31/47 | | | | 31,961,000 | | | | 25,425,295 | |
| | | | | | | | | | | | |
| | | |
Total Egypt | | | | | | | | | | | | |
| |
(Cost: $109,241,750) | | | | 134,655,589 | |
| | | | | | | | | | | | |
|
El Salvador — 1.4% | |
| |
El Salvador Government International Bonds | | | | | |
| | | |
0.25% (2) | | | 04/17/30 | | | | 13,436,000 | | | | 364,116 | |
| | | |
7.12% (1) | | | 01/20/50 | | | | 8,111,000 | | | | 6,229,572 | |
| | | |
7.65% (1) | | | 06/15/35 | | | | 7,108,000 | | | | 6,223,978 | |
| | | |
8.25% (1) | | | 04/10/32 | | | | 17,889,000 | | | | 16,770,401 | |
| | | |
8.63% (1) | | | 02/28/29 | | | | 1,522,000 | | | | 1,505,349 | |
| | | |
9.25% (2) | | | 04/17/30 | | | | 13,421,000 | | | | 13,326,516 | |
| | | |
9.50% (1) | | | 07/15/52 | | | | 5,390,000 | | | | 5,129,771 | |
| | | | | | | | | | | | |
| | | |
Total El Salvador | | | | | | | | | | | | |
| |
(Cost: $45,416,068) | | | | 49,549,703 | |
| | | | | | | | | | | | |
| | | |
| Gabon — 1.7% | | | | | | | | | |
| |
Gabon Government International Bonds | | | | | |
| | | |
6.63% (1) | | | 02/06/31 | | | | 41,598,000 | | | | 33,287,551 | |
| | | |
6.95% (1) | | | 06/16/25 | | | | 26,477,000 | | | | 25,815,340 | |
| | | | | | | | | | | | |
| | | |
Total Gabon | | | | | | | | | | | | |
| |
(Cost: $57,419,006) | | | | 59,102,891 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| | | |
| Ghana — 1.0% | | | | | | | | | |
| |
Ghana Government International Bonds | | | | | |
| | | |
0.00% (2),(5),(6) | | | 07/03/26 | | | $ | 2,220,670 | | | $ | 2,062,913 | |
| | | |
0.00% (2),(5),(6) | | | 01/03/30 | | | | 2,894,297 | | | | 2,198,276 | |
| | | |
5.00% (2),(6) | | | 07/03/29 | | | | 16,786,719 | | | | 14,456,387 | |
| | | |
5.00% (2),(6) | | | 07/03/35 | | | | 24,139,580 | | | | 16,878,636 | |
| | | | | | | | | | | | |
| | | |
Total Ghana | | | | | | | | | | | | |
| |
(Cost: $36,633,916) | | | | 35,596,212 | |
| | | | | | | | | | | | |
| | | |
| Guatemala — 1.8% | | | | | | | | | |
| |
Guatemala Government Bonds | | | | | |
| | | |
3.70% (2) | | | 10/07/33 | | | | 11,900,000 | | | | 9,855,461 | |
| | | |
4.90% (1) | | | 06/01/30 | | | | 5,831,000 | | | | 5,571,171 | |
| | | |
5.38% (1) | | | 04/24/32 | | | | 10,000,000 | | | | 9,662,600 | |
| | | |
6.05% (2) | | | 08/06/31 | | | | 7,681,000 | | | | 7,657,035 | |
| | | |
6.55% (2) | | | 02/06/37 | | | | 17,046,000 | | | | 17,162,765 | |
| | | |
6.60% (2) | | | 06/13/36 | | | | 12,917,000 | | | | 13,117,859 | |
| | | | | | | | | | | | |
| | | |
Total Guatemala | | | | | | | | | | | | |
| |
(Cost: $62,607,669) | | | | 63,026,891 | |
| | | | | | | | | | | | |
| | | |
| Hong Kong — 0.5% | | | | | | | | | |
| |
NWD Finance BVI Ltd. | | | | | |
| | | |
5.25% (-5 yr. CMT + 7.889%) (1),(4),(7) | | | 03/22/26 | | | | 11,655,000 | | | | 9,828,661 | |
| | | |
NWD MTN Ltd. | | | | | | | | | | | | |
| | | |
8.63% (1) | | | 02/08/28 | | | | 7,650,000 | | | | 7,190,618 | |
| | | | | | | | | | | | |
| | | |
Total Hong Kong | | | | | | | | | | | | |
| |
(Cost: $16,998,402) | | | | 17,019,279 | |
| | | | | | | | | | | | |
| | | |
| Hungary — 1.5% | | | | | | | | | |
| |
Hungary Government International Bonds | | | | | |
| | | |
5.50% (1) | | | 06/16/34 | | | | 6,800,000 | | | | 6,658,288 | |
| | | |
5.50% (2) | | | 03/26/36 | | | | 5,800,000 | | | | 5,592,244 | |
| | | |
6.75% (2) | | | 09/25/52 | | | | 8,435,000 | | | | 8,987,240 | |
| |
Magyar Export-Import Bank Zrt | | | | | |
| | | |
6.13% (2) | | | 12/04/27 | | | | 6,393,000 | | | | 6,520,349 | |
| | | |
MVM Energetika Zrt | | | | | | | | | | | | |
| | | |
6.50% (1) | | | 03/13/31 | | | | 10,701,000 | | | | 10,993,993 | |
| | | |
7.50% (1) | | | 06/09/28 | | | | 14,622,000 | | | | 15,425,040 | |
| | | | | | | | | | | | |
| | | |
Total Hungary | | | | | | | | | | | | |
| |
(Cost: $52,266,155) | | | | 54,177,154 | |
| | | | | | | | | | | | |
| | | |
| Indonesia — 4.5% | | | | | | | | | |
| | | |
Freeport Indonesia PT | | | | | | | | | | | | |
| | | |
5.32% (2) | | | 04/14/32 | | | | 11,682,000 | | | | 11,587,493 | |
|
Indonesia Asahan Aluminium PT/Mineral Industri Indonesia Persero PT | |
| | | |
5.45% (2) | | | 05/15/30 | | | | 11,675,000 | | | | 11,714,929 | |
| |
Indonesia Government International Bonds | | | | | |
| | | |
2.85% | | | 02/14/30 | | | | 11,499,000 | | | | 10,482,833 | |
| | | |
4.40% | | | 03/10/29 | | | | 9,408,000 | | | | 9,315,143 | |
| | | |
4.70% | | | 02/10/34 | | | | 18,235,000 | | | | 17,853,341 | |
See accompanying Notes to Financial Statements.
2
TCW Emerging Markets Income Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| | |
| Indonesia (Continued) | | | | | | | |
| | | |
4.75% | | | 09/10/34 | | | $ | 11,922,000 | | | $ | 11,685,706 | |
| | | |
5.15% | | | 09/10/54 | | | | 9,329,000 | | | | 9,071,986 | |
| |
Perusahaan Penerbit SBSN Indonesia III | | | | | |
| | | |
5.10% (2) | | | 07/02/29 | | | | 8,226,000 | | | | 8,345,030 | |
| | | |
5.20% (2) | | | 07/02/34 | | | | 15,088,000 | | | | 15,285,200 | |
| | | |
5.50% (2) | | | 07/02/54 | | | | 14,290,000 | | | | 14,600,093 | |
| | | |
5.60% (2) | | | 11/15/33 | | | | 26,204,000 | | | | 27,429,561 | |
|
Perusahaan Perseroan Persero PT Perusahaan Listrik Negara | |
| | | |
4.88% (1) | | | 07/17/49 | | | | 12,225,000 | | | | 10,310,932 | |
| | | | | | | | | | | | |
| | | |
Total Indonesia | | | | | | | | | | | | |
| |
(Cost: $153,361,402) | | | | 157,682,247 | |
| | | | | | | | | | | | |
| | | |
| Israel — 2.5% | | | | | | | | | |
| |
Israel Government International Bonds | | | | | |
| | | |
5.38% | | | 03/12/29 | | | | 15,373,000 | | | | 15,425,729 | |
| | | |
5.50% | | | 03/12/34 | | | | 41,862,000 | | | | 40,797,868 | |
| | | |
5.75% | | | 03/12/54 | | | | 34,765,000 | | | | 31,782,511 | |
| | | | | | | | | | | | |
| | | |
Total Israel | | | | | | | | | | | | |
| |
(Cost: $89,046,859) | | | | 88,006,108 | |
| | | | | | | | | | | | |
| | | |
| Jamaica — 0.3% | | | | | | | | | |
| |
Jamaica Government International Bonds | | | | | |
| | | |
7.88% | | | 07/28/45 | | | | 3,086,000 | | | | 3,684,592 | |
| | | |
8.00% | | | 03/15/39 | | | | 5,726,000 | | | | 6,829,858 | |
| | | | | | | | | | | | |
| | | |
Total Jamaica | | | | | | | | | | | | |
| |
(Cost: $10,432,863) | | | | 10,514,450 | |
| | | | | | | | | | | | |
| | | |
| Jordan — 0.9% | | | | | | | | | |
| |
Jordan Government International Bonds | | | | | |
| | | |
5.85% (1) | | | 07/07/30 | | | | 8,940,000 | | | | 8,469,488 | |
| | | |
7.38% (1) | | | 10/10/47 | | | | 3,597,000 | | | | 3,282,982 | |
| | | |
7.50% (2) | | | 01/13/29 | | | | 20,198,000 | | | | 20,623,572 | |
| | | | | | | | | | | | |
| | | |
Total Jordan | | | | | | | | | | | | |
| |
(Cost: $32,049,190) | | | | 32,376,042 | |
| | | | | | | | | | | | |
| | | |
| Kazakhstan — 0.8% | | | | | | | | | |
| |
KazMunayGas National Co. JSC | | | | | |
| | | |
5.38% (1) | | | 04/24/30 | | | | 4,601,000 | | | | 4,552,552 | |
| | | |
5.75% (1) | | | 04/19/47 | | | | 26,793,000 | | | | 23,760,568 | |
| | | | | | | | | | | | |
| | | |
Total Kazakhstan | | | | | | | | | | | | |
| |
(Cost: $24,950,419) | | | | 28,313,120 | |
| | | | | | | | | | | | |
| | | |
| Kenya — 0.6% | | | | | | | | | |
| |
Republic of Kenya Government International Bonds | | | | | |
| | | |
7.00% (1) | | | 05/22/27 | | | | 5,531,000 | | | | 5,466,398 | |
| | | |
8.00% (1) | | | 05/22/32 | | | | 4,873,000 | | | | 4,489,739 | |
| | | |
8.25% (1) | | | 02/28/48 | | | | 6,378,000 | | | | 5,358,477 | |
| | | |
9.75% (1) | | | 02/16/31 | | | | 6,199,000 | | | | 6,240,099 | |
| | | | | | | | | | | | |
| | | |
Total Kenya | | | | | | | | | | | | |
| |
(Cost: $20,297,398) | | | | 21,554,713 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Latvia — 0.6% (Cost: $17,807,607) | |
| | | |
Air Baltic Corp. AS | | | | | | | | | | | | |
| | | |
14.50% (2) | | | 08/14/29 | | | EUR | 15,830,000 | | | $ | 19,463,998 | |
| | | | | | | | | | | | |
| | | |
| Lebanon — 0.6% | | | | | | | | | |
| |
Lebanon Government International Bonds | | | | | |
| | | |
5.80% (1),(6) | | | 04/14/20 | | | | 58,850,000 | | | | 5,025,790 | |
| | | |
6.00% (1),(6) | | | 01/27/23 | | | | 19,185,000 | | | | 1,635,521 | |
| | | |
6.10% (1),(6) | | | 10/04/22 | | | | 87,500,000 | | | | 7,571,375 | |
| | | |
6.20% (1),(6) | | | 02/26/25 | | | | 15,060,000 | | | | 1,286,877 | |
| | | |
6.65% (1),(6) | | | 04/22/24 | | | | 12,700,000 | | | | 1,085,596 | |
| | | |
6.85% (1),(6) | | | 03/23/27 | | | | 26,100,000 | | | | 2,235,204 | |
| | | |
8.20% (6) | | | 05/17/33 | | | | 20,000,000 | | | | 1,711,400 | |
| | | |
8.25% (6) | | | 05/17/34 | | | | 22,875,000 | | | | 1,953,525 | |
| | | | | | | | | | | | |
| | | |
Total Lebanon | | | | | | | | | | | | |
| |
(Cost: $15,923,138) | | | | 22,505,288 | |
| | | | | | | | | | | | |
|
Mexico — 4.5% | |
| | | |
BBVA Bancomer SA | | | | | | | | | | | | |
| | | |
5.13% (5 yr. CMT + 2.650%) (1),(4) | | | 01/18/33 | | | $ | 9,742,000 | | | | 9,118,707 | |
| |
Comision Federal de Electricidad | | | | | |
| | | |
5.70% (2) | | | 01/24/30 | | | | 8,675,000 | | | | 8,521,366 | |
| | | |
6.45% (2) | | | 01/24/35 | | | | 8,719,000 | | | | 8,419,415 | |
| |
FIEMEX Energia — Banco Actinver SA Institucion de Banca Multiple | | | | | |
| | | |
7.25% (2) | | | 01/31/41 | | | | 12,031,000 | | | | 12,067,815 | |
| |
Mexico Government International Bonds | | | | | |
| | | |
6.34% | | | 05/04/53 | | | | 21,209,000 | | | | 19,741,125 | |
| | | |
6.35% | | | 02/09/35 | | | | 32,601,000 | | | | 32,776,067 | |
| | | |
Petroleos Mexicanos | | | | | | | | | | | | |
| | | |
5.95% | | | 01/28/31 | | | | 19,723,000 | | | | 16,979,334 | |
| | | |
6.38% | | | 01/23/45 | | | | 7,545,000 | | | | 5,294,402 | |
| | | |
6.50% | | | 03/13/27 | | | | 5,549,000 | | | | 5,451,282 | |
| | | |
6.63% | | | 06/15/35 | | | | 14,469,000 | | | | 11,834,485 | |
| | | |
6.70% | | | 02/16/32 | | | | 18,526,000 | | | | 16,482,767 | |
| | | |
6.75% | | | 09/21/47 | | | | 7,890,000 | | | | 5,649,161 | |
| | | |
7.69% | | | 01/23/50 | | | | 6,158,000 | | | | 4,779,716 | |
| | | |
8.75% | | | 06/02/29 | | | | 718,430 | | | | 727,813 | |
| | | | | | | | | | | | |
| | | |
Total Mexico | | | | | | | | | | | | |
| |
(Cost: $153,604,153) | | | | 157,843,455 | |
| | | | | | | | | | | | |
| | | |
| Morocco —1.2% | | | | | | | | | |
| |
Morocco Government International Bonds | | | | | |
| | | |
5.95% (2) | | | 03/08/28 | | | | 9,861,000 | | | | 10,019,269 | |
| | | |
6.50% (2) | | | 09/08/33 | | | | 7,476,000 | | | | 7,861,463 | |
| | | |
OCP SA | | | | | | | | | | | | |
| | | |
6.75% (2) | | | 05/02/34 | | | | 11,668,000 | | | | 12,196,910 | |
| | | |
7.50% (2) | | | 05/02/54 | | | | 9,974,000 | | | | 10,334,859 | |
| | | | | | | | | | | | |
| | | |
Total Morocco | | | | | | | | | | | | |
| |
(Cost: $38,407,360) | | | | 40,412,501 | |
| | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
3
TCW Emerging Markets Income Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
Mozambique — 0.3% (Cost: $10,907,520) | |
| |
Mozambique International Bonds | | | | | |
| | | |
9.00% (1) | | | 09/15/31 | | | $ | 14,441,000 | | | $ | 12,095,493 | |
| | | | | | | | | | | | |
| | | |
| Nigeria — 1.9% | | | | | | | | | |
| |
Nigeria Government International Bonds | | | | | |
| | | |
6.13% (2) | | | 09/28/28 | | | | 13,192,000 | | | | 11,918,181 | |
| | | |
7.14% (1) | | | 02/23/30 | | | | 7,435,000 | | | | 6,725,106 | |
| | | |
7.38% (1) | | | 09/28/33 | | | | 18,585,000 | | | | 15,741,309 | |
| | | |
7.63% (1) | | | 11/28/47 | | | | 6,555,000 | | | | 5,007,037 | |
| | | |
7.70% (2) | | | 02/23/38 | | | | 7,594,000 | | | | 6,176,124 | |
| | | |
8.25% (1) | | | 09/28/51 | | | | 5,884,000 | | | | 4,694,608 | |
| | | |
8.38% (1) | | | 03/24/29 | | | | 15,445,000 | | | | 14,910,603 | |
| | | | | | | | | | | | |
| | | |
Total Nigeria | | | | | | | | | | | | |
| |
(Cost: $62,566,319) | | | | 65,172,968 | |
| | | | | | | | | | | | |
| | | |
| Oman — 3.0% | | | | | | | | | |
| | | |
Mazoon Assets Co. SAOC | | | | | | | | | | | | |
| | | |
5.50% (2) | | | 02/14/29 | | | | 10,200,000 | | | | 10,329,744 | |
| |
Oman Government International Bonds | | | | | |
| | | |
6.00% (1) | | | 08/01/29 | | | | 35,727,000 | | | | 36,604,812 | |
| | | |
6.25% (2) | | | 01/25/31 | | | | 41,216,000 | | | | 42,979,221 | |
| | | |
6.50% (1) | | | 03/08/47 | | | | 13,706,000 | | | | 13,812,770 | |
| | | | | | | | | | | | |
| | | |
Total Oman | | | | | | | | | | | | |
| |
(Cost: $101,194,097) | | | | 103,726,547 | |
| | | | | | | | | | | | |
| | | |
Pakistan — 0.9% | | | | | | | | | | | | |
| |
Pakistan Government International Bonds | | | | | |
| | | |
6.88% (1) | | | 12/05/27 | | | | 7,495,000 | | | | 6,799,239 | |
| | | |
7.38% (1) | | | 04/08/31 | | | | 16,142,000 | | | | 13,694,873 | |
| | | |
8.88% (1) | | | 04/08/51 | | | | 12,112,000 | | | | 9,644,301 | |
| | | | | | | | | | | | |
| | | |
Total Pakistan | | | | | | | | | | | | |
| |
(Cost: $24,781,698) | | | | 30,138,413 | |
| | | | | | | | | | | | |
| | | |
| Panama — 3.1% | | | | | | | | | |
|
Panama Government International Bonds | |
| | | |
3.16% | | | 01/23/30 | | | | 34,871,000 | | | | 30,091,232 | |
| | | |
4.50% | | | 04/16/50 | | | | 35,743,000 | | | | 23,877,039 | |
| | | |
6.40% | | | 02/14/35 | | | | 25,514,000 | | | | 24,481,193 | |
| | | |
7.50% | | | 03/01/31 | | | | 7,594,000 | | | | 8,004,304 | |
| | | |
7.88% | | | 03/01/57 | | | | 11,432,000 | | | | 11,965,188 | |
| | | |
8.00% | | | 03/01/38 | | | | 9,165,000 | | | | 9,684,564 | |
| | | | | | | | | | | | |
| | | |
Total Panama | | | | | | | | | | | | |
| |
(Cost: $110,055,455) | | | | 108,103,520 | |
| | | | | | | | | | | | |
| | | |
| Peru — 2.3% | | | | | | | | | |
| |
Banco de Credito del Peru SA | | | | | |
| | | |
5.80% (5 yr. CMT + 2.240%) (2),(4) | | | 03/10/35 | | | | 6,189,000 | | | | 6,105,634 | |
| |
Cia de Minas Buenaventura SAA | | | | | |
| | | |
5.50% (1) | | | 07/23/26 | | | | 9,177,000 | | | | 9,038,152 | |
| | | |
Niagara Energy SAC | | | | | | | | | | | | |
| | | |
5.75% (2) | | | 10/03/34 | | | | 8,342,000 | | | | 8,161,396 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| | | |
| Peru (Continued) | | | | | | | | | |
| |
Peru Government International Bonds | | | | | |
| | | |
1.86% | | | 12/01/32 | | | $ | 12,616,000 | | | $ | 9,791,782 | |
| | | |
3.00% | | | 01/15/34 | | | | 31,957,000 | | | | 26,342,475 | |
| | | |
3.55% | | | 03/10/51 | | | | 9,826,000 | | | | 6,963,883 | |
| | | |
5.88% | | | 08/08/54 | | | | 12,578,000 | | | | 12,479,891 | |
| | | | | | | | | | | | |
| | | |
Total Peru | | | | | | | | | | | | |
| |
(Cost: $79,458,147) | | | | 78,883,213 | |
| | | | | | | | | | | | |
| | | |
| Philippines — 2.1% | | | | | | | | | |
| |
Philippines Government International Bonds | | | | | |
| | | |
1.95% | | | 01/06/32 | | | | 6,450,000 | | | | 5,330,731 | |
| | | |
2.95% | | | 05/05/45 | | | | 11,583,000 | | | | 8,093,737 | |
| | | |
3.00% | | | 02/01/28 | | | | 8,925,000 | | | | 8,473,306 | |
| | | |
3.20% | | | 07/06/46 | | | | 12,051,000 | | | | 8,659,849 | |
| | | |
3.56% | | | 09/29/32 | | | | 37,095,000 | | | | 33,824,334 | |
| | | |
4.75% | | | 03/05/35 | | | | 9,600,000 | | | | 9,406,272 | |
| | | | | | | | | | | | |
| | | |
Total Philippines | | | | | | | | | | | | |
| |
(Cost: $75,058,709) | | | | 73,788,229 | |
| | | | | | | | | | | | |
| | | |
| Poland — 3.0% | | | | | | | | | |
| |
Bank Gospodarstwa Krajowego | | | | | |
| | | |
5.75% (2) | | | 07/09/34 | | | | 10,076,000 | | | | 10,181,999 | |
| | | |
6.25% (2) | | | 07/09/54 | | | | 10,479,000 | | | | 10,695,915 | |
| |
Republic of Poland Government International Bonds | | | | | |
| | | |
4.63% | | | 03/18/29 | | | | 22,738,000 | | | | 22,755,736 | |
| | | |
4.88% | | | 10/04/33 | | | | 39,381,000 | | | | 38,840,693 | |
| | | |
5.50% | | | 04/04/53 | | | | 9,348,000 | | | | 9,062,606 | |
| | | |
5.50% | | | 03/18/54 | | | | 13,039,000 | | | | 12,582,374 | |
| | | | | | | | | | | | |
| | | |
Total Poland | | | | | | | | | | | | |
(Cost: $103,926,730) | | | | 104,119,323 | |
| | | | | | | | | | | | |
| | | |
| Romania — 2.3% | | | | | | | | | |
| |
Romania Government International Bonds | | | | | |
| | | |
5.88% (2) | | | 01/30/29 | | | | 18,986,000 | | | | 19,106,371 | |
| | | |
6.00% (2) | | | 05/25/34 | | | | 9,166,000 | | | | 8,936,942 | |
| | | |
6.38% (2) | | | 01/30/34 | | | | 21,296,000 | | | | 21,266,185 | |
| | | |
7.13% (2) | | | 01/17/33 | | | | 13,750,000 | | | | 14,569,775 | |
| | | |
7.63% (2) | | | 01/17/53 | | | | 15,336,000 | | | | 16,586,651 | |
| | | | | | | | | | | | |
| | | |
Total Romania | | | | | | | | | | | | |
| |
(Cost: $78,311,147) | | | | 80,465,924 | |
| | | | | | | | | | | | |
| | | |
| Saudi Arabia — 4.8% | | | | | | | | | |
| |
Greensaif Pipelines Bidco SARL | | | | | |
| | | |
6.13% (2) | | | 02/23/38 | | | | 62,260,000 | | | | 63,843,272 | |
| | | |
Saudi Arabian Oil Co. | | | | | | | | | | | | |
| | | |
5.25% (2) | | | 07/17/34 | | | | 37,250,000 | | | | 37,274,958 | |
| |
Saudi Government International Bonds | | | | | |
| | | |
4.75% (2) | | | 01/16/30 | | | | 32,111,000 | | | | 31,960,078 | |
| | | |
5.00% (1) | | | 01/16/34 | | | | 7,720,000 | | | | 7,676,845 | |
| | | |
5.75% (2) | | | 01/16/54 | | | | 30,067,000 | | | | 29,138,531 | |
| | | | | | | | | | | | |
| | | |
Total Saudi Arabia | | | | | | | | | | | | |
| |
(Cost: $169,402,922) | | | | 169,893,684 | |
| | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
4
TCW Emerging Markets Income Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| | | |
| Senegal —1.4% | | | | | | | | | |
| |
Senegal Government International Bonds | | | | | |
| | | |
6.25% (1) | | | 05/23/33 | | | $ | 33,240,000 | | | $ | 27,514,410 | |
| | | |
6.75% (1) | | | 03/13/48 | | | | 13,146,000 | | | | 9,303,293 | |
| | | |
7.75% (1) | | | 06/10/31 | | | | 15,100,000 | | | | 13,869,199 | |
| | | | | | | | | | | | |
| | | |
Total Senegal | | | | | | | | | | | | |
| |
(Cost: $52,716,990) | | | | 50,686,902 | |
| | | | | | | | | | | | |
|
| Serbia — 0.2% (Cost: $7,565,000) | |
| |
Telecommunications Co. Telekom Srbija AD Belgrade | | | | | |
| | | |
7.00% (2) | | | 10/28/29 | | | | 7,565,000 | | | | 7,582,626 | |
| | | | | | | | | | | | |
| | | |
South Africa — 2.7% | | | | | | | | | | | | |
| |
Eskom Holdings SOC Ltd. | | | | | |
| | | |
8.45% (1) | | | 08/10/28 | | | | 27,969,000 | | | | 29,241,030 | |
|
Republic of South Africa Government International Bonds | |
| | | |
4.85% | | | 09/30/29 | | | | 9,343,000 | | | | 8,829,509 | |
| | | |
5.00% | | | 10/12/46 | | | | 11,089,000 | | | | 8,055,493 | |
| | | |
5.65% | | | 09/27/47 | | | | 25,808,000 | | | | 20,228,310 | |
| | | |
5.75% | | | 09/30/49 | | | | 10,794,000 | | | | 8,444,146 | |
| | | |
5.88% | | | 06/22/30 | | | | 7,910,000 | | | | 7,746,184 | |
| | | |
5.88% | | | 04/20/32 | | | | 13,576,000 | | | | 13,011,510 | |
| | | | | | | | | | | | |
| | | |
Total South Africa | | | | | | | | | | | | |
| |
(Cost: $91,386,974) | | | | 95,556,182 | |
| | | | | | | | | | | | |
| | | |
| Sri Lanka —1.0% | | | | | | | | | |
| |
Sri Lanka Government International Bonds | | | | | |
| | | |
5.75% (1),(6) | | | 04/18/49 | | | | 7,099,000 | | | | 4,325,563 | |
| | | |
6.20% (1),(6) | | | 05/11/27 | | | | 24,889,000 | | | | 15,499,873 | |
| | | |
7.55% (1),(6) | | | 03/28/30 | | | | 24,408,000 | | | | 15,209,113 | |
| | | | | | | | | | | | |
| | | |
Total Sri Lanka | | | | | | | | | | | | |
| |
(Cost: $31,008,525) | | | | 35,034,549 | |
| | | | | | | | | | | | |
| | | |
| Turkey — 6.9% | | | | | | | | | |
| | | |
Akbank TAS | | | | | | | | | | | | |
| | | |
9.37% (5 yr. CMT + 5.270%) (2),(4),(7) | | | 03/14/29 | | | | 31,676,000 | | | | 32,475,185 | |
| |
Hazine Mustesarligi Varlik Kiralama AS | | | | | |
| | | |
8.51% (2) | | | 01/14/29 | | | | 24,393,000 | | | | 26,408,350 | |
| |
Istanbul Metropolitan Municipality | | | | | |
| | | |
10.50% (2) | | | 12/06/28 | | | | 32,698,000 | | | | 35,761,803 | |
| |
TAV Havalimanlari Holding AS | | | | | |
| | | |
8.50% (1) | | | 12/07/28 | | | | 8,538,000 | | | | 8,862,444 | |
| |
Turkiye Government International Bonds | | | | | |
| | | |
5.75% | | | 05/11/47 | | | | 22,306,000 | | | | 17,279,789 | |
| | | |
7.13% | | | 07/17/32 | | | | 26,936,000 | | | | 27,027,582 | |
| | | |
9.13% | | | 07/13/30 | | | | 9,955,000 | | | | 11,121,527 | |
| |
Turkiye Vakiflar Bankasi TAO | | | | | |
| | | |
8.99% (5 yr. CMT + 4.669%) (2),(4) | | | 10/05/34 | | | | 11,386,000 | | | | 11,782,916 | |
| | | |
10.12% (5 yr. CMT + 5.493%) (2),(4),(7) | | | 04/24/29 | | | | 16,337,000 | | | | 17,270,660 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| | |
| Turkey (Continued) | | | | | | | |
| |
Yapi ve Kredi Bankasi AS | | | | | |
| | | |
9.25% (5 yr. CMT + 5.278%) (2),(4) | | | 01/17/34 | | | $ | 10,263,000 | | | $ | 10,804,886 | |
| | | |
9.74% (5 yr. CMT + 5.499%)
(2),(4),(7) | | | 04/04/29 | | | | 21,430,000 | | | | 22,228,482 | |
| |
Zorlu Enerji Elektrik Uretim AS | | | | | |
| | | |
11.00% (2),(8) | | | 04/23/30 | | | | 21,000,000 | | | | 21,054,390 | |
| | | | | | | | | | | | |
| | | |
Total Turkey | | | | | | | | | | | | |
| |
(Cost: $233,536,426) | | | | 242,078,014 | |
| | | | | | | | | | | | |
| | | |
| Ukraine — 3.4% | | | | | | | | | |
| |
NAK Naftogaz Ukraine via Kondor Finance PLC | | | | | |
| | | |
7.13% (1),(6) | | | 07/19/26 | | | EUR | 2,780,000 | | | | 2,342,897 | |
| | | |
7.63% (1),(6) | | | 11/08/28 | | | $ | 7,242,000 | | | | 6,151,572 | |
| |
Ukraine Government International Bonds | | | | | |
| | | |
0.00% (2),(6) | | | 02/01/34 | | | | 14,179,257 | | | | 5,327,572 | |
| | | |
0.00% (2),(6) | | | 02/01/35 | | | | 11,982,468 | | | | 5,878,239 | |
| | | |
0.00% (2),(6) | | | 02/01/36 | | | | 9,985,390 | | | | 4,853,798 | |
| | | |
0.00% (1),(6),(9) | | | 08/01/41 | | | | 97,836,000 | | | | 70,943,819 | |
| | | |
1.75% (2),(6) | | | 02/01/34 | | | | 19,712,651 | | | | 9,402,146 | |
| | | |
1.75% (2),(6) | | | 02/01/35 | | | | 14,403,727 | | | | 6,711,128 | |
| | | |
1.75% (2),(6) | | | 02/01/36 | | | | 12,844,640 | | | | 5,876,937 | |
| | | | | | | | | | | | |
| | | |
Total Ukraine | | | | | | | | | | | | |
| |
(Cost: $104,773,355) | | | | 117,488,108 | |
| | | | | | | | | | | | |
|
| United Arab Emirates — 4.3% | |
| |
Abu Dhabi Government International Bonds | | | | | |
| | | |
3.13% (1) | | | 09/30/49 | | | | 14,995,000 | | | | 10,482,555 | |
| |
Adnoc Murban Rsc Ltd. | | | | | |
| | | |
4.50% (2) | | | 09/11/34 | | | | 19,446,000 | | | | 18,544,678 | |
| | | |
5.13% (2) | | | 09/11/54 | | | | 11,729,000 | | | | 10,951,367 | |
| |
Finance Department Government of Sharjah | | | | | |
| | | |
4.00% (1) | | | 07/28/50 | | | | 14,200,000 | | | | 9,617,518 | |
| | | |
6.13% (2) | | | 03/06/36 | | | | 11,200,000 | | | | 11,261,152 | |
| | | |
6.50% (2) | | | 11/23/32 | | | | 27,015,000 | | | | 28,487,047 | |
| |
Galaxy Pipeline Assets Bidco Ltd. | | | | | |
| | | |
2.63% (2) | | | 03/31/36 | | | | 19,706,000 | | | | 16,347,112 | |
| | | |
2.94% (2) | | | 09/30/40 | | | | 22,439,516 | | | | 18,154,241 | |
| |
MDGH GMTN RSC Ltd. | | | | | |
| | | |
4.38% (1) | | | 11/22/33 | | | | 12,475,000 | | | | 11,872,832 | |
| | | |
5.50% (1) | | | 04/28/33 | | | | 5,900,000 | | | | 6,098,771 | |
| | | |
5.88% (1) | | | 05/01/34 | | | | 7,105,000 | | | | 7,518,227 | |
| | | | | | | | | | | | |
| |
Total United Arab Emirates | | | | | |
| |
(Cost: $151,472,840) | | | | 149,335,500 | |
| | | | | | | | | | | | |
| | | |
| Uruguay — 1.2% | | | | | | | | | |
| |
Uruguay Government International Bonds | | | | | |
| | | |
4.38% | | | 01/23/31 | | | | 15,900,000 | | | | 15,658,161 | |
| | | |
4.98% | | | 04/20/55 | | | | 19,261,421 | | | | 17,809,495 | |
| | | |
5.10% | | | 06/18/50 | | | | 4,655,000 | | | | 4,435,610 | |
| | | |
5.75% | | | 10/28/34 | | | | 4,900,000 | | | | 5,166,658 | |
| | | | | | | | | | | | |
| | | |
Total Uruguay | | | | | | | | | | | | |
| |
(Cost: $42,652,365) | | | | 43,069,924 | |
| | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
5
TCW Emerging Markets Income Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| | | |
| Uzbekistan — 0.9% | | | | | | | | | |
| |
Navoi Mining & Metallurgical Combinat | | | | | |
| | | |
6.70% (2) | | | 10/17/28 | | | $ | 6,300,000 | | | $ | 6,343,659 | |
| | | |
6.95% (2) | | | 10/17/31 | | | | 8,075,000 | | | | 8,123,531 | |
| |
Republic of Uzbekistan International Bonds | | | | | |
| | | |
3.70% (1) | | | 11/25/30 | | | | 6,875,000 | | | | 5,816,594 | |
| | | |
3.90% (1) | | | 10/19/31 | | | | 6,450,000 | | | | 5,393,167 | |
| | | |
5.38% (1) | | | 02/20/29 | | | | 6,600,000 | | | | 6,291,186 | |
| | | | | | | | | | | | |
| | | |
Total Uzbekistan | | | | | | | | | | | | |
| |
(Cost: $31,690,864) | | | | 31,968,137 | |
| | | | | | | | | | | | |
| | | |
Venezuela — 0.5% | | | | | | | | | | | | |
| |
Petroleos de Venezuela SA | | | | | |
| | | |
5.38% (1),(6) | | | 04/12/27 | | | | 10,102,600 | | | | 1,000,663 | |
| | | |
6.00% (1),(6) | | | 05/16/49 | | | | 10,727,497 | | | | 1,057,195 | |
| | | |
9.00% (1) | | | 11/17/21 | | | | 18,044,846 | | | | 1,883,702 | |
| |
Venezuela Government International Bonds | | | | | |
| | | |
7.75% (1),(6) | | | 10/13/19 | | | | 6,714,500 | | | | 835,418 | |
| | | |
8.25% (1),(6),(10) | | | 10/13/24 | | | | 18,932,000 | | | | 2,589,140 | |
| | | |
9.25% (6),(10) | | | 09/15/27 | | | | 36,220,200 | | | | 5,635,139 | |
| | | |
9.25% (1),(6),(10) | | | 05/07/28 | | | | 33,003,200 | | | | 4,820,777 | |
| | | |
11.75% (1),(6) | | | 10/21/26 | | | | 2,795,600 | | | | 435,638 | |
| | | |
11.95% (1),(6) | | | 08/05/31 | | | | 5,587,900 | | | | 870,818 | |
| | | | | | | | | | | | |
| | | |
Total Venezuela | | | | | | | | | | | | |
| |
(Cost: $35,210,261) | | | | 19,128,490 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| | | |
| Zambia — 0.6% | | | | | | | | | |
| |
First Quantum Minerals Ltd. | | | | | |
| | | |
8.63% (2) | | | 06/01/31 | | | $ | 19,075,000 | | | $ | 19,273,189 | |
| | | | | | | | | | | | |
| | | |
Total Zambia | | | | | | | | | | | | |
| |
(Cost: $18,272,613) | | | | 19,273,189 | |
| | | | | | | | | | | | |
| |
Total Fixed Income Securities | | | | | |
| |
(Cost: $3,316,353,682) | | | | 3,455,290,208 | |
| | | | | | | | | | | | |
| |
PURCHASED OPTIONS (11) (0.1%) (Cost: $7,269,404) | | | | 2,568,455 | |
| | | | | | | | | | | | |
|
| MONEY MARKET INVESTMENTS — 0.8% | |
| | |
State Street Institutional U.S. Government Money Market Fund — Premier Class,
4.82% (12) | | | | 8,926,774 | | | | 8,926,774 | |
| | |
TCW Central Cash Fund,
4.84% (12),(13) | | | | 20,160,000 | | | | 20,160,000 | |
| | | | | | | | | | | | |
| |
Total Money Market Investments | | | | | |
| |
(Cost: $29,086,774) | | | | 29,086,774 | |
| | | | | | | | | | | | |
| |
Total Investments (99.5%)
| | | | | |
| |
(Cost: $3,352,709,860) | | | | 3,486,945,437 | |
| |
Excess Of Other Assets Over Liabilities (0.5%) | | | | 18,327,313 | |
| | | | | | | | | | | | |
| | | |
Net Assets (100.0%) | | | | | | | | | | $ | 3,505,272,750 | |
| | | | | | | | | | | | |
Purchased Options — OTC
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| Description | | Counterparty | | Exercise Price | | | Expiration Date | | | Number of Contracts | | | Notional Amount | | | Market Value | | | Premiums Paid (Received) by Fund | | | Unrealized Appreciation
(Depreciation) | |
BRL Call / USD Put | | Bank of America | | | 5.13 | | | | 12/20/24 | | | | 43,930,000 | | | $ | 43,930,000 | | | $ | 16,386 | | | $ | 1,191,689 | | | $ | (1,175,303 | ) |
COP Call / USD Put | | Bank of America | | | 3,933.00 | | | | 12/20/24 | | | | 43,930,000 | | | | 43,930,000 | | | | 6,282 | | | | 1,597,734 | | | | (1,591,452 | ) |
HUF Call / USD Put | | BNP Paribas S.A. | | | 346.40 | | | | 12/20/24 | | | | 43,930,000 | | | | 43,930,000 | | | | 15,595 | | | | 1,645,178 | | | | (1,629,583 | ) |
MXN Call / USD Put | | Goldman Sachs International | | | 16.83 | | | | 12/20/24 | | | | 43,930,000 | | | | 43,930,000 | | | | 6,721 | | | | 972,171 | | | | (965,450 | ) |
ZAR Call / USD Put | | JPMorgan Chase Bank | | | 18.61 | | | | 12/20/24 | | | | 43,930,000 | | | | 43,930,000 | | | | 2,523,471 | | | | 1,862,632 | | | | 660,839 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | $ | 2,568,455 | | | $ | 7,269,404 | | | $ | (4,700,949 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Written Options — OTC
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| Description | | Counterparty | | Exercise
Price | | | Expiration
Date | | | Number of Contracts | | | Notional
Amount | | | Market
Value | | | Premiums
Paid
(Received)
by Fund | | | Unrealized
Appreciation
(Depreciation) | |
HUF Call / USD Put | | Bank of America | | | 346.40 | | | | 12/20/24 | | | | (43,930,000 | ) | | $ | (43,930,000 | ) | | $ | (15,595 | ) | | $ | (484,152 | ) | | $ | 468,557 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
6
TCW Emerging Markets Income Fund
October 31, 2024
Forward Currency Exchange Contracts
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| Counterparty | | Contracts to
Deliver | | | Units of
Currency | | | Settlement
Date | | | In Exchange for U.S. Dollars | | | Contracts at
Value | | | Unrealized
Appreciation
(Depreciation) | |
| SELL (14) | | | | | | | | | | | | | | | | | | |
Morgan Stanley & Co. | | | EUR | | | | 20,710,000 | | | | 04/02/25 | | | $ | 23,325,238 | | | $ | 22,637,112 | | | $ | 688,126 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 23,325,238 | | | $ | 22,637,112 | | | $ | 688,126 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Futures Contracts | |
| | | | | |
Number of
Contracts | | Type | | Expiration
Date | | | Notional | | | Market Value | | | Net Unrealized
Appreciation
(Depreciation) | |
Long Futures | | | | | | | | | | | | | | | | | | |
| 875 | | 10-Year U.S. Treasury Note Futures | | | 12/19/24 | | | $ | 100,063,140 | | | $ | 96,660,156 | | | $ | (3,402,984 | ) |
| 773 | | U.S. Ultra Long Bond Futures | | | 12/19/24 | | | | 104,422,411 | | | | 97,108,125 | | | | (7,314,286 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | $ | 204,485,551 | | | $ | 193,768,281 | | | $ | (10,717,270 | ) |
| | | | | | | | | | | | | | | | | | |
Notes to the Schedule of Investments:
| CMT | | Constant Maturity Treasury. |
| (1) | | Investments issued under Regulation S of the Securities Act of 1933, as amended, may not be offered, sold, or delivered within the United States except under special exemptions. At October 31, 2024, the value of these securities amounted to $1,080,693,327 or 30.8% of net assets. |
| (2) | | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold, normally only to qualified institutional buyers. At October 31, 2024, the value of these securities amounted to $1,348,636,205 or 38.5% of net assets. These securities are determined to be liquid by the Fund’s investment advisor, unless otherwise noted, under procedures established by and under the general supervision of the Company’s Board of Directors. |
| (4) | | Floating or variable rate security. The interest shown reflects the rate in effect at October 31, 2024. |
| (5) | | Security is not accruing interest. |
| (6) | | Security is currently in default due to bankruptcy or failure to make payment of principal or interest of the issuer. Income is not being accrued. |
| (8) | | This security is purchased on a when-issued, delayed-delivery or forward commitment basis. |
| (9) | | Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| (10) | | For fair value measurement disclosure purposes, security is categorized as Level 3. Security is valued using significant unobservable inputs. |
| (11) | | See options table for description of purchased options. |
| (12) | | Rate disclosed is the 7-day net yield as of October 31, 2024. |
| (14) | | Fund sells foreign currency, buys U.S. Dollar. |
See accompanying Notes to Financial Statements.
7
TCW Emerging Markets Income Fund
Schedule of Investments (Continued)
The summary of the TCW Emerging Markets Income Fund transactions in the affiliated funds for the period ended October 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Name of Affiliated Fund | | Value at
October 31,
2023 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Number
of Shares
Held
October 31,
2024 | | | Value at
October 31,
2024 | | | Dividends and
Interest
Income
Received | | | Distributions
Received from
Net Realized
Gain | | | Net Realized
Gain (Loss)
on
Investments | | | Net Change in
Unrealized
Gain (Loss)
on
Investments | |
TCW Central Cash Fund | | | | | |
| | $ | — | | | $ | 441,240,000 | | | $ | 421,080,000 | | | | 20,160,000 | | | $ | 20,160,000 | | | $ | 876,176 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 20,160,000 | | | $ | 876,176 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
8
TCW Emerging Markets Income Fund
Fair Valuation Summary | October 31, 2024 |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
Description | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | | Other
Significant
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Total | |
Fixed Income Securities | | | | | | | | | | | | | | | | |
Foreign Government Bonds | | $ | — | | | $ | 2,368,672,257 | | | $ | 13,045,056 | | | $ | 2,381,717,313 | |
Oil & Gas | | | — | | | | 241,220,714 | | | | — | | | | 241,220,714 | |
Electric | | | — | | | | 185,621,811 | | | | — | | | | 185,621,811 | |
Mining | | | — | | | | 173,234,023 | | | | — | | | | 173,234,023 | |
Banks | | | — | | | | 130,664,385 | | | | — | | | | 130,664,385 | |
Pipelines | | | — | | | | 111,640,213 | | | | — | | | | 111,640,213 | |
Government Regional/Local | | | — | | | | 35,761,803 | | | | — | | | | 35,761,803 | |
Iron & Steel | | | — | | | | 33,015,196 | | | | — | | | | 33,015,196 | |
Investment Companies | | | — | | | | 25,489,830 | | | | — | | | | 25,489,830 | |
Chemicals | | | — | | | | 22,531,770 | | | | — | | | | 22,531,770 | |
Oil & Gas Services | | | — | | | | 19,467,545 | | | | — | | | | 19,467,545 | |
Airlines | | | — | | | | 19,463,998 | | | | — | | | | 19,463,998 | |
Lodging | | | — | | | | 18,483,344 | | | | — | | | | 18,483,344 | |
Real Estate | | | — | | | | 17,019,279 | | | | — | | | | 17,019,279 | |
Water | | | — | | | | 13,679,107 | | | | — | | | | 13,679,107 | |
Food | | | — | | | | 9,834,807 | | | | — | | | | 9,834,807 | |
Engineering & Construction | | | — | | | | 8,862,444 | | | | — | | | | 8,862,444 | |
Distribution & Wholesale | | | — | | | | 7,582,626 | | | | — | | | | 7,582,626 | |
| | | | | | | | | | | | | | | | |
Total Fixed Income Securities | | | — | | | | 3,442,245,152 | | | | 13,045,056 | | | | 3,455,290,208 | |
| | | | | | | | | | | | | | | | |
Money Market Investments | | | 29,086,774 | | | | — | | | | — | | | | 29,086,774 | |
Purchased Options | | | — | | | | 2,568,455 | | | | — | | | | 2,568,455 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 29,086,774 | | | $ | 3,444,813,607 | | | $ | 13,045,056 | | | $ | 3,486,945,437 | |
| | | | | | | | | | | | | | | | |
Asset Derivatives | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | | | | | | | | | | | | | | | |
Foreign Currency Risk | | | — | | | | 688,126 | | | | — | | | | 688,126 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 29,086,774 | | | $ | 3,445,501,733 | | | $ | 13,045,056 | | | $ | 3,487,633,563 | |
| | | | | | | | | | | | | | | | |
Liability Derivatives | | | | | | | | | | | | | | | | |
Futures Contract | | | | | | | | | | | | | | | | |
Interest Rate Risk | | $ | (10,717,270 | ) | | $ | — | | | $ | — | | | $ | (10,717,270 | ) |
Written Options | | | | | | | | | | | | | | | | |
Foreign Currency Risk | | | — | | | | (15,595 | ) | | | — | | | | (15,595 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (10,717,270 | ) | | $ | (15,595 | ) | | $ | — | | | $ | (10,732,865 | ) |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
9
TCW Emerging Markets Local Currency Income Fund
Schedule of Investments
| | | | | | | | | | | | | | | | |
| Issues | | Maturity
Date | | | | | | Principal
Amount | | | Value | |
|
FIXED INCOME SECURITIES — 88.1% of Net Assets | |
| |
| Brazil — 10.4% | | | | |
| |
Brazil Notas do Tesouro Nacional Series F | | | | | |
| | | | |
10.00% | | | 01/01/27 | | | | BRL | | | | 30,142,000 | | | $ | 4,941,872 | |
| | | | |
10.00% | | | 01/01/29 | | | | BRL | | | | 6,933,000 | | | | 1,093,440 | |
| | | | | | | | | | | | | | | | |
| | | |
Total Brazil | | | | | | | | | | | | | |
| | | |
(Cost: $6,638,896) | | | | | | | | | | | | 6,035,312 | |
| | | | | | | | | | | | | | | | |
| |
| Chile — 1.6% | | | | |
| |
Bonos de la Tesoreria de la Republica en pesos | | | | | |
| | | | |
5.00% (1) | | | 10/01/28 | | | | CLP | | | | 185,000,000 | | | | 190,270 | |
| | | | |
5.00% | | | 03/01/35 | | | | CLP | | | | 595,000,000 | | | | 595,068 | |
| | | | |
6.00% (1) | | | 04/01/33 | | | | CLP | | | | 115,000,000 | | | | 122,687 | |
| | | | | | | | | | | | | | | | |
| | | |
Total Chile | | | | | | | | | | | | | |
| | | |
(Cost: $1,018,449) | | | | | | | | | | | | 908,025 | |
| | | | | | | | | | | | | | | | |
| |
| Colombia — 3.9% | | | | |
| |
Colombia TES Series B | | | | | |
| | | | |
6.25% | | | 07/09/36 | | | | COP | | | | 1,032,300,000 | | | | 160,157 | |
| | | | |
7.00% | | | 06/30/32 | | | | COP | | | | 3,836,000,000 | | | | 709,856 | |
| | | | |
7.75% | | | 09/18/30 | | | | COP | | | | 2,917,800,000 | | | | 590,932 | |
| |
Colombia TES | | | | | |
| | | | |
7.25% | | | 10/18/34 | | | | COP | | | | 309,200,000 | | | | 54,776 | |
| | | | |
13.25% | | | 02/09/33 | | | | COP | | | | 2,921,700,000 | | | | 752,724 | |
| | | | | | | | | | | | | | | | |
| | | |
Total Colombia | | | | | | | | | | | | | |
| | | |
(Cost: $2,398,057) | | | | | | | | | | | | 2,268,445 | |
| | | | | | | | | | | | | | | | |
| |
| Czech Republic — 4.0% | | | | |
| |
Czech Republic Government Bonds | | | | | |
| | | | |
0.95% (1) | | | 05/15/30 | | | | CZK | | | | 5,170,000 | | | | 190,627 | |
| | | | |
1.20% | | | 03/13/31 | | | | CZK | | | | 21,640,000 | | | | 789,523 | |
| | | | |
1.75% | | | 06/23/32 | | | | CZK | | | | 12,650,000 | | | | 464,870 | |
| | | | |
2.00% | | | 10/13/33 | | | | CZK | | | | 14,540,000 | | | | 528,950 | |
| | | | |
3.50% | | | 05/30/35 | | | | CZK | | | | 3,880,000 | | | | 157,098 | |
| | | | |
5.00% | | | 09/30/30 | | | | CZK | | | | 3,670,000 | | | | 167,184 | |
| | | | | | | | | | | | | | | | |
| | | |
Total Czech Republic | | | | | | | | | | | | | |
| | | |
(Cost: $2,301,680) | | | | | | | | | | | | 2,298,252 | |
| | | | | | | | | | | | | | | | |
| |
| Hungary — 2.7% | | | | |
| |
Hungary Government Bonds | | | | | |
| | | | |
2.25% | | | 04/20/33 | | | | HUF | | | | 257,520,000 | | | | 488,872 | |
| | | | |
3.00% | | | 10/27/27 | | | | HUF | | | | 95,470,000 | | | | 230,039 | |
| | | | |
4.75% | | | 11/24/32 | | | | HUF | | | | 113,730,000 | | | | 265,095 | |
| | | | |
5.50% | | | 06/24/25 | | | | HUF | | | | 221,100,000 | | | | 588,477 | |
| | | | | | | | | | | | | | | | |
| | | |
Total Hungary | | | | | | | | | | | | | |
| | | |
(Cost: $1,686,518) | | | | | | | | | | | | 1,572,483 | |
| | | | | | | | | | | | | | | | |
| |
| India — 6.5% | | | | |
| |
India Government Bonds | | | | | |
| | | | |
7.10% | | | 04/08/34 | | | | INR | | | | 144,300,000 | | | | 1,746,888 | |
| | | | |
7.17% | | | 04/17/30 | | | | INR | | | | 5,000,000 | | | | 60,482 | |
| | | | | | | | | | | | | | | | |
| Issues | | Maturity
Date | | | | | | Principal
Amount | | | Value | |
| |
| India (Continued) | | | | |
| | | | |
7.18% | | | 08/14/33 | | | | INR | | | | 162,000,000 | | | $ | 1,967,143 | |
| | | | | | | | | | | | | | | | |
| | | |
Total India | | | | | | | | | | | | | |
| | | |
(Cost: $3,770,003) | | | | | | | | | | | | 3,774,513 | |
| | | | | | | | | | | | | | | | |
| |
| Indonesia — 12.1% | | | | |
| |
Indonesia Treasury Bonds | | | | | |
| | | | |
6.38% | | | 04/15/32 | | | | IDR | | | | 10,683,000,000 | | | | 665,307 | |
| | | | |
6.63% | | | 02/15/34 | | | | IDR | | | | 31,686,000,000 | | | | 2,003,940 | |
| | | | |
6.75% | | | 07/15/35 | | | | IDR | | | | 13,468,000,000 | | | | 857,919 | |
| | | | |
6.88% | | | 04/15/29 | | | | IDR | | | | 14,516,000,000 | | | | 932,067 | |
| | | | |
7.00% | | | 09/15/30 | | | | IDR | | | | 7,675,000,000 | | | | 495,533 | |
| | | | |
7.00% | | | 02/15/33 | | | | IDR | | | | 11,241,000,000 | | | | 725,555 | |
| | | | |
7.50% | | | 08/15/32 | | | | IDR | | | | 9,123,000,000 | | | | 605,623 | |
| | | | |
7.50% | | | 06/15/35 | | | | IDR | | | | 1,383,000,000 | | | | 92,134 | |
| | | | |
8.38% | | | 03/15/34 | | | | IDR | | | | 2,788,000,000 | | | | 195,975 | |
| | | | |
9.00% | | | 03/15/29 | | | | IDR | | | | 5,983,000,000 | | | | 414,254 | |
| | | | | | | | | | | | | | | | |
| | | |
Total Indonesia | | | | | | | | | | | | | |
| | | |
(Cost: $7,071,611) | | | | | | | | | | | | 6,988,307 | |
| | | | | | | | | | | | | | | | |
| |
| Malaysia — 9.5% | | | | |
| |
Malaysia Government Bonds | | | | | |
| | | | |
2.63% | | | 04/15/31 | | | | MYR | | | | 5,363,000 | | | | 1,138,146 | |
| | | | |
3.52% | | | 04/20/28 | | | | MYR | | | | 5,834,000 | | | | 1,328,870 | |
| | | | |
3.58% | | | 07/15/32 | | | | MYR | | | | 1,640,000 | | | | 366,758 | |
| | | | |
3.76% | | | 05/22/40 | | | | MYR | | | | 1,250,000 | | | | 275,223 | |
| | | | |
4.05% | | | 04/18/39 | | | | MYR | | | | 2,075,000 | | | | 476,511 | |
| | | | |
4.76% | | | 04/07/37 | | | | MYR | | | | 4,135,000 | | | | 1,014,487 | |
| | | | |
4.89% | | | 06/08/38 | | | | MYR | | | | 3,500,000 | | | | 872,882 | |
| | | | | | | | | | | | | | | | |
| | | |
Total Malaysia | | | | | | | | | | | | | |
| | | |
(Cost: $5,132,600) | | | | | | | | | | | | 5,472,877 | |
| | | | | | | | | | | | | | | | |
| |
| Mexico — 9.5% | | | | |
| |
Mexico Bonos | | | | | |
| | | | |
7.50% | | | 05/26/33 | | | | MXN | | | | 44,557,800 | | | | 1,899,111 | |
| | | | |
7.75% | | | 05/29/31 | | | | MXN | | | | 13,825,200 | | | | 618,746 | |
| | | | |
7.75% | | | 11/23/34 | | | | MXN | | | | 33,684,700 | | | | 1,436,627 | |
| | | | |
7.75% | | | 11/13/42 | | | | MXN | | | | 9,699,800 | | | | 382,429 | |
| | | | |
8.00% | | | 11/07/47 | | | | MXN | | | | 4,047,400 | | | | 160,601 | |
| | | | |
8.50% | | | 03/01/29 | | | | MXN | | | | 6,256,600 | | | | 296,595 | |
| | | | |
8.50% | | | 11/18/38 | | | | MXN | | | | 15,963,000 | | | | 697,095 | |
| | | | | | | | | | | | | | | | |
| | | |
Total Mexico | | | | | | | | | | | | | |
| | | |
(Cost: $6,109,722) | | | | | | | | | | | | 5,491,204 | |
| | | | | | | | | | | | | | | | |
| |
| Peru — 2.2% | | | | |
| |
Peru Government Bonds | | | | | |
| | | | |
5.40% | | | 08/12/34 | | | | PEN | | | | 746,000 | | | | 178,817 | |
| | | | |
6.15% | | | 08/12/32 | | | | PEN | | | | 1,013,000 | | | | 264,625 | |
| | | | |
7.30% (1) | | | 08/12/33 | | | | PEN | | | | 1,046,000 | | | | 290,453 | |
See accompanying Notes to Financial Statements.
10
TCW Emerging Markets Local Currency Income Fund
October 31, 2024
| | | | | | | | | | | | | | | | |
| Issues | | Maturity
Date | | | | | | Principal
Amount | | | Value | |
| |
| Peru (Continued) | | | | |
| |
Peru Government International Bonds | | | | | |
| | | | |
6.90% (1) | | | 08/12/37 | | | | PEN | | | | 1,341,000 | | | $ | 350,091 | |
| | | | |
6.95% (1) | | | 08/12/31 | | | | PEN | | | | 764,000 | | | | 211,228 | |
| | | | | | | | | | | | | | | | |
| | | |
Total Peru | | | | | | | | | | | | | |
| | | |
(Cost: $1,238,755) | | | | | | | | | | | | 1,295,214 | |
| | | | | | | | | | | | | | | | |
| |
| Poland — 5.3% | | | | |
| |
Republic of Poland Government Bonds | | | | | |
| | | | |
1.25% | | | 10/25/30 | | | | PLN | | | | 4,389,000 | | | | 854,038 | |
| | | | |
1.75% | | | 04/25/32 | | | | PLN | | | | 2,337,000 | | | | 442,883 | |
| | | | |
2.50% | | | 07/25/26 | | | | PLN | | | | 1,077,000 | | | | 257,768 | |
| | | | |
2.50% | | | 07/25/27 | | | | PLN | | | | 1,924,000 | | | | 448,685 | |
| | | | |
2.75% | | | 10/25/29 | | | | PLN | | | | 2,036,000 | | | | 446,948 | |
| | | | |
5.00% | | | 10/25/34 | | | | PLN | | | | 1,755,000 | | | | 407,330 | |
| | | | |
6.00% | | | 10/25/33 | | | | PLN | | | | 901,000 | | | | 226,356 | |
| | | | | | | | | | | | | | | | |
| | | |
Total Poland | | | | | | | | | | | | | |
| | | |
(Cost: $3,090,468) | | | | | | | | | | | | 3,084,008 | |
| | | | | | | | | | | | | | | | |
| |
| Romania — 3.3% | | | | |
| |
Romania Government Bonds | | | | | |
| | | | |
4.15% | | | 01/26/28 | | | | RON | | | | 2,715,000 | | | | 554,999 | |
| | | | |
5.80% | | | 07/26/27 | | | | RON | | | | 1,560,000 | | | | 336,555 | |
| | | | |
6.70% | | | 02/25/32 | | | | RON | | | | 4,640,000 | | | | 999,970 | |
| | | | | | | | | | | | | | | | |
| | | |
Total Romania | | | | | | | | | | | | | |
| | | |
(Cost: $1,774,098) | | | | | | | | | | | | 1,891,524 | |
| | | | | | | | | | | | | | | | |
| |
| South Africa — 10.5% | | | | |
| |
Republic of South Africa Government Bonds | | | | | |
| | | | |
6.25% | | | 03/31/36 | | | | ZAR | | | | 17,391,184 | | | | 698,776 | |
| | | | |
8.25% | | | 03/31/32 | | | | ZAR | | | | 19,120,000 | | | | 988,638 | |
| | | | |
8.50% | | | 01/31/37 | | | | ZAR | | | | 18,105,582 | | | | 857,363 | |
| | | | |
8.75% | | | 01/31/44 | | | | ZAR | | | | 25,300,000 | | | | 1,144,381 | |
| | | | |
8.88% | | | 02/28/35 | | | | ZAR | | | | 1,663,935 | | | | 1,604,724 | |
| | | | |
9.00% | | | 01/31/40 | | | | ZAR | | | | 16,884,357 | | | | 801,749 | |
| | | | | | | | | | | | | | | | |
|
Total South Africa | |
| |
(Cost: $5,989,782) | | | | 6,095,631 | |
| | | | | | | | | | | | | | | | |
|
| Thailand — 5.1% | |
Thailand Government Bonds | |
| | | | |
1.59% | | | 12/17/35 | | | | THB | | | | 9,353,000 | | | | 254,079 | |
| | | | |
2.80% | | | 06/17/34 | | | | THB | | | | 19,042,000 | | | | 582,738 | |
| | | | |
3.39% | | | 06/17/37 | | | | THB | | | | 16,210,000 | | | | 521,943 | |
| | | | |
3.45% | | | 06/17/43 | | | | THB | | | | 49,132,000 | | | | 1,576,242 | |
| | | | | | | | | | | | | | | | |
| | | |
Total Thailand | | | | | | | | | | | | | |
| |
(Cost: $2,729,304) | | | | 2,935,002 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Issues | | Maturity
Date | | | | | | Principal
Amount | | | Value | |
|
| Turkey — 1.5% (Cost: $833,699) | |
|
Turkiye Government Bonds | |
| | | | |
31.08% | | | 11/08/28 | | | | TRY | | | | 29,474,578 | | | $ | 831,952 | |
| | | | | | | | | | | | | | | | |
|
Total Fixed Income Securities | |
| |
(Cost: $51,783,642) | | | | 50,942,749 | |
| | | | | | | | | | | | | | | | |
| |
PURCHASED OPTIONS (2) (0.0%) (Cost: $57,542) | | | | 20,449 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | | |
| | | | Shares | | | | |
|
| MONEY MARKET INVESTMENTS — 5.4% | |
| | |
State Street Institutional U.S. Government Money Market Fund — Premier Class, 4.82% (3) | | | | 1,539,663 | | | | 1,539,663 | |
| | |
TCW Central Cash Fund, 4.84% (3),(4) | | | | 1,580,000 | | | | 1,580,000 | |
| | | | | | | | | | | | | | | | |
|
Total Money Market Investments | |
| |
(Cost: $3,119,663) | | | | 3,119,663 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | Principal
Amount | | | | |
|
SHORT TERM INVESTMENTS — 7.9% | |
|
| Short-Term Investment — 7.9% | |
|
| Egypt — 5.3% | |
|
Egypt Treasury Bills | |
| | | | |
0.00% (5) | | | 11/26/24 | | | | EGP | | | | 12,975,000 | | | | 260,290 | |
| | | | |
0.00% (5) | | | 12/03/24 | | | | EGP | | | | 28,650,000 | | | | 571,724 | |
| | | | |
0.00% (5) | | | 12/10/24 | | | | EGP | | | | 60,075,000 | | | | 1,192,038 | |
| | | | |
0.00% (5) | | | 12/17/24 | | | | EGP | | | | 52,100,000 | | | | 1,028,206 | |
| | | | | | | | | | | | | | | | |
|
Total Egypt | |
| |
(Cost: $3,111,451) | | | | 3,052,258 | |
| | | | | | | | | | | | | | | | |
|
| Nigeria — 2.6% | |
|
Nigeria OMO Bills | |
| | | | |
0.00% (5) | | | 06/17/25 | | | | NGN | | | | 1,220,000,000 | | | | 622,809 | |
|
Nigeria Treasury Bills | |
| | | | |
0.00% (5) | | | 04/10/25 | | | | NGN | | | | 1,683,000,000 | | | | 900,941 | |
| | | | | | | | | | | | | | | | |
|
Total Nigeria | |
| |
(Cost: $1,779,681) | | | | 1,523,750 | |
| | | | | | | | | | | | | | | | |
|
Total Short Term Investments | |
| |
(Cost: $4,891,132) | | | | 4,576,008 | |
| | | | | | | | | | | | | | | | |
| |
Total Investments (101.4%) | | | | | |
| |
(Cost: $59,851,979) | | | | 58,658,869 | |
| |
Liabilities In Excess Of Other Assets (-1.4%) | | | | (803,085 | ) |
| | | | | | | | | | | | | | | | |
| |
Net Assets (100.0%) | | | $ | 57,855,784 | |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
11
TCW Emerging Markets Local Currency Income Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Purchased Options — OTC | |
| | | | | | | | |
| Description | | Counterparty | | Exercise
Price | | | Expiration
Date | | | Number of
Contracts | | | Notional
Amount | | | Market
Value | | | Premiums
Paid
(Received)
by Fund | | | Unrealized
Appreciation
(Depreciation) | |
EUR Put / MXN Call | | BNP Paribas S.A. | | | MXN | | | | 21.33 | | | | 3/13/25 | | | | 1,000,000 | | | $ | 1,000,000 | | | $ | 19,685 | | | $ | 24,374 | | | $ | (4,689 | ) |
MXN Call / EUR Put | | Barclays Capital | | | EUR | | | | 19.14 | | | | 12/5/24 | | | | 2,000,000 | | | | 2,000,000 | | | | 764 | | | | 33,168 | | | | (32,404 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 20,449 | | | $ | 57,542 | | | $ | (37,093 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Forward Currency Contracts | |
| | | | | | |
| Counterparty | | Contracts to
Deliver | | | Units of
Currency | | | Settlement
Date | | | In Exchange for
U.S. Dollars | | | Contracts at
Value | | | Unrealized
Appreciation
(Depreciation) | |
| BUY (6) | | | | | | | | | |
Bank of America | | | CNH | | | | 15,427,915 | | | | 11/22/24 | | | $ | 2,183,248 | | | $ | 2,167,107 | | | $ | (16,141 | ) |
Bank of America | | | EGP | | | | 14,048,834 | | | | 12/11/24 | | | | 291,287 | | | | 281,992 | | | | (9,295 | ) |
Bank of America | | | KRW | | | | 1,318,536,950 | | | | 12/11/24 | | | | 989,150 | | | | 956,983 | | | | (32,167 | ) |
Bank of America | | | NGN | | | | 267,300,000 | | | | 11/12/24 | | | | 180,000 | | | | 158,375 | | | | (21,625 | ) |
Bank of America | | | PHP | | | | 38,186,076 | | | | 11/21/24 | | | | 663,874 | | | | 656,945 | | | | (6,929 | ) |
Bank of America | | | PLN | | | | 2,570,652 | | | | 12/17/24 | | | | 636,300 | | | | 640,441 | | | | 4,141 | |
Barclays Capital | | | CNH | | | | 11,861,696 | | | | 11/22/24 | | | | 1,679,057 | | | | 1,666,172 | | | | (12,885 | ) |
Barclays Capital | | | MYR | | | | 1,820,646 | | | | 12/20/24 | | | | 423,475 | | | | 416,772 | | | | (6,703 | ) |
Barclays Capital | | | PLN | | | | 1,952,711 | | | | 12/09/24 | | | | 505,101 | | | | 486,652 | | | | (18,449 | ) |
Barclays Capital | | | THB | | | | 50,925,672 | | | | 11/12/24 | | | | 1,533,883 | | | | 1,509,927 | | | | (23,956 | ) |
BNP Paribas S.A. | | | CZK | | | | 83,570,200 | | | | 12/17/24 | | | | 3,656,110 | | | | 3,588,375 | | | | (67,735 | ) |
BNP Paribas S.A. | | | PHP | | | | 69,427,925 | | | | 11/21/24 | | | | 1,205,450 | | | | 1,194,424 | | | | (11,026 | ) |
BNP Paribas S.A. | | | PLN | | | | 5,164,042 | | | | 12/17/24 | | | | 1,281,400 | | | | 1,286,548 | | | | 5,148 | |
BNP Paribas S.A. | | | THB | | | | 33,338,904 | | | | 11/12/24 | | | | 1,004,659 | | | | 988,486 | | | | (16,173 | ) |
BNP Paribas S.A. | | | TRY | | | | 16,728,407 | | | | 03/03/25 | | | | 348,556 | | | | 432,022 | | | | 83,466 | |
JPMorgan Chase Bank | | | CLP | | | | 126,758,088 | | | | 01/21/25 | | | | 133,944 | | | | 131,792 | | | | (2,152 | ) |
JPMorgan Chase Bank | | | CNH | | | | 18,511,689 | | | | 11/22/24 | | | | 2,619,897 | | | | 2,600,274 | | | | (19,623 | ) |
JPMorgan Chase Bank | | | EGP | | | | 25,537,845 | | | | 12/11/24 | | | | 524,319 | | | | 512,604 | | | | (11,715 | ) |
JPMorgan Chase Bank | | | KRW | | | | 1,318,536,950 | | | | 12/11/24 | | | | 989,150 | | | | 956,983 | | | | (32,167 | ) |
JPMorgan Chase Bank | | | PHP | | | | 38,305,573 | | | | 11/21/24 | | | | 663,874 | | | | 659,001 | | | | (4,873 | ) |
JPMorgan Chase Bank | | | RON | | | | 2,820,063 | | | | 12/16/24 | | | | 624,260 | | | | 614,723 | | | | (9,537 | ) |
JPMorgan Chase Bank | | | THB | | | | 155,218,586 | | | | 12/11/24 | | | | 4,654,929 | | | | 4,611,024 | | | | (43,905 | ) |
JPMorgan Chase Bank | | | TRY | | | | 122,359,030 | | | | 12/20/24 | | | | 3,363,960 | | | | 3,405,731 | | | | 41,771 | |
JPMorgan Chase Bank | | | TRY | | | | 9,810,949 | | | | 03/03/25 | | | | 206,459 | | | | 253,374 | | | | 46,915 | |
Morgan Stanley & Co. | | | PLN | | | | 3,496,690 | | | | 12/17/24 | | | | 908,364 | | | | 871,151 | | | | (37,213 | ) |
Morgan Stanley & Co. | | | THB | | | | 33,369,737 | | | | 11/12/24 | | | | 1,004,659 | | | | 989,400 | | | | (15,259 | ) |
Morgan Stanley & Co. | | | ZAR | | | | 23,481,945 | | | | 11/07/24 | | | | 1,257,400 | | | | 1,327,832 | | | | 70,432 | |
Standard Chartered Bank | | | NGN | | | | 242,550,000 | | | | 11/06/24 | | | | 165,000 | | | | 144,208 | | | | (20,792 | ) |
State Street Bank & Trust Co. | | | CNY | | | | 913,537 | | | | 11/22/24 | | | | 128,300 | | | | 128,564 | | | | 264 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | $ | 33,826,065 | | | $ | 33,637,882 | | | $ | (188,183 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| SELL (7) | | | | | | | | | |
Bank of America | | | PHP | | | | 145,919,573 | | | | 11/21/24 | | | $ | 2,513,428 | | | $ | 2,510,371 | | | $ | 3,057 | |
Bank of America | | | THB | | | | 122,362,159 | | | | 11/12/24 | | | | 3,649,161 | | | | 3,627,991 | | | | 21,170 | |
BNP Paribas S.A. | | | CZK | | | | 29,216,961 | | | | 12/17/24 | | | | 1,258,959 | | | | 1,254,531 | | | | 4,428 | |
BNP Paribas S.A. | | | KRW | | | | 2,637,073,900 | | | | 12/11/24 | | | | 1,985,599 | | | | 1,913,966 | | | | 71,633 | |
BNP Paribas S.A. | | | PLN | | | | 3,960,234 | | | | 12/17/24 | | | | 1,004,600 | | | | 986,636 | | | | 17,964 | |
BNP Paribas S.A. | | | ZAR | | | | 11,855,939 | | | | 11/07/24 | | | | 667,745 | | | | 670,417 | | | | (2,672 | ) |
See accompanying Notes to Financial Statements.
12
TCW Emerging Markets Local Currency Income Fund
October 31, 2024
| | | | | | | | | | | | | | | | | | | | | | | | |
| Forward Currency Contracts (Continued) | |
| | | | | | |
| Counterparty | | Contracts to
Deliver | | | Units of
Currency | | | Settlement
Date | | | In Exchange for
U.S. Dollars | | | Contracts at
Value | | | Unrealized
Appreciation
(Depreciation) | |
| SELL (Continued) | | | | | | | | | |
BNP Paribas S.A. | | | ZAR | | | | 18,334,710 | | | | 11/29/24 | | | $ | 1,030,700 | | | $ | 1,034,836 | | | $ | (4,136 | ) |
ING Baring U.S. Capital Markets | | | CZK | | | | 3,370,526 | | | | 12/17/24 | | | | 146,300 | | | | 144,725 | | | | 1,575 | |
JPMorgan Chase Bank | | | EGP | | | | 39,586,680 | | | | 12/11/24 | | | | 785,997 | | | | 794,597 | | | | (8,600 | ) |
JPMorgan Chase Bank | | | PLN | | | | 4,397,680 | | | | 12/17/24 | | | | 1,120,000 | | | | 1,095,620 | | | | 24,380 | |
JPMorgan Chase Bank | | | THB | | | | 124,573,003 | | | | 11/12/24 | | | | 3,719,178 | | | | 3,693,544 | | | | 25,634 | |
Morgan Stanley & Co. | | | THB | | | | 78,336,047 | | | | 11/12/24 | | | | 2,332,663 | | | | 2,322,633 | | | | 10,030 | |
Morgan Stanley & Co. | | | THB | | | | 47,345,760 | | | | 12/11/24 | | | | 1,411,200 | | | | 1,406,484 | | | | 4,716 | |
Morgan Stanley & Co. | | | ZAR | | | | 11,626,006 | | | | 11/07/24 | | | | 635,044 | | | | 657,415 | | | | (22,371 | ) |
Standard Chartered Bank | | | CZK | | | | 29,203,106 | | | | 12/17/24 | | | | 1,281,400 | | | | 1,253,936 | | | | 27,464 | |
State Street Bank & Trust Co. | | | CNY | | | | 2,688,097 | | | | 11/22/24 | | | | 378,200 | | | | 378,301 | | | | (101 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | $ | 23,920,174 | | | $ | 23,746,003 | | | $ | 174,171 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Notes to the Schedule of Investments:
| CNH | | Chinese Yuan Renminbi. |
| (1) | | Investments issued under Regulation S of the Securities Act of 1933, as amended, may not be offered, sold, or delivered within the United States except under special exemptions. At October 31, 2024, the value of these securities amounted to $1,355,356 or 2.3% of net assets. |
| (2) | | See options table for description of purchased options. |
| (3) | | Rate disclosed is the 7-day net yield as of October 31, 2024. |
| (5) | | Security is not accruing interest. |
| (6) | | Fund buys foreign currency, sells U.S. Dollar. |
| (7) | | Fund sells foreign currency, buys U.S. Dollar. |
See accompanying Notes to Financial Statements.
13
TCW Emerging Markets Local Currency Income Fund
Schedule of Investments (Continued)
The summary of the TCW Emerging Markets Local Currency Income Fund transactions in the affiliated funds for the period ended October 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Name of Affiliated Fund | | Value at
October 31,
2023 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Number
of Shares
Held
October 31,
2024 | | | Value at
October 31,
2024 | | | Dividends and
Interest
Income
Received | | | Distributions
Received from
Net Realized
Gain | | | Net Realized
Gain (Loss)
on
Investments | | | Net Change in
Unrealized
Gain (Loss)
on
Investments | |
TCW Central Cash Fund | | | | | |
| | $ | — | | | $ | 6,370,000 | | | $ | 4,790,000 | | | | 1,580,000 | | | $ | 1,580,000 | | | $ | 13,349 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 1,580,000 | | | $ | 13,349 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
14
TCW Emerging Markets Local Currency Income Fund
Fair Valuation Summary | October 31, 2024 |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
Description | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | | Other
Significant
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Total | |
Fixed Income Securities | | | | | | | | | | | | | | | | |
Foreign Government Bonds | | $ | — | | | $ | 50,942,749 | | | $ | — | | | $ | 50,942,749 | |
Short Term Investments | | | — | | | | 4,576,008 | | | | — | | | | 4,576,008 | |
Money Market Investments | | | 3,119,663 | | | | — | | | | — | | | | 3,119,663 | |
Purchased Options | | | — | | | | 20,449 | | | | — | | | | 20,449 | |
| | | | | | | | | | | | | | | | |
Total Investments | | | 3,119,663 | | | | 55,539,206 | | | | — | | | | 58,658,869 | |
| | | | | | | | | | | | | | | | |
Asset Derivatives | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | | | | | | | | | | | | | | | |
Foreign Currency Risk | | | — | | | | 464,188 | | | | — | | | | 464,188 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 3,119,663 | | | $ | 56,003,394 | | | $ | — | | | $ | 59,123,057 | |
| | | | | | | | | | | | | | | | |
Liability Derivatives | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | | | | | | | | | | | | | | | |
Foreign Currency Risk | | $ | — | | | $ | (478,200 | ) | | $ | — | | | $ | (478,200 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | — | | | $ | (478,200 | ) | | $ | — | | | $ | (478,200 | ) |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
15
TCW Funds, Inc.
Statements of Assets and Liabilities | October 31, 2024 |
| | | | | | | | |
| | | TCW
Emerging
Markets
Income Fund | | | TCW
Emerging Markets
Local Currency
Income Fund | |
ASSETS | | | | | | | | |
Investments, at Value (1) | | $ | 3,466,785,437 | | | $ | 57,078,869 | |
Investment in Affiliated Issuers, at Value (2) | | | 20,160,000 | | | | 1,580,000 | |
Foreign Currency, at Value (3) | | | 3,042 | | | | 210,371 | |
Receivable for Securities Sold | | | 6,547,541 | | | | 582,052 | |
Receivable for Fund Shares Sold | | | 2,165,566 | | | | 58,805 | |
Interest and Dividends Receivable | | | 54,007,054 | | | | 1,302,238 | |
Receivable from Investment Advisor | | | 191,876 | | | | 25,418 | |
Unrealized Appreciation on Forward Currency Exchange Contracts | | | 688,126 | | | | 464,188 | |
Cash Collateral Held for Brokers | | | 10,120,000 | | | | 170,000 | |
Prepaid Expenses | | | 111,427 | | | | 46,922 | |
| | | | | | | | |
Total Assets | | | 3,560,780,069 | | | | 61,518,863 | |
| | | | | | | | |
LIABILITIES | | | | | | | | |
Distributions Payable | | | 17,659,767 | | | | 294,957 | |
Payable for Securities Purchased | | | 20,609,886 | | | | 959,836 | |
Payable for Purchase of When-Issued Securities | | | 7,732,939 | | | | — | |
Payable for Fund Shares Redeemed | | | 1,704,133 | | | | 1,562,189 | |
Accrued Capital Gain Withholding Taxes | | | — | | | | 5,474 | |
Accrued Directors’ Fees and Expenses | | | 16,411 | | | | 19,304 | |
Deferred Accrued Directors’ Fees and Expenses | | | 7,287 | | | | 7,287 | |
Accrued Management Fees | | | 2,480,468 | | | | 40,541 | |
Accrued Distribution Fees | | | 104,150 | | | | 2,611 | |
Payable to broker—Variation Margin on Open Futures Contracts | | | 156,814 | | | | — | |
Options Written, at Value | | | 15,595 | (4) | | | — | |
Collateral Pledged by Brokers | | | 3,270,000 | | | | 140,000 | |
Unrealized Depreciation on Forward Currency Exchange Contracts | | | — | | | | 478,200 | |
Transfer Agent Fees Payable | | | 659,879 | | | | 36,148 | |
Administration Fee Payable | | | 156,124 | | | | 8,383 | |
Audit Fees Payable | | | 39,129 | | | | 25,026 | |
Accounting Fees Payable | | | 408,550 | | | | 6,442 | |
Custodian Fees Payable | | | 301,804 | | | | 63,487 | |
Legal Fees Payable | | | 117,034 | | | | 2,578 | |
Other Accrued Expenses | | | 67,349 | | | | 10,616 | |
| | | | | | | | |
Total Liabilities | | | 55,507,319 | | | | 3,663,079 | |
| | | | | | | | |
NET ASSETS | | $ | 3,505,272,750 | | | $ | 57,855,784 | |
| | | | | | | | |
NET ASSETS CONSIST OF: | | | | | | | | |
Paid-in Capital | | $ | 5,725,045,337 | | | $ | 116,924,600 | |
Accumulated Earnings (Loss) | | | (2,219,772,587 | ) | | | (59,068,816 | ) |
| | | | | | | | |
NET ASSETS | | $ | 3,505,272,750 | | | $ | 57,855,784 | |
| | | | | | | | |
See accompanying Notes to Financial Statements.
16
TCW Funds, Inc.
Statements of Assets and Liabilities (Continued) | October 31, 2024 |
| | | | | | | | |
| | | TCW
Emerging
Markets
Income Fund | | | TCW
Emerging Markets
Local Currency
Income Fund | |
NET ASSETS ATTRIBUTABLE TO: | | | | | | | | |
I Class Share | | $ | 2,143,263,094 | | | $ | 45,885,633 | |
N Class Share | | $ | 492,915,631 | | | $ | 11,970,151 | |
Plan Class Share | | $ | 869,094,025 | | | $ | — | |
CAPITAL SHARES OUTSTANDING: (5) | |
I Class Share | | | 325,311,138 | | | | 6,375,620 | |
N Class Share | | | 57,955,805 | | | | 1,666,703 | |
Plan Class Share | | | 132,008,485 | | | | — | |
NET ASSET VALUE PER SHARE: (6) | |
I Class Share | | $ | 6.59 | | | $ | 7.20 | |
N Class Share | | $ | 8.51 | | | $ | 7.18 | |
Plan Class Share | | $ | 6.58 | | | $ | — | |
| (1) | The identified cost for the TCW Emerging Markets Income Fund and the TCW Emerging Markets Local Currency Income Fund at October 31, 2024 was $3,332,549,860 and $58,271,979, respectively. |
| (2) | The identified cost for the TCW Emerging Markets Income Fund and the TCW Emerging Markets Local Currency Income Fund at October 31, 2024 was $20,160,000 and $1,580,000, respectively. |
| (3) | The identified cost for the TCW Emerging Markets Income Fund and the TCW Emerging Markets Local Currency Income Fund at October 31, 2024 was $3,419 and $210,744, respectively. |
| (4) | Premium received $484,152. |
| (5) | The number of authorized shares, with a par value of $0.001 per share is 4,000,000,000 for each of the I Class, N Class and Plan Class shares. |
| (6) | Represents offering price and redemption price per share. |
See accompanying Notes to Financial Statements.
17
TCW Funds, Inc.
Statements of Operations | Year Ended October 31, 2024 |
| | | | | | | | |
| | | TCW
Emerging
Markets
Income Fund | | | TCW
Emerging
Markets
Local Currency
Income Fund | |
INVESTMENT INCOME | | | | | | | | |
Income: | | | | | | | | |
Dividends | | $ | 3,838,191 | | | $ | 92,728 | |
Dividends from Investment in Affiliated Issuers | | | 876,176 | | | | 13,349 | |
Interest | | | 321,762,604 | (1) | | | 5,619,609 | (1) |
| | | | | | | | |
Total | | | 326,476,971 | | | | 5,725,686 | |
| | | | | | | | |
Expenses: | | | | | | | | |
Management Fees | | | 28,288,193 | | | | 563,821 | |
Accounting Services Fees | | | 198,249 | | | | 6,729 | |
Administration Fees | | | 164,922 | | | | 25,895 | |
Transfer Agent Fees: | | | | | | | | |
I Class | | | 1,898,023 | | | | 53,945 | |
N Class | | | 488,180 | | | | 18,664 | |
Plan Class | | | 146,148 | | | | — | |
Custodian Fees | | | 167,283 | | | | 84,085 | |
Professional Fees | | | 336,685 | | | | 38,861 | |
Directors’ Fees and Expenses | | | 74,639 | | | | 74,308 | |
Registration Fees: | | | | | | | | |
I Class | | | 62,707 | | | | 20,796 | |
N Class | | | 22,988 | | | | 20,903 | |
Plan Class | | | 44,748 | | | | — | |
Distribution Fees: | | | | | | | | |
N Class | | | 1,185,343 | | | | 33,229 | |
Compliance Expense | | | 582 | | | | 582 | |
Shareholder Reporting Expense | | | 15,721 | | | | 3,434 | |
Other | | | 571,187 | | | | 11,306 | |
| | | | | | | | |
Total | | | 33,665,598 | | | | 956,558 | |
| | | | | | | | |
Less Expenses Borne by Investment Advisor: | | | | | | | | |
I Class | | | (451,017 | ) | | | (211,050 | ) |
N Class | | | (926,932 | ) | | | (98,727 | ) |
Plan Class | | | (678,384 | ) | | | — | |
| | | | | | | | |
Net Expenses | | | 31,609,265 | | | | 646,781 | |
| | | | | | | | |
Net Investment Income | | | 294,867,706 | | | | 5,078,905 | |
| | | | | | | | |
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | | | | | | | | |
Net Realized Gain (Loss) on: | | | | | | | | |
Investments | | | (18,925,496 | ) (2) | | | (2,807,056 | ) (2) |
Foreign Currency | | | (83,263 | ) | | | (119,678 | ) |
Forward Currency Exchange Contracts | | | (2,892,306 | ) | | | 412,387 | |
Futures Contracts | | | (150,708 | ) | | | — | |
Options Written | | | — | | | | 56,231 | |
Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | |
Investments | | | 390,506,235 | | | | 5,911,822 | (3) |
Foreign Currency | | | (8,699 | ) | | | 29,803 | |
Forward Currency Exchange Contracts | | | 688,126 | | | | 374,709 | |
Futures Contracts | | | (10,717,270 | ) | | | — | |
Options Written | | | 468,557 | | | | (36,962 | ) |
| | | | | | | | |
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions | | | 358,885,176 | | | | 3,821,256 | |
| | | | | | | | |
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 653,752,882 | | | $ | 8,900,161 | |
| | | | | | | | |
| (1) | Net of foreign taxes withheld of $1,344,212 and $146,971 for the TCW Emerging Markets Income Fund and the TCW Emerging Markets Local Currency Income Fund, respectively. |
| (2) | Net of capital gain withholding taxes of $4,284 and $6,524 for the TCW Emerging Markets Income Fund and the TCW Emerging Markets Local Currency Income Fund, respectively. |
| (3) | Net of capital gain withholding taxes of $5,270 for the TCW Emerging Markets Local Currency Income Fund. |
See accompanying Notes to Financial Statements.
18
TCW Funds, Inc.
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | |
| | | TCW
Emerging Markets Income
Fund | | | TCW
Emerging Markets Local
Currency Income Fund | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | |
OPERATIONS | | | | | | | | | | | | | | | | |
Net Investment Income | | $ | 294,867,706 | | | $ | 263,440,484 | | | $ | 5,078,905 | | | $ | 8,380,169 | |
Net Realized Gain (Loss) on Investments, Futures Contracts, Options Written and Foreign Currency Transactions | | | (22,051,773 | ) | | | (351,637,357 | ) | | | (2,458,116 | ) | | | (5,266,985 | ) |
Change in Unrealized Appreciation on Investments, Futures Contracts, Options Written and Foreign Currency Transactions | | | 380,936,949 | | | | 419,836,488 | | | | 6,279,372 | | | | 14,295,354 | |
| | | | | | | | | | | | | | | | |
Increase in Net Assets Resulting from Operations | | | 653,752,882 | | | | 331,639,615 | | | | 8,900,161 | | | | 17,408,538 | |
| | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | | | | | | | | | | | | | | | | |
Distributions to Shareholders | | | (208,229,806 | ) | | | (208,679,952 | ) | | | (3,560,001 | ) | | | (4,696,848 | ) |
Return of Capital | | | — | | | | — | | | | (547,509 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total Distributions to Shareholders | | | (208,229,806 | ) | | | (208,679,952 | ) | | | (4,107,510 | ) | | | (4,696,848 | ) |
| | | | | | | | | | | | | | | | |
NET CAPITAL SHARE TRANSACTIONS | | | | | | | | | | | | | | | | |
I Class | | | (210,725,709 | ) | | | (488,084,644 | ) | | | (65,285,583 | ) | | | (2,663,384 | ) |
N Class | | | (6,120,511 | ) | | | 43,962,199 | | | | (2,340,058 | ) | | | (30,598,395 | ) |
Plan Class | | | (262,840,637 | ) | | | (66,215,732 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Decrease in Net Assets Resulting from Net Capital Shares Transactions | | | (479,686,857 | ) | | | (510,338,177 | ) | | | (67,625,641 | ) | | | (33,261,779 | ) |
| | | | | | | | | | | | | | | | |
Decrease in Net Assets | | | (34,163,781 | ) | | | (387,378,514 | ) | | | (62,832,990 | ) | | | (20,550,089 | ) |
NET ASSETS | | | | | | | | | | | | | | | | |
Beginning of year | | | 3,539,436,531 | | | | 3,926,815,045 | | | | 120,688,774 | | | | 141,238,863 | |
| | | | | | | | | | | | | | | | |
End of year | | $ | 3,505,272,750 | | | $ | 3,539,436,531 | | | $ | 57,855,784 | | | $ | 120,688,774 | |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
19
TCW Funds, Inc.
Notes to Financial Statements
Note 1 — Organization
TCW Funds, Inc., a Maryland corporation (the “Company”), is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2024, the Company consisted of 12 no-load mutual funds (each series, a “Fund” and collectively, the “Funds”). TCW Investment Management Company LLC (the “Advisor”) is the investment advisor to and an affiliate of the Funds and is registered under the Investment Advisers Act of 1940, as amended. Each Fund has its own investment objective and strategies. The following is a brief description of the investment objectives and principal investment strategies for the Funds that are covered in this report:
| | |
TCW Fund | | Investment Objectives and Principal Investment Strategies |
| Diversified Fixed Income Fund | | |
| |
| TCW Emerging Markets Income Fund | | Seeks high total return from current income and capital appreciation by investing at least 80% of the value of its net assets, plus any borrowings for investment purposes, in debt securities issued or guaranteed by companies, financial institutions and government entities in emerging market countries. The Fund generally invests in at least four emerging market countries. |
| Non-Diversified Fixed Income Fund | | |
| |
TCW Emerging Markets Local Currency Income Fund | | Seeks to provide high total return from current income and capital appreciation through investment in debt securities denominated in the local currencies of various emerging market countries; invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in debt securities issued or guaranteed by non-financial companies, financial institutions and government entities in emerging market countries denominated in the local currencies of an issuer, and in derivative instruments that provide investment exposure to such securities. |
The TCW Emerging Markets Local Currency Income Fund currently offers two classes of shares: I Class and N Class. The TCW Emerging Markets Income Fund offers I Class, N Class and Plan Class shares. The three classes of a Fund are substantially the same except that the Class N shares are subject to a distribution fee (see Note 7).
Note 2 — Significant Accounting Policies
The following is a summary of significant accounting policies, which are in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and which are consistently followed by the Funds in the preparation of their financial statements. Each Fund is considered an investment company under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 946, Financial Services — Investment Companies. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements.
Principles of Accounting: The Funds use the accrual method of accounting for financial reporting purposes.
20
TCW Funds, Inc.
October 31, 2024
Note 2 — Significant Accounting Policies (Continued)
Net Asset Value: The net asset value (“NAV”) per share of each class of a Fund is determined by dividing the Fund’s net assets attributable to each class by the number of shares issued and outstanding of that class on each day the New York Stock Exchange (“NYSE”) is open for trading.
Security Valuations: Securities listed or traded on the NYSE and other stock exchanges were valued at the latest sale price on the exchange. Securities traded on the NASDAQ stock market (“NASDAQ”) were valued during the period using official closing prices as reported by NASDAQ, which may not have been the last sale price. Investments in open-end mutual funds including money market funds were valued based on the NAV per share as reported by the investment companies. All other securities for which over the-counter (“OTC”) market quotations were readily available, including short-term securities, swap agreements and forward currency exchange contracts, were valued with prices furnished by independent pricing services or by broker-dealers.
Pursuant to Rule 2a-5 under the 1940 Act, the Company’s Board of Directors (the “Board”, and each member thereof, a “Director”) has designated the Advisor as the “valuation designee” with respect to the fair valuation of the Fund’s portfolio securities, subject to oversight by and periodic reporting to the Board. Fair valued securities are those for which market quotations were not readily available, including in circumstances under which it was determined by the Advisor that prices received were not reflective of their market values.
The Advisor, as the valuation designee, uses a fair valuation methodology for foreign equity securities (exclusive of certain Latin American and Canadian equity securities). This methodology is designed to address the effect of movements in the U.S. market on the securities traded on foreign exchanges that have been closed for a period of time due to time zone differences. The utilization of the fair value model may result in the adjustment of prices taking into account fluctuations in the U.S. market. The fair value model was utilized each trading day and was not dependent on certain thresholds or triggers.
Fair value is defined as the price that a Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Funds disclose investments in their financial statements in a three-tier hierarchy. This hierarchy is utilized to establish classification of fair value measurements based on inputs. Inputs that go into fair value measurement refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the inputs market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances.
The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
| | |
| Level 1 — | | quoted prices in active markets for identical investments. |
| Level 2 — | | other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.). |
| Level 3 — | | significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). |
Changes in valuation techniques may result in transfers in or out of an investment’s assigned Level within the hierarchy. The inputs or methodologies used for valuing investments are not necessarily an indication
21
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
of the risk associated with investing in those investments and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to each security.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized as Level 3.
In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition, as well as changes related to liquidity of investments, could cause a security to be reclassified between Level 1, Level 2, or Level 3.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement.
Fair Value Measurements: Descriptions of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value on a recurring basis are as follows:
Corporate bonds. The fair value of corporate bonds is estimated using recently executed transactions, market price quotations (where observable), bond spreads, or credit default swap spreads adjusted for any basis difference between cash and derivative instruments. Corporate bonds are generally categorized as Level 2 of the fair value hierarchy; in instances where prices, spreads, or any of the other aforementioned key inputs are unobservable, they are categorized as Level 3 of the hierarchy.
Credit default swaps. Credit default swaps are fair valued using pricing models that take into account, among other factors, index spread curves, nominal values, modified duration values and cash flows. To the extent that these inputs are observable and timely, the fair values of credit default swaps would be categorized as Level 2; otherwise, the fair values would be categorized as Level 3.
Equity securities. Securities are generally valued based on quoted prices from the applicable exchange. To the extent these securities are actively traded and valuation adjustments are not applied, they are generally categorized as Level 1 of the fair value hierarchy. Restricted securities issued by publicly held companies are generally categorized as Level 2 of the fair value hierarchy; if a discount is applied and significant, they are categorized as Level 3. Restricted securities held in non-public entities are categorized as Level 3 of the fair value hierarchy because they trade infrequently, and therefore the inputs are unobservable. Certain foreign securities that are fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets are categorized as Level 2 of the fair value hierarchy.
Foreign currency contracts. The fair values of foreign currency contracts are derived from indices, reference rates, and other inputs or a combination of these factors. To the extent that these factors can be observed, foreign currency contracts are categorized as Level 2 of the fair value hierarchy.
Futures contracts. Futures contracts are generally valued at the settlement price established at the close of business each day by the exchange on which they are traded. They are categorized as Level 1.
22
TCW Funds, Inc.
October 31, 2024
Note 2 — Significant Accounting Policies (Continued)
Money market funds. Money market funds are open-end mutual funds that invest in short-term debt securities. To the extent that these funds are valued based upon the reported NAV, they are categorized as Level 1 of the fair value hierarchy.
Options and Swaptions contracts. Exchange-listed options contracts are traded on securities exchanges and are fair valued based on quoted prices from the applicable exchange, and to the extent valuation adjustments are not applied, they are categorized as Level 1. If valuation adjustments are applied and such adjustments are observable and timely, the fair values of exchange-listed options contracts would be categorized as Level 2; otherwise the fair values would be categorized as Level 3. Options and swaptions contracts traded over-the-counter (“OTC”) are fair valued based on pricing models and incorporate various inputs such as interest rates, credit spreads, currency exchange rates and volatility measurements for in-the-money, at-the-money, and out-of-the-money contracts based on a given strike price. To the extent that these inputs are observable and timely, the fair values of OTC options and swaptions contracts would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Restricted securities. Restricted securities, including illiquid Rule 144A securities, issued by non-public entities are categorized as Level 3 of the fair value hierarchy because they trade infrequently, and therefore the inputs are unobservable. Any other restricted securities valued similar to publicly traded securities may be categorized as Level 2 or 3 of the fair value hierarchy depending on whether a discount is applied and significant to the fair value.
Short-term investments. Short-term investments are valued using market price quotations, and are categorized as Level 1 or Level 2 of the fair value hierarchy.
U.S. and foreign government and agency securities. Government and agency securities are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, quoted market prices, and reference data. Accordingly, U.S. and foreign government and agency securities are normally categorized as Level 1 or 2 of the fair value hierarchy depending on the liquidity and transparency of the market.
The summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Funds’ investments is listed after the Schedule of Investments for each Fund.
Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:
| | | | | | | | |
TCW Emerging Markets Income Fund | | Foreign Government
Bonds | | | Total | |
Balance as of October 31, 2023 | | $ | 31,765,863 | | | $ | 31,765,863 | |
Accrued Discounts (Premiums) | | | — | | | | — | |
Realized Gain (Loss) | | | (17,373,155 | ) | | | (17,373,155 | ) |
Change in Unrealized Appreciation (Depreciation)* | | | 10,156,189 | | | | 10,156,189 | |
Purchases | | | 1,431,511 | | | | 1,431,511 | |
Sales | | | (12,935,352 | ) | | | (12,935,352 | ) |
Transfers in to Level 3 | | | — | | | | — | |
Transfers out of Level 3 | | | — | | | | — | |
| | | | | | | | |
Balance as of October 31, 2024 | | $ | 13,045,056 | | | $ | 13,045,056 | |
| | | | | | | | |
| * | The change in unrealized appreciation (depreciation) on securities still held at October 31, 2024 was $10,156,189 and is included in the related net realized gains (losses) and net change in appreciation (depreciation) in the Statements of Operations. |
23
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
Significant unobservable valuation inputs for Level 3 investments as of October 31, 2024 are as follows:
| | | | | | | | | | | | | | | | | | |
Description | | Fair Value at
10/31/2024 | | | Valuation Techniques | | Unobservable Input | | Price or Price
Range | | | Average
Weighted
Price | | | Input to
Valuation
If Input
Increases |
| TCW Emerging Markets Income Fund |
Foreign Government Bonds | | $ | 13,045,056 | | | Broker Quote | | Offered Quote | | $ | 13.676–$15.558 | | | $ | 14.798 | | | Increase |
Security Transactions and Related Investment Income: Dividend income is recorded on the ex-dividend date. Interest income is recognized on an accrual basis. Realized gains and losses on investments are recorded on the basis of specific identification.
Allocation of Operating Activity for Multiple Classes: Investment income, common expenses and realized and unrealized gains and losses are allocated among the share classes of the Funds based on the relative net assets of each class. Distribution fees, which are directly attributable to a class of shares, are charged to the operations of that class. All other expenses are charged to each Fund or class as incurred on a specific identification basis. Differences in class- specific fees and expenses will result in differences in net investment income for each class, and in turn differences in dividends paid by each class.
Dividends and Distributions: Dividends and distributions to shareholders are recorded on the ex-dividend date. The TCW Emerging Markets Income Fund and the TCW Emerging Markets Local Currency Income Fund declare and pay, or reinvest, dividends from net investment income monthly. Capital gains realized by a Fund will be distributed at least annually.
Income and capital gain distributions are determined in accordance with income tax regulations which may differ from GAAP. These differences are primarily due to differing treatments for foreign currency transactions, derivative transactions, market discount and premium, losses deferred due to wash sales, excise tax regulations and employing equalization in determining amounts to be distributed to Fund shareholders. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications between paid-in capital, undistributed net investment income (loss), and/or undistributed accumulated realized gain (loss). Undistributed net investment income or loss may include temporary book and tax basis differences which will reverse in subsequent periods. Any taxable income or capital gain remaining at fiscal year-end is distributed in the following year.
Use of Estimates: The preparation of the accompanying financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates.
Foreign Currency Translation: The books and records of each Fund are maintained in U.S. dollars as follows: (1) foreign currency denominated securities and other assets and liabilities stated in foreign currencies are translated using the daily spot rate; and (2) purchases, sales, income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions. The resultant exchange gains and losses are included in net realized or net unrealized gain (loss) in the Statements of Operations. Pursuant to U.S. federal income tax regulations, certain foreign exchange gains and losses included in realized and unrealized gains and losses are included in, or are a reduction of, ordinary income for federal income tax purposes.
24
TCW Funds, Inc.
October 31, 2024
Note 2 — Significant Accounting Policies (Continued)
Foreign Taxes: The Funds may be subject to withholding taxes on income and capital gains imposed by certain countries in which they invest. The withholding tax on income is netted against the income accrued or received. Any reclaimable taxes are recorded as income. The withholding tax on unrealized gain is recorded as a liability.
Derivative Instruments: Derivatives are financial instruments which are valued based on the values of one or more indicators, such as a security, asset, currency, interest rate, or index. Derivative transactions can create investment leverage and may be highly volatile. A derivative contract may result in a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. It is possible that a derivative transaction will result in a loss greater than the principal amount invested. The Funds may not be able to close out a derivative transaction at a favorable time or price.
For the year ended October 31, 2024, the following Funds had derivatives and transactions in derivatives, grouped in the following risk categories:
TCW Emerging Markets Income Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Credit Risk | | | Equity Risk | | | Foreign
Currency
Risk | | | Interest
Rate
Risk | | | Total | |
Statement of Assets and Liabilities: | |
Asset Derivatives | |
Investments (1) | | $ | — | | | $ | — | | | $ | 2,568,455 | | | $ | — | | | $ | 2,568,455 | |
Forward Currency Exchange Contracts | | | — | | | | — | | | | 688,126 | | | | — | | | | 688,126 | |
| | | | | | | | | | | | | | | | | | | | |
Total Value | | $ | — | | | $ | — | | | $ | 3,256,581 | | | $ | — | | | $ | 3,256,581 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Liability Derivatives | |
Options Written | | $ | — | | | $ | — | | | $ | (15,595 | ) | | $ | — | | | $ | (15,595 | ) |
Futures Contracts (2) | | | — | | | | — | | | | — | | | | (10,717,270 | ) | | | (10,717,270 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Value | | $ | — | | | $ | — | | | $ | (15,595 | ) | | $ | (10,717,270 | ) | | $ | (10,732,865 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Statement of Operations: | |
Net Realized Gain (Loss) | |
Forward Currency Exchange Contracts | | $ | — | | | $ | — | | | $ | (2,892,306 | ) | | $ | — | | | $ | (2,892,306 | ) |
Futures Contracts | | | — | | | | — | | | | — | | | | (150,708 | ) | | | (150,708 | ) |
Investments | | | — | | | | — | | | | (1,114,899 | ) | | | — | | | | (1,114,899 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) | | $ | — | | | $ | — | | | $ | (4,007,205 | ) | | $ | (150,708 | ) | | $ | (4,157,913 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net Change in Appreciation (Depreciation) | |
Forward Currency Exchange Contracts | | $ | — | | | $ | — | | | $ | 688,126 | | | $ | — | | | $ | 688,126 | |
Futures Contracts | | | — | | | | — | | | | — | | | | (10,717,270 | ) | | | (10,717,270 | ) |
Investments (3) | | | — | | | | — | | | | (4,700,949 | ) | | | — | | | | (4,700,949 | ) |
Options Written | | | — | | | | — | | | | 468,557 | | | | — | | | | 468,557 | |
| | | | | | | | | | | | | | | | | | | | |
Net Change in Appreciation (Depreciation) | | $ | — | | | $ | — | | | $ | (3,544,266 | ) | | $ | (10,717,270 | ) | | $ | (14,261,536 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Number of Contracts or Notional Amounts (5) | |
Forward Currency Exchange Contracts | | $ | — | | | $ | — | | | $ | 146,969,300 | | | $ | — | | | $ | 146,969,300 | |
Options Purchased | | $ | — | | | $ | — | | | $ | 219,650,000 | | | $ | — | | | $ | 219,650,000 | |
Options Written | | $ | — | | | $ | — | | | $ | 43,930,000 | | | $ | — | | | $ | 43,930,000 | |
Futures Contracts | | | — | | | | — | | | | — | | | | 1,055 | | | | 1,055 | |
25
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
TCW Emerging Markets Local Currency Income Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Credit Risk | | | Equity Risk | | | Foreign
Currency
Risk | | | Interest
Rate
Risk | | | Total | |
Statement of Assets and Liabilities: | | | | | | | | | | | | | | | | | | | | |
Asset Derivatives | |
Investments (1) | | $ | — | | | $ | — | | | $ | 20,449 | | | $ | — | | | $ | 20,449 | |
Forward Currency Exchange Contracts | | | — | | | | — | | | | 464,188 | | | | — | | | | 464,188 | |
| | | | | | | | | | | | | | | | | | | | |
Total Value | | $ | — | | | $ | — | | | $ | 484,637 | | | $ | — | | | $ | 484,637 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Liability Derivatives | |
Forward Currency Exchange Contracts | | $ | — | | | $ | — | | | $ | (478,200 | ) | | $ | — | | | $ | (478,200 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Value | | $ | — | | | $ | — | | | $ | (478,200 | ) | | $ | — | | | $ | (478,200 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Statement of Operations: | |
Net Realized Gain (Loss) | |
Forward Currency Exchange Contracts | | $ | — | | | $ | — | | | $ | 412,387 | | | $ | — | | | $ | 412,387 | |
Investments (3) | | | — | | | | — | | | | (171,181 | ) | | | — | | | | (171,181 | ) |
Options Written | | | — | | | | — | | | | 56,231 | | | | — | | | | 56,231 | |
| | | | | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) | | $ | — | | | $ | — | | | $ | 297,437 | | | $ | — | | | $ | 297,437 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net Change in Appreciation (Depreciation) | |
Forward Currency Exchange Contracts | | $ | — | | | $ | — | | | $ | 374,709 | | | $ | — | | | $ | 374,709 | |
Investments (4) | | | — | | | | — | | | | 46,899 | | | | — | | | | 46,899 | |
Options Written | | | — | | | | — | | | | (36,962 | ) | | | — | | | | (36,962 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Change in Appreciation (Depreciation) | | $ | — | | | $ | — | | | $ | 384,646 | | | $ | — | | | $ | 384,646 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Number of Contracts or Notional Amounts (5) | |
Forward Currency Exchange Contracts | | | $ — | | | | $ — | | | | $42,631,542 | | | | $ — | | | | $42,631,542 | |
Options Purchased | | | $ — | | | | $ — | | | | $3,898,000 | | | | $ — | | | | $3,898,000 | |
Options Written | | | $ — | | | | $ — | | | | $5,116,000 | | | | $ — | | | | $5,116,000 | |
| (1) | Represents purchased options, at value. |
| (2) | Includes cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only variation margin on October 31, 2024 is reported within the Statement of Assets and Liabilities. |
| (3) | Represents realized gain (loss) for purchased options. |
| (4) | Represents change in unrealized appreciation (depreciation) for purchased options during the year. |
| (5) | Amount disclosed represents average number of contracts or notional amounts, which are representative of the volume traded for the year ended October 31, 2024. |
Counterparty Credit Risk: Derivative contracts may be exposed to counterparty risk. Losses can occur if the counterparty does not perform under the contract.
The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds.
With exchange-traded futures and centrally cleared swaps, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Funds do not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin
26
TCW Funds, Inc.
October 31, 2024
Note 2 — Significant Accounting Policies (Continued)
that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
For OTC derivatives the Funds mitigate their counterparty risk by entering into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with each counterparty. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Funds may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event a Fund’s net assets declines by a stated percentage or a Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the counterparty.
Collateral requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral pledged or received by a Fund.
Cash collateral that has been pledged to cover obligations of a Fund is reported separately on the Statement of Assets and Liabilities. Non-cash collateral pledged by a Fund, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold, typically $250,000 or $500,000, before a transfer is required, which is determined at the close of each business day and the collateral is transferred on the next business day. To the extent amounts due to a Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by entering into agreements only with counterparties that the Advisor believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities. The Funds have implemented the disclosure requirements pursuant to ASC 210 Balance Sheet (“ASC 210”), Disclosures about Offsetting Assets and Liabilities that requires disclosures to make financial statements that are prepared under GAAP more comparable to those prepared under International Financial Reporting Standards.
Master Agreements and Netting Arrangements. Certain Funds are parties to various agreements, including but not limited to International Swaps and Derivatives Association Agreements and related Credit Support Annex, Master Repurchase Agreements, and Master Securities Forward Transactions Agreements (collectively “Master Agreements”), which govern the terms of certain transactions with select counterparties. These Master Agreements generally include provisions for general obligations, representations, agreements, collateral, and certain events of default or termination. These Master Agreements also include provisions for netting arrangements that help reduce credit and counterparty risk
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TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
associated with relevant transactions (“netting arrangements”). The netting arrangements are generally tied to credit-related events that, if triggered, would cause an event of default or termination giving a Fund or counterparty the right to terminate early and cause settlement, on a net basis, of all transactions under the applicable Master Agreement. In the event of an early termination as a result of an event of default under the Master Agreement, the total value exposure of all transactions will be offset against collateral exchanged to date, which would result in a net receivable or payable that would be due from or to the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in the event of a bankruptcy or insolvency of the counterparty. Credit-related events include, but are not limited to, bankruptcy, failure to make timely payments, restructuring, obligation acceleration, obligation default, a material decline in net assets, decline in credit rating or repudiation/moratorium. Any election made by a counterparty to early terminate the transactions under a Master Agreement could have a material adverse impact on a Fund’s financial statements. A Fund’s overall exposure to credit risk, subject to netting arrangements can change substantially within a short period, as it is affected by each transaction subject to the arrangement.
Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under the Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions under the relevant Master Agreement with a counterparty in a given Fund exceeds a specified threshold, net of collateral already in place, typically $250,000 or $500,000 depending on the counterparty and the type of Master Agreement. Collateral under the Master Agreements is usually in the form of cash or U.S. Treasury Bills but could include other types of securities. If permitted under the Master Agreement, certain funds may rehypothecate cash collateral received from a counterparty. The value of all derivative transactions outstanding under a Master Agreement is calculated daily to determine the amount of collateral to be received or pledged by the counterparty. Posting of collateral for OTC derivative transactions are covered under tri-party collateral agreements between the Fund, the Fund’s custodian, and each counterparty. Collateral for centrally cleared derivatives transactions are posted with the applicable derivatives clearing organization.
The following table presents TCW Emerging Markets Income Fund’s OTC derivative assets by counterparty net of amounts available for offset under an ISDA Master Agreement or similar agreements and net of the related collateral received or pledged by the Fund as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Counterparty | | Gross Derivative
Assets
in the Statement of
Assets and
Liabilities | | | Collateral
Received (1) | | | Derivatives
Assets (Liabilities)
Available for Offset | | | Net Amount
of Derivative
Assets (2) | |
Bank of America
Purchased Options | | $ | 22,668 | | | $ | — | | | $ | (15,595 | ) | | $ | 7,073 | |
BNP Paribas S.A.
Purchased Options | | | 15,595 | | | | (15,595 | ) | | | — | | | | — | |
Goldman Sachs International
Purchased Options | | | 6,721 | | | | (6,721 | ) | | | — | | | | — | |
JPMorgan Chase Bank
Purchased Options | | | 2,523,471 | | | | (2,400,000 | ) | | | — | | | | 123,471 | |
Morgan Stanley & Co.
Foreign Currency Exchange Contracts | | | 688,126 | | | | (688,126 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 3,256,581 | | | $ | (3,110,442 | ) | | $ | (15,595 | ) | | $ | 130,544 | |
| | | | | | | | | | | | | | | | |
| (1) | Excess of collateral received for individual counterparty may not be shown for financial reporting purposes. |
| (2) | Represents the net amount receivable from the counterparty in the event of default. |
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TCW Funds, Inc.
October 31, 2024
Note 2 — Significant Accounting Policies (Continued)
The following table presents TCW Emerging Markets Income Fund’s OTC derivative liabilities by counterparty net of amounts available for offset under an ISDA Master Agreement or similar agreements and net of the related collateral received or pledged by the Fund as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Counterparty | | Gross Derivatives
Liabilities
in the Statement of
Assets and
Liabilities | | | Collateral
Pledged (1) | | | Derivatives
(Assets) Liabilities
Available for Offset | | | Net Amount
of Derivative
Liabilities (2) | |
Bank of America
Written options | | $ | 15,595 | | | $ | — | | | $ | (15,595 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 15,595 | | | $ | — | | | $ | (15,595 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | Excess of collateral received for individual counterparty may not be shown for financial reporting purposes. |
| (2) | Represents the net amount receivable from the counterparty in the event of default. |
The following table presents TCW Emerging Markets Local Currency Income Fund’s OTC derivative assets by counterparty net of amounts available for offset under an ISDA Master Agreement or similar agreements and net of the related collateral received or pledged by the Fund as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Counterparty | | Gross Derivative
Assets
in the Statement of
Assets and
Liabilities | | | Collateral
Received (1) | | | Derivative
Assets (Liabilities)
Available for Offset | | | Net Amount
of Derivative
Assets (2) | |
Bank of America
Foreign Currency Exchange Contracts | | $ | 28,368 | | | $ | — | | | $ | (28,368 | ) | | $ | — | |
Barclays Capital
Purchased Options | | | 764 | | | | — | | | | (764 | ) | | | — | |
BNP Paribas S.A.
Purchased Options | | | 19,685 | | | | — | | | | — | | | | 19,685 | |
BNP Paribas S.A.
Foreign Currency Exchange Contracts | | | 182,639 | | | | — | | | | (101,742 | ) | | | 80,897 | |
ING Baring U.S. Capital Markets
Foreign Currency Exchange Contracts | | | 1,575 | | | | — | | | | (1,575 | ) | | | — | |
JPMorgan Chase Bank
Foreign Currency Exchange Contracts | | | 138,700 | | | | — | | | | (132,572 | ) | | | 6,128 | |
Morgan Stanley & Co.
Foreign Currency Exchange Contracts | | | 85,178 | | | | (10,335 | ) | | | (74,843 | ) | | | — | |
Standard Chartered Bank
Foreign Currency Exchange Contracts | | | 27,464 | | | | — | | | | (20,792 | ) | | | 6,672 | |
State Street Bank & Trust Co.
Foreign Currency Exchange Contracts | | | 264 | | | | — | | | | (101 | ) | | | 163 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 484,637 | | | $ | (10,335 | ) | | $ | (360,757 | ) | | $ | 113,545 | |
| | | | | | | | | | | | | | | | |
| (1) | Excess of collateral received for individual counterparty may not be shown for financial reporting purposes. |
| (2) | Represents the net amount receivable from the counterparty in the event of default. |
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TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
The following table presents TCW Emerging Markets Local Currency Income Fund’s OTC derivative liabilities by counterparty net of amounts available for offset under an ISDA Master Agreement or similar agreements and net of the related collateral received or pledged by the Fund as of October 31, 2024.
| | | | | | | | | | | | | | | | |
Counterparty | | Gross Derivative
Liabilities
in the Statement of
Assets and
Liabilities | | | Collateral
Pledged | | | Derivatives
(Assets) Liabilities
Available for Offset | | | Net Amount
of Derivative
Liabilities (2) | |
Bank of America
Foreign Currency Exchange Contracts | | $ | 86,157 | | | $ | — | | | $ | (28,368 | ) | | $ | 57,789 | |
Barclays Capital
Foreign Currency Exchange Contracts | | | 61,993 | | | | — | | | | (764 | ) | | | 61,229 | |
BNP Paribas S.A.
Foreign Currency Exchange Contracts | | | 101,742 | | | | — | | | | (101,742 | ) | | | — | |
JPMorgan Chase Bank
Foreign Currency Exchange Contracts | | | 132,572 | | | | — | | | | (132,572 | ) | | | — | |
Morgan Stanley & Co.
Foreign Currency Exchange Contracts | | | 74,843 | | | | — | | | | (74,843 | ) | | | — | |
Standard Chartered Bank
Foreign Currency Exchange Contracts | | | 20,792 | | | | — | | | | (20,792 | ) | | | — | |
State Street Bank & Trust Co.
Foreign Currency Exchange Contracts | | | 101 | | | | — | | | | (101 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 478,200 | | | $ | — | | | $ | (359,182 | ) | | $ | 119,018 | |
| | | | | | | | | | | | | | | | |
| (1) | Excess of collateral received for individual counterparty may not be shown for financial reporting purposes. |
| (2) | Represents the net amount receivable from the counterparty in the event of default. |
Note 3 — Portfolio Investments
When-Issued, Delayed-Delivery, and Forward Commitment Transactions: The Funds may enter into when-issued, delayed-delivery, or forward commitment transactions in order to lock in the purchase price of the underlying security or to adjust the interest rate exposure of each Fund’s existing portfolio. In when-issued, delayed-delivery, or forward commitment transactions, a Fund commits to purchase or sell particular securities, with payment and delivery to take place at a future date. Although the Fund does not pay for the securities or start earning interest on them until they are delivered, it immediately assumes the risks of ownership, including the risk of price fluctuation. If a Fund’s counterparty fails to deliver a security purchased on a when-issued, delayed-delivery, or forward commitment basis, there may be a loss, and the Fund may have missed an opportunity to make an alternative investment.
Prior to settlement of these transactions, the value of the subject securities will fluctuate with market conditions. In addition, because the Fund is not required to pay for when-issued, delayed-delivery, or forward commitment securities until the delivery date, they may result in a form of leverage to the extent the Fund does not set aside liquid assets to cover the commitment. To guard against this deemed leverage, the Fund monitors the obligations under these transactions on a daily basis and ensures that the Fund has sufficient liquid assets to cover them.
Repurchase Agreements: The Funds may enter into repurchase agreements under the terms of a Master Repurchase Agreement (“MRA”). In a repurchase agreement, the Funds purchase a security from a counterparty who agrees to repurchase the same security at a mutually agreed upon date and price. The MRA permits each Fund, under certain circumstances, including an event of default (such as bankruptcy or
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TCW Funds, Inc.
October 31, 2024
Note 3 — Portfolio Investments (Continued)
insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from each Fund. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Pursuant to the terms of the MRA, each Fund receives securities as collateral with a market value in excess of the repurchase price. Upon a bankruptcy or insolvency of the MRA counterparty, the Fund recognizes a liability with respect to such excess collateral to reflect the Fund’s obligation under bankruptcy law to return the excess to the counterparty. There were no repurchase agreements outstanding as of October 31, 2024.
Participation Notes: The Funds may invest in participation notes of equity-linked instruments (collectively, participation notes), through which a counterparty provides exposure to common stock, in the form of an unsecured interest, in markets where direct investment by a Fund is not possible. Participation notes provide the economic benefit of common stock ownership to a Fund, while legal ownership and voting rights are retained by the counterparty. Although participation notes are usually structured with a defined maturity or termination date, early redemption may be possible. Risks associated with participation notes include possible failure of the counterparty to perform in accordance with the terms of the agreement, inability to transfer or liquidate the notes, potential delays or an inability to redeem before maturity under certain market conditions, and limited legal recourse against the issuer of the underlying common stock. None of the Funds held participation notes as of October 31, 2024.
Securities Lending: The Funds may lend their securities to qualified brokers. The loans must be collateralized at all times primarily with cash although the Funds can accept money market instruments or U.S. Government securities with a market value at least equal to the market value of the securities on loan. As with any extensions of credit, the Funds may bear the risk of delay in recovery or even loss of rights in the collateral if the borrowers of the securities fail financially. The Funds earn additional income for lending their securities by investing the cash collateral in short-term investments. The Funds did not lend any securities during the year ended October 31, 2024.
Derivatives:
Forward Currency Exchange Contracts: The Funds enter into forward currency exchange contracts as a hedge against fluctuations in foreign exchange rates. Forward currency exchange contracts are marked-to market daily and the change in market value is recorded by the Funds as unrealized gains or losses in the Statement of Assets and Liabilities. When a contract is closed or delivery is taken, a Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of the foreign currency relative to the U.S. dollar. Outstanding forward currency exchange contracts at October 31, 2024 are disclosed in the Schedule of Investments.
Futures Contracts: The Funds may enter into futures contracts. A Fund may seek to manage a variety of different risks through the use of futures contracts, such as interest rate risk, equity price risk, and currency risk. A Fund may use index futures to hedge against broad market risks to its portfolio or to gain broad market exposure. Securities index futures contracts are contracts to buy or sell units of a securities index at a specified future date at a price agreed upon when the contract is made and are settled in cash. Positions in futures may be closed out only on an exchange or board of trade which provides a secondary market for
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TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 3 — Portfolio Investments (Continued)
such futures. Because futures contracts are exchange-traded, they typically have minimal exposure to counterparty risk. Parties to a futures contract are not required to post the entire notional amount of the contract, but rather a small percentage of that amount (by way of margin), both at the time they enter into futures transactions, and then on a daily basis if their positions decline in value; as a result, futures contracts are highly leveraged. Such payments are known as variation margin and are recorded by a Fund as unrealized gains or losses. Because futures markets are highly leveraged, they can be extremely volatile, and there can be no assurance that the pricing of a futures contract will correlate precisely with the pricing of the asset or index underlying it or the asset or liability of a Fund that is the subject of the hedge. It may not always be possible for a Fund to enter into a closing transaction with respect to a futures contract it has entered into at a favorable time or price. When a Fund enters into a futures transaction, it is subject to the risk that the value of the futures contract will move in a direction unfavorable to it.
When a Fund uses futures contracts for hedging purposes, it is likely that the Fund will have an asset or liability that will offset any loss (or gain) on the transactions, at least in part. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Futures contracts outstanding at October 31, 2024 are disclosed in the Schedule of Investments.
Options: The Funds may purchase and sell put and call options on a security or an index of securities to enhance investment performance and/or to protect against changes in market prices. The Funds may also enter into currency options to hedge against or to take advantage of currency fluctuations.
A call option gives the holder the right to purchase, and obligates the writer to sell, a security at the strike price at any time before the expiration date. A put option gives the holder the right to sell, and obligates the writer to buy, a security at the exercise price at any time before the expiration date. A Fund may purchase put options to protect portfolio holdings against a decline in market value of a security or securities held by it. A Fund may also purchase a put option hoping to profit from an anticipated decline in the value of the underlying security. If a Fund holds the security underlying the option, the option premium and any transaction costs will reduce any profit the Fund might have realized had it sold the underlying security instead of buying the put option. A Fund may purchase call options to hedge against an increase in the price of securities that the Fund ultimately wants to buy. A Fund may also purchase a call option as a long directional investment hoping to profit from an anticipated increase in the value of the underlying security. In order for a call option to be profitable, the market price of the underlying security must rise sufficiently above the exercise price to cover the premium and transaction costs. These costs will reduce any profit a Fund might have realized had it bought the underlying security at the time it purchased the call option.
Purchasing foreign currency options gives a Fund the right, but not the obligation, to buy or sell specified amounts of currency at a rate of exchange that may be exercised by a certain date. These currency options may be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.
When a Fund purchases an option, it runs the risk that it will lose its entire investment in the option in a relatively short period of time, unless the Fund exercises the option or enters into a closing sale transaction before the option’s expiration. If the price of the underlying security does not rise (in the case of a call) or fall (in the case of a put) to an extent sufficient to cover the option premium and transaction costs, the Fund will lose part or all of its investment in the option. Premiums paid for purchasing options that expire are treated as realized losses.
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TCW Funds, Inc.
October 31, 2024
Note 3 — Portfolio Investments (Continued)
Options purchased or sold by a Fund may be traded on a securities or options exchange. Such options typically have minimal exposure to counterparty risk. However, an exchange or market may at times find it necessary to impose restrictions on particular types of options transactions, such as opening transactions. If an underlying security ceases to meet qualifications imposed by an exchange or the Options Clearing Corporation, new series of options on that security will no longer be opened to replace the expiring series, and opening transactions in existing series may be prohibited.
OTC options are options not traded on exchanges or backed by clearinghouses. Rather, they are entered into directly between a Fund and the counterparty to the option. In the case of an OTC option purchased by a Fund, the value of the option to the Fund will depend on the willingness and ability of the option writer to perform its obligations to the Fund. In addition, OTC options may not be transferable and there may be little or no secondary market for them, so they may be considered illiquid. It may not be possible to enter into closing transactions with respect to OTC options or otherwise to terminate such options, and as a result a Fund may be required to remain obligated on an unfavorable OTC option until its expiration.
During the year ended October 31, 2024, the TCW Emerging Markets Income Fund and the TCW Emerging Markets Local Currency Income Fund entered into options to hedge the currency exposure of the Funds.
Swap Agreements: The Funds may enter into swap agreements. Swap agreements are typically two-party contracts entered into primarily by institutional investors. In a standard “swap” transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments, which may be adjusted for an interest factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to a “notional amount” (i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or in a “basket” of securities representing a particular index).
In a total return swap, one party typically agrees to pay to the other a short-term interest rate in return for a payment at one or more times in the future based on the increase in the value of an underlying security or other asset, or index of securities or assets; if the underlying security, asset, or index declines in value, the party that pays the short-term interest rate must also pay to its counterparty a payment based on the amount of the decline. A Fund may take either side of such a swap, and so may take a long or short position in the underlying security, asset, or index. A Fund may enter into a total return swap to hedge against an exposure in its portfolio — such as interest rate risk (including to adjust the duration or credit quality of a Fund’s bond portfolio), equity risk, or credit risk — or generally to put cash to work efficiently in the markets in anticipation of, or as a replacement for, cash investments. A Fund may also enter into a total return swap to gain exposure to securities or markets in which it might not be able to invest directly (in so-called market access transactions).
Interest rate swaps are agreements in which one party pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, a party may pay a fixed rate and receive a floating rate. In more complex swaps, the notional principal amount may decline (or amortize) over time. A Fund’s maximum risk of loss due to counterparty default is the discounted NAV of the cash flows paid to/received from the counterparty over the interest rate swap’s remaining life.
33
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 3 — Portfolio Investments (Continued)
A Fund may enter into credit default swap transactions as a “buyer” or “seller” of credit protection. In a credit default swap, one party provides what is in effect insurance against a default or other adverse credit event affecting an issuer of debt securities (typically referred to as a “reference entity”). In general, the buyer of credit protection is obligated to pay the protection seller an upfront amount or a periodic stream of payments over the term of the swap. If a “credit event” occurs, the buyer has the right to deliver to the seller bonds or other obligations of the reference entity (with a value up to the full notional value of the swap), and to receive a payment equal to the par value of the bonds or other obligations. Credit events that would trigger a request that the seller make payment are specific to each credit default swap agreement, but generally include bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default, or repudiation/moratorium. When a Fund buys protection, it may or may not own securities of the reference entity. When a Fund sells protection under a credit default swap, the position may have the effect of creating leverage in the Fund’s portfolio through the Fund’s indirect long exposure to the issuer or securities on which the swap is written. When a Fund sells protection, it may do so either to earn additional income or to create such a “synthetic” long position.
Whenever a Fund enters into a swap agreement, it takes on counterparty risk — the risk that its counterparty will be unable or unwilling to meet its obligations under the swap agreement. A Fund also takes the risk that the market will move against its position in the swap agreement. In the case of a total return swap, the swap will change in value depending on the change in value of the asset or index on which the swap is written. When a Fund enters into any type of swap for hedging purposes, it is likely that the Fund will have an asset or liability that will offset any loss (or gain) on the swap, at least in part. Swap agreements may be non-transferable or otherwise highly illiquid, and a Fund may not be able to terminate or transfer a swap agreement at any particular time or at an acceptable price.
During the term of a swap transaction, changes in the value of the swap are recognized as unrealized gains or losses by marking-to-market to reflect the market value of the swap. When the swap is terminated, a Fund will record a realized gain or loss equal to the difference, if any, between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the agreement. Upfront swap premium payments paid or received by a Fund, if any, are recorded within the value of the open swap agreement on the Fund’s Statement of Assets and Liabilities and represent payments paid or received upon entering into the swap agreement to compensate for differences between stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, and other relevant factors). These upfront payments are recorded as realized gains or losses on each Fund’s Statement of Operations upon termination or maturity of the swap agreement.
During the term of a swap transaction, the periodic net payments can be made for a set period of time or may be triggered by a predetermined credit event. The net periodic payments may be based on a fixed or variable interest rate, the change in market value of a specified security, basket of securities or index, or the return generated by a security. These periodic payments received or made by the Funds are recorded as realized gains and losses, respectively. There were no swap agreements outstanding at October 31, 2024.
Note 4 — Risk Considerations
Market Risk: The Funds’ investments will fluctuate with market conditions, and so will the value of your investment in the Funds. You could lose money on your investment in the Funds or the Funds could underperform other investments.
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TCW Funds, Inc.
October 31, 2024
Note 4 — Risk Considerations (Continued)
Liquidity Risk: The Funds’ investments in illiquid securities may reduce the returns of the Funds because they may not be able to sell the illiquid securities at an advantageous time or price. Investments in high-yield securities, foreign securities, derivatives or other securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risk. Certain investments in private placements and Rule 144A securities may be considered illiquid investments. The Funds may invest in private placements and Rule 144A securities.
Interest Rate Risk: The values of the Funds’ investments fluctuate in response to movements in interest rates. If rates rise, the values of debt securities generally fall. The longer the average duration of a Fund’s investment portfolio, the greater the change in value.
Investment Style Risk: Certain Funds may also be subject to investment style risk. The Advisor’s investment styles may be out of favor at times or may not produce the best results over short or longer time periods and may increase the volatility of a Fund’s share price.
LIBOR/SOFR Risk: The London Interbank Offered Rate (“LIBOR”) was a leading benchmark or reference rate for various commercial and financial contracts, including corporate and municipal bonds, bank loans, asset backed and mortgage-related securities, interest rate swaps and other derivatives. In July 2017, the United Kingdom’s Financial Conduct Authority (FCA), which regulates LIBOR, announced the gradual phase out of the LIBOR rate, with nearly all LIBOR rate publications having ceased as of June 30, 2023 (some LIBOR rates continue to be published, but only on a temporary and synthetic basis). Alternatives to LIBOR have been established and others may be developed. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, has identified the Secured Overnight Financing Rate (“SOFR”) as the preferred alternative rate to LIBOR. SOFR is a relatively new index calculated by short-term repurchase agreements, backed by Treasury securities. There remains uncertainty surrounding the nature of any replacement rates. The transition to a new reference rate may result in (i) increased volatility or illiquidity in markets for instruments or contracts that previously relied on or still rely on LIBOR, (ii) a reduction in the value of certain instruments or contracts held by a Fund, (iii) reduced effectiveness of related Fund transactions, such as hedging, (iv) additional tax, accounting and regulatory risks, or (v) costs incurred in connection with closing out positions and entering into new trades. Any pricing adjustments to a Fund’s investments resulting from a substitute reference rate may also adversely affect a Fund’s performance and/or NAV. There is no assurance that the composition or characteristics of any such alternative reference rate will be similar to or produce the same value or economic equivalence as LIBOR or that instruments or contracts using an alternative rate will have the same volume or liquidity.
Derivatives Risk: Use of derivatives, which at times is an important part of the Funds’ investment strategies, involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Investments in derivatives could cause the Funds to lose more than the principal amount invested. Also, suitable derivative transactions may not be available in all circumstances and there can be no assurance that the Funds will achieve their objective through the use of the derivatives.
Credit Risk: The values of any of the Funds’ investments may also decline in response to events affecting the issuer or its credit rating. The lower rated debt securities in which a Fund may invest are considered speculative and are subject to greater volatility and risk of loss than investment-grade securities, particularly in deteriorating economic conditions.
35
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 4 — Risk Considerations (Continued)
Counterparty Risk: The Funds may be exposed to counterparty risk, the risk that an entity with which the Funds have unsettled or open transactions may not fulfill its obligations.
Foreign Currency Risk: The Funds may be exposed to the risk that the value of the Funds’ investments denominated in foreign currencies will decline in value because the foreign currencies have declined in value relative to the U.S. dollar.
Foreign and Developing/Emerging Markets Investing Risk: The Funds may be exposed to the risk that the Funds’ share prices will fluctuate with market conditions, currency exchange rates and the economic and political climates in countries where the Funds invest. The Funds are also subject to risks associated with financial, economic and other global market developments and disruptions, including those arising from war, terrorism, market manipulation, government interventions, defaults and shutdowns, and political changes or diplomatic developments, which can all negatively impact the securities markets and cause a Fund to lose value. As one current example, Russia’s recent military incursions in Ukraine have led to sanctions being levied against Russia by the United States, European Union and other countries, which has adversely affected European and global energy and financial markets and thus could affect the value of a Fund’s investments.
Non-U.S. Sovereign Debt Risk: Each Fund may invest a significant portion of its assets in non-U.S. sovereign debt. These investments can involve a high degree of risk. Legal protections available with respect to corporate issuers (e.g., bankruptcy, liquidation and reorganization laws) do not generally apply to governmental entities or sovereign debt. Accordingly, creditor seniority rights, claims to collateral and similar rights may provide limited protection and may be unenforceable. The governmental entity that controls the repayment of a non-U.S. sovereign debt may not be able or willing to repay the principal and/ or interest when due in accordance with the terms of such debt. A Fund may have limited recourse to compel payment in the event of a default. Changes to the financial condition or credit rating of a non-U.S. government may cause the value of a non-U.S. sovereign debt obligation to decline. During periods of economic uncertainty, the market prices of non-U.S. sovereign debt may be more volatile than prices of corporate debt obligations. Investing in non-U.S. sovereign debt obligations is generally subject to heightened risk as compared to investing in U.S. government debt obligations. Several countries have defaulted on their sovereign debt obligations in the past or encountered downgrades of their sovereign debt obligations, and those and other countries may also default on or experience downgrades or further downgrades of their sovereign debt obligations in the future.
Note 5 — Federal Income Taxes
It is the policy of each Fund to comply with the requirements under Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net taxable income, including any net realized gains on investments, to its shareholders. Therefore, no federal income tax provision is required.
At October 31, 2024, the components of distributable earnings on a tax basis were as follows:
| | | | | | | | | | | | |
| | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Gain | | | Total
Distributable
Earnings | |
TCW Emerging Markets Income Fund | | $ | 45,346,663 | | | $ | — | | | $ | 45,346,663 | |
36
TCW Funds, Inc.
October 31, 2024
Note 5 — Federal Income Taxes (Continued)
At the end of the previous fiscal year ended October 31, 2023, the components of distributable earnings on a tax basis were as follows:
| | | | | | | | | | | | |
| | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Gain | | | Total
Distributable
Earnings | |
TCW Emerging Markets Income Fund | | $ | 1,802,569 | | | $ | — | | | $ | 1,802,569 | |
TCW Emerging Markets Local Currency Income Fund | | | 1,177,419 | | | | — | | | | 1,177,419 | |
Permanent differences incurred during the year ended October 31, 2024, resulting from differences in book and tax accounting, have been reclassified at year-end between undistributed net investment income (loss), undistributed (accumulated) net realized gain (loss) and paid-in capital as follows, with no impact to the NAV per share:
| | | | | | | | | | | | |
| | | Undistributed
Net Investment
Income (Loss) | | | Undistributed
Accumulated
Net Realized
Gain (Loss) | | | Paid-in
Capital | |
TCW Emerging Markets Income Fund | | $ | (46,647,414 | ) | | $ | 46,647,414 | | | $ | — | |
TCW Emerging Markets Local Currency Income Fund | | | (2,760,446 | ) | | | 2,760,446 | | | | — | |
During the year ended October 31, 2024, the tax character of distributions paid was as follows:
| | | | | | | | | | | | | | | | |
| | | Ordinary
Income | | | Long-Term
Capital Gain | | | Return of
Capital Gain | | | Total
Distributions | |
TCW Emerging Markets Income Fund | | $ | 208,229,806 | | | $ | — | | | $ | — | | | $ | 208,229,806 | |
TCW Emerging Markets Local Currency Income Fund | | | 3,560,001 | | | | — | | | | 547,509 | | | | 4,107,510 | |
During the previous fiscal year ended October 31, 2023, the tax character of distributions paid was as follows:
| | | | | | | | | | | | | | | | |
| | | Ordinary
Income | | | Long-Term
Capital Gain | | | Return of
Capital Gain | | | Total
Distributions | |
TCW Emerging Markets Income Fund | | $ | 208,679,952 | | | $ | — | | | $ | — | | | $ | 208,679,952 | |
TCW Emerging Markets Local Currency Income Fund | | | 4,696,848 | | | | — | | | | — | | | | 4,696,848 | |
At October 31, 2024, net unrealized appreciation (depreciation) on investments for federal income tax purposes was as follows :
| | | | | | | | | | | | | | | | |
| | | Unrealized
Appreciation | | | Unrealized
(Depreciation) | | | Net
Unrealized
Appreciation
(Depreciation) | | | Cost of
Investments for
Federal Income
Tax Purposes | |
TCW Emerging Markets Income Fund | | $ | 180,147,006 | | | $ | (46,451,076 | ) | | $ | 133,695,930 | | | $ | 3,353,249,507 | |
TCW Emerging Markets Local Currency Income Fund | | | 940,219 | | | | (3,264,882 | ) | | | (2,324,663 | ) | | | 60,983,532 | |
At October 31, 2024, the following Funds had net realized losses that will be carried forward indefinitely for federal income tax purposes:
| | | | | | | | | | | | |
| | | Short-Term | | | Long-Term | | | | |
| | | Capital Losses | | | Capital Losses | | | Total | |
TCW Emerging Markets Income Fund | | $ | 1,365,793,965 | | | $ | 1,015,820,759 | | | $ | 2,381,614,724 | |
TCW Emerging Markets Local Currency Income Fund | | | 31,833,833 | | | | 24,435,390 | | | | 56,269,223 | |
The Funds did not have any unrecognized tax benefits at October 31, 2024, nor were there any increases or decreases in unrecognized tax benefits for the year ended October 31, 2024. The Funds are subject to examination by the U.S. Federal and state tax authorities for returns filed for the prior three and four fiscal years, respectively.
37
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 6 — Fund Management Fees and Other Expenses
The Funds pay to the Advisor, as compensation for services rendered, facilities furnished and expenses borne by it, the following annual management fees as a percentage of daily net assets:
| | | | |
TCW Emerging Markets Income Fund | | | 0.75 | % |
TCW Emerging Markets Local Currency Income Fund | | | 0.75 | % |
The Advisor limits the operating expenses of the Funds not to exceed the following expense ratios relative to the Funds’ average daily net assets:
| | | | |
TCW Emerging Markets Income Fund | | | | |
I Class | | | 0.85 | % (1) |
N Class | | | 0.95 | % (1) |
Plan Class | | | 0.77 | % (1) |
TCW Emerging Markets Local Currency Income Fund | | | | |
I Class | | | 0.85 | % (1) |
N Class | | | 0.90 | % (1) |
| (1) | These limitations are based on an agreement between the Advisor and Company. |
Any advisory fee reduced or withheld, or expense reimbursement paid, pursuant to the Expense Limitation Agreement will be reimbursed by the appropriate Fund to the Advisor in the first, second or third fiscal year after the fiscal year of the reduction or reimbursement. The Advisor may not receive reimbursement for previous reductions or reimbursements before payment of a Fund’s operating expenses for the current year, and cannot cause a Fund to exceed the expense limitation in effect for that Fund (i) at the time the fees and expenses would have been incurred or (ii) at the time the Advisor would recoup that reduction or reimbursement. In addition, any recoupment may not exceed any more restrictive limitation to which the Advisor has agreed.
At October 31, 2024, the balance of recoupable expenses with expiration dates for the Funds were as follows:
| | | | | | | | | | | | |
Fund | | Expires
10/31/2026 | | | Expires
10/31/2027 | | | Total | |
TCW Emerging Markets Income Fund | | $ | 1,030,033 | | | $ | 1,659,423 | | | $ | 2,689,456 | |
TCW Emerging Markets Local Currency Income Fund | | | 225,798 | | | | 145,939 | | | | 371,737 | |
| | | | | | | | | | | | |
Total | | $ | 1,255,831 | | | $ | 1,805,362 | | | $ | 3,061,193 | |
| | | | | | | | | | | | |
Directors’ Fees: Directors who are not affiliated with the Advisor receive compensation from the Funds which are shown on the Statements of Operations. Directors may elect to defer receipt of their fees in accordance with the terms of a Non-Qualified Deferred Compensation Plan. Deferred compensation is included within directors’ fees and expenses in the Statements of Assets and Liabilities.
Note 7 — Distribution Plan
TCW Funds Distributors LLC (“Distributor”), an affiliate of the Advisor and the Funds, serves as the nonexclusive distributor of each class of the Funds’ shares. The Funds have a distribution plan pursuant to Rule 12b-1 under the 1940 Act with respect to the N Class shares of each Fund. Under the terms of the plan, each Fund compensates the Distributor at a rate equal to 0.25% of the average daily net assets of the Fund attributable to its N Class shares for distribution and related services.
38
TCW Funds, Inc.
October 31, 2024
Note 8 — Purchases and Sales of Securities
Investment transactions (excluding short-term investments) for the year ended October 31, 2024 were as follows:
| | | | | | | | | | | | | | | | |
| | | Purchases
at Cost | | | Sales or Maturity
Proceeds | | | U.S. Government
Purchases at Cost | | | U.S. Government
Sales or Maturity
Proceeds | |
TCW Emerging Markets Income Fund | | $ | 3,853,483,142 | | | $ | 4,305,200,552 | | | $ | — | | | $ | — | |
TCW Emerging Markets Local Currency Income Fund | | | 80,566,190 | | | | 148,320,283 | | | | — | | | | — | |
Note 9 — Capital Share Transactions
Transactions in each Fund’s shares were as follows:
| | | | | | | | | | | | | | | | |
| TCW Emerging Markets Income Fund | | Year Ended
October 31, 2024 | | | Year Ended
October 31, 2023 | |
| I Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 71,146,477 | | | $ | 456,030,183 | | | | 155,379,245 | | | $ | 946,777,138 | |
Shares Issued upon Reinvestment of Dividends | | | 14,174,321 | | | | 90,600,146 | | | | 16,484,865 | | | | 99,967,408 | |
Shares Redeemed | | | (119,378,818 | ) | | | (757,356,038 | ) | | | (253,454,288 | ) | | | (1,534,829,190 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (34,058,020 | ) | | $ | (210,725,709 | ) | | | (81,590,178 | ) | | $ | (488,084,644 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| N Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 12,036,924 | | | $ | 101,099,811 | | | | 15,090,614 | | | $ | 119,272,021 | |
Shares Issued upon Reinvestment of Dividends | | | 3,058,886 | | | | 25,238,031 | | | | 2,938,551 | | | | 23,013,683 | |
Shares Redeemed | | | (15,966,039 | ) | | | (132,458,353 | ) | | | (12,491,675 | ) | | | (98,323,505 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (870,229 | ) | | $ | (6,120,511 | ) | | | 5,537,490 | | | $ | 43,962,199 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Plan Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 41,281,965 | | | $ | 265,839,983 | | | | 38,757,199 | | | $ | 235,169,525 | |
Shares Issued upon Reinvestment of Dividends | | | 6,840,858 | | | | 43,788,088 | | | | 5,624,869 | | | | 34,094,725 | |
Shares Redeemed | | | (87,402,232 | ) | | | (572,468,708 | ) | | | (55,895,176 | ) | | | (335,479,982 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (39,279,409 | ) | | $ | (262,840,637 | ) | | | (11,513,108 | ) | | $ | (66,215,732 | ) |
| | | | | | | | | | | | | | | | |
| | |
| TCW Emerging Markets Local Currency Income Fund | | Year Ended
October 31, 2024 | | | Year Ended
October 31, 2023 | |
| I Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 1,776,001 | | | $ | 13,142,373 | | | | 3,211,839 | | | $ | 23,179,638 | |
Shares Issued upon Reinvestment of Dividends | | | 497,005 | | | | 3,647,506 | | | | 471,364 | | | | 3,408,057 | |
Shares Redeemed | | | (11,086,017 | ) | | | (82,075,462 | ) | | | (4,123,910 | ) | | | (29,251,079 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (8,813,011 | ) | | $ | (65,285,583 | ) | | | (440,707 | ) | | $ | (2,663,384 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| N Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 109,421 | | | $ | 816,034 | | | | 749,949 | | | $ | 5,375,271 | |
Shares Issued upon Reinvestment of Dividends | | | 101,794 | | | | 746,323 | | | | 132,939 | | | | 952,940 | |
Shares Redeemed | | | (534,279 | ) | | | (3,902,415 | ) | | | (5,020,848 | ) | | | (36,926,606 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (323,064 | ) | | $ | (2,340,058 | ) | | | (4,137,960 | ) | | $ | (30,598,395 | ) |
| | | | | | | | | | | | | | | | |
Note 10 — Affiliate Ownership
As of October 31, 2024, affiliates of the Fund and Advisor owned 6.61% of the net assets of the TCW Emerging Markets Local Currency Income Fund.
39
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 11 — Restricted Securities
The Funds are permitted to invest in securities that have legal or contractual restrictions on resale. These securities may be sold privately, but are required to be registered before being sold to the public (exemption rules apply). Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). However, the Company considers 144A securities to be restricted if those securities have been deemed illiquid. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. There were no restricted securities held by the Funds at October 31, 2024.
Note 12 — Committed Line of Credit
The Funds have entered into a $100,000,000 committed revolving line of credit agreement with State Street Bank and Trust Company (the “Bank”) for temporary borrowing purposes, renewable annually. The interest rate on borrowing is the higher of the Federal Funds Effective Rate plus 0.10% plus 1.25% or the Overnight Bank Funding Rate plus 0.10% plus 1.25%. There were no borrowings from the line of credit as of or during the year ended October 31, 2024. The Funds pay the Bank a commitment fee equal to 0.25% per annum on any unused portion of the committed line amount. The commitment fees incurred by the Funds are presented in the Statements of Operations. The commitment fees are allocated to each applicable portfolio in proportion to its relative average daily net assets and the interest expenses are charged directly to the applicable portfolio.
Note 13 — Indemnifications
Under the Company’s organizational documents, its Officers and Directors may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Company. In addition, the Company entered into an agreement with each of the Directors which provides that the Company will indemnify and hold harmless each Director against any expenses actually and reasonably incurred by such Director in any proceeding arising out of or in connection with the Director’s services to the Company, to the fullest extent permitted by the Company’s Articles of Incorporation and By-Laws, the Maryland General Corporation Law, the Securities Act, and the 1940 Act, each as now or hereinafter in force. Additionally, in the normal course of business, the Company enters into agreements with service providers that may contain indemnification clauses. The Company’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects the risk of loss to be remote. The Company has not accrued any liability in connection with such indemnification.
Note 14 — New Accounting Pronouncements
In January 2021, the Financial Accounting Standards Board issued Accounting Standards Update No. 2021- 01 (“ASU 2021-01”), “Reference Rate Reform (Topic 848).” ASU 2021-01 is an update of ASU 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR; regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The
40
TCW Funds, Inc.
October 31, 2024
Note 14 — New Accounting Pronouncements (Continued)
ASU 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which deferred the sunset day of this guidance to December 31, 2024. Management is currently evaluating the implications, if any, of the additional requirements and its impact on the Funds’ financial statements.
In June 2022, the FASB issued ASU No. 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”). ASU 2022-03 (1) clarifies the guidance in ASC 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and (2) requires specific disclosures related to such an equity security. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023 and interim periods within that fiscal year, with early adoption permitted. The Company early adopted and there have been no impacts to date.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). This change is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment’s profit or loss and assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity’s segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures and providing new disclosure requirements for entities with a single reportable segment, among other new disclosure requirements. The amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. There have been no impacts to date.
Note 15 — Subsequent Events
Management has evaluated subsequent events and transactions for potential recognition or disclosure through the date the financial statements were issued and has determined that there are no material events that would require recognition or disclosure in the Funds’ financial statements.
41
TCW Emerging Markets Income Fund
Financial Highlights — I Class
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 5.84 | | | $ | 5.67 | | | $ | 7.87 | | | $ | 7.93 | | | $ | 8.33 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.50 | | | | 0.41 | | | | 0.33 | | | | 0.35 | | | | 0.39 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.61 | | | | 0.09 | | | | (2.22 | ) | | | (0.02 | ) | | | (0.46 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.11 | | | | 0.50 | | | | (1.89 | ) | | | 0.33 | | | | (0.07 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.36 | ) | | | (0.33 | ) | | | (0.28 | ) | | | (0.37 | ) | | | (0.33 | ) |
Distributions from Return of Capital | | | — | | | | — | | | | (0.03 | ) | | | (0.02 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.36 | ) | | | (0.33 | ) | | | (0.31 | ) | | | (0.39 | ) | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 6.59 | | | $ | 5.84 | | | $ | 5.67 | | | $ | 7.87 | | | $ | 7.93 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 19.27 | % | | | 8.72 | % | | | (24.47 | %) | | | 4.04 | % | | | (0.69 | %) |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 2,143,263 | | | $ | 2,097,432 | | | $ | 2,500,689 | | | $ | 4,720,489 | | | $ | 5,877,348 | |
|
Ratio of Expenses to Average Net Assets: | |
| | | | | |
Before Expense Reimbursement | | | 0.87 | % | | | 0.85 | % | | | 0.90 | % | | | 0.85 | % | | | 0.85 | % |
| | | | | |
After Expense Reimbursement | | | 0.85 | % | | | 0.82 | % | | | 0.85 | % | | | N/A | | | | N/A | |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 7.82 | % | | | 6.80 | % | | | 4.79 | % | | | 4.23 | % | | | 4.95 | % |
| | | | | |
Portfolio Turnover Rate | | | 106.48 | % | | | 152.31 | % | | | 119.10 | % | | | 150.31 | % | | | 135.46 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
42
TCW Emerging Markets Income Fund
Financial Highlights — N Class
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 7.53 | | | $ | 7.32 | | | $ | 10.16 | | | $ | 10.23 | | | $ | 10.72 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.64 | | | | 0.53 | | | | 0.41 | | | | 0.44 | | | | 0.49 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.79 | | | | 0.10 | | | | (2.86 | ) | | | (0.03 | ) | | | (0.57 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.43 | | | | 0.63 | | | | (2.45 | ) | | | 0.41 | | | | (0.08 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.45 | ) | | | (0.42 | ) | | | (0.36 | ) | | | (0.46 | ) | | | (0.41 | ) |
Distributions from Return of Capital | | | — | | | | — | | | | (0.03 | ) | | | (0.02 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.45 | ) | | | (0.42 | ) | | | (0.39 | ) | | | (0.48 | ) | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 8.51 | | | $ | 7.53 | | | $ | 7.32 | | | $ | 10.16 | | | $ | 10.23 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 19.33 | % | | | 8.48 | % | | | (24.57 | )% | | | 3.97 | % | | | (0.69 | )% |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 492,916 | | | $ | 443,173 | | | $ | 390,155 | | | $ | 546,887 | | | $ | 261,520 | |
|
Ratio of Expenses to Average Net Assets: | |
| | | | | |
Before Expense Reimbursement | | | 1.15 | % | | | 1.15 | % | | | 1.17 | % | | | 1.13 | % | | | 1.14 | % |
| | | | | |
After Expense Reimbursement | | | 0.95 | % | | | 0.95 | % | | | 0.95 | % | | | 0.95 | % | | | 0.98 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 7.72 | % | | | 6.70 | % | | | 4.72 | % | | | 4.20 | % | | | 4.82 | % |
| | | | | |
Portfolio Turnover Rate | | | 106.48 | % | | | 152.31 | % | | | 119.10 | % | | | 150.31 | % | | | 135.46 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
43
TCW Emerging Markets Income Fund
Financial Highlights — Plan Class
| | | | | | | | | | | | | | | | | | | | |
| | |
| | | Year Ended October 31, | | | March 2, 2020
(Commencement of
Operations)
through
October 31, 2020 | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | |
Net Asset Value per Share, Beginning of year | | $ | 5.83 | | | $ | 5.67 | | | $ | 7.86 | | | $ | 7.93 | | | $ | 8.34 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.51 | | | | 0.42 | | | | 0.33 | | | | 0.36 | | | | 0.26 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.60 | | | | 0.07 | | | | (2.20 | ) | | | (0.04 | ) | | | (0.48 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.11 | | | | 0.49 | | | | (1.87 | ) | | | 0.32 | | | | (0.22 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.36 | ) | | | (0.33 | ) | | | (0.29 | ) | | | (0.37 | ) | | | (0.19 | ) |
Return of capital | | | — | | | | — | | | | (0.03 | ) | | | (0.02 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.36 | ) | | | (0.33 | ) | | | (0.32 | ) | | | (0.39 | ) | | | (0.19 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 6.58 | | | $ | 5.83 | | | $ | 5.67 | | | $ | 7.86 | | | $ | 7.93 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 19.57 | % | | | 8.63 | % | | | (24.41 | %) | | | 4.12 | % | | | (2.59 | %)(2) |
|
Ratios/Supplemental Data: | |
| | | | | |
Net assets, end of year (in thousands) | | $ | 869,094 | | | $ | 998,832 | | | $ | 1,035,971 | | | $ | 1,996,103 | | | $ | 489,106 | |
|
Ratio of Expenses to Average Net Assets: | |
| | | | | |
Before Expense Reimbursement | | | 0.83 | % | | | 0.82 | % | | | 0.81 | % | | | 0.80 | % | | | 0.79 | %(3) |
| | | | | |
After Expense Reimbursement | | | 0.77 | % | | | 0.77 | % | | | 0.77 | % | | | 0.77 | % | | | 0.77 | %(3) |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 7.86 | % | | | 6.87 | % | | | 4.86 | % | | | 4.43 | % | | | 4.96 | %(3) |
| | | | | |
Portfolio Turnover Rate | | | 106.48 | % | | | 152.31 | % | | | 119.10 | % | | | 150.31 | % | | | 135.46 | %(2) |
| (1) | Computed using average shares outstanding throughout the period. |
| (2) | For the period March 2, 2020 (Commencement of Operations) through October 31, 2020. |
See accompanying Notes to Financial Statements.
44
TCW Emerging Markets Local Currency Income Fund
Financial Highlights — I Class
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 7.03 | | | $ | 6.50 | | | $ | 8.47 | | | $ | 8.57 | | | $ | 9.17 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.50 | | | | 0.43 | | | | 0.35 | | | | 0.37 | | | | 0.42 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.09 | | | | 0.35 | | | | (2.06 | ) | | | (0.25 | ) | | | (0.89 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.59 | | | | 0.78 | | | | (1.71 | ) | | | 0.12 | | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.36 | ) | | | (0.25 | ) | | | (0.10 | ) | | | (0.22 | ) | | | (0.09 | ) |
Distributions from Return of Capital | | | (0.06 | ) | | | — | | | | (0.16 | ) | | | — | | | | (0.04 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.42 | ) | | | (0.25 | ) | | | (0.26 | ) | | | (0.22 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 7.20 | | | $ | 7.03 | | | $ | 6.50 | | | $ | 8.47 | | | $ | 8.57 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 8.40 | % | | | 11.92 | % | | | (20.57 | %) | | | 1.34 | % | | | (5.26 | %) |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 45,886 | | | $ | 106,740 | | | $ | 101,530 | | | $ | 200,019 | | | $ | 192,679 | |
|
Ratio of Expenses to Average Net Assets: | |
| | | | | |
Before Expense Reimbursement | | | 1.19 | % | | | 0.97 | % | | | 1.02 | % | | | 0.96 | % | | | 0.97 | % |
| | | | | |
After Expense Reimbursement | | | 0.85 | % | | | 0.85 | % | | | 0.85 | % | | | 0.85 | % | | | 0.85 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 6.78 | % | | | 5.90 | % | | | 4.65 | % | | | 4.14 | % | | | 4.90 | % |
| | | | | |
Portfolio Turnover Rate | | | 115.86 | % | | | 123.91 | % | | | 122.49 | % | | | 117.18 | % | | | 135.99 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
45
TCW Emerging Markets Local Currency Income Fund
Financial Highlights — N Class
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 7.01 | | | $ | 6.48 | | | $ | 8.44 | | | $ | 8.55 | | | $ | 9.15 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.49 | | | | 0.42 | | | | 0.34 | | | | 0.36 | | | | 0.42 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.09 | | | | 0.35 | | | | (2.04 | ) | | | (0.25 | ) | | | (0.89 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.58 | | | | 0.77 | | | | (1.70 | ) | | | 0.11 | | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.35 | ) | | | (0.24 | ) | | | (0.10 | ) | | | (0.22 | ) | | | (0.09 | ) |
Distributions from Return of Capital | | | (0.06 | ) | | | — | | | | (0.16 | ) | | | — | | | | (0.04 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.41 | ) | | | (0.24 | ) | | | (0.26 | ) | | | (0.22 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 7.18 | | | $ | 7.01 | | | $ | 6.48 | | | $ | 8.44 | | | $ | 8.55 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 8.32 | % | | | 11.89 | % | | | (20.66 | )% | | | 1.30 | % | | | (5.28 | )% |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 11,970 | | | $ | 13,949 | | | $ | 39,709 | | | $ | 39,546 | | | $ | 25,329 | |
|
Ratio of Expenses to Average Net Assets: | |
| | | | | |
Before Expense Reimbursement | | | 1.64 | % | | | 1.31 | % | | | 1.38 | % | | | 1.32 | % | | | 1.35 | % |
| | | | | |
After Expense Reimbursement | | | 0.90 | % | | | 0.90 | % | | | 0.90 | % | | | 0.90 | % | | | 0.90 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 6.64 | % | | | 5.83 | % | | | 4.64 | % | | | 4.05 | % | | | 4.84 | % |
| | | | | |
Portfolio Turnover Rate | | | 115.86 | % | | | 123.91 | % | | | 122.49 | % | | | 117.18 | % | | | 135.99 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
46
TCW Funds, Inc.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of
TCW Funds, Inc.:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of TCW Emerging Markets Income Fund and TCW Emerging Markets Local Currency Income Fund (collectively, the “TCW International Funds”) two of the twelve funds constituting the TCW Funds, Inc., including the schedules of investments, as of October 31, 2024, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the TCW International Funds as of October 31, 2024, the results of their operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the TCW International Funds’ management. Our responsibility is to express an opinion on the TCW International Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the TCW International Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The TCW International Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the TCW International Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Los Angeles, California
December 23, 2024
We have served as the auditor of one or more TCW/Metropolitan West Funds investment companies since 1990.
47
Privacy Policy
The TCW Group, Inc. and Subsidiaries
TCW Investment Management Company LLC
TCW Asset Management Company LLC
Metropolitan West Asset Management, LLC
TCW PT Management Company LLC
TCW Asset Backed Finance Management Company LLC
| | | | |
TCW Funds, Inc. TCW Strategic Income Fund, Inc. TCW Metropolitan West Funds | | Sepulveda Management LLC TCW Direct Lending LLC TCW Direct Lending VII LLC | | TCW Direct Lending VIII LLC TCW Star Direct Lending LLC TCW ETF Trust TCW Spirit Direct Lending LLC |
Effective December 2024
WHAT YOU SHOULD KNOW
At TCW, we recognize the importance of keeping information about you secure and confidential. We do not sell or share your nonpublic personal and financial information with marketers or others outside our affiliated group of companies.
We carefully manage information among our affiliated group of companies to safeguard your privacy and to provide you with consistently excellent service.
We are providing this notice to you to comply with the requirements of Regulation S-P, “Privacy of Consumer Financial information,” issued by the United States Securities and Exchange Commission.
OUR PRIVACY POLICY
We, The TCW Group, Inc. and its subsidiaries, the TCW Funds, Inc., TCW Strategic Income Fund, Inc., the TCW Metropolitan West Funds, Sepulveda Management LLC, TCW Direct Lending LLC, TCW Direct Lending VII LLC, TCW Direct Lending VIII LLC, TCW Star Direct Lending LLC, TCW ETF Trust, and TCW Spirit Direct Lending LLC (collectively, “TCW”) are committed to protecting the nonpublic personal and financial information of our customers and consumers who obtain or seek to obtain financial products or services primarily for personal, family or household purposes. We fulfill our commitment by establishing and implementing policies and systems to protect the security and confidentiality of this information.
In our offices, we limit access to nonpublic personal and financial information about you to those TCW personnel who need to know the information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards to protect your nonpublic personal and financial information.
CATEGORIES OF INFORMATION WE COLLECT
We may collect the following types of nonpublic personal and financial information about you from the following sources:
| | ◾ | | Your name, address and identifying numbers, and other personal and financial information, from you and from identification cards and papers you submit to us, on applications, subscription agreements or other forms or communications. |
| | ◾ | | Information about your account balances and financial transactions with us, our affiliated entities, or nonaffiliated third parties, from our internal sources, from affiliated entities and from nonaffiliated third parties. |
| | ◾ | | Information about your account balances and financial transactions and other personal and financial information, from consumer credit reporting agencies or other nonaffiliated third parties, to verify information received from you or others. |
48
CATEGORIES OF INFORMATION WE DISCLOSE TO NONAFFILIATED THIRD PARTIES
We may disclose your name, address and account and other identifying numbers, as well as information about your pending or past transactions and other personal financial information, to nonaffiliated third parties, for our everyday business purposes such as necessary to execute, process, service and confirm your securities transactions and mutual fund transactions, to administer and service your account and commingled investment vehicles in which you are invested, to market our products and services through joint marketing arrangements or to respond to court orders and legal investigations.
We may disclose nonpublic personal and financial information concerning you to law enforcement agencies, federal regulatory agencies, self-regulatory organizations or other nonaffiliated third parties, if required or requested to do so by a court order, judicial subpoena or regulatory inquiry.
We do not otherwise disclose your nonpublic personal and financial information to nonaffiliated third parties, except where we believe in good faith that disclosure is required or permitted by law. Because we do not disclose your nonpublic personal and financial information to nonaffiliated third parties, our Customer Privacy Policy does not contain opt-out provisions.
CATEGORIES OF INFORMATION WE DISCLOSE TO OUR AFFILIATED ENTITIES
| | ◾ | | We may disclose your name, address and account and other identifying numbers, account balances, information about your pending or past transactions and other personal financial information to our affiliated entities for any purpose. |
| | ◾ | | We regularly disclose your name, address and account and other identifying numbers, account balances and information about your pending or past transactions to our affiliates to execute, process and confirm securities transactions or mutual fund transactions for you, to administer and service your account and commingled investment vehicles in which you are invested, or to market our products and services to you. |
INFORMATION ABOUT FORMER CUSTOMERS
We do not disclose nonpublic personal and financial information about former customers to nonaffiliated third parties unless required or requested to do so by a court order, judicial subpoena or regulatory inquiry, or otherwise where we believe in good faith that disclosure is required or permitted by law.
QUESTIONS
Should you have any questions about our Customer Privacy Policy, please contact us by email or by regular mail at the address at the end of this policy.
REMINDER ABOUT TCW’S FINANCIAL PRODUCTS
Financial products offered by The TCW Group, Inc. and its subsidiaries, the TCW Funds, Inc., TCW Strategic Income Fund, Inc., the TCW Metropolitan West Funds, Sepulveda Management LLC, TCW Direct Lending LLC, TCW Direct Lending VII LLC, TCW Direct Lending VIII LLC, TCW Star Direct Lending LLC, TCW ETF Trust, and TCW Spirit Direct Lending LLC.
| | ◾ | | Are not guaranteed by a bank; |
| | ◾ | | Are not obligations of The TCW Group, Inc. or of its subsidiaries; |
| | ◾ | | Are not insured by the Federal Deposit Insurance Corporation; and |
| | ◾ | | Are subject to investment risks, including possible loss of the principal amount committed or invested, and earnings thereon. |
| | |
THE TCW GROUP, INC. TCW FUNDS, INC. TCW STRATEGIC INCOME FUND INC. TCW METROPOLITAN WEST FUNDS SEPULVEDA MANAGEMENT LLC | | TCW DIRECT LENDING LLC TCW DIRECT LENDING VII LLC TCW DIRECT LENDING VIII LLC TCW STAR DIRECT LENDING LLC TCW ETF TRUST TCW SPIRIT DIRECT LENDING LLC |
Attention: Privacy Officer | 515 South Flower Street | Los Angeles, CA 90071 | email: privacy@tcw.com
49
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited)
Renewal of Investment Advisory and Management Agreement
TCW Funds, Inc. (the “Corporation”) and TCW Investment Management Company LLC (the “Advisor”) are parties to an Investment Advisory and Management Agreement (the “Agreement”), pursuant to which the Advisor is responsible for managing the investments of each separate investment series (each, a “Fund” and collectively, the “Funds”) of the Corporation. Unless terminated by either party, the Agreement continues in effect from year to year provided that the continuance is specifically approved at least annually by the vote of the holders of at least a majority of the outstanding shares of the Funds, or by the Board of Directors of the Corporation (the “Board”), and, in either event, by a majority of the Directors who are not “interested persons” of the Corporation, as such term is defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “Independent Directors”), casting votes in person at a meeting called for that purpose.
At an in-person meeting on September 9, 2024, the Board approved the renewal of the Agreement for an additional one-year term from February 6, 2025 through February 5, 2026. The renewal of the Agreement was approved by the Board (including by a majority of the Independent Directors) upon the recommendation of the Independent Directors. The Independent Directors also met by videoconference in a working session on August 22, 2024 to hear presentations by representatives of the Advisor, to ask related questions, to review and discuss materials provided by the Advisor for their consideration, and to meet separately with their independent legal counsel. On September 9, 2024, they also met separately with their independent legal counsel to review and discuss supplemental information that had been requested on their behalf by their independent legal counsel and presented by the Advisor. The information, material facts, and conclusions that formed the basis for the Independent Directors’ recommendation and the Board’s subsequent approval are described below.
1. Information received
Materials reviewed — During the course of each year, the Directors receive a wide variety of materials relating to the services provided by the Advisor, including reports on the Advisor’s investment processes, as well as on each Fund’s investment results, portfolio composition, portfolio trading practices, compliance monitoring, shareholder services, and other information relating to the nature, extent, and quality of services provided by the Advisor to the Funds. In addition, the Board reviewed information furnished to the Independent Directors in response to a detailed request sent to the Advisor on their behalf. The information in the Advisor’s responses included extensive materials regarding each Fund’s investment results, advisory fee comparisons to advisory fees charged by the Advisor to its institutional clients, financial and profitability information regarding the Advisor, descriptions of various services provided to the Funds and to other advisory and sub-advisory clients, descriptions of functions such as compliance monitoring and portfolio trading practices, and information about the personnel providing investment management services to each Fund. The Directors also considered information provided by an independent data provider, Broadridge, comparing the investment performance and the fee and expense levels of each Fund to those of appropriate peer groups of mutual funds selected by Broadridge. After reviewing this information, the Directors requested additional information from the Advisor, which the Advisor provided and the Directors considered.
Review process — The Directors’ determinations were made on the basis of each Director’s business judgment after consideration of all the information presented. The Independent Directors were advised by their independent legal counsel throughout the renewal process and received and reviewed advice from
50
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited) (Continued)
their independent legal counsel regarding legal and industry standards applicable to the renewal of the Agreement, including a legal memorandum from their independent legal counsel discussing their fiduciary duties related to their approval of the continuation of the Agreement. The Independent Directors also discussed the renewal of the Agreement with the Advisor’s representatives and in private sessions at which no representatives of the Advisor were present. In deciding to recommend the renewal of the Agreement with respect to each Fund, the Independent Directors did not identify any single piece of information or particular factor that, in isolation, was the controlling factor. Each Independent Director may also have weighed factors differently. This summary describes the most important, but not all, of the factors considered by the Board and the Independent Directors.
2. Nature, extent, and quality of services provided by the Advisor
The Board and the Independent Directors considered the depth and quality of the Advisor’s investment management process, including its research and strong analytical capabilities; the experience, capability, and integrity of its senior management and other personnel; the advance planning and transition arrangements put in place with respect to the changes in key portfolio management and other personnel; the overall resources available to the Advisor; and the ability of its organizational structure to address the fluctuations in assets that have been experienced over the past several years. The Board and the Independent Directors considered the Advisor’s continued commitment and ability to attract and retain well-qualified investment professionals, noting in particular the Advisor’s hiring of professionals in various areas over the past several years, including recruiting and hiring a highly qualified President and Chief Executive Officer to replace the outgoing head of The TCW Group, Inc., the parent company of the Advisor (“TCW”), and several additional executive-level personnel, continued upgrading of resources in its middle office and back office operations and other areas, as well as a continuing and extensive program of infrastructure and systems enhancements, including business continuity and cyber security, and budgeting for certain future initiatives. The Board and the Independent Directors noted the significant role played by the Advisor, as valuation designee, with respect to the valuation of portfolio securities, including research and analysis related to fair valued securities and due diligence and oversight of pricing vendors. The Board and the Independent Directors also considered that the Advisor made available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, operations, administration, research, portfolio accounting, and legal matters. They noted the substantial additional resources made available by TCW. The Board and the Independent Directors examined and discussed a detailed description of the extensive additional services provided to the Funds to support their operations and compliance, as compared to the much narrower range of services provided to the Advisor’s institutional and sub-advised clients, as well as the Advisor’s oversight and coordination of numerous outside service providers to the Funds. They further noted the high level of regular communication between the Advisor and the Independent Directors. The Advisor explained its responsibility to supervise the activities of the Funds’ various service providers, as well as supporting the Independent Directors and their meetings, regulatory filings, and various operational personnel, and the related costs.
The Board and the Independent Directors concluded that the nature, extent, and quality of the services provided by the Advisor are of a high quality and have benefited and should continue to benefit the Funds and their shareholders.
51
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited) (Continued)
3. Investment results
The Board and the Independent Directors considered the investment results of each Fund in light of its investment objective(s) and principal investment strategies. They compared each Fund’s total returns with the total returns of other mutual funds in peer group reports prepared by Broadridge with respect to various longer and more recent periods all ended May 31, 2024, and, at the request of the Board, as of July 31, 2024. The Board and the Independent Directors reviewed information as to peer group selections presented by Broadridge and discussed the methodology for those selections with Broadridge. In reviewing each Fund’s relative performance, the Board and the Independent Directors took into account each Fund’s investment strategies, distinct characteristics, asset size and diversification.
The Board and the Independent Directors noted that each Fund’s performance was satisfactory over the relevant periods. The Board and the Independent Directors noted that the investment performance of the majority of the Funds was generally close to or above the median performance of the applicable peer group during the three-year period emphasized by Broadridge in the supplemental materials. For those Funds that lagged peer group averages, they noted that the Advisor had discussed with the Board the reasons for the underperformance, including the investment climate and prevailing market conditions during relevant periods as well as the Advisor’s discipline in maintaining a consistent investment style. The Board considered in particular the Advisor’s explanations for the performance of those Funds that ranked in the fourth or fifth quintile of their peer groups for the prior three-year period. The Board indicated that it would continue to monitor portfolio investment performance on a regular basis and discuss with the Advisor from time to time any instances of long-term underperformance as appropriate. The Board and the Independent Directors noted that the performance of some Funds for periods when they lagged their peer group averages remained satisfactory when assessed on a risk-adjusted basis because performance quintiles do not necessarily reflect the degree of risk employed by peer funds to achieve their returns. The Board also considered the Advisor’s assessment of the Funds’ performance during the recent period of significant market volatility and rising interest rates.
With respect to the fixed income Funds, the Board and the Independent Directors recognized the Advisor’s deliberate strategy to manage risk in light of its critical view of the fixed income securities markets and overall investment market conditions at present and in the near term. For that reason, the Board and the Independent Directors believed that relative performance also should be considered in light of future market conditions expected by the Advisor and positioning of the Funds’ portfolios in light of those expectations. The Board and the Independent Directors noted the Advisor’s view that longer term performance can be more meaningful for active fixed income funds than shorter term performance because fixed income market cycles are generally longer than three years.
For the U.S. fixed income Funds, the Board and the Independent Directors noted the conservative profile of certain of these Funds, which generally experienced less volatility compared to various other funds in the applicable peer group. They also noted the Advisor’s relatively conservative posture for these Funds with respect to duration and interest rate and credit risks.
For the Securitized Bond Fund, the Board and the Independent Directors noted that the Fund’s performance was in the second quintile for the ten-year period, the fourth quintile for the five-year period, and the fifth quintile for the three- and one-year periods. The Board and the Independent Directors considered the Advisor’s explanation that underperformance was driven by the Fund’s higher duration and greater exposure to mortgage-backed securities than its peers, which the Advisor believes may position the
52
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited) (Continued)
Fund for outperformance going forward. The Board noted that the Advisor had recommended, and the Board had approved, changes to the Fund’s name and principal investment strategies effective August 19, 2024.
For the Core Fixed Income Fund, the Board and the Independent Directors noted that the Fund’s performance was in the fourth quintile for the ten- and five-year periods and the fifth quintile for the three- and one-year periods. The Board and the Independent Directors considered the Advisor’s explanation that underperformance was driven by the Fund’s higher duration and greater exposure to mortgage-backed securities than its peers, which the Advisor believes may position the Fund for outperformance going forward. The Board and the Independent Directors also considered its underperformance relative to its peers and its benchmark index for all periods reviewed.
For the High Yield Bond Fund, the Board and the Independent Directors noted that the Fund’s performance was in the first quintile for the ten-year period, second quintile for the five-year period, third quintile for the three-year period and fifth quintile for the one-year period. The Board noted that the Advisor had recommended, and the Board had approved, the reorganization of the Fund into the TCW High Yield Bond ETF, a newly created exchange-traded fund that is a series of TCW ETF Trust, estimated to occur later in the year.
For the Enhanced Commodity Strategy Fund, the Board and the Independent Directors noted that the Fund’s performance was in the third quintile for the ten- and three-year periods, the second quintile for the five-year period and the fourth quintile for the one-year period. The Board noted that the Advisor had recommended, and the Board had approved, the liquidation of the Fund effective on or about October 31, 2024.
For the Global Bond Fund, the Board and the Independent Directors noted that the Fund’s performance was in the fourth quintile for the ten-, five-, three- and one-year periods. The Board and the Independent Directors considered the Advisor’s explanation that underperformance for the three-year period was driven by the Fund’s higher duration as compared to many of its peers. The Board further considered that the Fund outperformed its benchmark index for the one-, five- and ten-year periods.
For the Short Term Bond Fund, the Board and the Independent Directors noted that the Fund’s performance was in the fourth quintile for the ten- and one-year periods, third quintile for the five-year period and first quintile for the three-year period. The Board noted that the Advisor had recommended, and the Board had approved, the liquidation of the Fund effective on or about October 31, 2024.
With respect to the U.S. equity Funds, the Board and the Independent Directors noted that the performance of the Funds for most of the various periods reviewed ranked in the first, second or third quintiles, except that one Fund, the Select Equities Fund, ranked in the fourth quintile over certain periods.
The Select Equities Fund ranked in the second quintile for the ten- and one-year periods and the fourth quintile for the five- and three-year periods. The Board and the Independent Directors considered the Advisor’s explanation that underperformance for the three-year period was driven in part by the Fund’s more modest positions in companies that were key contributors to the competitor funds’ returns. The Board and the Independent Directors also considered the Fund’s stronger performance over the ten- and one-year periods.
53
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited) (Continued)
For the Relative Value Large Cap Fund, the Board and the Independent Directors noted that the Fund’s performance was in the second quintile for the ten-year period and the first quintile for the five-, three- and one-year periods.
For the Relative Value Mid Cap Fund, the Board and the Independent Directors noted that the Fund’s performance was in the third quintile for the ten- and three-year periods and in the first quintile for the five- and one-year periods.
For the Global Real Estate Fund, the Board and the Independent Directors noted that the Fund’s performance was in the first quintile for the five-, three- and one-year periods.
For the Conservative Allocation Fund, an asset allocation Fund, the Board and the Independent Directors noted that the Fund’s performance was in the first quintile for the ten-, five, and one-year periods and the second quintile for the three-year period.
With respect to the international and emerging markets Funds, the Board and the Independent Directors noted that the performance of these Funds ranked in the fourth or fifth quintiles over many of the various time periods reviewed but had shown improvement over the one-year period. The Board and the Independent Directors considered the Advisor’s discussion of performance, including the challenging international and emerging market conditions in recent years and the impact of being overweight in emerging market properties during a period of rapid property rule change in China.
For the Emerging Markets Income Fund, the Board and the Independent Directors noted that the Fund’s performance was in the third quintile for the ten-year period, the fourth quintile for the five-year period, the fifth quintile for the three-year period and second quintile for the one-year period. The Board and the Independent Directors considered the Advisor’s discussion of performance, including that the Fund’s relative underperformance was driven by security selection in high yield, largely in Chinese real estate during the three-year period. The Board and the Independent Directors noted that more stringent limits were placed on the Fund’s high yield exposure to manage downside risk, boosting the Fund’s performance to the top quartile for the one-year period ended July 31, 2024
For the Emerging Markets Local Currency Income Fund, the Board and the Independent Directors noted that the Fund’s performance was in the fourth quintile for the ten-year period, the fifth quintile for the five- and three-year periods and the third quintile for the one-year period. The Board and the Independent Directors considered the Advisor’s discussion of relative underperformance for the Fund for certain periods and the enhancements to the Fund’s investment process as a result.
The Board and the Independent Directors concluded that the Advisor was implementing each Fund’s investment objective(s) and that the Advisor’s record in managing the Funds indicated that its continued management should benefit each Fund and its shareholders over the long term.
4. Advisory fees and total expenses
The Board and the Independent Directors compared the management fees (which Broadridge defines to include the advisory fee and the administrative fee) and total expenses of each Fund (each as a percentage of average net assets) with the median management fee and operating expense level of the other mutual funds in the relevant Broadridge peer groups. These comparisons assisted the Board and the Independent Directors by providing a reasonable statistical measure to assess each Fund’s fees relative to its relevant peers. The Board and the Independent Directors observed that each Fund’s management fee, after giving
54
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited) (Continued)
effect to applicable waivers and/or reimbursements, was below or near the median of the peer group funds on a current basis. The Board and the Independent Directors also observed that each Fund’s total expenses, after giving effect to applicable waivers and/or reimbursements, were near or below the median of the peer group funds. The Board and the Independent Directors also noted the contractual expense limitations to which the Advisor has agreed with respect to each Fund and that the Advisor historically has absorbed any expenses in excess of these limits. The Board and the Independent Directors noted that for several Funds, their below-median management fee and total expenses were in part due to substantial waiver and/or reimbursement pursuant to the contractual expense limitations. The Board and the Independent Directors concluded that the competitive fees charged by the Advisor, and competitive expense ratios, should continue to benefit each Fund and its shareholders.
The Board and the Independent Directors also reviewed information regarding the advisory fees charged by the Advisor to its institutional and sub-advisory clients with similar investment mandates. The Board and the Independent Directors concluded that, although the fees paid by those clients generally were lower than advisory fees paid by the Funds, the differences appropriately reflected the more extensive services provided by the Advisor to the Funds and the Advisor’s significantly greater responsibilities and expenses with respect to the Funds, including the additional time spent by portfolio managers for reasons such as managing the more active cash flows from purchases and redemptions by shareholders, the additional risks of managing a pool of assets for public investors, administrative burdens, daily pricing, valuation and liquidity responsibilities, the supervision of vendors and service providers, and the costs of additional infrastructure and operational resources and personnel and of complying with and supporting the more comprehensive regulatory and governance regime applicable to mutual funds.
5. The Advisor’s costs, level of profits, and economies of scale
The Board and the Independent Directors reviewed information regarding the Advisor’s costs of providing services to the Funds, as well as the resulting level of profits to the Advisor. They reviewed the Advisor’s stated assumptions and methods of allocating certain costs, such as personnel costs, which constitute the Advisor’s largest operating cost. The Board and the Independent Directors recognized that the Advisor should be entitled to earn a reasonable level of profits for the services that it provides to each Fund. The Board and the Independent Directors also reviewed a comparison of the Advisor’s profitability with respect to the Funds to the profitability of certain unaffiliated publicly traded asset managers, which the Advisor believed supported its view that the Advisor’s profitability was reasonable. Based on their review, the Board and the Independent Directors concluded that they were satisfied that the Advisor’s level of profitability from its relationship with each Fund was not unreasonable or excessive.
The Board and the Independent Directors considered the extent to which potential economies of scale could be realized as the Funds grow and whether the advisory fees reflect those potential economies of scale. They recognized that the advisory fees for the Funds do not have breakpoints, which would otherwise result in lower advisory fee rates as the Funds grow larger. They also recognized the Advisor’s view that the advisory fees compare favorably to peer group fees and expenses and remain competitive even at higher asset levels and that the relatively low advisory fees reflect the potential economies of scale. The Board and the Independent Directors recognized the benefits of the Advisor’s substantial past and ongoing investment in the advisory business, such as successfully recruiting and retaining key professional talent, systems and technology upgrades, added resources dedicated to legal, compliance, risk management and cybersecurity programs, and improvements to the overall firm infrastructure, as well as the financial pressures of competing against much larger firms and passive investment products. The Board and the
55
TCW Funds, Inc.
Investment Management and Advisory Agreement Disclosure (Unaudited) (Continued)
Independent Directors further noted the Advisor’s past and current subsidies of the operating expenses of newer and smaller Funds and the Advisor’s commitment to maintain reasonable overall operating expenses for each Fund. The Board and the Independent Directors also recognized that the Funds benefit from receiving investment advice from an organization with other types of advisory clients in addition to mutual funds. The Board and the Independent Directors considered the risk borne by the Advisor that the Funds’ net assets and thus the Advisor’s fees might decline in the event of redemptions and that smaller Funds might not grow to become profitable. The Board and the Independent Directors concluded that the Advisor was satisfactorily sharing potential economies of scale with the Funds through low fees and expenses, and through reinvesting in its capabilities for serving the Funds and their shareholders.
6. Ancillary benefits
The Board and the Independent Directors also considered ancillary benefits received or to be received by the Advisor and its affiliates as a result of the relationship of the Advisor with the Funds. The Board and the Independent Directors noted that, in addition to the fees the Advisor receives under the Agreement, the Advisor receives additional benefits in connection with management of the Funds in the form of reports, research and other services from brokers and their affiliates in return for brokerage commissions paid to such brokers. The Board and the Independent Directors concluded that any potential benefits received or to be derived by the Advisor from its relationships with the Funds are reasonably related to the services provided by the Advisor to the Funds.
7. Conclusions
Based on their overall review, including their consideration of each of the factors referred to above (and others), the Board and the Independent Directors concluded that the Agreement is fair and reasonable to each Fund and its shareholders, that each Fund’s shareholders received reasonable value in return for the advisory fees and other amounts paid to the Advisor by each Fund, and that the renewal of the Agreement was in the best interests of each Fund and its shareholders.
56
TCW Funds, Inc.
Supplemental Information
Proxy Voting Guidelines
The policies and procedures that the Company uses to determine how to vote proxies are available without charge. The Board has delegated the Company’s proxy voting authority to the Advisor.
Disclosure of Proxy Voting Guidelines
The proxy voting guidelines of the Advisor are available:
| | 1. | By calling 800-FUND-TCW (800-386-3829) to obtain a hard copy; or |
| | 2. | By going to the SEC website at http://www.sec.gov. |
When the Company receives a request for a description of the Advisor’s proxy voting guidelines, it will deliver the description that is disclosed in the Company’s Statement of Additional Information. This information will be sent out via first class mail (or other means designed to ensure equally prompt delivery) within three business days of receiving the request.
The Advisor, on behalf of the Company, prepares and files Form N-PX with the SEC not later than August 31 of each year, which includes the Company’s proxy voting record for the most recent twelve-month period ended June 30 of that year. The Company’s proxy voting record for the most recent twelve-month period ended June 30 is available:
| | 1. | By calling 800-FUND-TCW (800-386-3829) to obtain a hard copy; or |
| | 2. | By going to the SEC website at http://www.sec.gov. |
When the Company receives a request for the Company’s proxy voting record, it will send the information disclosed in the Company’s most recently filed report on Form N-PX via first class mail (or other means designed to ensure equally prompt delivery) within three business days of receiving the request.
The Company also discloses its proxy voting record on its website as soon as is reasonably practicable after its report on Form N-PX is filed with the SEC.
Availability of Quarterly Portfolio Schedule
The Company files a complete schedule of its portfolio holdings with the SEC for the first and third quarters of its fiscal year on Form NPORT-P. Such filings occur no later than 60 days after the end of the Funds’ first and third quarters and are available on the SEC’s website at www.sec.gov.
57
TCW Funds, Inc.
Shareholder Meeting Results (Unaudited)
Special Meeting of Shareholders to Approve Directors — Voting Results
On February 15, 2024, the Corporation held a Special Meeting of Shareholders to elect nine Directors of the Corporation. Shareholders of record on January 5, 2024 were entitled to vote on the proposal to elect Directors. All Funds voted together. Each nominee for Director named below was elected and will hold office until his or her successor has been duly elected and qualified. The following votes were recorded:
PROPOSAL: Election of Directors.
| | | | | | | | |
Director Nominee | | Shares Voted
For | | | Shares
Withheld | |
Patrick C. Haden | | | 778,061,060 | | | | 5,620,273 | |
Martin Luther King III | | | 778,550,805 | | | | 6,106,575 | |
Megan McClellan | | | 779,047,346 | | | | 5,392,670 | |
Peter McMillan | | | 777,261,038 | | | | 5,676,943 | |
Patrick Moore | | | 779,274,376 | | | | 5,718,850 | |
Victoria B. Rogers | | | 778,911,008 | | | | 5,469,537 | |
Robert G. Rooney | | | 780,047,992 | | | | 5,788,337 | |
Michael Swell | | | 780,102,419 | | | | 5,562,293 | |
Andrew Tarica | | | 778,119,775 | | | | 5,585,230 | |
58
TCW Funds, Inc.
Tax Information Notice (Unaudited)
The following Funds paid foreign taxes during the year ended October 31, 2024 that are available as income tax credits:
| | | | |
Fund | | Foreign Tax Credit | |
TCW Emerging Markets Income Fund | | $ | 1,348,461 | |
TCW Emerging Markets Local Currency Income Fund | | $ | 153,495 | |
This information is given to meet certain requirements of the Code and should not be used by shareholders for preparing their income tax returns. In February 2025, shareholders will receive Form 1099-DIV which will show the actual distribution received and include their share of qualified dividends during the calendar year of 2024. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their individual tax returns.
59
TCW Funds, Inc.
515 South Flower Street
Los Angeles, California 90071
800 FUND TCW
(800 386 3829)
www.TCW.com
INVESTMENT ADVISOR
TCW Investment Management Company LLC
515 South Flower Street
Los Angeles, California 90071
TRANSFER AGENT
U.S. Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
555 West 5th Street
Los Angeles, California 90013
CUSTODIAN & ADMINISTRATOR
State Street Bank & Trust Company
One Congress Street, Suite 1
Boston, Massachusetts 02114-2016
DISTRIBUTOR
TCW Funds Distributors LLC
515 South Flower Street
Los Angeles, California 90071
DIRECTORS
Patrick C. Haden
Director and Vice Chairman of the Board
Martin Luther King III
Director
Megan McClellan
Director
Peter McMillan
Director
Patrick Moore
Director
Victoria B. Rogers
Director
Robert G. Rooney
Director
Michael Swell
Director
Andrew Tarica
Director and Chairman of the Board
OFFICERS
Megan McClellan
President and Principal Executive Officer
Drew Bowden
Executive Vice President
Richard M. Villa
Treasurer and Principal Financial and Accounting Officer
Gladys Xiques
Chief Compliance Officer and Anti-Money Laundering Officer
Lisa Eisen
Tax Officer
Eric W. Chan
Assistant Treasurer
Peter Davidson
Vice President and Secretary
TCW FAMILY OF FUNDS
EQUITY FUNDS
TCW Global Real Estate Fund
TCW Relative Value Large Cap Fund
TCW Relative Value Mid Cap Fund
TCW Select Equities Fund
ASSET ALLOCATION FUND
TCW Conservative Allocation Fund
FIXED INCOME FUNDS
TCW Central Cash Fund
TCW Core Fixed Income Fund
TCW Global Bond Fund
TCW High Yield Bond Fund
TCW Securitized Bond Fund
INTERNATIONAL FUNDS
TCW Emerging Markets Income Fund
TCW Emerging Markets Local Currency Income Fund
FUNDarEQ1024
FIXED INCOME FUNDS
TCW Central Cash Fund
TCW Core Fixed Income Fund
TCW Global Bond Fund
TCW High Yield Bond Fund
TCW Securitized Bond Fund
TCW Funds, Inc.
Table of Contents
TCW Central Cash Fund
Schedule of Investments | October 31, 2024 |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
SHORT TERM INVESTMENTS — 103.6% | |
|
MONEY MARKET INVESTMENTS — 0.3% | |
| |
State Street Institutional U.S. Government Money Market Fund — Premier Class | | | | | |
| | | |
4.82% (1) | | | 11/01/24 | | | $ | 8,397,067 | | | $ | 8,397,067 | |
| | | | | | | | | | | | |
|
Total Money Market Investments | |
| |
(Cost: $8,397,067) | | | | 8,397,067 | |
| | | | | | | | | | | | |
|
| REPURCHASE AGREEMENT — 29.3% | |
| |
Bank of America NA Issued 10/31/24, repurchase date 11/01/24 (Collateralized by U.S. Treasury Securities valued at $561,000,000, 0.00% — 5.00%, due 09/30/25 — 05/15/44) | | | | | |
| | | |
4.83% | | | 11/01/24 | | | | 550,000,000 | | | | 550,000,000 | |
| |
JPMorgan Securities Issued 10/31/24, repurchase date 11/01/24 (Collateralized by U.S. Treasury Securities valued at $255,000,120, 0.38%, due 01/15/27) | | | | | |
| | | |
4.83% | | | 11/01/24 | | | | 250,000,000 | | | | 250,000,000 | |
| | | | | | | | | | | | |
|
Total Repurchase Agreement | |
| |
(Cost: $800,000,000) | | | | 800,000,000 | |
| | | | | | | | | | | | |
|
| U.S. GOVERNMENT AGENCY OBLIGATIONS — 18.4% | |
|
Federal Home Loan Banks | |
| | | |
4.81% (1 day USD SOFR + 0.000%) (2) | | | 11/19/24 | | | | 100,000,000 | | | | 100,000,000 | |
| | | |
4.82% (1 day USD SOFR + 0.010%) (2) | | | 04/08/25 | | | | 100,000,000 | | | | 100,000,000 | |
| | | |
4.83% (1 day USD SOFR + 0.015%) (2) | | | 12/30/24 | | | | 100,000,000 | | | | 100,000,000 | |
| | | |
4.83% (1 day USD SOFR + 0.015%) (2) | | | 05/06/25 | | | | 100,000,000 | | | | 100,000,000 | |
| | | |
4.83% (1 day USD SOFR + 0.020%) (2) | | | 03/20/25 | | | | 100,000,000 | | | | 100,000,000 | |
| | | | | | | | | | | | |
|
Total U.S. Government Agency Obligations | |
| |
(Cost: $500,000,000) | | | | 500,000,000 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| U.S. TREASURY SECURITIES — 55.6% | |
|
U.S. Treasury Bills | |
| | | |
4.80% (3) | | | 11/05/24 | | | $ | 147,000,000 | | | $ | 146,922,931 | |
| | | |
4.81% (3) | | | 11/05/24 | | | | 25,000,000 | | | | 24,986,846 | |
| | | |
5.05% (3) | | | 11/05/24 | | | | 175,000,000 | | | | 174,903,847 | |
| | | |
4.76% (3) | | | 11/12/24 | | | | 108,000,000 | | | | 107,845,395 | |
| | | |
4.80% (3) | | | 11/05/24 | | | | 87,000,000 | | | | 86,954,335 | |
| | | |
5.02% (3) | | | 11/12/24 | | | | 250,000,000 | | | | 249,624,931 | |
| | | |
4.76% (3) | | | 11/19/24 | | | | 350,000,000 | | | | 349,181,437 | |
| | | |
4.81% (3) | | | 11/12/24 | | | | 15,000,000 | | | | 14,978,374 | |
| | | |
4.79% (3) | | | 11/05/24 | | | | 350,000,000 | | | | 349,816,425 | |
| | | |
4.72% (3) | | | 11/05/24 | | | | 12,000,000 | | | | 11,993,791 | |
| | | | | | | | | | | | |
|
Total U.S. Treasury Securities | |
| |
(Cost: $1,517,208,312) | | | | 1,517,208,312 | |
| | | | | | | | | | | | |
|
Total Short Term Investments | |
| |
(Cost: $2,817,208,312) | | | | 2,817,208,312 | |
| | | | | | | | | | | | |
|
Total Investments (103.6%) | |
| |
(Cost: $2,825,605,379) | | | | 2,825,605,379 | |
| |
Liabilities In Excess Of Other Assets (-3.6%) | | | | (98,043,077 | ) |
| | | | | | | | | | | | |
| |
Net Assets (100.0%) | | | $ | 2,727,562,302 | |
| | | | | | | | | | | | |
Notes to the Schedule of Investments:
| SOFR | | Secured Overnight Financing Rate. |
| (1) | | Rate disclosed is the 7-day net yield as of October 31, 2024. |
| (2) | | Floating or variable rate security. The interest shown reflects the rate in effect at October 31, 2024. |
| (3) | | Rate shown represents yield-to-maturity. |
See accompanying Notes to Financial Statements.
1
TCW Central Cash Fund
Fair Valuation Summary | October 31, 2024 |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
Description | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | | Other
Significant
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Total | |
Short Term Investments | | | | | | | | | | | | | | | | |
U.S. Treasury Securities | | $ | 1,517,208,312 | | | $ | — | | | $ | — | | | $ | 1,517,208,312 | |
Repurchase Agreement | | | — | | | | 800,000,000 | | | | — | | | | 800,000,000 | |
U.S. Government Agency Obligations | | | — | | | | 500,000,000 | | | | — | | | | 500,000,000 | |
Money Market Investments | | | 8,397,067 | | | | — | | | | — | | | | 8,397,067 | |
| | | | | | | | | | | | | | | | |
Total Short Term Investments | | | 1,525,605,379 | | | | 1,300,000,000 | | | | — | | | | 2,825,605,379 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 1,525,605,379 | | | $ | 1,300,000,000 | | | $ | — | | | $ | 2,825,605,379 | |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
2
TCW Core Fixed Income Fund
Schedule of Investments | October 31, 2024 |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
FIXED INCOME SECURITIES — 105.4% of Net Assets | |
|
CORPORATE BONDS — 16.1% | |
|
| Aerospace & Defense — 0.5% | |
| |
Boeing Co. | | | | | |
| | | |
4.88% | | | 05/01/25 | | | $ | 560,000 | | | $ | 558,729 | |
| | | |
5.81% | | | 05/01/50 | | | | 1,025,000 | | | | 968,010 | |
| |
General Electric Co. | | | | | |
| | | |
5.86% (3 mo. USD Term SOFR + 0.742%)(1) | | | 08/15/36 | | | | 3,045,000 | | | | 2,855,753 | |
| | | | | | | | | | | | |
| |
| | | | 4,382,492 | |
| | | | | | | | | | | | |
|
| Agriculture — 0.1% | |
| |
BAT Capital Corp. (United Kingdom) | | | | | |
| | | |
5.28% | | | 04/02/50 | | | | 1,285,000 | | | | 1,153,904 | |
| |
Imperial Brands Finance PLC (United Kingdom) | | | | | |
| | | |
3.88% (2) | | | 07/26/29 | | | | 35,000 | | | | 33,139 | |
| | | | | | | | | | | | |
| |
| | | | 1,187,043 | |
| | | | | | | | | | | | |
|
| Airlines — 0.2% | |
| |
U.S. Airways Pass-Through Trust Series 2012-2, Class A (EETC) | | | | | |
| | | |
4.63% | | | 12/03/26 | | | | 335,614 | | | | 333,325 | |
| |
United Airlines Pass-Through Trust Series 2023-1, Class A | | | | | |
| | | |
5.80% | | | 07/15/37 | | | | 1,373,608 | | | | 1,412,165 | |
| | | | | | | | | | | | |
| |
| | | | 1,745,490 | |
| | | | | | | | | | | | |
|
| Banks — 4.0% | |
| |
Bank of America Corp. | | | | | |
| | | |
1.66% (1 day USD SOFR + 0.910%) (1) | | | 03/11/27 | | | | 4,195,000 | | | | 4,018,223 | |
| | | |
1.73% (1 day USD SOFR + 0.960%) (1) | | | 07/22/27 | | | | 1,485,000 | | | | 1,409,547 | |
| | | |
1.92% (1 day USD SOFR + 1.370%) (1) | | | 10/24/31 | | | | 345,000 | | | | 289,262 | |
| | | |
2.09% (1 day USD SOFR + 1.060%) (1) | | | 06/14/29 | | | | 2,155,000 | | | | 1,955,296 | |
| | | |
2.30% (1 day USD SOFR + 1.220%) (1) | | | 07/21/32 | | | | 380,000 | | | | 319,683 | |
| | | |
2.50% (3 mo. USD Term SOFR + 1.252%) (1) | | | 02/13/31 | | | | 635,000 | | | | 561,499 | |
| | | |
2.59% (1 day USD SOFR + 2.150%) (1) | | | 04/29/31 | | | | 135,000 | | | | 119,368 | |
| |
Citigroup, Inc. | | | | | |
| | | |
2.56% (1 day USD SOFR + 1.167%) (1) | | | 05/01/32 | | | | 35,000 | | | | 29,946 | |
| | | |
2.98% (1 day USD SOFR + 1.422%) (1) | | | 11/05/30 | | | | 1,395,000 | | | | 1,267,539 | |
| | | |
3.06% (1 day USD SOFR + 1.351%) (1) | | | 01/25/33 | | | | 180,000 | | | | 156,607 | |
| | | |
3.89% (3 mo. USD Term SOFR + 1.825%) (1) | | | 01/10/28 | | | | 45,000 | | | | 44,103 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Banks (Continued) | |
| |
Goldman Sachs Group, Inc. | | | | | |
| | | |
1.43% (1 day USD SOFR + 0.798%) (1) | | | 03/09/27 | | | $ | 4,260,000 | | | $ | 4,068,683 | |
| | | |
1.95% (1 day USD SOFR + 0.913%) (1) | | | 10/21/27 | | | | 1,000,000 | | | | 945,710 | |
| |
HSBC Holdings PLC (United Kingdom) | | | | | |
| | | |
2.21% (1 day USD SOFR + 1.285%) (1) | | | 08/17/29 | | | | 615,000 | | | | 554,238 | |
| | | |
2.36% (1 day USD SOFR + 1.947%) (1) | | | 08/18/31 | | | | 930,000 | | | | 798,637 | |
| |
JPMorgan Chase & Co. | | | | | |
| | | |
1.05% (1 day USD SOFR + 0.800%) (1) | | | 11/19/26 | | | | 260,000 | | | | 249,787 | |
| | | |
1.56% (1 day USD SOFR + 0.605%) (1) | | | 12/10/25 | | | | 2,080,000 | | | | 2,071,514 | |
| | | |
1.95% (1 day USD SOFR + 1.065%) (1) | | | 02/04/32 | | | | 1,540,000 | | | | 1,288,903 | |
| | | |
2.18% (1 day USD SOFR + 1.890%) (1) | | | 06/01/28 | | | | 905,000 | | | | 847,904 | |
| | | |
2.74% (3 mo. USD Term SOFR + 1.510%) (1) | | | 10/15/30 | | | | 1,070,000 | | | | 968,029 | |
| | | |
4.20% (3 mo. USD Term SOFR + 1.522%) (1) | | | 07/23/29 | | | | 935,000 | | | | 914,000 | |
| |
Morgan Stanley | | | | | |
| | | |
1.51% (1 day USD SOFR + 0.858%) (1) | | | 07/20/27 | | | | 1,145,000 | | | | 1,083,628 | |
| | | |
1.93% (1 day USD SOFR + 1.020%) (1) | | | 04/28/32 | | | | 180,000 | | | | 148,896 | |
| | | |
3.77% (3 mo. USD Term SOFR + 1.402%) (1) | | | 01/24/29 | | | | 1,255,000 | | | | 1,214,714 | |
| |
PNC Financial Services Group, Inc. | | | | | |
| | | |
5.07% (1 day USD SOFR + 1.933%) (1) | | | 01/24/34 | | | | 120,000 | | | | 118,460 | |
| | | |
5.68% (1 day USD SOFR + 1.902%) (1) | | | 01/22/35 | | | | 455,000 | | | | 467,672 | |
| |
Santander U.K. Group Holdings PLC (United Kingdom) | | | | | |
| | | |
1.67% (1 day USD SOFR + 0.989%) (1) | | | 06/14/27 | | | | 1,531,000 | | | | 1,450,041 | |
| | | |
2.47% (1 day USD SOFR + 1.220%) (1) | | | 01/11/28 | | | | 465,000 | | | | 438,514 | |
| |
U.S. Bancorp | | | | | |
| | | |
4.84% (1 day USD SOFR + 1.600%) (1) | | | 02/01/34 | | | | 525,000 | | | | 508,499 | |
| | | |
5.68% (1 day USD SOFR + 1.860%) (1) | | | 01/23/35 | | | | 255,000 | | | | 261,587 | |
| |
Wells Fargo & Co. | | | | | |
| | | |
2.16% (3 mo. USD Term SOFR + 1.012%) (1) | | | 02/11/26 | | | | 355,000 | | | | 351,965 | |
| | | |
2.88% (3 mo. USD Term SOFR + 1.432%) (1) | | | 10/30/30 | | | | 150,000 | | | | 136,045 | |
| | | |
3.35% (1 day USD SOFR + 1.500%) (1) | | | 03/02/33 | | | | 905,000 | | | | 804,916 | |
See accompanying Notes to Financial Statements.
3
TCW Core Fixed Income Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Banks (Continued) | |
| | | |
3.53% (1 day USD SOFR + 1.510%) (1) | | | 03/24/28 | | | $ | 2,245,000 | | | $ | 2,179,491 | |
| | | |
3.58% (3 mo. USD Term SOFR + 1.572%) (1) | | | 05/22/28 | | | | 260,000 | | | | 252,096 | |
| | | |
4.90% (1 day USD SOFR + 2.100%) (1) | | | 07/25/33 | | | | 1,045,000 | | | | 1,024,706 | |
| | | |
5.39% (1 day USD SOFR + 2.020%) (1) | | | 04/24/34 | | | | 550,000 | | | | 554,147 | |
| | | | | | | | | | | | |
| |
| | | | 33,873,855 | |
| | | | | | | | | | | | |
|
| Beverages — 0.4% | |
| |
Anheuser-Busch InBev SA (Belgium) | | | | | |
| | | |
3.95% (3) | | | 03/22/44 | | | EUR | 375,000 | | | | 410,620 | |
| |
Bacardi Ltd. | | | | | |
| | | |
2.75% (2) | | | 07/15/26 | | | $ | 750,000 | | | | 722,483 | |
| | | |
4.45% (2) | | | 05/15/25 | | | | 1,095,000 | | | | 1,090,401 | |
| |
Diageo Capital BV (United Kingdom) | | | | | |
| | | |
1.88% (3) | | | 06/08/34 | | | EUR | 475,000 | | | | 455,947 | |
| |
Pernod Ricard SA (France) | | | | | |
| | | |
3.63% (3) | | | 05/07/34 | | | EUR | 500,000 | | | | 543,411 | |
| | | | | | | | | | | | |
| |
| | | | 3,222,862 | |
| | | | | | | | | | | | |
|
| Chemicals — 0.2% | |
| |
International Flavors & Fragrances, Inc. | | | | | |
| | | |
2.30% (2) | | | 11/01/30 | | | $ | 1,185,000 | | | | 1,014,549 | |
| | | |
3.27% (2) | | | 11/15/40 | | | | 235,000 | | | | 172,878 | |
| | | |
3.47% (2) | | | 12/01/50 | | | | 125,000 | | | | 85,344 | |
| | | |
4.38% | | | 06/01/47 | | | | 370,000 | | | | 296,596 | |
| | | | | | | | | | | | |
| |
| | | | 1,569,367 | |
| | | | | | | | | | | | |
|
| Diversified Financial Services — 1.0% | |
| |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland) | | | | | |
| | | |
3.00% | | | 10/29/28 | | | | 3,225,000 | | | | 2,993,122 | |
| |
Air Lease Corp. | | | | | |
| | | |
3.25% | | | 03/01/25 | | | | 1,300,000 | | | | 1,292,161 | |
| | | |
3.63% | | | 12/01/27 | | | | 400,000 | | | | 386,380 | |
| | | |
4.63% | | | 10/01/28 | | | | 1,500,000 | | | | 1,484,835 | |
| |
Avolon Holdings Funding Ltd. (Ireland) | | | | | |
| | | |
2.53% (2) | | | 11/18/27 | | | | 884,000 | | | | 817,285 | |
| | | |
2.88% (2) | | | 02/15/25 | | | | 1,550,000 | | | | 1,538,406 | |
| | | | | | | | | | | | |
| |
| | | | 8,512,189 | |
| | | | | | | | | | | | |
|
| Electric — 1.2% | |
| |
Amprion GmbH (Germany) | | | | | |
| | | |
0.63% (3) | | | 09/23/33 | | | EUR | 300,000 | | | | 254,700 | |
| | | |
4.00% (3) | | | 05/21/44 | | | EUR | 200,000 | | | | 221,429 | |
| |
Appalachian Power Co. | | | | | |
| | | |
4.45% | | | 06/01/45 | | | $ | 690,000 | | | | 577,571 | |
| | | |
5.65% | | | 04/01/34 | | | | 1,025,000 | | | | 1,048,790 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Electric (Continued) | |
| |
Duke Energy Corp. | | | | | |
| | | |
3.75% | | | 04/01/31 | | | EUR | 825,000 | | | $ | 901,197 | |
| | | |
3.85% | | | 06/15/34 | | | EUR | 800,000 | | | | 863,561 | |
| |
Duke Energy Progress LLC | | | | | |
| | | |
3.70% | | | 10/15/46 | | | $ | 1,325,000 | | | | 1,009,902 | |
| |
E.ON SE (Germany) | | | | | |
| | | |
3.75% (3) | | | 01/15/36 | | | EUR | 100,000 | | | | 110,433 | |
| |
Elia Group SA (Belgium) | | | | | |
| | | |
3.88% (3) | | | 06/11/31 | | | EUR | 200,000 | | | | 217,786 | |
| |
Elia Transmission Belgium SA | | | | | |
| | | |
3.75% (3) | | | 01/16/36 | | | EUR | 200,000 | | | | 219,171 | |
| |
Eurogrid GmbH (Germany) | | | | | |
| | | |
0.74% (3) | | | 04/21/33 | | | EUR | 200,000 | | | | 173,845 | |
| | | |
1.11% (3) | | | 05/15/32 | | | EUR | 200,000 | | | | 183,933 | |
| |
Indiana Michigan Power Co. | | | | | |
| | | |
4.55% | | | 03/15/46 | | | $ | 420,000 | | | | 363,111 | |
| |
ITC Holdings Corp. | | | | | |
| | | |
2.95% (2) | | | 05/14/30 | | | | 1,000,000 | | | | 901,580 | |
| |
Jersey Central Power & Light Co. | | | | | |
| | | |
2.75% (2) | | | 03/01/32 | | | | 2,575,000 | | | | 2,198,252 | |
| |
National Grid Electricity Transmission PLC (United Kingdom) | | | | | |
| | | |
0.82% (3) | | | 07/07/32 | | | EUR | 100,000 | | | | 89,394 | |
| |
TenneT Holding BV (Netherlands) | | | | | |
| | | |
2.75% (3) | | | 05/17/42 | | | EUR | 295,000 | | | | 279,843 | |
| | | |
4.75% (3) | | | 10/28/42 | | | EUR | 415,000 | | | | 498,478 | |
| | | | | | | | | | | | |
| |
| | | | 10,112,976 | |
| | | | | | | | | | | | |
|
| Electronics — 0.1% | |
| |
Honeywell International, Inc. | | | | | |
| | | |
3.75% | | | 03/01/36 | | | EUR | 550,000 | | | | 603,210 | |
| | | |
4.13% | | | 11/02/34 | | | EUR | 290,000 | | | | 331,012 | |
| | | | | | | | | | | | |
| |
| | | | 934,222 | |
| | | | | | | | | | | | |
|
| Entertainment — 0.6% | |
| |
WarnerMedia Holdings, Inc. | | | | | |
| | | |
4.28% | | | 03/15/32 | | | $ | 200,000 | | | | 175,536 | |
| | | |
5.05% | | | 03/15/42 | | | | 3,135,000 | | | | 2,506,840 | |
| | | |
5.14% | | | 03/15/52 | | | | 2,834,000 | | | | 2,136,666 | |
| | | | | | | | | | | | |
| |
| | | | 4,819,042 | |
| | | | | | | | | | | | |
|
| Food — 0.7% | |
| |
ELO SACA (France) | | | | | |
| | | |
6.00% (3) | | | 03/22/29 | | | EUR | 700,000 | | | | 656,434 | |
| |
JBS USA Holding Lux SARL/JBS USA Food Co./JBS Lux Co. SARL | | | | | |
| | | |
3.00% | | | 02/02/29 | | | $ | 240,000 | | | | 220,106 | |
| | | |
6.50% | | | 12/01/52 | | | | 1,000,000 | | | | 1,028,400 | |
| | | |
6.75% (2) | | | 03/15/34 | | | | 1,282,000 | | | | 1,377,688 | |
See accompanying Notes to Financial Statements.
4
TCW Core Fixed Income Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Food (Continued) | |
| |
Mondelez International, Inc. | | | | | |
| | | |
0.75% | | | 03/17/33 | | | EUR | 465,000 | | | $ | 408,855 | |
| |
Smithfield Foods, Inc. | | | | | |
| | | |
2.63% (2) | | | 09/13/31 | | | $ | 2,565,000 | | | | 2,116,074 | |
| | | | | | | | | | | | |
| |
| | | | 5,807,557 | |
| | | | | | | | | | | | |
|
| Gas — 0.6% | |
| |
East Ohio Gas Co. | | | | | |
| | | |
2.00% (2) | | | 06/15/30 | | | | 830,000 | | | | 709,393 | |
| |
KeySpan Gas East Corp. | | | | | |
| | | |
3.59% (2) | | | 01/18/52 | | | | 1,150,000 | | | | 782,000 | |
| | | |
5.82% (2) | | | 04/01/41 | | | | 1,551,000 | | | | 1,543,245 | |
| | | |
5.99% (2) | | | 03/06/33 | | | | 530,000 | | | | 544,978 | |
| |
National Gas Transmission PLC (United Kingdom) | | | | | |
| | | |
4.25% (3) | | | 04/05/30 | | | EUR | 740,000 | | | | 830,551 | |
| |
Piedmont Natural Gas Co., Inc. | | | | | |
| | | |
5.10% | | | 02/15/35 | | | $ | 465,000 | | | | 456,518 | |
| | | | | | | | | | | | |
| |
| | | | 4,866,685 | |
| | | | | | | | | | | | |
|
| Health Care-Products — 0.1% | |
| |
Medtronic Global Holdings SCA | | | | | |
| | | |
1.75% | | | 07/02/49 | | | | 100,000 | | | | 73,923 | |
| | | |
3.38% | | | 10/15/34 | | | | 210,000 | | | | 228,237 | |
| |
Medtronic, Inc. | | | | | |
| | | |
3.65% | | | 10/15/29 | | | EUR | 185,000 | | | | 206,268 | |
| | | | | | | | | | | | |
| |
| | | | 508,428 | |
| | | | | | | | | | | | |
|
| Health Care-Services — 0.6% | |
| |
Centene Corp. | | | | | |
| | | |
3.00% | | | 10/15/30 | | | | 1,683,000 | | | | 1,459,750 | |
| |
CommonSpirit Health | | | | | |
| | | |
2.78% | | | 10/01/30 | | | | 875,000 | | | | 778,050 | |
| |
Elevance Health, Inc. | | | | | |
| | | |
5.20% | | | 02/15/35 | | | | 380,000 | | | | 378,898 | |
| |
Fresenius Medical Care U.S. Finance III, Inc. | | | | | |
| | | |
1.88% (2) | | | 12/01/26 | | | | 1,650,000 | | | | 1,540,292 | |
| |
Lonza Finance International NV (Switzerland) | | | | | |
| | | |
3.88% (3) | | | 04/24/36 | | | EUR | 420,000 | | | | 465,229 | |
| | | | | | | | | | | | |
| |
| | | | 4,622,219 | |
| | | | | | | | | | | | |
|
| Insurance — 1.1% | |
| |
Athene Global Funding | | | | | |
| | | |
1.99% (2) | | | 08/19/28 | | | $ | 295,000 | | | | 263,358 | |
| | | |
2.72% (2) | | | 01/07/29 | | | | 240,000 | | | | 217,935 | |
| | | |
3.21% (2) | | | 03/08/27 | | | | 815,000 | | | | 774,886 | |
| |
Farmers Exchange Capital | | | | | |
| | | |
7.20% (2) | | | 07/15/48 | | | | 1,495,000 | | | | 1,542,137 | |
| |
Farmers Exchange Capital II | | | | | |
| | | |
6.15% (3 mo. USD Term SOFR + 4.006%) (1),(2) | | | 11/01/53 | | | | 2,065,000 | | | | 1,987,356 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Insurance (Continued) | |
| |
Nationwide Mutual Insurance Co. | | | | | |
| | | |
7.50% (3 mo. USD LIBOR + 2.290%) (1),(2) | | | 12/15/24 | | | $ | 3,000,000 | | | $ | 3,007,350 | |
| |
New York Life Insurance Co. | | | | | |
| | | |
3.75% (2) | | | 05/15/50 | | | | 70,000 | | | | 53,354 | |
| |
Teachers Insurance & Annuity Association of America | | | | | |
| | | |
4.27% (2) | | | 05/15/47 | | | | 130,000 | | | | 107,510 | |
| |
Willis North America, Inc. | | | | | |
| | | |
4.50% | | | 09/15/28 | | | | 1,445,000 | | | | 1,424,134 | |
| | | | | | | | | | | | |
| |
| | | | 9,378,020 | |
| | | | | | | | | | | | |
|
| Internet — 0.1% | |
| |
Uber Technologies, Inc. | | | | | |
| | | |
4.80% | | | 09/15/34 | | | | 930,000 | | | | 901,403 | |
| | | | | | | | | | | | |
| | | |
| Media — 0.7% | | | | | | | | | |
| |
Charter Communications Operating LLC/Charter Communications Operating Capital | | | | | |
| | | |
3.90% | | | 06/01/52 | | | | 1,000,000 | | | | 644,420 | |
| | | |
4.80% | | | 03/01/50 | | | | 495,000 | | | | 372,062 | |
| | | |
5.13% | | | 07/01/49 | | | | 580,000 | | | | 455,944 | |
| | | |
5.38% | | | 05/01/47 | | | | 2,755,000 | | | | 2,252,874 | |
| | | |
5.75% | | | 04/01/48 | | | | 1,028,000 | | | | 878,775 | |
| |
Time Warner Cable LLC | | | | | |
| | | |
4.50% | | | 09/15/42 | | | | 1,475,000 | | | | 1,101,604 | |
| | | | | | | | | | | | |
| |
| | | | 5,705,679 | |
| | | | | | | | | | | | |
|
| Oil & Gas — 0.0% | |
| |
Petroleos Mexicanos | | | | | |
| | | |
6.35% | | | 02/12/48 | | | | 145,000 | | | | 99,354 | |
| | | |
6.75% | | | 09/21/47 | | | | 181,000 | | | | 129,594 | |
| | | | | | | | | | | | |
| |
| | | | 228,948 | |
| | | | | | | | | | | | |
|
| Packaging & Containers — 0.4% | |
| |
Berry Global, Inc. | | | | | |
| | | |
1.57% | | | 01/15/26 | | | | 1,584,000 | | | | 1,520,561 | |
| | | |
1.65% | | | 01/15/27 | | | | 1,716,000 | | | | 1,599,672 | |
| | | |
4.88% (2) | | | 07/15/26 | | | | 270,000 | | | | 268,458 | |
| | | | | | | | | | | | |
| |
| | | | 3,388,691 | |
| | | | | | | | | | | | |
|
| Pharmaceuticals — 0.7% | |
| |
Bayer U.S. Finance II LLC | | | | | |
| | | |
4.63% (2) | | | 06/25/38 | | | | 500,000 | | | | 432,725 | |
| |
Bayer U.S. Finance II LLC (Germany) | | | | | |
| | | |
4.38% (2) | | | 12/15/28 | | | | 2,023,000 | | | | 1,957,758 | |
| | | |
4.88% (2) | | | 06/25/48 | | | | 1,930,000 | | | | 1,587,772 | |
| | | |
6.50% (2) | | | 11/21/33 | | | | 310,000 | | | | 324,849 | |
| |
CVS Health Corp. | | | | | |
| | | |
4.78% | | | 03/25/38 | | | | 185,000 | | | | 165,114 | |
| | | |
5.05% | | | 03/25/48 | | | | 415,000 | | | | 358,822 | |
| | | |
5.88% | | | 06/01/53 | | | | 425,000 | | | | 409,607 | |
See accompanying Notes to Financial Statements.
5
TCW Core Fixed Income Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Pharmaceuticals (Continued) | |
| |
Johnson & Johnson | | | | | |
| | | |
3.55% | | | 06/01/44 | | | EUR | 225,000 | | | $ | 250,850 | |
| |
MSD Netherlands Capital BV | | | | | |
| | | |
3.70% | | | 05/30/44 | | | EUR | 480,000 | | | | 526,896 | |
| | | | | | | | | | | | |
| |
| | | | 6,014,393 | |
| | | | | | | | | | | | |
|
| Pipelines — 0.6% | |
| |
Energy Transfer LP | | | | | |
| | | |
5.95% | | | 10/01/43 | | | $ | 630,000 | | | | 618,710 | |
| |
Rockies Express Pipeline LLC | | | | | |
| | | |
4.95% (2) | | | 07/15/29 | | | | 980,000 | | | | 921,612 | |
| |
Southern Natural Gas Co. LLC | | | | | |
| | | |
7.35% | | | 02/15/31 | | | | 2,380,000 | | | | 2,606,053 | |
| |
TC PipeLines LP | | | | | |
| | | |
4.38% | | | 03/13/25 | | | | 710,000 | | | | 707,252 | |
| | | | | | | | | | | | |
| |
| | | | 4,853,627 | |
| | | | | | | | | | | | |
|
| Real Estate — 0.2% | |
| |
Annington Funding PLC (United Kingdom) | | | | | |
| | | |
2.31% (3) | | | 10/06/32 | | | GBP | 720,000 | | | | 713,764 | |
| |
Blackstone Property Partners Europe Holdings SARL (Luxembourg) | | | | | |
| | | |
1.00% (3) | | | 05/04/28 | | | EUR | 315,000 | | | | 312,925 | |
| | | |
1.75% (3) | | | 03/12/29 | | | EUR | 110,000 | | | | 110,246 | |
| |
LEG Immobilien SE (Germany) | | | | | |
| | | |
1.50% (3) | | | 01/17/34 | | | EUR | 100,000 | | | | 88,493 | |
| |
Vonovia SE (Germany) | | | | | |
| | | |
0.75% (3) | | | 09/01/32 | | | EUR | 300,000 | | | | 259,784 | |
| | | |
1.00% (3) | | | 06/16/33 | | | EUR | 300,000 | | | | 258,016 | |
| | | |
5.00% (3) | | | 11/23/30 | | | $ | 100,000 | | | | 117,015 | |
| | | | | | | | | | | | |
| |
| | | | 1,860,243 | |
| | | | | | | | | | | | |
|
| REIT — 1.4% | |
| |
American Assets Trust LP | | | | | |
| | | |
3.38% | | | 02/01/31 | | | | 1,655,000 | | | | 1,434,686 | |
| |
American Homes 4 Rent LP | | | | | |
| | | |
3.38% | | | 07/15/51 | | | | 730,000 | | | | 493,692 | |
| |
CubeSmart LP | | | | | |
| | | |
3.00% | | | 02/15/30 | | | | 317,000 | | | | 286,746 | |
| |
Digital Dutch Finco BV | | | | | |
| | | |
1.25% (3) | | | 02/01/31 | | | EUR | 890,000 | | | | 840,735 | |
| |
Extra Space Storage LP | | | | | |
| | | |
2.40% | | | 10/15/31 | | | $ | 865,000 | | | | 724,161 | |
| | | |
3.90% | | | 04/01/29 | | | | 250,000 | | | | 239,608 | |
| |
GLP Capital LP/GLP Financing II, Inc. | | | | | |
| | | |
4.00% | | | 01/15/31 | | | | 170,000 | | | | 156,114 | |
| | | |
5.75% | | | 06/01/28 | | | | 1,600,000 | | | | 1,626,304 | |
| |
Healthcare Realty Holdings LP | | | | | |
| | | |
2.05% | | | 03/15/31 | | | | 164,000 | | | | 133,655 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| REIT (Continued) | |
| |
Hudson Pacific Properties LP | | | | | |
| | | |
3.25% | | | 01/15/30 | | | $ | 1,752,000 | | | $ | 1,282,674 | |
| | | |
4.65% | | | 04/01/29 | | | | 100,000 | | | | 80,161 | |
| |
Invitation Homes Operating Partnership LP | | | | | |
| | | |
2.00% | | | 08/15/31 | | | | 811,000 | | | | 664,801 | |
| | | |
5.50% | | | 08/15/33 | | | | 215,000 | | | | 216,047 | |
| |
LXP Industrial Trust | | | | | |
| | | |
2.38% | | | 10/01/31 | | | | 1,592,000 | | | | 1,298,133 | |
| |
Prologis Euro Finance LLC | | | | | |
| | | |
4.00% | | | 05/05/34 | | | EUR | 300,000 | | | | 331,336 | |
| | | |
4.25% | | | 01/31/43 | | | EUR | 450,000 | | | | 500,552 | |
| |
Realty Income Corp. | | | | | |
| | | |
5.13% | | | 07/06/34 | | | EUR | 830,000 | | | | 995,686 | |
| |
Rexford Industrial Realty LP | | | | | |
| | | |
2.15% | | | 09/01/31 | | | | 25,000 | | | | 20,650 | |
| |
VICI Properties LP/VICI Note Co., Inc. | | | | | |
| | | |
3.88% (2) | | | 02/15/29 | | | $ | 325,000 | | | | 306,218 | |
| | | |
4.13% (2) | | | 08/15/30 | | | | 41,000 | | | | 38,025 | |
| | | |
4.50% (2) | | | 01/15/28 | | | | 147,000 | | | | 143,347 | |
| | | |
4.63% (2) | | | 06/15/25 | | | | 160,000 | | | | 159,280 | |
| | | | | | | | | | | | |
| |
| | | | 11,972,611 | |
| | | | | | | | | | | | |
|
| Retail — 0.0% | |
| |
McDonald’s Corp. | | | | | |
| | | |
4.25% (3) | | | 03/07/35 | | | EUR | 145,000 | | | | 165,485 | |
| | | | | | | | | | | | |
| |
| Savings & Loans — 0.1% | | | | |
| |
Nationwide Building Society (United Kingdom) | | | | | |
| | | |
2.97% (1 day USD SOFR + 1.290%) (1),(2) | | | 02/16/28 | | | | 440,000 | | | | 420,253 | |
| | | | | | | | | | | | |
| |
| Telecommunications — 0.4% | | | | |
| |
Global Switch Finance BV (United Kingdom) | | | | | |
| | | |
1.38% (3) | | | 10/07/30 | | | EUR | 695,000 | | | | 705,453 | |
| |
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC | | | | | |
| | | |
4.74% (2) | | | 09/20/29 | | | $ | 768,125 | | | | 767,464 | |
| | | |
5.15% (2) | | | 09/20/29 | | | | 1,753,500 | | | | 1,762,075 | |
| | | | | | | | | | | | |
| |
| | | | 3,234,992 | |
| | | | | | | | | | | | |
|
| Water — 0.1% | |
| |
Suez SACA (France) | | | | | |
| | | |
2.88% (3) | | | 05/24/34 | | | EUR | 400,000 | | | | 403,719 | |
| | | | | | | | | | | | |
| |
Total Corporate Bonds | | | | | |
| |
(Cost: $141,321,755) | | | | 134,692,491 | |
| | | | | | | | | | | | |
| |
| MUNICIPAL BONDS — 0.7% | | | | |
| |
California Health Facilities Financing Authority, Revenue Bond | | | | | |
| | | |
3.00% | | | 08/15/51 | | | | 690,000 | | | | 540,588 | |
| |
City of New York, General Obligation Unlimited | | | | | |
| | | |
3.00% | | | 08/01/34 | | | | 380,000 | | | | 323,678 | |
See accompanying Notes to Financial Statements.
6
TCW Core Fixed Income Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| |
| MUNICIPAL BONDS (Continued) | | | | |
| |
New York City Transitional Finance Authority Future Tax Secured Revenue | | | | | |
| | | |
2.00% | | | 08/01/35 | | | $ | 1,000,000 | | | $ | 753,750 | |
| | | |
2.45% | | | 11/01/34 | | | | 2,485,000 | | | | 2,001,730 | |
| |
Regents of the University of California Medical Center Pooled Revenue, Revenue Bond | | | | | |
| | | |
3.26% | | | 05/15/60 | | | | 3,060,000 | | | | 2,088,104 | |
| | | | | | | | | | | | |
| | | |
Total Municipal Bonds | | | | | | | | | | | | |
| |
(Cost: $7,471,127) | | | | 5,707,850 | |
| | | | | | | | | | | | |
| |
| ASSET-BACKED SECURITIES — 6.5% | | | | |
| |
AGL CLO 7 Ltd. Series 2020-7A, Class BR | | | | | |
| | | |
6.62% (3 mo. USD Term SOFR + 1.962%) (1),(2) | | | 07/15/34 | | | | 4,235,000 | | | | 4,240,505 | |
| |
Aligned Data Centers Issuer LLC Series 2021-1A, Class A2 | | | | | |
| | | |
1.94% (2) | | | 08/15/46 | | | | 3,372,000 | | | | 3,185,979 | |
| |
Apidos CLO XXV Ltd. Series 2016-25A, Class A1R2 | | | | | |
| | | |
5.77% (3 mo. USD Term SOFR + 1.150%) (1),(2) | | | 10/20/31 | | | | 1,788,795 | | | | 1,789,153 | |
| |
ARES LXII CLO Ltd. Series 2021-62A, Class B | | | | | |
| | | |
6.54% (3 mo. USD Term SOFR + 1.912%) (1),(2) | | | 01/25/34 | | | | 4,000,000 | | | | 4,005,600 | |
| |
Barings CLO Ltd. Series 2018-4A, Class A1R | | | | | |
| | | |
5.81% (3 mo. USD Term SOFR + 1.150%) (1),(2) | | | 10/15/30 | | | | 2,311,935 | | | | 2,314,016 | |
| |
CIFC Funding Ltd. Series 2021-7A, Class A1 | | | | | |
| | | |
6.02% (3 mo. USD Term SOFR + 1.392%) (1),(2) | | | 01/23/35 | | | | 4,300,000 | | | | 4,300,860 | |
| |
Clover CLO LLC Series 2018-1A, Class A1RR | | | | | |
| | | |
6.15% (3 mo. USD Term SOFR + 1.530%) (1),(2) | | | 04/20/37 | | | | 4,190,000 | | | | 4,202,989 | |
| |
Dryden 40 Senior Loan Fund Series 2015-40A, Class AR2 | | | | | |
| | | |
6.27% (3 mo. USD Term SOFR + 1.150%) (1),(2) | | | 08/15/31 | | | | 2,235,636 | | | | 2,240,107 | |
| |
Dryden XXVI Senior Loan Fund Series 2013-26A, Class AR | | | | | |
| | | |
5.82% (3 mo. USD Term SOFR + 1.162%) (1),(2) | | | 04/15/29 | | | | 1,214,821 | | | | 1,215,671 | |
| |
JGWPT XXX LLC Series 2013-3A, Class A | | | | | |
| | | |
4.08% (2) | | | 01/17/73 | | | | 940,778 | | | | 883,401 | |
| |
JGWPT XXXII LLC Series 2014-2A, Class A | | | | | |
| | | |
3.61% (2) | | | 01/17/73 | | | | 1,076,475 | | | | 967,661 | |
| |
LCM Loan Income Fund I Ltd. Series 1A, Class B | | | | | |
| | | |
6.33% (3 mo. USD Term SOFR + 1.712%) (1),(2) | | | 04/20/31 | | | | 50,000 | | | | 50,218 | |
| |
Madison Park Funding XLVIII Ltd. Series 2021-48A, Class A | | | | | |
| | | |
6.03% (3 mo. USD Term SOFR + 1.412%) (1),(2) | | | 04/19/33 | | | | 4,162,473 | | | | 4,173,712 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| |
| ASSET-BACKED SECURITIES (Continued) | | | | |
| |
Navient Private Education Refi Loan Trust Series 2021-GA, Class A | | | | | |
| | | |
1.58% (2) | | | 04/15/70 | | | $ | 2,382,507 | | | $ | 2,107,975 | |
| |
OCP CLO Ltd. Series 2020-19A, Class AR | | | | | |
| | | |
6.03% (3 mo. USD Term SOFR + 1.412%) (1),(2) | | | 10/20/34 | | | | 3,600,000 | | | | 3,605,760 | |
| |
Octagon Investment Partners XIV Ltd. Series 2012-1A, Class AARR | | | | | |
| | | |
5.87% (3 mo. USD Term SOFR + 1.212%) (1),(2) | | | 07/15/29 | | | | 131,242 | | | | 131,387 | |
| |
SBNA Auto Receivables Trust Series 2024-A, Class A3 | | | | | |
| | | |
5.32% (2) | | | 12/15/28 | | | | 2,440,000 | | | | 2,454,448 | |
| |
Skyline Aviation, Inc. Class A | | | | | |
| | | |
3.23% (4) | | | 07/03/38 | | | | 3,947,264 | | | | 3,596,945 | |
| |
SLM Student Loan Trust Series 2003-7A, Class A5A | | | | | |
| | | |
6.83% (90 day USD SOFR Average + 1.462%) (1),(2) | | | 12/15/33 | | | | 1,129,531 | | | | 1,116,968 | |
| |
SLM Student Loan Trust Series 2008-2, Class B | | | | | |
| | | |
6.65% (90 day USD SOFR Average + 1.462%) (1) | | | 01/25/83 | | | | 710,000 | | | | 733,803 | |
| |
SLM Student Loan Trust Series 2008-3, Class B | | | | | |
| | | |
6.65% (90 day USD SOFR Average + 1.462%) (1) | | | 04/26/83 | | | | 710,000 | | | | 734,097 | |
| |
SLM Student Loan Trust Series 2008-4, Class A4 | | | | | |
| | | |
7.10% (90 day USD SOFR Average + 1.912%) (1) | | | 07/25/22 | | | | 1,465,874 | | | | 1,469,807 | |
| |
SLM Student Loan Trust Series 2008-4, Class B | | | | | |
| | | |
7.30% (90 day USD SOFR Average + 2.112%) (1) | | | 04/25/73 | | | | 710,000 | | | | 739,659 | |
| |
SLM Student Loan Trust Series 2008-5, Class B | | | | | |
| | | |
7.30% (90 day USD SOFR Average + 2.112%) (1) | | | 07/25/73 | | | | 710,000 | | | | 734,300 | |
| |
SLM Student Loan Trust Series 2008-6, Class B | | | | | |
| | | |
7.30% (90 day USD SOFR Average + 2.112%) (1) | | | 07/26/83 | | | | 710,000 | | | | 730,925 | |
| |
SLM Student Loan Trust Series 2008-7, Class B | | | | | |
| | | |
7.30% (90 day USD SOFR Average + 2.112%) (1) | | | 07/26/83 | | | | 710,000 | | | | 732,429 | |
| |
Voya CLO Ltd. Series 2016-3A, Class A1R2 | | | | | |
| | | |
5.78% (3 mo. USD Term SOFR + 1.150%) (1),(2) | | | 10/18/31 | | | | 1,902,401 | | | | 1,906,206 | |
| | | | | | | | | | | | |
| |
Total Asset-backed Securities | | | | | |
| |
(Cost: $54,613,745) | | | | 54,364,581 | |
| | | | | | | | | | | | |
|
COMMERCIAL MORTGAGE-BACKED SECURITIES —
AGENCY — 0.6% | |
| |
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Series K155, Class A3 | | | | | |
| | | |
3.75% | | | 04/25/33 | | | | 4,045,000 | | | | 3,776,655 | |
See accompanying Notes to Financial Statements.
7
TCW Core Fixed Income Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
COMMERCIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal National Mortgage Association, Pool #AN0245 | | | | | |
| | | |
3.42% | | | 11/01/35 | | | $ | 1,642,981 | | | $ | 1,537,770 | |
| | | | | | | | | | | | |
|
Total Commercial Mortgage-Backed Securities — Agency | |
| |
(Cost: $5,794,121) | | | | 5,314,425 | |
| | | | | | | | | | | | |
|
COMMERCIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY — 3.8% | |
| |
Arbor Realty Commercial Real Estate Notes Ltd. Series 2021-FL3, Class A | | | | | |
| | | |
5.99% (1 mo. USD Term SOFR + 1.184%) (1),(2) | | | 08/15/34 | | | | 1,800,549 | | | | 1,796,079 | |
| |
BAMLL Commercial Mortgage Securities Trust Series 2018-PARK, Class A | | | | | |
| | | |
4.09% (2),(5) | | | 08/10/38 | | | | 1,930,000 | | | | 1,824,726 | |
| |
Bank Series 2022-BNK42, Class A5 | | | | | |
| | | |
4.49% (5) | | | 06/15/55 | | | | 3,593,000 | | | | 3,453,502 | |
| |
BPR Trust Series 2022-OANA, Class A | | | | | |
| | | |
6.70% (1 mo. USD Term SOFR + 1.898%) (1),(2) | | | 04/15/37 | | | | 3,678,000 | | | | 3,700,260 | |
| |
BX Commercial Mortgage Trust Series 2020-VIV4, Class A | | | | | |
| | | |
2.84% (2) | | | 03/09/44 | | | | 2,415,000 | | | | 2,140,770 | |
| |
BX Trust Series 2019-OC11, Class A | | | | | |
| | | |
3.20% (2) | | | 12/09/41 | | | | 1,485,000 | | | | 1,349,850 | |
| |
BXHPP Trust Series 2021-FILM, Class A | | | | | |
| | | |
5.57% (1 mo. USD Term SOFR + 0.764%) (1),(2) | | | 08/15/36 | | | | 3,000,000 | | | | 2,884,608 | |
| |
COMM Mortgage Trust Series 2015-CR27, Class A3 | | | | | |
| | | |
3.35% | | | 10/10/48 | | | | 1,840,022 | | | | 1,817,308 | |
| |
CSAIL Commercial Mortgage Trust Series 2020-C19, Class A3 | | | | | |
| | | |
2.56% | | | 03/15/53 | | | | 3,004,000 | | | | 2,590,707 | |
| |
Hudson Yards Mortgage Trust Series 2019-30HY, Class A | | | | | |
| | | |
3.23% (2) | | | 07/10/39 | | | | 2,185,000 | | | | 2,002,214 | |
| |
Hudson Yards Mortgage Trust Series 2019-55HY, Class A | | | | | |
| | | |
2.94% (2),(5) | | | 12/10/41 | | | | 1,180,000 | | | | 1,049,184 | |
| |
JPMorgan Chase Commercial Mortgage Securities Trust Series 2019-OSB, Class A | | | | | |
| | | |
3.40% (2) | | | 06/05/39 | | | | 1,160,000 | | | | 1,053,214 | |
| |
Manhattan West Mortgage Trust Series 2020-1MW, Class A | | | | | |
| | | |
2.13% (2) | | | 09/10/39 | | | | 1,720,000 | | | | 1,574,160 | |
| |
One Bryant Park Trust Series 2019-OBP, Class A | | | | | |
| | | |
2.52% (2) | | | 09/15/54 | | | | 1,495,000 | �� | | | 1,306,013 | |
| |
SFAVE Commercial Mortgage Securities Trust Series 2015-5AVE, Class A1 | | | | | |
| | | |
3.87% (2),(5) | | | 01/05/43 | | | | 1,710,000 | | | | 1,435,863 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
COMMERCIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
SFAVE Commercial Mortgage Securities Trust Series 2015-5AVE, Class A2B | | | | | |
| | | |
4.14% (2),(5) | | | 01/05/43 | | | $ | 70,000 | | | $ | 59,763 | |
| |
Wells Fargo Commercial Mortgage Trust Series 2015-C26, Class AS | | | | | |
| | | |
3.58% | | | 02/15/48 | | | | 2,100,000 | | | | 2,084,976 | |
| | | | | | | | | | | | |
| | |
Total Commercial Mortgage-Backed
Securities — Non-Agency | | | | | | | | | |
| |
(Cost: $33,826,508) | | | | 32,123,197 | |
| | | | | | | | | | | | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY — 38.3% | |
| |
Federal Home Loan Mortgage Corp., Pool #A97179 | | | | | |
| | | |
4.50% | | | 03/01/41 | | | | 835,849 | | | | 819,157 | |
| |
Federal Home Loan Mortgage Corp., Pool #G06360 | | | | | |
| | | |
4.00% | | | 03/01/41 | | | | 983,564 | | | | 944,058 | |
| |
Federal Home Loan Mortgage Corp., Pool #G06498 | | | | | |
| | | |
4.00% | | | 04/01/41 | | | | 670,919 | | | | 643,005 | |
| |
Federal Home Loan Mortgage Corp., Pool #G06499 | | | | | |
| | | |
4.00% | | | 03/01/41 | | | | 442,073 | | | | 422,940 | |
| |
Federal Home Loan Mortgage Corp., Pool #G07849 | | | | | |
| | | |
3.50% | | | 05/01/44 | | | | 570,572 | | | | 525,615 | |
| |
Federal Home Loan Mortgage Corp., Pool #G07924 | | | | | |
| | | |
3.50% | | | 01/01/45 | | | | 848,064 | | | | 779,574 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08710 | | | | | |
| | | |
3.00% | | | 06/01/46 | | | | 1,052,255 | | | | 928,312 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08711 | | | | | |
| | | |
3.50% | | | 06/01/46 | | | | 1,699,230 | | | | 1,550,706 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08715 | | | | | |
| | | |
3.00% | | | 08/01/46 | | | | 2,037,582 | | | | 1,797,578 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08716 | | | | | |
| | | |
3.50% | | | 08/01/46 | | | | 1,146,829 | | | | 1,046,589 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08721 | | | | | |
| | | |
3.00% | | | 09/01/46 | | | | 1,635,720 | | | | 1,443,051 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08722 | | | | | |
| | | |
3.50% | | | 09/01/46 | | | | 458,253 | | | | 418,199 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08726 | | | | | |
| | | |
3.00% | | | 10/01/46 | | | | 1,575,346 | | | | 1,389,788 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08732 | | | | | |
| | | |
3.00% | | | 11/01/46 | | | | 1,582,139 | | | | 1,395,781 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08792 | | | | | |
| | | |
3.50% | | | 12/01/47 | | | | 1,253,957 | | | | 1,141,537 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08816 | | | | | |
| | | |
3.50% | | | 06/01/48 | | | | 231,833 | | | | 210,955 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08826 | | | | | |
| | | |
5.00% | | | 06/01/48 | | | | 212,253 | | | | 209,947 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08843 | | | | | |
| | | |
4.50% | | | 10/01/48 | | | | 824,534 | | | | 796,905 | |
| |
Federal Home Loan Mortgage Corp., Pool #G60038 | | | | | |
| | | |
3.50% | | | 01/01/44 | | | | 814,531 | | | | 751,755 | |
See accompanying Notes to Financial Statements.
8
TCW Core Fixed Income Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal Home Loan Mortgage Corp., Pool #G60344 | | | | | |
| | | |
4.00% | | | 12/01/45 | | | $ | 413,034 | | | $ | 392,152 | |
| |
Federal Home Loan Mortgage Corp., Pool #G67700 | | | | | |
| | | |
3.50% | | | 08/01/46 | | | | 670,879 | | | | 614,809 | |
| |
Federal Home Loan Mortgage Corp., Pool #G67706 | | | | | |
| | | |
3.50% | | | 12/01/47 | | | | 480,294 | | | | 438,835 | |
| |
Federal Home Loan Mortgage Corp., Pool #G67707 | | | | | |
| | | |
3.50% | | | 01/01/48 | | | | 5,316,766 | | | | 4,879,263 | |
| |
Federal Home Loan Mortgage Corp., Pool #G67711 | | | | | |
| | | |
4.00% | | | 03/01/48 | | | | 1,317,355 | | | | 1,244,118 | |
| |
Federal Home Loan Mortgage Corp., Pool #G67718 | | | | | |
| | | |
4.00% | | | 01/01/49 | | | | 1,211,925 | | | | 1,141,441 | |
| |
Federal Home Loan Mortgage Corp., Pool #Q05261 | | | | | |
| | | |
3.50% | | | 12/01/41 | | | | 847,953 | | | | 787,463 | |
| |
Federal Home Loan Mortgage Corp., Pool #Q20178 | | | | | |
| | | |
3.50% | | | 07/01/43 | | | | 1,654,038 | | | | 1,533,640 | |
| |
Federal Home Loan Mortgage Corp., Pool #RA8693 | | | | | |
| | | |
4.50% | | | 04/01/53 | | | | 6,911,802 | | | | 6,566,037 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD0231 | | | | | |
| | | |
3.00% | | | 01/01/50 | | | | 3,728,005 | | | | 3,273,144 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD7513 | | | | | |
| | | |
3.50% | | | 04/01/50 | | | | 462,316 | | | | 421,293 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8178 | | | | | |
| | | |
2.50% | | | 11/01/51 | | | | 4,920,037 | | | | 4,090,146 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8193 | | | | | |
| | | |
2.00% | | | 02/01/52 | | | | 7,395,418 | | | | 5,876,860 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8194 | | | | | |
| | | |
2.50% | | | 02/01/52 | | | | 6,727,131 | | | | 5,586,169 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8238 | | | | | |
| | | |
4.50% | | | 08/01/52 | | | | 2,605,946 | | | | 2,478,220 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8264 | | | | | |
| | | |
3.50% | | | 11/01/52 | | | | 3,219,267 | | | | 2,881,890 | |
| |
Federal Home Loan Mortgage Corp., Pool #ZM1779 | | | | | |
| | | |
3.00% | | | 09/01/46 | | | | 989,554 | | | | 871,869 | |
| |
Federal Home Loan Mortgage Corp., Pool #ZT1703 | | | | | |
| | | |
4.00% | | | 01/01/49 | | | | 825,140 | | | | 776,228 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 2439, Class KZ | | | | | |
| | | |
6.50% | | | 04/15/32 | | | | 43,745 | | | | 45,009 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 2575, Class FD (PAC) | | | | | |
| | | |
5.57% (30 day USD SOFR Average + 0.564%) (1) | | | 02/15/33 | | | | 122,115 | | | | 121,613 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 2662, Class MT (TAC) | | | | | |
| | | |
4.50% | | | 08/15/33 | | | | 34,965 | | | | 34,604 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3315, Class S (I/O) (I/F) | | | | | |
| | | |
1.29% (-30 day USD SOFR Average + 6.296%) (1) | | | 05/15/37 | | | | 5,478 | | | | 335 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3339, Class JS (I/F) | | | | | |
| | | |
9.53% (-30 day USD SOFR Average + 42.091%) (1) | | | 07/15/37 | | | $ | 143,528 | | | $ | 188,232 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3351, Class ZC | | | | | |
| | | |
5.50% | | | 07/15/37 | | | | 121,357 | | | | 123,861 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3380, Class SM (I/O) (I/F) | | | | | |
| | | |
1.29% (-30 day USD SOFR Average + 6.296%) (1) | | | 10/15/37 | | | | 180,785 | | | | 16,484 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3382, Class FL | | | | | |
| | | |
5.82% (30 day USD SOFR Average + 0.814%) (1) | | | 11/15/37 | | | | 47,935 | | | | 47,911 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3439, Class SC (I/O) (I/F) | | | | | |
| | | |
0.78% (-30 day USD SOFR Average + 5.786%) (1) | | | 04/15/38 | | | | 791,026 | | | | 46,590 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3578, Class DI (I/O) (I/F) | | | | | |
| | | |
1.53% (-30 day USD SOFR Average + 6.536%) (1) | | | 04/15/36 | | | | 266,479 | | | | 21,839 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 4818, Class CA | | | | | |
| | | |
3.00% | | | 04/15/48 | | | | 391,762 | | | | 344,224 | |
| |
Federal National Mortgage Association, Pool #596686 | | | | | |
| | | |
6.50% | | | 11/01/31 | | | | 5,338 | | | | 5,541 | |
| |
Federal National Mortgage Association, Pool #727575 | | | | | |
| | | |
5.00% | | | 06/01/33 | | | | 10,488 | | | | 10,562 | |
| |
Federal National Mortgage Association, Pool #748751 | | | | | |
| | | |
5.50% | | | 10/01/33 | | | | 30,000 | | | | 30,652 | |
| |
Federal National Mortgage Association, Pool #AL0209 | | | | | |
| | | |
4.50% | | | 05/01/41 | | | | 248,800 | | | | 243,533 | |
| |
Federal National Mortgage Association, Pool #AL0851 | | | | | |
| | | |
6.00% | | | 10/01/40 | | | | 224,060 | | | | 234,764 | |
| |
Federal National Mortgage Association, Pool #AS9830 | | | | | |
| | | |
4.00% | | | 06/01/47 | | | | 447,439 | | | | 420,176 | |
| |
Federal National Mortgage Association, Pool #BN7755 | | | | | |
| | | |
3.00% | | | 09/01/49 | | | | 2,369,968 | | | | 2,080,804 | |
| |
Federal National Mortgage Association, Pool #BQ6913 | | | | | |
| | | |
2.00% | | | 12/01/51 | | | | 8,136,106 | | | | 6,473,030 | |
| |
Federal National Mortgage Association, Pool #BQ7006 | | | | | |
| | | |
2.00% | | | 01/01/52 | | | | 6,685,882 | | | | 5,317,167 | |
| |
Federal National Mortgage Association, Pool #BV7937 | | | | | |
| | | |
4.00% | | | 08/01/52 | | | | 4,752,630 | | | | 4,398,909 | |
| |
Federal National Mortgage Association, Pool #BV8464 | | | | | |
| | | |
3.00% | | | 04/01/52 | | | | 3,686,185 | | | | 3,178,246 | |
See accompanying Notes to Financial Statements.
9
TCW Core Fixed Income Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal National Mortgage Association, Pool #BX8625 | | | | | |
| | | |
5.00% | | | 04/01/53 | | | $ | 7,817,147 | | | $ | 7,597,286 | |
| |
Federal National Mortgage Association, Pool #CA1710 | | | | | |
| | | |
4.50% | | | 05/01/48 | | | | 1,130,390 | | | | 1,091,214 | |
| |
Federal National Mortgage Association, Pool #CA1711 | | | | | |
| | | |
4.50% | | | 05/01/48 | | | | 769,074 | | | | 742,420 | |
| |
Federal National Mortgage Association, Pool #CA2208 | | | | | |
| | | |
4.50% | | | 08/01/48 | | | | 627,269 | | | | 605,530 | |
| |
Federal National Mortgage Association, Pool #CA2327 | | | | | |
| | | |
4.00% | | | 09/01/48 | | | | 391,231 | | | | 368,632 | |
| |
Federal National Mortgage Association, Pool #CB0290 | | | | | |
| | | |
2.00% | | | 04/01/51 | | | | 6,730,120 | | | | 5,377,892 | |
| |
Federal National Mortgage Association, Pool #CB0610 | | | | | |
| | | |
2.50% | | | 05/01/51 | | | | 6,324,909 | | | | 5,304,540 | |
| |
Federal National Mortgage Association, Pool #CB2313 | | | | | |
| | | |
2.50% | | | 12/01/51 | | | | 6,896,722 | | | | 5,771,281 | |
| |
Federal National Mortgage Association, Pool #CB3289 | | | | | |
| | | |
2.00% | | | 04/01/52 | | | | 9,007,053 | | | | 7,195,387 | |
| |
Federal National Mortgage Association, Pool #CB4800 | | | | | |
| | | |
4.50% | | | 10/01/52 | | | | 5,641,820 | | | | 5,368,088 | |
| |
Federal National Mortgage Association, Pool #FM2318 | | | | | |
| | | |
3.50% | | | 09/01/49 | | | | 238,699 | | | | 217,188 | |
| |
Federal National Mortgage Association, Pool #FM2870 | | | | | |
| | | |
3.00% | | | 03/01/50 | | | | 1,593,893 | | | | 1,399,419 | |
| |
Federal National Mortgage Association, Pool #FS1598 | | | | | |
| | | |
2.00% | | | 04/01/52 | | | | 7,433,109 | | | | 5,905,085 | |
| |
Federal National Mortgage Association, Pool #FS4233 | | | | | |
| | | |
4.50% | | | 12/01/52 | | | | 6,108,854 | | | | 5,812,495 | |
| |
Federal National Mortgage Association, Pool #FS4701 | | | | | |
| | | |
4.50% | | | 04/01/53 | | | | 7,242,918 | | | | 6,880,590 | |
| |
Federal National Mortgage Association, Pool #FS6953 | | | | | |
| | | |
4.00% | | | 02/01/53 | | | | 4,706,162 | | | | 4,356,629 | |
| |
Federal National Mortgage Association, Pool #MA1146 | | | | | |
| | | |
4.00% | | | 08/01/42 | | | | 508,453 | | | | 483,598 | |
| |
Federal National Mortgage Association, Pool #MA1561 | | | | | |
| | | |
3.00% | | | 09/01/33 | | | | 947,027 | | | | 899,088 | |
| |
Federal National Mortgage Association, Pool #MA1584 | | | | | |
| | | |
3.50% | | | 09/01/33 | | | | 1,368,515 | | | | 1,318,728 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal National Mortgage Association, Pool #MA3182 | | | | | |
| | | |
3.50% | | | 11/01/47 | | | $ | 272,376 | | | $ | 247,654 | |
| |
Federal National Mortgage Association, Pool #MA4093 | | | | | |
| | | |
2.00% | | | 08/01/40 | | | | 3,686,748 | | | | 3,121,786 | |
| |
Federal National Mortgage Association, Pool #MA4281 | | | | | |
| | | |
2.00% | | | 03/01/51 | | | | 6,811,649 | | | | 5,436,211 | |
| |
Federal National Mortgage Association, Pool #MA4387 | | | | | |
| | | |
2.00% | | | 07/01/41 | | | | 529,055 | | | | 446,399 | |
| |
Federal National Mortgage Association, Pool #MA4465 | | | | | |
| | | |
2.00% | | | 11/01/51 | | | | 2,013,225 | | | | 1,601,708 | |
| |
Federal National Mortgage Association, Pool #MA4512 | | | | | |
| | | |
2.50% | | | 01/01/52 | | | | 7,319,770 | | | | 6,080,563 | |
| |
Federal National Mortgage Association, Pool #MA4548 | | | | | |
| | | |
2.50% | | | 02/01/52 | | | | 6,754,288 | | | | 5,608,720 | |
| |
Federal National Mortgage Association, Pool #MA4562 | | | | | |
| | | |
2.00% | | | 03/01/52 | | | | 4,387,458 | | | | 3,485,528 | |
| |
Federal National Mortgage Association, Pool #MA4579 | | | | | |
| | | |
3.00% | | | 04/01/52 | | | | 6,658,663 | | | | 5,749,937 | |
| |
Federal National Mortgage Association, Pool #MA4644 | | | | | |
| | | |
4.00% | | | 05/01/52 | | | | 1,276,936 | | | | 1,182,294 | |
| |
Federal National Mortgage Association, Pool #MA4655 | | | | | |
| | | |
4.00% | | | 07/01/52 | | | | 4,265,740 | | | | 3,948,918 | |
| |
Federal National Mortgage Association, Pool #MA4839 | | | | | |
| | | |
4.00% | | | 12/01/52 | | | | 6,333,021 | | | | 5,858,732 | |
| |
Federal National Mortgage Association, Pool #MA4866 | | | | | |
| | | |
4.00% | | | 01/01/53 | | | | 4,966,639 | | | | 4,593,911 | |
| |
Federal National Mortgage Association, Pool #MA5138 | | | | | |
| | | |
5.50% | | | 09/01/53 | | | | 6,937,782 | | | | 6,877,775 | |
| |
Federal National Mortgage Association REMICS Series 2001-14, Class SH (I/F) | | | | | |
| | | |
10.43% (-30 day USD SOFR Average + 27.424%) (1) | | | 03/25/30 | | | | 21,628 | | | | 22,393 | |
| |
Federal National Mortgage Association REMICS Series 2001-34, Class FV | | | | | |
| | | |
5.47% (30 day USD SOFR Average + 0.614%) (1) | | | 08/25/31 | | | | 40,151 | | | | 40,110 | |
See accompanying Notes to Financial Statements.
10
TCW Core Fixed Income Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal National Mortgage Association REMICS Series 2007-89, Class GF | | | | | |
| | | |
5.49% (30 day USD SOFR Average + 0.634%) (1) | | | 09/25/37 | | | $ | 203,914 | | | $ | 203,252 | |
| |
Federal National Mortgage Association REMICS Series 2008-30, Class SA (I/O) (I/F) | | | | | |
| | | |
1.88% (-30 day USD SOFR Average + 6.736%) (1) | | | 04/25/38 | | | | 37,756 | | | | 4,082 | |
| |
Federal National Mortgage Association REMICS Series 2008-62, Class SN (I/O) (I/F) | | | | | |
| | | |
1.23% (-30 day USD SOFR Average + 6.086%) (1) | | | 07/25/38 | | | | 43,086 | | | | 2,948 | |
| |
Federal National Mortgage Association REMICS Series 2009-64, Class TB | | | | | |
| | | |
4.00% | | | 08/25/29 | | | | 319,864 | | | | 314,770 | |
| |
Federal National Mortgage Association REMICS Series 2009-68, Class SA (I/O) (I/F) | | | | | |
| | | |
1.78% (-30 day USD SOFR Average + 6.636%) (1) | | | 09/25/39 | | | | 31,594 | | | | 3,210 | |
| |
Federal National Mortgage Association REMICS Series 2010-26, Class AS (I/O) (I/F) | | | | | |
| | | |
1.36% (-30 day USD SOFR Average + 6.216%) (1) | | | 03/25/40 | | | | 455,503 | | | | 41,608 | |
| |
Federal National Mortgage Association REMICS Series 2011-111, Class DB | | | | | |
| | | |
4.00% | | | 11/25/41 | | | | 995,403 | | | | 951,575 | |
| |
Federal National Mortgage Association REMICS Series 2018-38, Class LA | | | | | |
| | | |
3.00% | | | 06/25/48 | | | | 755,922 | | | | 668,515 | |
| |
Federal National Mortgage Association REMICS Series 2018-43, Class CT | | | | | |
| | | |
3.00% | | | 06/25/48 | | | | 561,652 | | | | 496,783 | |
| |
Federal National Mortgage Association REMICS Series 2019-79, Class FA | | | | | |
| | | |
5.47% (30 day USD SOFR Average + 0.614%) (1) | | | 01/25/50 | | | | 1,360,826 | | | | 1,338,030 | |
| |
Federal National Mortgage Association REMICS Trust Series 2004-W10, Class A6 (PAC) | | | | | |
| | | |
5.75% | | | 08/25/34 | | | | 526,276 | | | | 537,622 | |
| |
Government National Mortgage Association, Pool #608259 | | | | | |
| | | |
4.50% | | | 08/15/33 | | | | 11,607 | | | | 11,566 | |
| |
Government National Mortgage Association, Pool #782114 | | | | | |
| | | |
5.00% | | | 09/15/36 | | | | 47,082 | | | | 47,793 | |
| |
Government National Mortgage Association, Pool #MA3521 | | | | | |
| | | |
3.50% | | | 03/20/46 | | | | 762,307 | | | | 698,319 | |
| |
Government National Mortgage Association, Pool #MA3597 | | | | | |
| | | |
3.50% | | | 04/20/46 | | | | 738,820 | | | | 676,000 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Government National Mortgage Association, Pool #MA3662 | | | | | |
| | | |
3.00% | | | 05/20/46 | | | $ | 329,112 | | | $ | 292,258 | |
| |
Government National Mortgage Association, Pool #MA3663 | | | | | |
| | | |
3.50% | | | 05/20/46 | | | | 721,076 | | | | 659,765 | |
| |
Government National Mortgage Association, Pool #MA4126 | | | | | |
| | | |
3.00% | | | 12/20/46 | | | | 1,980,490 | | | | 1,758,716 | |
| |
Government National Mortgage Association, Pool #MA4127 | | | | | |
| | | |
3.50% | | | 12/20/46 | | | | 1,037,542 | | | | 949,322 | |
| |
Government National Mortgage Association, Pool #MA4196 | | | | | |
| | | |
3.50% | | | 01/20/47 | | | | 610,498 | | | | 558,589 | |
| |
Government National Mortgage Association, Pool #MA4454 | | | | | |
| | | |
5.00% | | | 05/20/47 | | | | 247,338 | | | | 247,090 | |
| |
Government National Mortgage Association, Pool #MA4510 | | | | | |
| | | |
3.50% | | | 06/20/47 | | | | 291,812 | | | | 266,360 | |
| |
Government National Mortgage Association, Pool #MA4589 | | | | | |
| | | |
5.00% | | | 07/20/47 | | | | 581,727 | | | | 580,517 | |
| |
Government National Mortgage Association, Pool #MA4722 | | | | | |
| | | |
5.00% | | | 09/20/47 | | | | 191,247 | | | | 191,053 | |
| |
Government National Mortgage Association, Pool #MA4777 | | | | | |
| | | |
3.00% | | | 10/20/47 | | | | 235,795 | | | | 209,162 | |
| |
Government National Mortgage Association, Pool #MA4836 | | | | | |
| | | |
3.00% | | | 11/20/47 | | | | 922,269 | | | | 816,728 | |
| |
Government National Mortgage Association, Pool #MA4837 | | | | | |
| | | |
3.50% | | | 11/20/47 | | | | 1,902,985 | | | | 1,737,003 | |
| |
Government National Mortgage Association, Pool #MA4838 | | | | | |
| | | |
4.00% | | | 11/20/47 | | | | 542,381 | | | | 511,531 | |
| |
Government National Mortgage Association, Pool #MA4901 | | | | | |
| | | |
4.00% | | | 12/20/47 | | | | 927,495 | | | | 874,383 | |
| |
Government National Mortgage Association, Pool #MA5078 | | | | | |
| | | |
4.00% | | | 03/20/48 | | | | 656,801 | | | | 619,190 | |
| |
Government National Mortgage Association, Pool #MA5399 | | | | | |
| | | |
4.50% | | | 08/20/48 | | | | 1,300,246 | | | | 1,258,368 | |
| |
Government National Mortgage Association, Pool #MA5466 | | | | | |
| | | |
4.00% | | | 09/20/48 | | | | 45,094 | | | | 42,453 | |
See accompanying Notes to Financial Statements.
11
TCW Core Fixed Income Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Government National Mortgage Association, Pool #MA5467 | | | | | |
| | | |
4.50% | | | 09/20/48 | | | $ | 79,250 | | | $ | 76,635 | |
| |
Government National Mortgage Association, Pool #MA6030 | | | | | |
| | | |
3.50% | | | 07/20/49 | | | | 68,830 | | | | 61,389 | |
| |
Government National Mortgage Association, Pool #MA6209 | | | | | |
| | | |
3.00% | | | 10/20/49 | | | | 515,710 | | | | 444,020 | |
| |
Government National Mortgage Association, Pool #MA8347 | | | | | |
| | | |
4.50% | | | 10/20/52 | | | | 4,907,015 | | | | 4,690,994 | |
| |
Government National Mortgage Association REMICS Series 2008-27, Class SI (I/O) (I/F) | | | | | |
| | | |
1.60% (-1 mo. USD Term SOFR + 6.356%) (1) | | | 03/20/38 | | | | 125,267 | | | | 11,775 | |
| |
Government National Mortgage Association REMICS Series 2008-81, Class S (I/O) (I/F) | | | | | |
| | | |
1.33% (-1 mo. USD Term SOFR + 6.086%) (1) | | | 09/20/38 | | | | 484,963 | | | | 41,491 | |
| |
Government National Mortgage Association REMICS Series 2010-1, Class S (I/O) (I/F) | | | | | |
| | | |
0.88% (-1 mo. USD Term SOFR + 5.636%) (1) | | | 01/20/40 | | | | 733,585 | | | | 56,625 | |
| |
Government National Mortgage Association REMICS Series 2018-124, Class NW | | | | | |
| | | |
3.50% | | | 09/20/48 | | | | 659,175 | | | | 594,820 | |
| |
Government National Mortgage Association REMICS Series 2023-134, Class F | | | | | |
| | | |
5.89% (30 day USD SOFR Average + 1.000%) (1) | | | 08/20/53 | | | | 845,533 | | | | 845,147 | |
| |
Government National Mortgage Association REMICS Series 2024-30, Class CF | | | | | |
| | | |
6.14% (30 day USD SOFR Average + 1.250%) (1) | | | 02/20/54 | | | | 1,027,366 | | | | 1,028,501 | |
| |
Government National Mortgage Association REMICS Series 2024-97, Class FW | | | | | |
| | | |
6.04% (30 day USD SOFR Average + 1.150%) (1) | | | 06/20/54 | | | | 243,881 | | | | 244,374 | |
| |
Government National Mortgage Association, TBA | | | | | |
| | | |
2.50% (6) | | | 12/01/51 | | | | 13,325,000 | | | | 11,294,810 | |
| | | |
4.00% (6) | | | 05/01/52 | | | | 10,125,000 | | | | 9,427,332 | |
| | | |
4.50% (6) | | | 05/01/54 | | | | 8,025,000 | | | | 7,661,066 | |
| | | |
5.00% (6) | | | 06/01/54 | | | | 11,575,000 | | | | 11,304,868 | |
| | | |
5.50% (6) | | | 06/01/54 | | | | 6,000,000 | | | | 5,966,301 | |
| |
Uniform Mortgage-Backed Security, TBA | | | | | |
| | | |
2.00% (6) | | | 11/01/51 | | | | 3,925,000 | | | | 3,111,663 | |
| | | |
2.50% (6) | | | 12/01/51 | | | | 3,075,000 | | | | 2,545,946 | |
| | | |
3.00% (6) | | | 01/01/52 | | | | 5,350,000 | | | | 4,606,232 | |
| | | |
3.50% (6) | | | 02/01/52 | | | | 15,975,000 | | | | 14,288,871 | |
| | | |
4.00% (6) | | | 04/01/52 | | | | 625,000 | | | | 577,783 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| | | |
4.50% (6) | | | 04/01/54 | | | $ | 4,750,000 | | | $ | 4,511,265 | |
| | | |
5.00% (6) | | | 04/01/54 | | | | 10,250,000 | | | | 9,957,655 | |
| | | |
5.50% (6) | | | 04/01/54 | | | | 5,100,000 | | | | 5,051,088 | |
| | | | | | | | | | | | |
| |
Total Residential Mortgage-Backed Securities — Agency | | | | | |
| |
(Cost: $337,506,059) | | | | 321,420,056 | |
| | | | | | | | | | | | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY — 6.9% | |
| |
Ajax Mortgage Loan Trust Series 2019-F, Class A1 | | | | | |
| | | |
2.86% (2) | | | 07/25/59 | | | | 1,437,737 | | | | 1,374,129 | |
| |
Bayview MSR Opportunity Master Fund Trust Series 2021-5, Class A5 | | | | | |
| | | |
2.50% (2),(5) | | | 11/25/51 | | | | 3,512,748 | | | | 3,082,441 | |
| |
Citigroup Mortgage Loan Trust, Inc. Series 2005-5, Class 2A2 | | | | | |
| | | |
5.75% (7) | | | 08/25/35 | | | | 118,091 | | | | 99,555 | |
| |
Citigroup Mortgage Loan Trust, Inc. Series 2006-AMC1, Class A1 | | | | | |
| | | |
5.14% (1 mo. USD Term SOFR + 0.404%) (1),(2) | | | 09/25/36 | | | | 5,163,549 | | | | 4,962,919 | |
| |
CSMC Trust Series 2018-RPL9, Class A | | | | | |
| | | |
3.85% (2),(5) | | | 09/25/57 | | | | 1,949,875 | | | | 1,860,315 | |
| |
CSMC Trust Series 2022-ATH2, Class A1 | | | | | |
| | | |
4.55% (2),(5) | | | 05/25/67 | | | | 3,011,430 | | | | 2,977,206 | |
| |
Fremont Home Loan Trust Series 2005-E, Class 2A4 | | | | | |
| | | |
5.51% (1 mo. USD Term SOFR + 0.774%) (1) | | | 01/25/36 | | | | 3,735,650 | | | | 3,571,957 | |
| |
GS Mortgage-Backed Securities Trust Series 2018-RPL1, Class A1A | | | | | |
| | | |
3.75% (2) | | | 10/25/57 | | | | 1,491,404 | | | | 1,450,832 | |
| |
GS Mortgage-Backed Securities Trust Series 2021-INV1, Class A6 | | | | | |
| | | |
2.50% (2),(5) | | | 12/25/51 | | | | 3,344,165 | | | | 2,933,331 | |
| |
GSAA Home Equity Trust Series 2005-11, Class 2A2 | | | | | |
| | | |
5.49% (1 mo. USD Term SOFR + 0.754%) (1) | | | 10/25/35 | | | | 416,213 | | | | 431,282 | |
| |
IndyMac INDX Mortgage Loan Trust Series 2005-AR6, Class 2A1 | | | | | |
| | | |
5.18% (1 mo. USD Term SOFR + 0.594%) (1) | | | 04/25/35 | | | | 419,988 | | | | 343,845 | |
| |
JPMorgan Mortgage Trust Series 2021-14, Class A3 | | | | | |
| | | |
2.50% (2),(5) | | | 05/25/52 | | | | 4,511,294 | | | | 3,658,295 | |
| |
JPMorgan Mortgage Trust Series 2021-INV3, Class A3 | | | | | |
| | | |
2.50% (2),(5) | | | 12/25/51 | | | | 6,518,575 | | | | 5,726,270 | |
| |
JPMorgan Mortgage Trust Series 2021-INV5, Class A3 | | | | | |
| | | |
3.00% (2),(5) | | | 12/25/51 | | | | 4,992,096 | | | | 4,513,580 | |
| |
JPMorgan Mortgage Trust Series 2022-1, Class A3 | | | | | |
| | | |
2.50% (2),(5) | | | 07/25/52 | | | | 7,956,046 | | | | 6,469,183 | |
See accompanying Notes to Financial Statements.
12
TCW Core Fixed Income Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
Morgan Stanley ABS Capital I, Inc. Trust Series 2004-WMC2, Class M1 | | | | | |
| | | |
5.77% (1 mo. USD Term SOFR + 1.029%) (1) | | | 07/25/34 | | | $ | 436,893 | | | $ | 453,714 | |
| |
Morgan Stanley Mortgage Loan Trust Series 2004-3, Class 4A | | | | | |
| | | |
5.65% (5) | | | 04/25/34 | | | | 61,580 | | | | 58,466 | |
| |
Park Place Securities, Inc. Asset-Backed Pass-Through Certificates Series 2005-WCW2, Class M3 | | | | | |
| | | |
5.68% (1 mo. USD Term SOFR + 0.939%) (1) | | | 07/25/35 | | | | 5,000,000 | | | | 4,829,113 | |
| |
Starwood Mortgage Residential Trust Series 2021-3, Class A1 | | | | | |
| | | |
1.13% (2),(5) | | | 06/25/56 | | | | 2,051,197 | | | | 1,732,610 | |
| |
Structured Asset Investment Loan Trust Series 2004-6, Class A3 | | | | | |
| | | |
5.65% (1 mo. USD Term SOFR + 0.914%) (1) | | | 07/25/34 | | | | 1,368,523 | | | | 1,391,830 | |
| |
WaMu Mortgage Pass-Through Certificates Trust Series 2005-AR15, Class A1A1 | | | | | |
| | | |
5.37% (1 mo. USD Term SOFR + 0.634%) (1) | | | 11/25/45 | | | | 3,580,818 | | | | 3,366,164 | |
| |
WaMu Mortgage Pass-Through Certificates Trust Series 2005-AR3, Class A2 | | | | | |
| | | |
5.12% (5) | | | 03/25/35 | | | | 397,193 | | | | 393,726 | |
| |
Wells Fargo Alternative Loan Trust Series 2007-PA3, Class 2A1 | | | | | |
| | | |
6.00% (7) | | | 07/25/37 | | | | 37,702 | | | | 33,003 | |
| |
Wells Fargo Home Equity Asset-Backed Securities Trust Series 2004-2, Class A33 | | | | | |
| | | |
5.85% (1 mo. USD Term SOFR + 1.114%) (1) | | | 10/25/34 | | | | 2,280,181 | | | | 2,306,921 | |
| | | | | | | | | | | | |
| |
Total Residential Mortgage-Backed Securities — Non-Agency | | | | | |
| |
(Cost: $59,944,779) | | | | 58,020,687 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| U.S. TREASURY SECURITIES — 32.5% | |
| |
U.S. Treasury Bonds | | | | | |
| | | |
4.13% | | | 08/15/44 | | | $ | 49,335,000 | | | $ | 46,328,649 | |
| | | |
4.25% | | | 08/15/54 | | | | 42,742,000 | | | | 41,132,497 | |
| | | |
4.50% | | | 11/15/54 | | | | 835,000 | | | | 837,910 | |
| |
U.S. Treasury Notes | | | | | |
| | | |
3.50% | | | 09/30/26 | | | | 2,240,000 | | | | 2,212,875 | |
| | | |
3.50% | | | 09/30/29 | | | | 12,833,000 | | | | 12,467,560 | |
| | | |
3.88% | | | 10/15/27 | | | | 1,145,000 | | | | 1,137,262 | |
| | | |
3.88% | | | 08/15/34 | | | | 48,311,000 | | | | 46,744,667 | |
| | | |
4.00% | | | 11/15/27 | | | | 70,000 | | | | 69,793 | |
| | | |
4.13% | | | 10/31/26 | | | | 37,495,000 | | | | 37,470,101 | |
| | | |
4.13% | | | 10/31/29 | | | | 84,091,000 | | | | 84,015,449 | |
| | | | | | | | | | | | |
| |
Total U.S. Treasury Securities | | | | | |
| |
(Cost: $278,478,531) | | | | 272,416,763 | |
| | | | | | | | | | | | |
| |
Total Fixed Income Securities | | | | | |
| | |
(Cost: $918,956,625) | | | | | | | | 884,060,050 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| | | | | | Shares | | | | |
|
| MONEY MARKET INVESTMENTS — 7.0% | |
| | |
TCW Central Cash Fund, 4.84%, (8),(9) |
| | | 58,589,783 | | | | 58,589,783 | |
| | | | | | | | | | | | |
| | |
Total Money Market Investments | | | | | | | | | |
| | |
(Cost: $58,589,783) | | | | | | | | 58,589,783 | |
| | | | | | | | | | | | |
| | |
Total Investments (112.4%) | | | | | | | | | |
| | |
(Cost: $977,546,408) | | | | | | | | 942,649,833 | |
| |
Liabilities In Excess Of Other Assets (-12.4%) | | | | (103,945,335 | ) |
| | | | | | | | | | | | |
| | |
Net Assets (100.0%) | | | | | | | $ | 838,704,498 | |
| | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
13
TCW Core Fixed Income Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | | | | | | | |
| Futures Contracts | |
| | | | | |
Number of
Contracts | | Type | | Expiration
Date | | | Notional | | | Market
Value | | | Net Unrealized
Appreciation
(Depreciation) | |
Long Futures | |
| 1,402 | | 2-Year U.S. Treasury Note Futures | | | 12/31/24 | | | $ | 291,273,661 | | | $ | 288,735,325 | | | $ | (2,538,336 | ) |
| 378 | | 5-Year U.S. Treasury Note Futures | | | 12/31/24 | | | | 41,132,461 | | | | 40,534,593 | | | | (597,868 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | $ | 332,406,122 | | | $ | 329,269,918 | | | $ | (3,136,204 | ) |
| | | | | | | | | | | | | | | | | | |
Short Futures | |
| 17 | | 10-Year U.S. Treasury Note Futures | | | 12/19/24 | | | $ | (1,942,896 | ) | | $ | (1,877,969 | ) | | $ | 64,927 | |
| 11 | | 30-Year Euro-Buxl Future | | | 12/6/24 | | | | (1,622,599 | ) | | | (1,580,663 | ) | | | 41,936 | |
| 12 | | Euro-Bobl Future | | | 12/6/24 | | | | (1,552,291 | ) | | | (1,539,235 | ) | | | 13,056 | |
| 71 | | Euro-Bund Future | | | 12/6/24 | | | | (10,332,656 | ) | | | (10,159,297 | ) | | | 173,359 | |
| 4 | | Long Gilt Futures | | | 12/27/24 | | | | (510,980 | ) | | | (483,610 | ) | | | 27,370 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | $ | (15,961,422 | ) | | $ | (15,640,774 | ) | | $ | 320,648 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Forward Currency Exchange Contracts | |
| | | | | | |
| Counterparty | | Contracts to
Deliver | | | Units of
Currency | | | Settlement
Date | | | In Exchange for
U.S. Dollars | | | Contracts at
Value | | | Unrealized
Appreciation
(Depreciation) | |
BUY (10) | | | | | | | | | | | | | | | | | | | | | | | | |
Bank of America | | | EUR | | | | 89,000 | | | | 01/17/25 | | | $ | 96,521 | | | $ | 96,935 | | | $ | 414 | |
Goldman Sachs & Co. | | | EUR | | | | 824,000 | | | | 01/17/25 | | | | 893,302 | | | | 897,466 | | | | 4,164 | |
Citibank N.A. | | | EUR | | | | 542,000 | | | | 01/17/25 | | | | 592,638 | | | | 590,325 | | | | (2,313 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 1,582,461 | | | $ | 1,584,726 | | | $ | 2,265 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
SELL (11) | | | | | | | | | | | | | | | | | | | | | | | | |
Goldman Sachs & Co. | | | EUR | | | | 715,000 | | | | 01/17/25 | | | $ | 776,673 | | | $ | 778,748 | | | $ | (2,075 | ) |
Citibank N.A. | | | EUR | | | | 14,727,000 | | | | 01/17/25 | | | | 16,239,501 | | | | 16,040,020 | | | | 199,481 | |
Citibank N.A. | | | GBP | | | | 564,000 | | | | 01/17/25 | | | | 738,062 | | | | 724,948 | | | | 13,114 | |
Bank of America | | | EUR | | | | 161,000 | | | | 01/17/25 | | | | 177,435 | | | | 175,354 | | | | 2,081 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 17,931,671 | | | $ | 17,719,070 | | | $ | 212,601 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Centrally Cleared — Interest Rate Swap Agreements | |
| | | | | | | | |
Notional
Amount | | Expiration
Date | | | Payment
Made by
Fund
Frequency | | | Payment
Made by
Fund | | | Payment
Received
by Fund
Frequency | | | Payment
Received by
Fund | | | Unrealized
Appreciation
(Depreciation) | | | Premium
Paid | | | Value | |
$8,888,000 | | | 12/20/53 | | | | Annual | | | | 3.520 | % | | | Annual | | | | 12-Month SOFR | | | $ | 237,905 | | | $ | — | | | $ | 237,905 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
14
TCW Core Fixed Income Fund
October 31, 2024
Notes to the Schedule of Investments:
| ABS | | Asset-Backed Securities. |
| CLO | | Collateralized Loan Obligation. |
| EETC | | Enhanced Equipment Trust Certificate. |
| I/F | | Inverse Floating rate security whose interest rate moves in the opposite direction of prevailing interest rates. |
| I/O | | Interest Only Security. |
| PAC | | Planned Amortization Class. |
| REIT | | Real Estate Investment Trust. |
| REMICS | | Real Estate Mortgage Investment Conduits. |
| SOFR | | Secured Overnight Financing Rate. |
| TAC | | Target Amortization Class. |
| GBP | | British Pound Sterling. |
| (1) | | Floating or variable rate security. The interest shown reflects the rate in effect at October 31, 2024. |
| (2) | | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold, normally only to qualified institutional buyers. At October 31, 2024, the value of these securities amounted to $142,042,140 or 16.9% of net assets. These securities are determined to be liquid by the Fund’s investment advisor, unless otherwise noted, under procedures established by and under the general supervision of the Company’s Board of Directors. |
| (3) | | Investments issued under Regulation S of the Securities Act of 1933, as amended, may not be offered, sold, or delivered within the United States except under special exemptions. At October 31, 2024, the value of these securities amounted to $9,586,839 or 1.1% of net assets. |
| (4) | | For fair value measurement disclosure purposes, security is categorized as Level 3. Security is valued using significant unobservable inputs. |
| (5) | | Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| (6) | | Security purchased on a forward commitment with an approximate principal amount. The actual principal amount and maturity date will be determined upon settlement when the security is delivered. |
| (7) | | A portion of the principal balance has been written-off during the period due to defaults in the underlying loans. Cost basis has been adjusted. |
| (8) | | Rate disclosed is the 7-day net yield as of October 31, 2024. |
| (10) | | Fund buys foreign currency, sells U.S. Dollar. |
| (11) | | Fund sells foreign currency, buys U.S. Dollar. |
The summary of the TCW Core Fixed Income Fund transactions in the affiliated funds for the period ended October 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Name of
Affiliated
Fund | | Value at
October 31,
2023 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Number
of Shares
Held
October 31,
2024 | | | Value at
October 31,
2024 | | | Dividends and
Interest
Income
Received | | | Distributions
Received from
Net Realized
Gain | | | Net Realized
Gain (Loss)
on
Investments | | | Net change in
Unrealized
Gain (Loss)
on
Investments | |
TCW Central Cash Fund | | | | | | | | | | | | | |
| | $ | — | | | $ | 684,789,783 | | | $ | 626,200,000 | | | | 58,589,783 | | | $ | 58,589,783 | | | $ | 1,161,384 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 58,589,783 | | | $ | 1,161,384 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
15
TCW Core Fixed Income Fund
Fair Valuation Summary | October 31, 2024 |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
Description | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | | Other
Significant
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Total | |
Fixed Income Securities | | | | | | | | | | | | | | | | |
Residential Mortgage-Backed Securities — Agency | | $ | — | | | $ | 321,420,056 | | | $ | — | | | $ | 321,420,056 | |
U.S. Treasury Securities | | | 272,416,763 | | | | — | | | | — | | | | 272,416,763 | |
Corporate Bonds | | | — | | | | 134,692,491 | | | | — | | | | 134,692,491 | |
Residential Mortgage-Backed Securities — Non-Agency | | | — | | | | 58,020,687 | | | | — | | | | 58,020,687 | |
Asset-Backed Securities | | | — | | | | 50,767,636 | | | | 3,596,945 | | | | 54,364,581 | |
Commercial Mortgage-Backed Securities — Non-Agency | | | — | | | | 32,123,197 | | | | — | | | | 32,123,197 | |
Municipal Bonds | | | — | | | | 5,707,850 | | | | — | | | | 5,707,850 | |
Commercial Mortgage-Backed Securities — Agency | | | — | | | | 5,314,425 | | | | — | | | | 5,314,425 | |
| | | | | | | | | | | | | | | | |
Total Fixed Income Securities | | | 272,416,763 | | | | 608,046,342 | | | | 3,596,945 | | | | 884,060,050 | |
| | | | | | | | | | | | | | | | |
Money Market Investments | | | 58,589,783 | | | | — | | | | — | | | | 58,589,783 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 331,006,546 | | | $ | 608,046,342 | | | $ | 3,596,945 | | | $ | 942,649,833 | |
| | | | | | | | | | | | | | | | |
Asset Derivatives | | | | | | | | | | | | | | | | |
Futures Contracts | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | 320,648 | | | | — | | | | — | | | | 320,648 | |
Swap Agreements | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | — | | | | 237,905 | | | | — | | | | 237,905 | |
Forward Currency Exchange Contracts | | | | | | | | | | | | | | | | |
Foreign Currency Risk | | | — | | | | 219,254 | | | | — | | | | 219,254 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 331,327,194 | | | $ | 608,503,501 | | | $ | 3,596,945 | | | $ | 943,427,640 | |
| | | | | | | | | | | | | | | | |
Liability Derivatives | | | | | | | | | | | | | | | | |
Futures Contracts | | | | | | | | | | | | | | | | |
Interest Rate Risk | | $ | (3,136,204 | ) | | $ | — | | | $ | — | | | $ | (3,136,204 | ) |
Forward Currency Exchange Contracts | | | | | | | | | | | | | | | | |
Foreign Currency Risk | | | — | | | | (4,388 | ) | | | — | | | | (4,388 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (3,136,204 | ) | | $ | (4,388 | ) | | $ | — | | | $ | (3,140,592 | ) |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
16
TCW Global Bond Fund
Schedule of Investments | October 31, 2024 |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
FIXED INCOME SECURITIES — 109.8% of Net Assets | |
|
CORPORATE BONDS — 15.9% | |
|
| Aerospace & Defense — 0.5% | |
| |
Boeing Co. | | | | | |
| | | |
6.53% (1) | | | 05/01/34 | | | $ | 10,000 | | | $ | 10,546 | |
| |
General Electric Co. | | | | | |
| | | |
5.86% (3 mo. USD Term SOFR + 0.742%) (2) | | | 08/15/36 | | | | 100,000 | | | | 93,785 | |
| | | | | | | | | | | | |
| |
| | | | 104,331 | |
| | | | | | | | | | | | |
|
| Airlines — 0.3% | |
| |
Delta Air Lines Pass-Through Trust Series 2020-1, Class AA | | | | | |
| | | |
2.00% | | | 12/10/29 | | | | 68,474 | | | | 63,773 | |
| | | | | | | | | | | | |
|
| Banks — 4.2% | |
| |
Bank of America Corp. | | | | | |
| | | |
2.30% (1 day USD SOFR + 1.220%) (2) | | | 07/21/32 | | | | 75,000 | | | | 63,095 | |
| |
China Development Bank | | | | | |
| | | |
2.77% | | | 10/24/32 | | | CNY | 410,000 | | | | 59,903 | |
| | | |
3.09% | | | 06/18/30 | | | CNY | 1,530,000 | | | | 226,879 | |
| | | |
3.48% | | | 01/08/29 | | | CNY | 200,000 | | | | 29,831 | |
| |
Citigroup, Inc. | | | | | |
| | | |
3.06% (1 day USD SOFR + 1.351%) (2) | | | 01/25/33 | | | | 5,000 | | | | 4,350 | |
| |
JPMorgan Chase & Co. | | | | | |
| | | |
2.07% (1 day USD SOFR + 1.015%) (2) | | | 06/01/29 | | | | 20,000 | | | | 18,189 | |
| |
Kreditanstalt fuer Wiederaufbau (Germany) | | | | | |
| | | |
0.63% | | | 01/07/28 | | | | 181,000 | | | | 185,440 | |
| |
Morgan Stanley | | | | | |
| | | |
2.24% (1 day USD SOFR + 1.178%) (2) | | | 07/21/32 | | | $ | 5,000 | | | | 4,189 | |
| | | |
3.96% (3 mo. EUR EURIBOR + 1.242%) (2) | | | 03/21/35 | | | EUR | 100,000 | | | | 110,271 | |
| |
PNC Financial Services Group, Inc. | | | | | |
| | | |
5.58% (1 day USD SOFR + 1.841%) (2) | | | 06/12/29 | | | | 30,000 | | | | 30,670 | |
| |
U.S. Bancorp | | | | | |
| | | |
4.65% (1 day USD SOFR + 1.230%) (2) | | | 02/01/29 | | | | 30,000 | | | | 29,836 | |
| |
Wells Fargo & Co. | | | | | |
| | | |
2.39% (1 day USD SOFR + 2.100%) (2) | | | 06/02/28 | | | | 60,000 | | | | 56,457 | |
| | | |
2.57% (3 mo. USD LIBOR + 1.000%) (2) | | | 02/11/31 | | | | 5,000 | | | | 4,433 | |
| | | | | | | | | | | | |
| |
| | | | 823,543 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Building Materials — 1.1% | |
| |
Cemex SAB de CV (Mexico) | | | | | |
| | | |
9.13% (5 yr. CMT + 5.157%) (1),(2),(3) | | | 03/14/28 | | | $ | 200,000 | | | $ | 213,266 | |
| | | | | | | | | | | | |
|
| Chemicals — 0.5% | |
| |
International Flavors & Fragrances, Inc. | | | | | |
| | | |
1.80% | | | 09/25/26 | | | | 100,000 | | | | 105,652 | |
| | | | | | | | | | | | |
|
| Commercial Services — 0.0% | |
| |
Valvoline, Inc. | | | | | |
| | | |
3.63% (1) | | | 06/15/31 | | | | 10,000 | | | | 8,688 | |
| | | | | | | | | | | | |
|
| Cosmetics/Personal Care — 0.1% | |
| |
Prestige Brands, Inc. | | | | | |
| | | |
3.75% (1) | | | 04/01/31 | | | | 22,000 | | | | 19,701 | |
| | | | | | | | | | | | |
|
| Diversified Financial Services — 0.6% | |
| |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland) | | | | | |
| | | |
2.45% | | | 10/29/26 | | | | 20,000 | | | | 19,092 | |
| | | |
3.88% | | | 01/23/28 | | | | 10,000 | | | | 9,688 | |
| |
Air Lease Corp. | | | | | |
| | | |
5.85% | | | 12/15/27 | | | | 20,000 | | | | 20,591 | |
| |
Avolon Holdings Funding Ltd. (Ireland) | | | | | |
| | | |
2.53% (1) | | | 11/18/27 | | | | 24,000 | | | | 22,189 | |
| | | |
2.88% (1) | | | 02/15/25 | | | | 30,000 | | | | 29,775 | |
| |
GGAM Finance Ltd. (Ireland) | | | | | |
| | | |
8.00% (1) | | | 02/15/27 | | | | 15,000 | | | | 15,508 | |
| | | | | | | | | | | | |
| |
| | | | 116,843 | |
| | | | | | | | | | | | |
|
| Electric — 1.5% | |
| |
Alpha Generation LLC | | | | | |
| | | |
6.75% (1) | | | 10/15/32 | | | | 5,000 | | | | 5,077 | |
| |
Amprion GmbH (Germany) | | | | | |
| | | |
0.63% (4) | | | 09/23/33 | | | | 100,000 | | | | 84,900 | |
| | | |
Duke Energy Corp. | | | | | | | | | | | | |
| | | |
3.75% | | | 04/01/31 | | | | 100,000 | | | | 109,236 | |
| |
National Grid Electricity Transmission PLC (United Kingdom) | | | | | |
| | | |
0.82% (4) | | | 07/07/32 | | | | 100,000 | | | | 89,394 | |
| | | | | | | | | | | | |
| |
| | | | 288,607 | |
| | | | | | | | | | | | |
|
| Electronics — 0.6% | |
| |
Honeywell International, Inc. | | | | | |
| | | |
4.13% | | | 11/02/34 | | | | 100,000 | | | | 114,142 | |
| | | | | | | | | | | | |
|
| Engineering & Construction — 0.0% | |
| |
Artera Services LLC | | | | | |
| | | |
8.50% (1) | | | 02/15/31 | | | | 5,000 | | | | 4,960 | |
| | | | | | | | | | | | |
|
| Entertainment — 0.4% | |
| |
WarnerMedia Holdings, Inc. | | | | | |
| | | |
5.05% | | | 03/15/42 | | | | 10,000 | | | | 7,996 | |
| | | |
5.14% | | | 03/15/52 | | | | 85,000 | | | | 64,085 | |
| | | | | | | | | | | | |
| |
| | | | 72,081 | |
| | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
17
TCW Global Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Environmental Control — 0.0% | |
| |
GFL Environmental, Inc. (Canada) | | | | | |
| | | |
3.75% (1) | | | 08/01/25 | | | $ | 7,000 | | | $ | 6,936 | |
| | | | | | | | | | | | |
|
| Food — 0.4% | |
| |
JBS USA Holding Lux SARL/JBS USA Food Co./JBS Lux Co. SARL | | | | | |
| | | |
4.38% | | | 02/02/52 | | | | 20,000 | | | | 15,334 | |
| | | |
6.50% | | | 12/01/52 | | | | 25,000 | | | | 25,710 | |
| |
Pilgrim’s Pride Corp. | | | | | |
| | | |
4.25% | | | 04/15/31 | | | | 37,000 | | | | 34,403 | |
| |
Post Holdings, Inc. | | | | | |
| | | |
4.63% (1) | | | 04/15/30 | | | | 12,000 | | | | 11,232 | |
| | | | | | | | | | | | |
| |
| | | | 86,679 | |
| | | | | | | | | | | | |
|
| Health Care-Products — 0.6% | |
| |
Medtronic, Inc. | | | | | |
| | | |
3.65% | | | 10/15/29 | | | | 100,000 | | | | 111,496 | |
| | | | | | | | | | | | |
|
| Health Care-Services — 0.2% | |
| |
Catalent Pharma Solutions, Inc. | | | | | |
| | | |
3.50% (1) | | | 04/01/30 | | | | 10,000 | | | | 9,706 | |
| |
HAH Group Holding Co. LLC | | | | | |
| | | |
9.75% (1) | | | 10/01/31 | | | | 2,000 | | | | 2,041 | |
| |
Kedrion SpA (Italy) | | | | | |
| | | |
6.50% (1) | | | 09/01/29 | | | | 11,000 | | | | 10,346 | |
| |
ModivCare, Inc. | | | | | |
| | | |
5.00% (1) | | | 10/01/29 | | | | 21,000 | | | | 14,366 | |
| | | | | | | | | | | | |
| |
| | | | 36,459 | |
| | | | | | | | | | | | |
|
| Household Products/Wares — 0.0% | |
| |
Central Garden & Pet Co. | | | | | |
| | | |
4.13% | | | 10/15/30 | | | | 6,000 | | | | 5,448 | |
| | | | | | | | | | | | |
|
| Insurance — 0.2% | |
| |
Athene Global Funding | | | | | |
| | | |
1.99% (1) | | | 08/19/28 | | | | 20,000 | | | | 17,855 | |
| |
Farmers Exchange Capital II | | | | | |
| | | |
6.15% (3 mo. USD Term SOFR + 4.006%) (1),(2) | | | 11/01/53 | | | | 30,000 | | | | 28,872 | |
| | | | | | | | | | | | |
| |
| | | | 46,727 | |
| | | | | | | | | | | | |
|
| Internet — 0.2% | |
| |
Alibaba Group Holding Ltd. (China) | | | | | |
| | | |
2.13% | | | 02/09/31 | | | | 50,000 | | | | 42,759 | |
| | | | | | | | | | | | |
|
| Investment Companies — 0.1% | |
| |
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | | | | | |
| | | |
9.00% | | | 06/15/30 | | | | 9,000 | | | | 8,681 | |
| | | |
9.75% | | | 01/15/29 | | | | 5,000 | | | | 5,005 | |
| | | | | | | | | | | | |
| |
| | | | 13,686 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Media — 0.7% | |
| |
Charter Communications Operating LLC/Charter Communications Operating Capital | | | | | |
| | | |
5.38% | | | 05/01/47 | | | $ | 81,000 | �� | | $ | 66,237 | |
| |
CSC Holdings LLC | | | | | |
| | | |
6.50% (1) | | | 02/01/29 | | | | 45,000 | | | | 38,066 | |
| |
Sirius XM Radio, Inc. | | | | | |
| | | |
3.88% (1) | | | 09/01/31 | | | | 7,000 | | | | 6,024 | |
| |
VZ Secured Financing BV (Netherlands) | | | | | |
| | | |
5.00% (1) | | | 01/15/32 | | | | 23,000 | | | | 20,673 | |
| | | | | | | | | | | | |
| |
| | | | 131,000 | |
| | | | | | | | | | | | |
|
| Packaging & Containers — 0.6% | |
| |
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. | | | | | |
| | | |
4.13% (1) | | | 08/15/26 | | | | 5,000 | | | | 4,356 | |
| |
Berry Global, Inc. | | | | | |
| | | |
1.00% (4) | | | 01/15/25 | | | | 100,000 | | | | 108,033 | |
| | | | | | | | | | | | |
| |
| | | | 112,389 | |
| | | | | | | | | | | | |
|
| Pharmaceuticals — 1.1% | |
| |
1375209 BC Ltd. (Canada) | | | | | |
| | | |
9.00% (1) | | | 01/30/28 | | | | 15,000 | | | | 14,977 | |
| |
Bayer U.S. Finance II LLC | | | | | |
| | | |
4.63% (1) | | | 06/25/38 | | | | 51,000 | | | | 44,138 | |
| | | |
4.88% (1) | | | 06/25/48 | | | | 10,000 | | | | 8,227 | |
| |
CVS Health Corp. | | | | | |
| | | |
2.70% | | | 08/21/40 | | | | 25,000 | | | | 16,679 | |
| |
Grifols SA (Spain) | | | | | |
| | | |
4.75% (1) | | | 10/15/28 | | | | 15,000 | | | | 13,861 | |
| |
MSD Netherlands Capital BV | | | | | |
| | | |
3.70% | | | 05/30/44 | | | | 100,000 | | | | 109,770 | |
| | | | | | | | | | | | |
| |
| | | | 207,652 | |
| | | | | | | | | | | | |
|
| Pipelines — 0.1% | |
| |
Energy Transfer LP | | | | | |
| | | |
6.55% | | | 12/01/33 | | | | 3,000 | | | | 3,221 | |
| |
Venture Global LNG, Inc. | | | | | |
| | | |
7.00% (1) | | | 01/15/30 | | | | 4,000 | | | | 4,027 | |
| | | |
9.50% (1) | | | 02/01/29 | | | | 5,000 | | | | 5,530 | |
| | | | | | | | | | | | |
| |
| | | | 12,778 | |
| | | | | | | | | | | | |
|
| REIT — 1.3% | |
| |
American Assets Trust LP | | | | | |
| | | |
3.38% | | | 02/01/31 | | | | 40,000 | | | | 34,675 | |
| |
American Homes 4 Rent LP | | | | | |
| | | |
2.38% | | | 07/15/31 | | | | 35,000 | | | | 29,482 | |
| |
American Tower Corp. | | | | | |
| | | |
2.70% | | | 04/15/31 | | | | 20,000 | | | | 17,423 | |
| |
GLP Capital LP/GLP Financing II, Inc. | | | | | |
| | | |
4.00% | | | 01/15/30 | | | | 15,000 | | | | 13,982 | |
See accompanying Notes to Financial Statements.
18
TCW Global Bond Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| REIT (Continued) | |
| | | |
5.38% | | | 04/15/26 | | | $ | 10,000 | | | $ | 10,009 | |
| | | |
5.75% | | | 06/01/28 | | | | 5,000 | | | | 5,082 | |
| |
Healthcare Realty Holdings LP | | | | | |
| | | |
3.10% | | | 02/15/30 | | | | 40,000 | | | | 36,041 | |
| |
Hudson Pacific Properties LP | | | | | |
| | | |
3.25% | | | 01/15/30 | | | | 30,000 | | | | 21,964 | |
| | | |
3.95% | | | 11/01/27 | | | | 6,000 | | | | 5,391 | |
| |
LXP Industrial Trust | | | | | |
| | | |
2.70% | | | 09/15/30 | | | | 20,000 | | | | 17,311 | |
| |
VICI Properties LP | | | | | |
| | | |
5.13% | | | 05/15/32 | | | | 2,000 | | | | 1,960 | |
| |
VICI Properties LP/VICI Note Co., Inc. | | | | | |
| | | |
5.75% (1) | | | 02/01/27 | | | | 50,000 | | | | 50,415 | |
| | | | | | | | | | | | |
| |
| | | | 243,735 | |
| | | | | | | | | | | | |
|
| Retail — 0.2% | |
| |
Ferrellgas LP/Ferrellgas Finance Corp. | | | | | |
| | | |
5.38% (1) | | | 04/01/26 | | | | 5,000 | | | | 4,970 | |
| | | |
5.88% (1) | | | 04/01/29 | | | | 17,000 | | | | 15,889 | |
| |
Michaels Cos., Inc. | | | | | |
| | | |
5.25% (1) | | | 05/01/28 | | | | 20,000 | | | | 14,528 | |
| | | | | | | | | | | | |
| |
| | | | 35,387 | |
| | | | | | | | | | | | |
|
| Software — 0.0% | |
| |
Open Text Corp. (Canada) | | | | | |
| | | |
6.90% (1) | | | 12/01/27 | | | | 5,000 | | | | 5,205 | |
| | | | | | | | | | | | |
|
| Telecommunications — 0.4% | |
| |
Frontier Communications Holdings LLC | | | | | |
| | | |
5.88% (1) | | | 10/15/27 | | | | 6,000 | | | | 5,991 | |
| | | |
8.63% (1) | | | 03/15/31 | | | | 10,000 | | | | 10,741 | |
| |
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC | | | | | |
| | | |
4.74% (1) | | | 09/20/29 | | | | 8,750 | | | | 8,743 | |
| |
T-Mobile USA, Inc. | | | | | |
| | | |
2.63% | | | 04/15/26 | | | | 55,000 | | | | 53,338 | |
| | | | | | | | | | | | |
| |
| | | | 78,813 | |
| | | | | | | | | | | | |
|
Total Corporate Bonds | |
| |
(Cost: $3,189,578) | | | | 3,112,736 | |
| | | | | | | | | | | | |
|
| MUNICIPAL BONDS — 0.2% | |
| |
County of Miami-Dade Aviation Revenue, Revenue Bond | | | | | |
| | | |
2.86% | | | 10/01/35 | | | | 50,000 | | | | 41,007 | |
| | | | | | | | | | | | |
| |
Total Municipal Bonds | | | | | |
| |
(Cost: $50,724) | | | | 41,007 | |
| | | | | | | | | | | | |
|
| FOREIGN GOVERNMENT BONDS — 48.8% | |
| |
Australia Government Bonds | | | | | |
| | | |
3.00% (4) | | | 11/21/33 | | | AUD | 203,000 | | | | 118,598 | |
| | | |
3.25% (4) | | | 04/21/29 | | | AUD | 73,000 | | | | 46,202 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| FOREIGN GOVERNMENT BONDS (Continued) | |
| | | |
4.75% (4) | | | 04/21/27 | | | AUD | 93,000 | | | $ | 61,930 | |
| | | |
4.75% (4) | | | 06/21/54 | | | AUD | 25,000 | | | | 15,845 | |
| |
Brazil Notas do Tesouro Nacional Series F | | | | | |
| | | |
10.00% | | | 01/01/27 | | | BRL | 1,790,000 | | | | 293,476 | |
| |
Bundesobligation | | | | | |
| | | |
2.10% (4) | | | 04/12/29 | | | EUR | 40,000 | | | | 43,158 | |
| |
Bundesrepublik Deutschland Bundesanleihe | | | | | |
| | | |
0.00% (4),(5) | | | 05/15/36 | | | EUR | 217,000 | | | | 177,608 | |
| | | |
0.00% (4),(5) | | | 08/15/52 | | | EUR | 45,000 | | | | 24,210 | |
| | | |
2.50% (4) | | | 08/15/54 | | | EUR | 118,000 | | | | 125,545 | |
| |
Canada Government Bonds | | | | | |
| | | |
1.25% | | | 03/01/27 | | | CAD | 293,000 | | | | 201,900 | |
| |
China Government Bonds | | | | | |
| | | |
2.35% | | | 02/25/34 | | | CNY | 330,000 | | | | 47,143 | |
| | | |
2.85% | | | 06/04/27 | | | CNY | 810,000 | | | | 117,490 | |
| | | |
3.02% | | | 05/27/31 | | | CNY | 200,000 | | | | 29,928 | |
| | | |
3.13% | | | 11/21/29 | | | CNY | 2,810,000 | | | | 420,486 | |
| | | |
3.72% | | | 04/12/51 | | | CNY | 980,000 | | | | 174,497 | |
| |
Colombia TES Series B | | | | | |
| | | |
7.00% | | | 06/30/32 | | | COP | 105,300,000 | | | | 19,486 | |
| |
European Union | | | | | |
| | | |
0.00% (4),(5) | | | 06/02/28 | | | EUR | 129,000 | | | | 128,286 | |
| | | |
0.00% (4),(5) | | | 07/04/29 | | | EUR | 150,000 | | | | 144,978 | |
| | | |
0.20% (4) | | | 06/04/36 | | | EUR | — | | | | — | |
| | | |
2.75% (4) | | | 02/04/33 | | | EUR | 102,000 | | | | 110,045 | |
| |
French Republic Government Bonds OAT | | | | | |
| | | |
0.00% (4),(5) | | | 11/25/29 | | | EUR | 56,000 | | | | 53,034 | |
| | | |
0.50% (4) | | | 06/25/44 | | | EUR | 55,000 | | | | 35,171 | |
| | | |
0.75% (4) | | | 05/25/52 | | | EUR | 85,000 | | | | 47,747 | |
| | | |
0.75% (4) | | | 05/25/53 | | | EUR | 53,000 | | | | 29,092 | |
| | | |
1.00% (4) | | | 05/25/27 | | | EUR | 395,000 | | | | 412,922 | |
| | | |
3.00% (4) | | | 11/25/34 | | | EUR | 223,000 | | | | 239,522 | |
| |
Hungary Government Bonds | | | | | |
| | | |
3.00% | | | 08/21/30 | | | HUF | 2,250,000 | | | | 4,957 | |
| |
Indonesia Treasury Bonds | | | | | |
| | | |
6.63% | | | 05/15/33 | | | IDR | 1,520,000,000 | | | | 96,284 | |
| |
International Bank for Reconstruction & Development | | | | | |
| | | |
1.75% (4) | | | 03/13/25 | | | NOK | 650,000 | | | | 58,314 | |
| |
Israel Government Bonds — Fixed | | | | | |
| | | |
1.30% | | | 04/30/32 | | | ILS | 116,000 | | | | 24,382 | |
| |
Italy Buoni Poliennali Del Tesoro | | | | | |
| | | |
0.50% (4) | | | 02/01/26 | | | EUR | 245,000 | | | | 258,728 | |
| | | |
1.10% (4) | | | 04/01/27 | | | EUR | 20,000 | | | | 20,911 | |
| | | |
4.40% (4) | | | 05/01/33 | | | EUR | 165,000 | | | | 192,537 | |
| |
Japan Government Thirty Year Bonds | | | | | |
| | | |
0.40% | | | 03/20/50 | | | JPY | 42,350,000 | | | | 187,079 | |
| | | |
1.80% | | | 03/20/54 | | | JPY | 6,600,000 | | | | 39,808 | |
| |
Korea Treasury Bonds | | | | | |
| | | |
1.88% | | | 03/10/51 | | | KRW | 81,510,000 | | | | 47,927 | |
See accompanying Notes to Financial Statements.
19
TCW Global Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| FOREIGN GOVERNMENT BONDS (Continued) | |
| | | |
2.00% | | | 06/10/31 | | | KRW | 376,090,000 | | | $ | 254,827 | |
| | | |
2.38% | | | 03/10/27 | | | KRW | 63,350,000 | | | | 45,137 | |
| |
Malaysia Government Bonds | | | | | |
| | | |
4.64% | | | 11/07/33 | | | MYR | 562,000 | | | | 135,020 | |
| |
Mexico Bonos | | | | | |
| | | |
8.00% | | | 07/31/53 | | | MXN | 900,000 | | | | 35,292 | |
| |
Netherlands Government Bonds | | | | | |
| | | |
0.50% (4) | | | 07/15/32 | | | EUR | 76,000 | | | | 70,893 | |
| |
New Zealand Government Bonds | | | | | |
| | | |
0.50% | | | 05/15/26 | | | NZD | 794,000 | | | | 449,389 | |
| | | |
1.75% | | | 05/15/41 | | | NZD | 180,000 | | | | 69,283 | |
| | | |
2.00% | | | 05/15/32 | | | NZD | 71,000 | | | | 35,973 | |
| | | |
3.50% (4) | | | 04/14/33 | | | NZD | 42,000 | | | | 23,392 | |
| | | |
4.50% (4) | | | 04/15/27 | | | NZD | 845,000 | | | | 511,109 | |
| | | |
4.50% | | | 05/15/30 | | | NZD | 282,000 | | | | 171,092 | |
| |
Portugal Obrigacoes do Tesouro OT | | | | | |
| | | |
1.65% (4) | | | 07/16/32 | | | EUR | 95,000 | | | | 96,691 | |
| |
Province of Ontario | | | | | |
| | | |
4.05% | | | 02/02/32 | | | CAD | 209,000 | | | | 154,234 | |
| |
Republic of Poland Government Bonds | | | | | |
| | | |
1.75% | | | 04/25/32 | | | PLN | 308,000 | | | | 58,369 | |
| |
Republic of South Africa Government Bonds | | | | | |
| | | |
8.88% | | | 02/28/35 | | | ZAR | 570,000 | | | | 28,887 | |
| |
Romania Government Bonds | | | | | |
| | | |
6.70% | | | 02/25/32 | | | RON | 300,000 | | | | 64,653 | |
| |
Singapore Government Bonds | | | | | |
| | | |
1.63% | | | 07/01/31 | | | SGD | 75,000 | | | | 52,784 | |
| | | |
3.00% | | | 04/01/29 | | | SGD | 92,000 | | | | 70,525 | |
| |
Spain Government Bonds | | | | | |
| | | |
0.70% (4) | | | 04/30/32 | | | EUR | 24,000 | | | | 22,327 | |
| | | |
0.80% (4) | | | 07/30/27 | | | EUR | 42,000 | | | | 43,530 | |
| | | |
1.00% (4) | | | 07/30/42 | | | EUR | 32,000 | | | | 23,435 | |
| | | |
1.85% (4) | | | 07/30/35 | | | EUR | 98,000 | | | | 94,069 | |
| | | |
1.90% (4) | | | 10/31/52 | | | EUR | 26,000 | | | | 19,651 | |
| |
Sweden Government Bonds | | | | | |
| | | |
0.75% (4) | | | 05/12/28 | | | SEK | 690,000 | | | | 62,058 | |
| |
Thailand Government Bonds | | | | | |
| | | |
1.59% | | | 12/17/35 | | | THB | 2,018,000 | | | | 54,820 | |
| |
U.K. Gilts | | | | | |
| | | |
1.25% (4) | | | 10/22/41 | | | GBP | 99,000 | | | | 76,320 | |
| | | |
1.25% (4) | | | 07/31/51 | | | GBP | 80,000 | | | | 48,081 | |
| | | |
1.63% (4) | | | 10/22/28 | | | GBP | 920,000 | | | | 1,075,636 | |
| | | |
1.75% (4) | | | 09/07/37 | | | GBP | 95,000 | | | | 89,182 | |
| | | |
3.50% (4) | | | 10/22/25 | | | GBP | 700,000 | | | | 890,325 | |
| | | |
4.13% (4) | | | 07/22/29 | | | GBP | 277,000 | | | | 353,425 | |
| | | |
4.63% (4) | | | 01/31/34 | | | GBP | 224,000 | | | | 292,251 | |
| | | |
4.75% (4) | | | 12/07/30 | | | GBP | 14,000 | | | | 18,498 | |
| | | | | | | | | | | | |
| |
Total Foreign Government Bonds | | | | | |
| |
(Cost: $9,927,022) | | | | 9,540,384 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| ASSET-BACKED SECURITIES — 7.3% | |
| |
Adagio CLO VIII DAC Series VIII-X, Class B1 | | | | | |
| | | |
4.83% (3 mo. EUR EURIBOR + 1.650%) (2),(4) | | | 04/15/32 | | | $ | 100,000 | | | $ | 108,370 | |
| |
Arbour CLO II DAC Series 2014-2X, Class ARR | | | | | |
| | | |
4.04% (3 mo. EUR EURIBOR + 0.860%) (2),(4) | | | 04/15/34 | | | | 100,000 | | | | 107,800 | |
| |
Arbour CLO III DAC Series 3X, Class B1RR | | | | | |
| | | |
4.83% (3 mo. EUR EURIBOR + 1.650%) (2),(4) | | | 07/15/34 | | | | 100,000 | | | | 108,543 | |
| |
Aurium CLO IX DAC Series 9X, Class A | | | | | |
| | | |
4.02% (3 mo. EUR EURIBOR + 0.950%) (2),(4) | | | 10/28/34 | | | | 100,000 | | | | 108,190 | |
| |
Aurium CLO V DAC Series 5X, Class AR | | | | | |
| | | |
4.01% (3 mo. EUR EURIBOR + 0.790%) (2),(4) | | | 04/17/34 | | | | 100,000 | | | | 107,968 | |
| |
Bayview Opportunity Master Fund VII LLC Series 2024-EDU1, Class D | | | | | |
| | | |
7.61% (30 day USD SOFR Average + 2.750%) (1),(2) | | | 06/25/47 | | | | 88,529 | | | | 89,654 | |
| |
Contego CLO VI DAC Series 6X, Class AR | | | | | |
| | | |
3.97% (3 mo. EUR EURIBOR + 0.790%) (2),(4) | | | 04/15/34 | | | | 100,000 | | | | 108,049 | |
| |
Henley CLO VI DAC Series 6X, Class A | | | | | |
| | | |
4.09% (3 mo. EUR EURIBOR + 1.000%) (2),(4) | | | 06/10/34 | | | | 100,000 | | | | 108,484 | |
| |
Rockford Tower Europe CLO DAC Series 2021-2X, Class A | | | | | |
| | | |
4.06% (3 mo. EUR EURIBOR + 0.960%) (2),(4) | | | 01/24/35 | | | | 100,000 | | | | 107,995 | |
| |
RRE 2 Loan Management DAC Series 2X, Class A2R | | | | | |
| | | |
4.63% (3 mo. EUR EURIBOR + 1.450%) (2),(4) | | | 07/15/35 | | | | 100,000 | | | | 107,816 | |
| |
SLM Student Loan Trust Series 2008-5, Class B | | | | | |
| | | |
7.30% (90 day USD SOFR Average + 2.112%) (2) | | | 07/25/73 | | | | 50,000 | | | | 51,711 | |
| |
Student Loan Consolidation Center Student Loan Trust I Series 2002-2, Class B2 | | | | | |
| | | |
1.65% (28 day
ARS) (1),(2) | | | 07/01/42 | | | | 50,000 | | | | 46,212 | |
| |
TAL Advantage VII LLC Series 2020-1A, Class A | | | | | |
| | | |
2.05% (1) | | | 09/20/45 | | | | 57,125 | | | | 52,953 | |
| |
Textainer Marine Containers VII Ltd. Series 2021-2A, Class A | | | | | |
| | | |
2.23% (1) | | | 04/20/46 | | | | 82,800 | | | | 75,325 | |
| |
Vantage Data Centers Jersey Borrower SPV Ltd. Series 2024-1A, Class A2 | | | | | |
| | | |
6.17% (1) | | | 05/28/39 | | | | 100,000 | | | | 129,734 | |
| | | | | | | | | | | | |
| |
Total Asset-backed Securities | | | | | |
| |
(Cost: $1,382,130) | | | | 1,418,804 | |
| | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
20
TCW Global Bond Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
COMMERCIAL MORTGAGE-BACKED SECURITIES —
AGENCY — 0.1% | |
| |
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Series K041, Class X3 | | | | | |
| | | |
1.63% (6) | | | 11/25/42 | | | $ | 750,974 | | | $ | 8 | |
| |
Federal National Mortgage Association-Aces Series 2016-M2, Class X3 (I/O) | | | | | |
| | | |
2.04% (6) | | | 04/25/36 | | | | 121,756 | | | | 1 | |
| |
Federal National Mortgage Association-Aces Series 2016-M4, Class X2 (I/O) | | | | | |
| | | |
2.70% (6) | | | 01/25/39 | | | | 373,978 | | | | 1,963 | |
| |
Government National Mortgage Association Series 2012-144, Class IO (I/O) | | | | | |
| | | |
0.33% (6) | | | 01/16/53 | | | | 1,384,190 | | | | 13,508 | |
| | | | | | | | | | | | |
|
Total Commercial Mortgage-Backed Securities — Agency | |
| |
(Cost: $26,664) | | | | 15,480 | |
| | | | | | | | | | | | |
|
COMMERCIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY — 5.1% | |
| |
Bank Series 2021-BN35, Class A2 | | | | | |
| | | |
1.87% | | | 06/15/64 | | | | 105,000 | | | | 95,170 | |
| |
BHMS Mortgage Trust Series 2018-ATLS, Class C | | | | | |
| | | |
7.00% (1 mo. USD Term SOFR + 2.197%) (1),(2) | | | 07/15/35 | | | | 100,000 | | | | 99,796 | |
| |
BX Mortgage Trust Series 2021-PAC, Class B | | | | | |
| | | |
5.82% (1 mo. USD Term SOFR + 1.013%) (1),(2) | | | 10/15/36 | | | | 100,000 | | | | 98,979 | |
| |
BX Mortgage Trust Series 2021-PAC, Class E | | | | | |
| | | |
6.87% (1 mo. USD Term SOFR + 2.062%) (1),(2) | | | 10/15/36 | | | | 100,000 | | | | 99,299 | |
| |
BX Trust Series 2022-CLS, Class C | | | | | |
| | | |
6.79% (1) | | | 10/13/27 | | | | 90,000 | | | | 82,413 | |
| |
BXHPP Trust Series 2021-FILM, Class C | | | | | |
| | | |
6.02% (1 mo. USD Term SOFR + 1.214%) (1),(2) | | | 08/15/36 | | | | 89,000 | | | | 83,200 | |
| |
COMM Mortgage Trust Series 2012-CR4, Class XA (I/O) | | | | | |
| | | |
1.14% (6) | | | 10/15/45 | | | | 167,201 | | | | 1,815 | |
| |
GS Mortgage Securities Trust Series 2010-C1, Class X (I/O) | | | | | |
| | | |
0.44% (1),(6) | | | 08/10/43 | | | | 940,267 | | | | 2,308 | |
| |
GS Mortgage Securities Trust Series 2020-GSA2, Class A5 | | | | | |
| | | |
2.01% | | | 12/12/53 | | | | 107,000 | | | | 88,962 | |
| |
JPMorgan Chase Commercial Mortgage Securities Trust Series 2011-C3, Class XB (I/O) | | | | | |
| | | |
0.39% (1),(6) | | | 02/15/46 | | | | 5,847,055 | | | | 13,629 | |
| |
Morgan Stanley Bank of America Merrill Lynch Trust Series 2016-C29, Class A3 | | | | | |
| | | |
3.06% | | | 05/15/49 | | | | 26,875 | | | | 26,280 | |
| |
Queens Center Mortgage Trust Series 2013-QCA, Class A | | | | | |
| | | |
3.28% (1) | | | 01/11/37 | | | | 50,000 | | | | 49,514 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
COMMERCIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
STWD Trust Series 2021-FLWR, Class B | | | | | |
| | | |
5.84% (1 mo. USD Term SOFR + 1.040%) (1),(2) | | | 07/15/36 | | | $ | 100,000 | | | $ | 99,251 | |
| |
UBS Commercial Mortgage Trust Series 2017-C3, Class A4 | | | | | |
| | | |
3.43% | | | 08/15/50 | | | | 60,000 | | | | 57,088 | |
| |
Wells Fargo Commercial Mortgage Trust Series 2024-SVEN, Class A | | | | | |
| | | |
6.01% (1) | | | 06/10/37 | | | | 100,000 | | | | 101,930 | |
| | | | | | | | | | | | |
| |
Total Commercial Mortgage-Backed Securities — Non-Agency | | | | | |
| |
(Cost: $955,370) | | | | 999,634 | |
| | | | | | | | | | | | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY — 22.3% | |
| |
Federal Home Loan Mortgage Corp., Pool #G08681 | | | | | |
| | | |
3.50% | | | 12/01/45 | | | | 14,436 | | | | 13,196 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08698 | | | | | |
| | | |
3.50% | | | 03/01/46 | | | | 13,549 | | | | 12,365 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08716 | | | | | |
| | | |
3.50% | | | 08/01/46 | | | | 13,801 | | | | 12,594 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08721 | | | | | |
| | | |
3.00% | | | 09/01/46 | | | | 2,811 | | | | 2,479 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08722 | | | | | |
| | | |
3.50% | | | 09/01/46 | | | | 1,410 | | | | 1,287 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08732 | | | | | |
| | | |
3.00% | | | 11/01/46 | | | | 3,978 | | | | 3,509 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08762 | | | | | |
| | | |
4.00% | | | 05/01/47 | | | | 12,396 | | | | 11,657 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08833 | | | | | |
| | | |
5.00% | | | 07/01/48 | | | | 1,740 | | | | 1,722 | |
| |
Federal Home Loan Mortgage Corp., Pool #QD7360 | | | | | |
| | | |
2.50% | | | 02/01/52 | | | | 43,130 | | | | 35,852 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD0231 | | | | | |
| | | |
3.00% | | | 01/01/50 | | | | 82,845 | | | | 72,737 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8189 | | | | | |
| | | |
2.50% | | | 01/01/52 | | | | 41,188 | | | | 34,215 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8199 | | | | | |
| | | |
2.00% | | | 03/01/52 | | | | 125,625 | | | | 99,801 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8245 | | | | | |
| | | |
4.50% | | | 09/01/52 | | | | 157,194 | | | | 149,592 | |
| |
Federal Home Loan Mortgage Corp., Pool #ZT1703 | | | | | |
| | | |
4.00% | | | 01/01/49 | | | | 33,006 | | | | 31,049 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3439, Class SC (I/O) (I/F) | | | | | |
| | | |
0.78% (-30 day USD SOFR Average + 5.786%) (2) | | | 04/15/38 | | | | 30,206 | | | | 1,779 | |
| |
Federal National Mortgage Association, Pool #AB3679 | | | | | |
| | | |
3.50% | | | 10/01/41 | | | | 37,569 | | | | 34,788 | |
See accompanying Notes to Financial Statements.
21
TCW Global Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal National Mortgage Association, Pool #AB4045 | | | | | |
| | | |
3.50% | | | 12/01/41 | | | $ | 52,777 | | | $ | 49,021 | |
| |
Federal National Mortgage Association, Pool #AT5914 | | | | | |
| | | |
3.50% | | | 06/01/43 | | | | 16,902 | | | | 15,499 | |
| |
Federal National Mortgage Association, Pool #BD7081 | | | | | |
| | | |
4.00% | | | 03/01/47 | | | | 13,547 | | | | 12,723 | |
| |
Federal National Mortgage Association, Pool #BV2994 | | | | | |
| | | |
2.50% | | | 04/01/52 | | | | 87,046 | | | | 72,183 | |
| |
Federal National Mortgage Association, Pool #CA0996 | | | | | |
| | | |
3.50% | | | 01/01/48 | | | | 42,539 | | | | 38,760 | |
| |
Federal National Mortgage Association, Pool #CA2208 | | | | | |
| | | |
4.50% | | | 08/01/48 | | | | 1,218 | | | | 1,176 | |
| |
Federal National Mortgage Association, Pool #CB2610 | | | | | |
| | | |
2.00% | | | 01/01/52 | | | | 64,244 | | | | 51,348 | |
| |
Federal National Mortgage Association, Pool #CB3347 | | | | | |
| | | |
2.00% | | | 01/01/52 | | | | 169,480 | | | | 134,732 | |
| |
Federal National Mortgage Association, Pool #FM2870 | | | | | |
| | | |
3.00% | | | 03/01/50 | | | | 109,452 | | | | 96,097 | |
| |
Federal National Mortgage Association, Pool #MA1527 | | | | | |
| | | |
3.00% | | | 08/01/33 | | | | 9,073 | | | | 8,616 | |
| |
Federal National Mortgage Association, Pool #MA1652 | | | | | |
| | | |
3.50% | | | 11/01/33 | | | | 14,738 | | | | 14,200 | |
| |
Federal National Mortgage Association, Pool #MA2705 | | | | | |
| | | |
3.00% | | | 08/01/46 | | | | 51,532 | | | | 45,403 | |
| |
Federal National Mortgage Association, Pool #MA4204 | | | | | |
| | | |
2.00% | | | 12/01/40 | | | | 49,862 | | | | 42,221 | |
| |
Federal National Mortgage Association, Pool #MA4563 | | | | | |
| | | |
2.50% | | | 03/01/52 | | | | 84,581 | | | | 70,139 | |
| |
Federal National Mortgage Association, Pool #MA4626 | | | | | |
| | | |
4.00% | | | 06/01/52 | | | | 183,748 | | | | 170,129 | |
| |
Federal National Mortgage Association, Pool #MA4733 | | | | | |
| | | |
4.50% | | | 09/01/52 | | | | 38,967 | | | | 37,050 | |
| |
Federal National Mortgage Association, Pool #MA5008 | | | | | |
| | | |
4.50% | | | 05/01/53 | | | | 27,520 | | | | 26,143 | |
| |
Federal National Mortgage Association REMICS Series 2007-52, Class LS (I/O) (I/F) | | | | | |
| | | |
1.08% (-30 day USD SOFR Average + 5.936%) (2) | | | 06/25/37 | | | | 30,966 | | | | 2,409 | |
| |
Federal National Mortgage Association REMICS Series 2008-18, Class SM (I/O) (I/F) | | | | | |
| | | |
2.03% (-30 day USD SOFR Average + 6.886%) (2) | | | 03/25/38 | | | | 34,810 | | | | 3,668 | |
| |
Federal National Mortgage Association REMICS Series 2009-115, Class SB (I/O) (I/F) | | | | | |
| | | |
1.28% (-30 day USD SOFR Average + 6.136%) (2) | | | 01/25/40 | | | | 18,045 | | | | 1,600 | |
| |
Federal National Mortgage Association REMICS Series 2010-116, Class SE (I/O) (I/F) | | | | | |
| | | |
1.63% (-30 day USD SOFR Average + 6.486%) (2) | | | 10/25/40 | | | | 33,623 | | | | 2,675 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Government National Mortgage Association, Pool #MA3597 | | | | | |
| | | |
3.50% | | | 04/20/46 | | | $ | 8,692 | | | $ | 7,953 | |
| |
Government National Mortgage Association, Pool #MA3662 | | | | | |
| | | |
3.00% | | | 05/20/46 | | | | 23,750 | | | | 21,091 | |
| |
Government National Mortgage Association, Pool #MA3663 | | | | | |
| | | |
3.50% | | | 05/20/46 | | | | 1,248 | | | | 1,141 | |
| |
Government National Mortgage Association, Pool #MA3803 | | | | | |
| | | |
3.50% | | | 07/20/46 | | | | 5,821 | | | | 5,336 | |
| |
Government National Mortgage Association, Pool #MA4454 | | | | | |
| | | |
5.00% | | | 05/20/47 | | | | 6,095 | | | | 6,088 | |
| |
Government National Mortgage Association, Pool #MA4900 | | | | | |
| | | |
3.50% | | | 12/20/47 | | | | 26,382 | | | | 24,081 | |
| |
Government National Mortgage Association, Pool #MA5399 | | | | | |
| | | |
4.50% | | | 08/20/48 | | | | 10,850 | | | | 10,501 | |
| |
Government National Mortgage Association, Pool #MA8347 | | | | | |
| | | |
4.50% | | | 10/20/52 | | | | 110,023 | | | | 105,179 | |
| |
Government National Mortgage Association REMICS Series 2011-146, Class EI (I/O) (PAC) | | | | | |
| | | |
5.00% | | | 11/16/41 | | | | 29,019 | | | | 5,501 | |
| |
Government National Mortgage Association, TBA | | | | | |
| | | |
4.00% (7) | | | 05/01/52 | | | | 225,000 | | | | 209,496 | |
| | | |
2.50% (7) | | | 12/01/51 | | | | 150,000 | | | | 127,146 | |
| | | |
5.00% (7) | | | 06/01/54 | | | | 225,000 | | | | 219,749 | |
| | | |
5.50% (7) | | | 06/01/54 | | | | 50,000 | | | | 49,719 | |
| | | |
4.50% (7) | | | 05/01/54 | | | | 175,000 | | | | 167,064 | |
| |
Uniform Mortgage-Backed Security, TBA | | | | | |
| | | |
3.00% (7) | | | 01/01/52 | | | | 375,000 | | | | 322,867 | |
| | | |
3.50% (7) | | | 02/01/52 | | | | 125,000 | | | | 111,807 | |
| | | |
2.00% (7) | | | 11/01/51 | | | | 275,000 | | | | 218,015 | |
| | | |
2.50% (7) | | | 12/01/51 | | | | 250,000 | | | | 206,988 | |
| | | |
5.00% (7) | | | 04/01/54 | | | | 300,000 | | | | 291,444 | |
| | | |
5.50% (7) | | | 04/01/54 | | | | 175,000 | | | | 173,322 | |
| | | |
4.00% (7) | | | 04/01/52 | | | | 325,000 | | | | 300,447 | |
| | | |
4.50% (7) | | | 04/01/54 | | | | 375,000 | | | | 356,152 | |
| | | | | | | | | | | | |
| |
Total Residential Mortgage-Backed Securities — Agency | | | | | |
| |
(Cost: $4,558,055) | | | | 4,355,501 | |
| | | | | | | | | | | | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY — 8.4% | |
| |
BCMSC Trust Series 2000-A, Class A4 | | | | | |
| | | |
8.29% (6) | | | 06/15/30 | | | | 189,525 | | | | 18,274 | |
See accompanying Notes to Financial Statements.
22
TCW Global Bond Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
Bear Stearns ALT-A Trust Series 2004-8, Class M2 | | | | | |
| | | |
6.58% (1 mo. USD Term SOFR + 1.839%) (2) | | | 09/25/34 | | | $ | 102,093 | | | $ | 98,799 | |
| |
Bear Stearns ALT-A Trust Series 2005-8, Class 11A1 | | | | | |
| | | |
5.39% (1 mo. USD Term SOFR + 0.654%) (2) | | | 10/25/35 | | | | 21,469 | | | | 18,936 | |
| |
Countrywide Alternative Loan Trust Series 2006-HY12, Class A5 | | | | | |
| | | |
4.46% (6) | | | 08/25/36 | | | | 111,376 | | | | 102,576 | |
| |
Countrywide Asset-Backed Certificates Trust Series 2007-13, Class 2A1 | | | | | |
| | | |
5.75% (1 mo. USD Term SOFR + 1.014%) (2) | | | 10/25/47 | | | | 55,809 | | | | 52,281 | |
| |
Deephaven Residential Mortgage Trust Series 2021-3, Class A1 | | | | | |
| | | |
1.19% (1),(6) | | | 08/25/66 | | | | 79,528 | | | | 69,109 | |
| |
GS Mortgage-Backed Securities Corp. Trust Series 2021-PJ5, Class A1 | | | | | |
| | | |
2.00% (1),(6) | | | 10/25/51 | | | | 77,155 | | | | 60,646 | |
| |
GS Mortgage-Backed Securities Corp. Trust Series 2022-PJ2, Class A4 | | | | | |
| | | |
2.50% (1),(6) | | | 06/25/52 | | | | 81,933 | | | | 66,285 | |
| |
Impac CMB Trust Series 2007-A, Class A | | | | | |
| | | |
5.35% (1 mo. USD Term SOFR + 0.614%) (1),(2) | | | 05/25/37 | | | | 150,925 | | | | 142,354 | |
| |
IndyMac INDX Mortgage Loan Trust Series 2005-AR15, Class A2 | | | | | |
| | | |
4.28% (6) | | | 09/25/35 | | | | 38,556 | | | | 31,406 | |
| |
JPMorgan Mortgage Acquisition Trust Series 2006-CH2, Class AF3 | | | | | |
| | | |
5.46% | | | 09/25/29 | | | | 154,680 | | | | 92,085 | |
| |
JPMorgan Mortgage Trust Series 2021-8, Class A3 | | | | | |
| | | |
2.50% (1),(6) | | | 12/25/51 | | | | 95,651 | | | | 77,451 | |
| |
Lehman XS Trust Series 2006-9, Class A1B | | | | | |
| | | |
5.29% (1 mo. USD Term SOFR + 0.434%) (2) | | | 05/25/46 | | | | 140 | | | | — | |
| |
Merrill Lynch Alternative Note Asset Trust Series 2007-A1, Class A2B | | | | | |
| | | |
5.15% (1 mo. USD Term SOFR + 0.414%) (2) | | | 01/25/37 | | | | 269,010 | | | | 85,511 | |
| |
Merrill Lynch Alternative Note Asset Trust Series 2007-A3, Class A2D | | | | | |
| | | |
5.51% (1 mo. USD Term SOFR + 0.774%) (2),(8) | | | 04/25/37 | | | | 1,251,739 | | | | 52,087 | |
| |
MFA Trust Series 2021-RPL1, Class A2 | | | | | |
| | | |
2.07% (1),(6) | | | 07/25/60 | | | | 100,000 | | | | 81,797 | |
| |
Morgan Stanley ABS Capital I, Inc. Trust Series 2006-HE4, Class A4 | | | | | |
| | | |
5.33% (1 mo. USD Term SOFR + 0.594%) (2) | | | 06/25/36 | | | | 220,307 | | | | 113,491 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
Morgan Stanley ABS Capital I, Inc. Trust Series 2006-WMC1, Class A2C | | | | | |
| | | |
5.47% (1 mo. USD Term SOFR + 0.734%) (2) | | | 12/25/35 | | | $ | 70,425 | | | $ | 68,715 | |
| |
Morgan Stanley ABS Capital I, Inc. Trust Series 2007-HE2, Class A2B | | | | | |
| | | |
4.94% (1 mo. USD Term SOFR + 0.204%) (2) | | | 01/25/37 | | | | 136,955 | | | | 62,393 | |
| |
MortgageIT Trust Series 2005-1, Class 1A1 | | | | | |
| | | |
5.49% (1 mo. USD Term SOFR + 0.754%) (2) | | | 02/25/35 | | | | 8,485 | | | | 8,550 | |
| |
Ownit Mortgage Loan Trust Series 2006-3, Class A2D | | | | | |
| | | |
5.39% (1 mo. USD Term SOFR + 0.654%) (2) | | | 03/25/37 | | | | 35,663 | | | | 34,097 | |
| |
Residential Asset Securitization Trust Series 2005-A15, Class 2A11 (I/O) | | | | | |
| | | |
0.70% (-1 mo. USD Term SOFR + 5.436%) (2),(8) | | | 02/25/36 | | | | 421,911 | | | | 38,671 | |
| |
RESIMAC Premier Series 2021-1A, Class A1 | | | | | |
| | | |
5.64% (1 mo. USD Term SOFR + 0.814%) (1),(2) | | | 07/10/52 | | | | 29,090 | | | | 29,090 | |
| |
Structured Adjustable Rate Mortgage Loan Trust Series 2004-18, Class 4A1 | | | | | |
| | | |
6.82% (6) | | | 12/25/34 | | | | 6,566 | | | | 6,436 | |
| |
Structured Asset Mortgage Investments II Trust Series 2005-AR6, Class 2A1 | | | | | |
| | | |
5.47% (1 mo. USD Term SOFR + 0.734%) (2) | | | 09/25/45 | | | | 18,427 | | | | 16,494 | |
| |
Structured Asset Mortgage Investments II Trust Series 2006-AR8, Class A2 | | | | | |
| | | |
5.27% (1 mo. USD Term SOFR + 0.534%) (2) | | | 10/25/36 | | | | 113,051 | | | | 92,593 | |
| |
Verus Securitization Trust Series 2021-4, Class A1 | | | | | |
| | | |
0.94% (1),(6) | | | 07/25/66 | | | | 114,196 | | | | 95,936 | |
| |
WaMu Mortgage Pass-Through Certificates Trust Series 2005-AR2, Class 2A1A | | | | | |
| | | |
5.47% (1 mo. USD Term SOFR + 0.734%) (2) | | | 01/25/45 | | | | 30,480 | | | | 30,546 | |
| | | | | | | | | | | | |
| |
Total Residential Mortgage-Backed Securities — Non-Agency | | | | | |
| |
(Cost: $2,168,421) | | | | 1,646,609 | |
| | | | | | | | | | | | |
|
| U.S. TREASURY SECURITIES — 1.7% | |
| |
U.S. Treasury Bonds | | | | | |
| | | |
4.25% | | | 08/15/54 | | | | 6,000 | | | | 5,774 | |
| | | |
4.50% | | | 11/15/54 | | | | 1,000 | | | | 1,004 | |
| | | |
U.S. Treasury Notes | | | | | | | | | | | | |
| | | |
3.50% | | | 09/30/29 | | | | 199,000 | | | | 193,333 | |
| | | |
3.88% | | | 08/15/34 | | | | 30,000 | | | | 29,027 | |
See accompanying Notes to Financial Statements.
23
TCW Global Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| U.S. TREASURY SECURITIES (Continued) | |
| | | |
4.13% | | | 10/31/29 | | | $ | 103,000 | | | $ | 102,908 | |
| | | | | | | | | | | | |
| |
Total U.S. Treasury Securities | | | | | |
| |
(Cost: $333,757) | | | | 332,046 | |
| | | | | | | | | | | | |
| |
Total Fixed Income Securities | | | | | |
| |
(Cost: $22,591,721) | | | | 21,462,201 | |
| | | | | | | | | | | | |
| |
| CONVERTIBLE SECURITIES (0.1% ) | | | | |
|
| CONVERTIBLE CORPORATE BONDS — 0.1% | |
| |
| Commercial Services — 0.1% | | | | |
| |
Worldline SA (France) | | | | | |
| | | |
0.00% (4),(5) | | | 07/30/26 | | | | 20,640 | | | | 20,815 | |
| | | | | | | | | | | | |
| | |
Total Convertible Securities | | | | | | | | | |
| | |
(Cost: $20,467) | | | | | | | | 20,815 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| | | | | | Shares | | | | |
|
| INVESTMENT COMPANIES — 0.9% | |
| | |
TCW Emerging Markets Income Fund — I Class (9) | | | | 27,589 | | | | 181,809 | |
| | | | | | | | | | | | |
| |
Total Investment Companies | | | | | |
| | |
(Cost: $178,295) | | | | | | | | 181,809 | |
| | | | | | | | | | | | |
| | | | | | | | | | |
| Issues | | | |
Shares | | | Value | |
|
| COMMON STOCK — 0.1% | |
|
| TELECOMMUNICATIONS — 0.1% | |
| | |
Intelsat SA (8),(10) | | | 344 | | | $ | 10,420 | |
| | | | | | | | | | |
| |
Total Common Stock | | | | | |
| | |
(Cost: $31,880) | | | | | | | 10,420 | |
| | | | | | | | | | |
| |
| MONEY MARKET INVESTMENTS — 2.2% | | | | |
| | |
State Street Institutional U.S. Government Money Market Fund — Premier Class,
4.82%, (11) | | | 101,350 | | | | 101,350 | |
| | |
TCW Central Cash Fund, 4.84%, (9),(11) | | | 335,391 | | | | 335,391 | |
| | | | | | | | | | |
| | |
Total Money Market Investments | | | | | | | | |
| | |
(Cost: $436,741) | | | | | | | 436,741 | |
| | | | | | | | | | |
| | |
Total Investments (113.1%) | | | | | | | | |
| | |
(Cost: $23,259,104) | | | | | | | 22,111,986 | |
| |
Liabilities In Excess Of Other Assets (-13.1%) | | | | (2,554,880 | ) |
| | | | | | | | | | |
| | |
Net Assets (100.0%) | | | | | | $ | 19,557,106 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Forward Currency Exchange Contracts | |
| | | | | | |
| Counterparty | | Contracts to
Deliver | | | Units of
Currency | | | Settlement
Date | | | In Exchange for
U.S. Dollars | | | Contracts at
Value | | | Unrealized
Appreciation
(Depreciation) | |
BUY (12) | | | | | | | | | | | | | | | | | | | | | | | | |
Citibank N.A. | | | AUD | | | | 41,701 | | | | 01/17/25 | | | $ | 28,232 | | | $ | 27,331 | | | $ | (901 | ) |
Goldman Sachs & Co. | | | BRL | | | | 271,381 | | | | 01/17/25 | | | | 48,467 | | | | 46,482 | | | | (1,985 | ) |
Citibank N.A. | | | CAD | | | | 246,232 | | | | 01/17/25 | | | | 181,459 | | | | 177,116 | | | | (4,343 | ) |
Goldman Sachs & Co. | | | CHF | | | | 90,000 | | | | 01/17/25 | | | | 106,012 | | | | 104,945 | | | | (1,067 | ) |
Goldman Sachs & Co. | | | CLP | | | | 9,441,000 | | | | 01/17/25 | | | | 10,173 | | | | 9,816 | | | | (357 | ) |
Goldman Sachs & Co. | | | CNH | | | | 5,588,922 | | | | 01/17/25 | | | | 793,481 | | | | 787,932 | | | | (5,549 | ) |
Citibank N.A. | | | CZK | | | | 595,280 | | | | 01/17/25 | | | | 25,853 | | | | 25,588 | | | | (265 | ) |
Goldman Sachs & Co. | | | DKK | | | | 250,000 | | | | 01/17/25 | | | | 37,017 | | | | 36,536 | | | | (481 | ) |
Goldman Sachs & Co. | | | EUR | | | | 344,000 | | | | 01/17/25 | | | | 375,131 | | | | 374,671 | | | | (460 | ) |
Citibank N.A. | | | EUR | | | | 72,000 | | | | 01/17/25 | | | | 78,462 | | | | 78,419 | | | | (43 | ) |
Citibank N.A. | | | GBP | | | | 19,000 | | | | 01/17/25 | | | | 24,687 | | | | 24,422 | | | | (265 | ) |
Goldman Sachs & Co. | | | INR | | | | 17,283,000 | | | | 01/17/25 | | | | 204,821 | | | | 204,891 | | | | 70 | |
Citibank N.A. | | | JPY | | | | 296,782,000 | | | | 01/17/25 | | | | 2,033,494 | | | | 1,967,522 | | | | (65,972 | ) |
Goldman Sachs & Co. | | | JPY | | | | 2,026,000 | | | | 01/17/25 | | | | 13,596 | | | | 13,431 | | | | (165 | ) |
Goldman Sachs & Co. | | | KRW | | | | 95,930,749 | | | | 01/17/25 | | | | 71,574 | | | | 69,776 | | | | (1,798 | ) |
Citibank N.A. | | | MXN | | | | 161,000 | | | | 11/19/24 | | | | 8,797 | | | | 8,015 | | | | (782 | ) |
Goldman Sachs & Co. | | | MXN | | | | 3,826,000 | | | | 11/19/24 | | | | 207,921 | | | | 190,456 | | | | (17,465 | ) |
Goldman Sachs & Co. | | | MXN | | | | 340,976 | | | | 01/17/25 | | | | 17,415 | | | | 16,807 | | | | (608 | ) |
Citibank N.A. | | | NOK | | | | 1,683,000 | | | | 01/17/25 | | | | 158,261 | | | | 152,622 | | | | (5,639 | ) |
Goldman Sachs & Co. | | | PEN | | | | 35,516 | | | | 01/17/25 | | | | 9,487 | | | | 9,429 | | | | (58 | ) |
Goldman Sachs & Co. | | | SEK | | | | 105,000 | | | | 01/17/25 | | | | 10,195 | | | | 9,852 | | | | (343 | ) |
Citibank N.A. | | | THB | | | | 198,538 | | | | 01/17/25 | | | | 5,945 | | | | 5,912 | | | | (33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 4,450,480 | | | $ | 4,341,971 | | | $ | (108,509 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
24
TCW Global Bond Fund
October 31, 2024
| | | | | | | | | | | | | | | | | | | | | | | | |
| Forward Currency Exchange Contracts (Continued) | |
| | | | | | |
| Counterparty | | Contracts to
Deliver | | | Units of
Currency | | | Settlement
Date | | | In Exchange for
U.S. Dollars | | | Contracts at
Value | | | Unrealized
Appreciation
(Depreciation) | |
SELL (13) | | | | | | | | | | | | | | | | | | | | | | | | |
Goldman Sachs & Co. | | | BRL | | | | 295,122 | | | | 01/17/25 | | | $ | 53,246 | | | $ | 50,548 | | | $ | 2,698 | |
Goldman Sachs & Co. | | | CNH | | | | 172,215 | | | | 01/17/25 | | | | 24,593 | | | | 24,279 | | | | 314 | |
Goldman Sachs & Co. | | | COP | | | | 4,853,486 | | | | 01/17/25 | | | | 1,136 | | | | 1,089 | | | | 47 | |
Citibank N.A. | | | EUR | | | | 947,676 | | | | 01/17/25 | | | | 1,045,334 | | | | 1,032,169 | | | | 13,165 | |
Goldman Sachs & Co. | | | EUR | | | | 41,000 | | | | 01/17/25 | | | | 44,450 | | | | 44,655 | | | | (205 | ) |
Citibank N.A. | | | GBP | | | | 1,508,242 | | | | 01/17/25 | | | | 1,973,716 | | | | 1,938,647 | | | | 35,069 | |
Goldman Sachs & Co. | | | GBP | | | | 15,000 | | | | 01/17/25 | | | | 19,306 | | | | 19,280 | | | | 26 | |
Goldman Sachs & Co. | | | ILS | | | | 13,674 | | | | 01/17/25 | | | | 3,654 | | | | 3,664 | | | | (10 | ) |
Goldman Sachs & Co. | | | INR | | | | 12,163,000 | | | | 01/17/25 | | | | 144,086 | | | | 144,193 | | | | (107 | ) |
State Street Bank & Trust Co. | | | JPY | | | | 5,260,000 | | | | 01/17/25 | | | | 35,957 | | | | 34,871 | | | | 1,086 | |
Citibank N.A. | | | MXN | | | | 3,987,000 | | | | 11/19/24 | | | | 216,884 | | | | 198,471 | | | | 18,413 | |
Goldman Sachs & Co. | | | MYR | | | | 298,804 | | | | 01/17/25 | | | | 69,822 | | | | 68,499 | | | | 1,323 | |
Goldman Sachs & Co. | | | NZD | | | | 2,091,000 | | | | 01/17/25 | | | | 1,281,933 | | | | 1,245,457 | | | | 36,476 | |
Goldman Sachs & Co. | | | PLN | | | | 94,529 | | | | 01/17/25 | | | | 24,007 | | | | 23,522 | | | | 485 | |
Goldman Sachs & Co. | | | RON | | | | 244,539 | | | | 01/17/25 | | | | 53,821 | | | | 53,259 | | | | 562 | |
Goldman Sachs & Co. | | | SGD | | | | 108,527 | | | | 01/17/25 | | | | 83,608 | | | | 82,310 | | | | 1,298 | |
Citibank N.A. | | | ZAR | | | | 552,501 | | | | 01/17/25 | | | | 31,183 | | | | 31,051 | | | | 132 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 5,106,736 | | | $ | 4,995,964 | | | $ | 110,772 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Futures Contracts | |
| | | | | |
Number of
Contracts | | Type | | Expiration
Date | | | Notional | | | Market
Value | | | Net Unrealized
Appreciation
(Depreciation) | |
Long Futures | |
| 9 | | 2-Year Canadian Bond Futures | | | 12/18/24 | | | $ | 675,879 | | | $ | 676,347 | | | $ | 468 | |
| 18 | | 2-Year U.S. Treasury Note Futures | | | 12/31/24 | | | | 3,738,448 | | | | 3,707,016 | | | | (31,432 | ) |
| 4 | | 5-Year Canadian Bond Futures | | | 12/18/24 | | | | 329,066 | | | | 326,497 | | | | (2,569 | ) |
| 30 | | 5-Year U.S. Treasury Note Futures | | | 12/31/24 | | | | 3,285,682 | | | | 3,217,031 | | | | (68,651 | ) |
| 11 | | Euro SCHWATZ Futures | | | 12/6/24 | | | | 1,273,824 | | | | 1,272,317 | | | | (1,507 | ) |
| 16 | | Euro-Bobl Future | | | 12/6/24 | | | | 2,069,063 | | | | 2,052,312 | | | | (16,751 | ) |
| 3 | | U.S. Ultra Long Bond Futures | | | 12/19/24 | | | | 400,175 | | | | 376,875 | | | | (23,300 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | $ | 11,772,137 | | | $ | 11,628,395 | | | $ | (143,742 | ) |
| | | | | | | | | | | | | | | | | | |
Short Futures | |
| 3 | | 10-Year U.S. Treasury Note Futures | | | 12/19/24 | | | $ | (355,346 | ) | | $ | (341,250 | ) | | $ | 14,096 | |
| 4 | | Euro-Bund Future | | | 12/6/24 | | | | (582,077 | ) | | | (572,355 | ) | | | 9,722 | |
| 1 | | Long Gilt Future | | | 12/27/24 | | | | (127,745 | ) | | | (120,901 | ) | | | 6,844 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | $ | (1,065,168 | ) | | $ | (1,034,506 | ) | | $ | 30,662 | |
| | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
25
TCW Global Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Centrally Cleared — Interest Rate Swap Agreements | |
| | | | | | | | |
Notional
Amount | | Expiration
Date | | | Payment
Made by
Fund
Frequency | | | Payment Made by
Fund | | Payment
Received
by Fund
Frequency | | | Payment
Received by
Fund | | | Unrealized
Appreciation
(Depreciation) | | | Premium
Paid | | | Value | |
GBP 400,000 | | | 08/27/26 | | | | Annual | | | 2-Year Sterling
Overnight Index Average | | | Annual | | | | 4.5720 | % | | $ | 2,413 | | | $ | — | | | $ | 2,413 | |
GBP 800,000 | | | 01/17/27 | | | | Annual | | | 2-Year Sterling
Overnight Index Average | | | Annual | | | | 3.9450 | % | | $ | (5,555 | ) | | $ | 1,026 | | | $ | (4,529 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | (3,142 | ) | | $ | 1,026 | | | $ | (2,116 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
26
TCW Global Bond Fund
October 31, 2024
Notes to the Schedule of Investments:
| ABS | | Asset-Backed Securities. |
| ACES | | Alternative Credit Enhancement Securities. |
| CLO | | Collateralized Loan Obligation. |
| I/F | | Inverse Floating rate security whose interest rate moves in the opposite direction of prevailing interest rates. |
| I/O | | Interest Only Security. |
| PAC | | Planned Amortization Class. |
| REIT | | Real Estate Investment Trust. |
| REMIC | | Real Estate Mortgage Investment Conduits. |
| SOFR | | Secured Overnight Financing Rate. |
| CNH | | Chinese Yuan Renminbi. |
| GBP | | British Pound Sterling. |
| (1) | | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold, normally only to qualified institutional buyers. At October 31, 2024, the value of these securities amounted to $2,454,290 or 12.6% of net assets. These securities are determined to be liquid by the Fund’s investment advisor, unless otherwise noted, under procedures established by and under the general supervision of the Company’s Board of Directors. |
| (2) | | Floating or variable rate security. The interest shown reflects the rate in effect at October 31, 2024. |
| (4) | | Investments issued under Regulation S of the Securities Act of 1933, as amended, may not be offered, sold, or delivered within the United States except under special exemptions. At October 31, 2024, the value of these securities amounted to $7,431,613 or 38.0% of net assets. |
| (5) | | Security is not accruing interest. |
| (6) | | Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| (7) | | Security purchased on a forward commitment with an approximate principal amount. The actual principal amount and maturity date will be determined upon settlement when the security is delivered. |
| (8) | | For fair value measurement disclosure purposes, security is categorized as Level 3. Security is valued using significant unobservable inputs. |
| (10) | | Non-income producing security. |
| (11) | | Rate disclosed is the 7-day net yield as of October 31, 2024. |
| (12) | | Fund buys foreign currency, sells U.S. Dollar. |
| (13) | | Fund sells foreign currency, buys U.S. Dollar. |
See accompanying Notes to Financial Statements.
27
TCW Global Bond Fund
Schedule of Investments (Continued)
The summary of the TCW Global Bond Fund transactions in the affiliated funds for the period ended October 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Name of
Affiliated
Fund | | Value at
October 31,
2023 | | | Purchases at
Cost | | | Proceeds
from Sales | | | Number
of Shares
Held
October 31,
2024 | | | Value at
October 31,
2024 | | | Dividends and
Interest
Income
Received | | | Distributions
Received from
Net Realized
Gain | | | Net Realized
Gain (Loss)
on
Investments | | | Net change in
Unrealized
Gain (Loss)
on
Investments | |
TCW Central Cash Fund | | | | | | | | | | | | | |
| | $ | — | | | $ | 2,135,391 | | | $ | 1,800,000 | | | | 335,391 | | | $ | 335,391 | | | $ | 7,021 | | | $ | — | | | $ | — | | | $ | — | |
TCW Emerging Markets Income Fund — I Class | | | | | | | | | | | | | |
| | $ | 564,812 | | | $ | 16,920 | | | $ | 451,119 | | | | 27,589 | | | $ | 181,809 | | | $ | 15,254 | | | $ | — | | | $ | (123,714 | ) | | $ | 174,910 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 517,200 | | | $ | 22,275 | | | $ | — | | | $ | (123,714 | ) | | $ | 174,910 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
28
TCW Global Bond Fund
Fair Valuation Summary | October 31, 2024 |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
Description | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | | Other
Significant
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Total | |
Fixed Income Securities | | | | | | | | | | | | | | | | |
Foreign Government Bonds | | $ | — | | | $ | 9,540,384 | | | $ | — | | | $ | 9,540,384 | |
Residential Mortgage-Backed Securities — Agency | | | — | | | | 4,355,501 | | | | — | | | | 4,355,501 | |
Corporate Bonds | | | — | | | | 3,112,736 | | | | — | | | | 3,112,736 | |
Residential Mortgage-Backed Securities — Non-Agency | | | — | | | | 1,555,851 | | | | 90,758 | | | | 1,646,609 | |
Asset-Backed Securities | | | — | | | | 1,418,804 | | | | — | | | | 1,418,804 | |
Commercial Mortgage-Backed Securities — Non-Agency | | | — | | | | 999,634 | | | | — | | | | 999,634 | |
U.S. Treasury Securities | | | 332,046 | | | | — | | | | — | | | | 332,046 | |
Municipal Bonds | | | — | | | | 41,007 | | | | — | | | | 41,007 | |
Commercial Mortgage-Backed Securities — Agency | | | — | | | | 15,480 | | | | — | | | | 15,480 | |
| | | | | | | | | | | | | | | | |
Total Fixed Income Securities | | | 332,046 | | | | 21,039,397 | | | | 90,758 | | | | 21,462,201 | |
| | | | | | | | | | | | | | | | |
Money Market Investments | | | 436,741 | | | | — | | | | — | | | | 436,741 | |
Investment Companies | | | 181,809 | | | | — | | | | — | | | | 181,809 | |
Convertible Corporate Bonds | | | — | | | | 20,815 | | | | — | | | | 20,815 | |
Common Stock | | | — | | | | — | | | | 10,420 | | | | 10,420 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 950,596 | | | $ | 21,060,212 | | | $ | 101,178 | | | $ | 22,111,986 | |
| | | | | | | | | | | | | | | | |
Asset Derivatives | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | | | | | | | | | | | | | | | |
Foreign Currency Risk | | | — | | | | 111,164 | | | | — | | | | 111,164 | |
Futures Contracts | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | 31,130 | | | | — | | | | — | | | | 31,130 | |
Swap Agreements | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | — | | | | 2,413 | | | | — | | | | 2,413 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 981,726 | | | $ | 21,173,789 | | | $ | 101,178 | | | $ | 22,256,693 | |
| | | | | | | | | | | | | | | | |
Liability Derivatives | | | | | | | | | | | | | | | | |
Futures Contracts | | | | | | | | | | | | | | | | |
Interest Rate Risk | | $ | (144,210 | ) | | $ | — | | | $ | — | | | $ | (144,210 | ) |
Forward Currency Exchange Contracts | | | | | | | | | | | | | | | | |
Foreign Currency Risk | | | — | | | | (108,901 | ) | | | — | | | | (108,901 | ) |
Swap Agreements | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | — | | | | (4,529 | ) | | | — | | | | (4,529 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (144,210 | ) | | $ | (113,430 | ) | | $ | — | | | $ | (257,640 | ) |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
29
TCW High Yield Bond Fund
Schedule of Investments
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
FIXED INCOME SECURITIES — 93.0% of Net Assets | |
|
| BANK LOANS — 16.5% | |
|
| Advertising — 0.2% | |
| |
Neptune Bidco U.S., Inc. 2022 USD Term Loan B | | | | | |
| | | |
9.76% (3 mo. USD Term SOFR + 5.000%) (1) | | | 04/11/29 | | | $ | 90,136 | | | $ | 83,526 | |
| | | | | | | | | | | | |
|
| Auto Parts & Equipment — 0.5% | |
| |
First Brands Group LLC 2021 Term Loan | | | | | |
| | | |
9.85% (3 mo. USD Term SOFR + 5.000%) (1) | | | 03/30/27 | | | | 194,488 | | | | 189,657 | |
| | | | | | | | | | | | |
|
| Beverages — 0.2% | |
| |
Pegasus BidCo BV 2024 Term Loan B | | | | | |
| | | |
10.25% (3 mo. USD Term SOFR + 2.250%) (1) | | | 07/12/29 | | | | 83,370 | | | | 83,717 | |
| | | | | | | | | | | | |
|
| Chemicals — 0.2% | |
| |
Chemours Co. 2023 USD Term Loan B | | | | | |
| | | |
8.19% (1 mo. USD Term SOFR + 3.500%) (1) | | | 08/18/28 | | | | 84,150 | | | | 84,536 | |
| | | | | | | | | | | | |
|
| Commercial Services — 0.7% | |
| |
Belron Finance 2019 LLC 2024 USD Term Loan B | | | | | |
| | | |
7.53% (1 mo. USD Term SOFR + 2.750%) (1) | | | 10/16/31 | | | | 66,000 | | | | 66,330 | |
| |
Ryan LLC Term Loan | | | | | |
| | | |
8.19% (1 mo. USD Term SOFR + 3.500%) (1),(2) | | | 11/14/30 | | | | 140,024 | | | | 139,893 | |
| |
VT Topco, Inc. 2024 Term Loan B | | | | | |
| | | |
8.19% (1 mo. USD Term SOFR + 3.500%) (1) | | | 08/09/30 | | | | 74,438 | | | | 74,787 | |
| | | | | | | | | | | | |
| |
| | | | 281,010 | |
| | | | | | | | | | | | |
|
| Computers — 0.8% | |
| |
Amentum Government Services Holdings LLC 2024 Term Loan B | | | | | |
| | | |
6.94% (1 mo. USD Term SOFR + 2.250%) (1) | | | 09/29/31 | | | | 250,000 | | | | 250,281 | |
| |
Indy U.S. Bidco LLC 2024 USD Term Loan B | | | | | |
| | | |
9.44% (1 mo. USD Term SOFR + 4.750%) (1) | | | 03/06/28 | | | | 75,000 | | | | 74,895 | |
| | | | | | | | | | | | |
| |
| | | | 325,176 | |
| | | | | | | | | | | | |
|
| Distribution & Wholesale — 0.4% | |
| |
Veritiv Corp. Term Loan B | | | | | |
| | | |
9.10% (3 mo. USD Term SOFR + 4.500%) (1) | | | 11/30/30 | | | | 149,625 | | | | 148,596 | |
| | | | | | | | | | | | |
|
| Diversified Financial Services — 0.5% | |
| |
Jane Street Group LLC 2024 Term Loan B | | | | | |
| | | |
6.69% (1 mo. USD Term SOFR + 2.000%) (1) | | | 01/26/28 | | | | 194,485 | | | | 194,501 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Electric — 0.8% | |
| |
Alpha Generation LLC Term Loan B | | | | | |
| | | |
7.45% (1 mo. USD Term SOFR + 2.750%) (1) | | | 09/30/31 | | | $ | 110,000 | | | $ | 110,118 | |
| |
Edgewater Generation LLC 2024 Term Loan B | | | | | |
| | | |
8.94% (1 mo. USD Term SOFR + 4.250%) (1) | | | 08/01/30 | | | | 110,000 | | | | 111,046 | |
| |
Kestrel Acquisition LLC 2024 Term Loan B | | | | | |
| | | |
0.00% (3) | | | 10/29/31 | | | | 66,000 | | | | 66,000 | |
| |
South Field LLC Term Loan B | | | | | |
| | | |
8.35% (3 mo. USD Term SOFR + 3.750%) (1) | | | 08/29/31 | | | | 62,186 | | | | 62,238 | |
| |
South Field LLC Term Loan C | | | | | |
| | | |
8.35% (3 mo. USD Term SOFR + 3.750%) (1) | | | 08/29/31 | | | | 3,814 | | | | 3,817 | |
| | | | | | | | | | | | |
| |
| | | | 353,219 | |
| | | | | | | | | | | | |
| | | |
| Electronics — 0.2% | | | | | | | | | |
| |
TCP Sunbelt Acquisition Co. 2024 Term Loan B | | | | | |
| | | |
0.00% (3) | | | 10/16/31 | | | | 65,000 | | | | 64,594 | |
| | | | | | | | | | | | |
|
| Engineering & Construction — 0.7% | |
| |
Artera Services LLC 2024 Term Loan | | | | | |
| | | |
9.10% (3 mo. USD Term SOFR + 4.500%) (1) | | | 02/15/31 | | | | 139,300 | | | | 137,951 | |
| |
DG Investment Intermediate Holdings 2, Inc. 2021 Term Loan | | | | | |
| | | |
8.55% (1 mo. USD Term SOFR + 3.750%) (1),(4) | | | 03/31/28 | | | | 101,815 | | | | 102,025 | |
| |
Engineering Research & Consulting LLC 2024 Term Loan | | | | | |
| | | |
10.06% (3 mo. USD Term SOFR + 5.000%) (1) | | | 08/15/31 | | | | 66,000 | | | | 66,330 | |
| | | | | | | | | | | | |
| |
| | | | 306,306 | |
| | | | | | | | | | | | |
|
| Entertainment — 1.6% | |
| |
Caesars Entertainment, Inc. 2024 Term Loan B1 | | | | | |
| | | |
7.44% (1 mo. USD Term SOFR + 2.750%) (1) | | | 02/06/31 | | | | 278,600 | | | | 279,188 | |
| |
Light & Wonder International, Inc. 2024 Term Loan | | | | | |
| | | |
7.03% (1 mo. USD Term SOFR + 2.250%) (1) | | | 04/14/29 | | | | 139,650 | | | | 139,802 | |
| |
Ontario Gaming GTA LP Term Loan B | | | | | |
| | | |
8.89% (3 mo. USD Term SOFR + 4.250%) (1) | | | 08/01/30 | | | | 106,440 | | | | 106,592 | |
| |
Showtime Acquisition LLC 2024 1st Lien Term Loan | | | | | |
| | | |
12.25% (3 mo. USD Term SOFR + 3.750%) (1) | | | 08/13/31 | | | | 154,700 | | | | 154,893 | |
| | | | | | | | | | | | |
| |
| | | | 680,475 | |
| | | | | | | | | | | | |
|
| Food — 0.7% | |
| |
Chobani LLC 2023 Incremental Term Loan | | | | | |
| | | |
8.44% (1 mo. USD Term SOFR + 3.750%) (1) | | | 10/25/27 | | | | 124,063 | | | | 124,825 | |
See accompanying Notes to Financial Statements.
30
TCW High Yield Bond Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Food (Continued) | |
| |
United Natural Foods, Inc. 2024 Term Loan | | | | | |
| | | |
9.44% (1 mo. USD Term SOFR + 4.750%) (1) | | | 05/01/31 | | | $ | 154,225 | | | $ | 155,382 | |
| | | | | | | | | | | | |
| |
| | | | 280,207 | |
| | | | | | | | | | | | |
|
| Health Care-Products — 0.3% | |
| |
Auris Luxembourg III SARL 2024 USD Term Loan B4 | | | | | |
| | | |
8.18% (6 mo. USD Term SOFR + 3.750%) (1) | | | 02/28/29 | | | | 93,848 | | | | 93,995 | |
| |
Sotera Health Holdings LLC 2024 Term Loan B | | | | | |
| | | |
7.84% (3 mo. USD Term SOFR + 3.250%) (1) | | | 05/30/31 | | | | 50,000 | | | | 50,141 | |
| | | | | | | | | | | | |
| |
| | | | 144,136 | |
| | | | | | | | | | | | |
|
| Health Care-Services — 1.5% | |
| |
ADMI Corp. 2023 Term Loan B5 | | | | | |
| | | |
10.44% (1 mo. USD Term SOFR + 5.750%) (1) | | | 12/23/27 | | | | 64,837 | | | | 65,404 | |
| |
eResearchTechnology, Inc. 2024 Term Loan | | | | | |
| | | |
8.69% (1 mo. USD Term SOFR + 4.000%) (1) | | | 02/04/27 | | | | 125,101 | | | | 125,543 | |
| |
Heartland Dental LLC 2024 Term Loan | | | | | |
| | | |
9.19% (1 mo. USD Term SOFR + 4.500%) (1) | | | 04/28/28 | | | | 74,625 | | | | 74,596 | |
| |
Modivcare, Inc. 2024 Term Loan B | | | | | |
| | | |
9.34% (3 mo. USD Term SOFR + 4.685%) (1) | | | 07/01/31 | | | | 224,438 | | | | 216,863 | |
| |
Pluto Acquisition I, Inc. 2024 First Out Superpriority Term Loan | | | | | |
| | | |
10.25% (3 mo. USD Term SOFR + 5.500%) (1) | | | 06/20/28 | | | | 70,000 | | | | 70,700 | |
| |
Star Parent, Inc. Term Loan B | | | | | |
| | | |
8.35% (3 mo. USD Term SOFR + 3.750%) (1) | | | 09/27/30 | | | | 85,223 | | | | 83,593 | |
| | | | | | | | | | | | |
| |
| | | | 636,699 | |
| | | | | | | | | | | | |
|
| Home Furnishings — 0.3% | |
| |
AI Aqua Merger Sub, Inc. 2021 1st Lien Term Loan B | | | | | |
| | | |
8.36% (1 mo. USD Term SOFR + 3.500%) (1) | | | 07/31/28 | | | | 137,650 | | | | 138,051 | |
| | | | | | | | | | | | |
| | | |
| Insurance — 0.3% | | | | | | | | | |
|
Acrisure LLC 2024 Term Loan B6 | |
| | | |
8.01% (1 mo. USD Term SOFR + 3.250%) (1) | | | 11/06/30 | | | | 49,875 | | | | 49,860 | |
|
Asurion LLC 2020 Term Loan B8 | |
| | | |
8.05% (1 mo. USD Term SOFR + 3.250%) (1) | | | 12/23/26 | | | | 82,388 | | | | 82,469 | |
| | | | | | | | | | | | |
| |
| | | | 132,329 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Internet — 1.3% | |
|
Delivery Hero SE 2024 USD Term Loan B | |
| | | |
10.10% (3 mo. USD Term SOFR + 5.000%) (1) | | | 12/12/29 | | | $ | 69,825 | | | $ | 70,488 | |
| |
Magnite, Inc. 2024 Term Loan B | | | | | |
| | | |
8.44% (1 mo. USD Term SOFR + 3.750%) (1) | | | 02/06/31 | | | | 391,020 | | | | 392,242 | |
| |
MH Sub I LLC 2023 Term Loan | | | | | |
| | | |
8.94% (1 mo. USD Term SOFR + 4.250%) (1) | | | 05/03/28 | | | | 88,241 | | | | 87,792 | |
| | | | | | | | | | | | |
| |
| | | | 550,522 | |
| | | | | | | | | | | | |
|
| Machinery-Diversified — 0.3% | |
| |
ASP Blade Holdings, Inc. Initial Term Loan | | | | | |
| | | |
8.87% (3 mo. USD Term SOFR + 4.000%) (1) | | | 10/13/28 | | | | 165,857 | | | | 125,559 | |
| | | | | | | | | | | | |
|
| Media — 0.2% | |
|
Virgin Media Bristol LLC 2023 USD Term Loan Y | |
| | | |
7.72% (6 mo. USD Term SOFR + 3.175%) (1) | | | 03/31/31 | | | | 66,750 | | | | 64,928 | |
| | | | | | | | | | | | |
|
| Mining — 0.2% | |
|
Arsenal AIC Parent LLC 2024 1st Lien Term Loan B | |
| | | |
7.94% (1 mo. USD Term SOFR + 3.250%) (1) | | | 08/18/30 | | | | 99,003 | | | | 99,374 | |
| | | | | | | | | | | | |
|
| Office/Business Equipment — 0.4% | |
| |
Xerox Holdings Corp. 2023 Term Loan B | | | | | |
| | | |
8.69% (1 mo. USD Term SOFR + 4.000%) (1) | | | 11/17/29 | | | | 173,990 | | | | 172,759 | |
| | | | | | | | | | | | |
|
| Oil & Gas — 0.2% | |
| |
Waterbridge Midstream Operating LLC 2024 1st Lien Term Loan B | | | | | |
| | | |
9.39% (3 mo. USD Term SOFR + 4.750%) (1) | | | 06/27/29 | | | | 100,000 | | | | 98,072 | |
| | | | | | | | | | | | |
|
| Packaging & Containers — 1.1% | |
| |
Plaze, Inc. 2020 Incremental Term Loan | | | | | |
| | | |
8.55% (1 mo. USD Term SOFR + 3.750%) (1) | | | 08/03/26 | | | | 82,066 | | | | 77,464 | |
| |
Proampac PG Borrower LLC 2024 Term Loan | | | | | |
| | | |
8.66% (3 mo. USD Term SOFR + 4.000%) (1) | | | 09/15/28 | | | | 372,192 | | | | 373,938 | |
| | | | | | | | | | | | |
| |
| | | | 451,402 | |
| | | | | | | | | | | | |
|
| Pipelines — 0.2% | |
| |
NGL Energy Partners LP 2024 Term Loan B | | | | | |
| | | |
8.44% (1 mo. USD Term SOFR + 3.750%) (1) | | | 02/03/31 | | | | 69,825 | | | | 69,635 | |
| | | | | | | | | | | | |
|
| REIT — 0.9% | |
| |
OEG Borrower LLC 2024 Term Loan B | | | | | |
| | | |
8.36% (3 mo. USD Term SOFR + 3.500%) (1) | | | 06/30/31 | | | | 100,000 | | | | 100,251 | |
See accompanying Notes to Financial Statements.
31
TCW High Yield Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| REIT (Continued) | |
| |
SBA Senior Finance II LLC 2024 Term Loan B | | | | | |
| | | |
6.44% (1 mo. USD Term SOFR + 1.750%) (1) | | | 01/25/31 | | | $ | 256,064 | | | $ | 255,997 | |
| | | | | | | | | | | | |
| |
| | | | 356,248 | |
| | | | | | | | | | | | |
| | | |
| Retail — 0.6% | | | | | | | | | |
| |
1011778 B.C. Unlimited Liability Co. 2024 Term Loan B6 | | | | | |
| | | |
6.44% (1 mo. USD Term SOFR + 1.750%) (1) | | | 09/20/30 | | | | 114,713 | | | | 113,910 | |
| |
Tacala LLC 2024 Term Loan | | | | | |
| | | |
8.19% (1 mo. USD Term SOFR + 3.500%) (1) | | | 01/31/31 | | | | 139,300 | | | | 139,861 | |
| | | | | | | | | | | | |
| |
| | | | 253,771 | |
| | | | | | | | | | | | |
| | | |
| Software — 1.2% | | | | | | | | | |
| |
Boxer Parent Co., Inc. 2024 USD Term Loan B | | | | | |
| | | |
8.34% (3 mo. USD Term SOFR + 3.750%) (1) | | | 07/30/31 | | | | 50,000 | | | | 49,927 | |
| |
Boxer Parent Company, Inc. 2024 2nd Lien Term Loan | | | | | |
| | | |
10.34% (3 mo. USD Term SOFR + 5.750%) (1) | | | 07/30/32 | | | | 50,000 | | | | 49,323 | |
| |
DTI Holdco, Inc. 2022 Term Loan | | | | | |
| | | |
9.44% (1 mo. USD Term SOFR + 4.750%) (1) | | | 04/26/29 | | | | 149,618 | | | | 150,378 | |
| |
EagleView Technology Corp. 2018 Add On Term Loan B | | | | | |
| | | |
8.37% (3 mo. USD Term SOFR + 3.500%) (1) | | | 08/14/25 | | | | 190,479 | | | | 181,431 | |
| |
RealPage, Inc. 1st Lien Term Loan | | | | | |
| | | |
7.80% (1 mo. USD Term SOFR + 3.000%) (1) | | | 04/24/28 | | | | 69,820 | | | | 68,913 | |
| | | | | | | | | | | | |
| |
| | | | 499,972 | |
| | | | | | | | | | | | |
|
Total Bank Loans | |
| |
(Cost: $6,884,428) | | | | 6,868,977 | |
| | | | | | | | | | | | |
|
CORPORATE BONDS — 76.4% | |
|
| Aerospace & Defense — 2.4% | |
| |
Boeing Co. | | | | | |
| | | |
6.53% (5) | | | 05/01/34 | | | | 160,000 | | | | 168,741 | |
| |
General Electric Co. | | | | | |
| | | |
5.86% (3 mo. USD Term SOFR + 0.742%) (1) | | | 08/15/36 | | | | 52,000 | | | | 48,768 | |
|
TransDigm, Inc. | |
| | | |
4.63% | | | 01/15/29 | | | | 135,000 | | | | 128,372 | |
| | | |
6.38% (5) | | | 03/01/29 | | | | 547,000 | | | | 555,484 | |
| | | |
6.75% (5) | | | 08/15/28 | | | | 18,000 | | | | 18,420 | |
| | | |
6.88% (5) | | | 12/15/30 | | | | 70,000 | | | | 71,866 | |
| | | | | | | | | | | | |
| |
| | | | 991,651 | |
| | | | | | | | | | | | |
| | | |
| Agriculture — 1.1% | | | | | | | | | |
| |
BAT Capital Corp. (United Kingdom) | | | | | |
| | | |
5.28% | | | 04/02/50 | | | | 401,000 | | | | 360,090 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| | | |
| Agriculture (Continued) | | | | | | | | | |
| |
Imperial Brands Finance Netherlands BV (United Kingdom) | | | | | |
| | | |
1.75% (6) | | | 03/18/33 | | | EU | R 120,000 | | | $ | 108,825 | |
| | | | | | | | | | | | |
| |
| | | | 468,915 | |
| | | | | | | | | | | | |
| | | |
| Auto Manufacturers — 2.8% | | | | | | | | | |
|
Allison Transmission, Inc. | |
| | | |
3.75% (5) | | | 01/30/31 | | | $ | 100,000 | | | | 88,739 | |
|
Ford Motor Credit Co. LLC | |
| | | |
2.30% | | | 02/10/25 | | | | 315,000 | | | | 312,297 | |
| | | |
4.06% | | | 11/01/24 | | | | 755,000 | | | | 755,000 | |
| | | | | | | | | | | | |
| |
| | | | 1,156,036 | |
| | | | | | | | | | | | |
| | | |
| Banks — 2.3% | | | | | | | | | |
| |
Bank of America Corp. | | | | | |
| | | |
4.38% (5 yr. CMT + 2.760%) (1),(7) | | | 01/27/27 | | | | 225,000 | | | | 217,361 | |
| |
Bank of New York Mellon Corp. | | | | | |
| | | |
3.75% (5 yr. CMT + 2.630%) (1),(7) | | | 12/20/26 | | | | 285,000 | | | | 269,935 | |
| |
JPMorgan Chase & Co. | | | | | |
| | | |
3.65% (5 yr. CMT + 2.850%) (1),(7) | | | 06/01/26 | | | | 95,000 | | | | 92,207 | |
| |
U.S. Bancorp | | | | | |
| | | |
3.70% (5 yr. CMT + 2.541%) (1),(7) | | | 01/15/27 | | | | 400,000 | | | | 375,480 | |
| | | | | | | | | | | | |
| |
| | | | 954,983 | |
| | | | | | | | | | | | |
| | | |
| Beverages — 0.5% | | | | | | | | | |
| |
Triton Water Holdings, Inc. | | | | | |
| | | |
6.25% (5) | | | 04/01/29 | | | | 209,000 | | | | 206,638 | |
| | | | | | | | | | | | |
| | | |
| Chemicals — 1.0% | | | | | | | | | |
| |
Axalta Coating Systems Dutch Holding B BV | | | | | |
| | | |
7.25% (5) | | | 02/15/31 | | | | 150,000 | | | | 157,125 | |
| |
Herens Holdco SARL(Luxembourg) | | | | | |
| | | |
4.75% (5) | | | 05/15/28 | | | | 57,000 | | | | 49,891 | |
| |
Olympus Water U.S. Holding Corp. | | | | | |
| | | |
7.13% (5) | | | 10/01/27 | | | | 125,000 | | | | 127,220 | |
| |
SCIH Salt Holdings, Inc. | | | | | |
| | | |
4.88% (5) | | | 05/01/28 | | | | 70,000 | | | | 67,071 | |
| | | | | | | | | | | | |
| |
| | | | 401,307 | |
| | | | | | | | | | | | |
| | | |
| Commercial Services — 3.9% | | | | | | | | | |
|
Adtalem Global Education, Inc. | |
| | | |
5.50% (5) | | | 03/01/28 | | | | 232,000 | | | | 227,562 | |
| | | |
Block, Inc. | | | | | | | | | | | | |
| | | |
3.50% | | | 06/01/31 | | | | 188,000 | | | | 167,004 | |
| | | |
Carriage Services, Inc. | | | | | | | | | | | | |
| | | |
4.25% (5) | | | 05/15/29 | | | | 277,000 | | | | 254,228 | |
See accompanying Notes to Financial Statements.
32
TCW High Yield Bond Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| |
| Commercial Services (Continued) | | | | |
| |
Prime Security Services Borrower LLC/Prime Finance, Inc. | | | | | |
| | | |
3.38% (5) | | | 08/31/27 | | | $ | 100,000 | | | $ | 94,140 | |
| | | |
5.75% (5) | | | 04/15/26 | | | | 270,000 | | | | 270,443 | |
| |
Raven Acquisition Holdings LLC | | | | | |
| | | |
6.88% (5) | | | 11/15/31 | | | | 65,000 | | | | 64,901 | |
| |
Shift4 Payments LLC/Shift4 Payments Finance Sub, Inc. | | | | | |
| | | |
6.75% (5) | | | 08/15/32 | | | | 95,000 | | | | 97,504 | |
| |
Upbound Group, Inc. | | | | | |
| | | |
6.38% (5) | | | 02/15/29 | | | | 205,000 | | | | 195,238 | |
| |
Valvoline, Inc. | | | | | |
| | | |
3.63% (5) | | | 06/15/31 | | | | 230,000 | | | | 199,815 | |
| |
VT Topco, Inc. | | | | | |
| | | |
8.50% (5) | | | 08/15/30 | | | | 40,000 | | | | 42,147 | |
| | | | | | | | | | | | |
| |
| | | | 1,612,982 | |
| | | | | | | | | | | | |
| | | |
| Computers — 1.2% | | | | | | | | | |
| |
Insight Enterprises, Inc. | | | | | |
| | | |
6.63% (5) | | | 05/15/32 | | | | 235,000 | | | | 240,704 | |
| |
Science Applications International Corp. | | | | | |
| | | |
4.88% (5) | | | 04/01/28 | | | | 275,000 | | | | 269,728 | |
| | | | | | | | | | | | |
| |
| | | | 510,432 | |
| | | | | | | | | | | | |
|
| Cosmetics/Personal Care — 0.5% | |
| |
Prestige Brands, Inc. | | | | | |
| | | |
3.75% (5) | | | 04/01/31 | | | | 215,000 | | | | 192,535 | |
| | | | | | | | | | | | |
|
| Diversified Financial Services — 2.2% | |
| |
American Express Co. | | | | | |
| | | |
3.55% (5 yr. CMT + 2.854%) (1),(7) | | | 09/15/26 | | | | 230,000 | | | | 218,429 | |
| |
Charles Schwab Corp. | | | | | |
| | | |
5.00% (5 yr. CMT + 3.256%) (1),(7) | | | 06/01/27 | | | | 265,000 | | | | 259,215 | |
| |
GGAM Finance Ltd. (Ireland) | | | | | |
| | | |
8.00% (5) | | | 02/15/27 | | | | 115,000 | | | | 118,893 | |
| |
Jane Street Group/JSG Finance, Inc. | | | | | |
| | | |
4.50% (5) | | | 11/15/29 | | | | 90,000 | | | | 85,227 | |
| | | |
6.13% (5) | | | 11/01/32 | | | | 90,000 | | | | 90,174 | |
| |
Macquarie Airfinance Holdings Ltd. (United Kingdom) | | | | | |
| | | |
6.40% (5) | | | 03/26/29 | | | | 125,000 | | | | 128,936 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | 900,874 | |
| | | | | | | | | | | | |
|
| Electric — 0.2% | |
| |
Alpha Generation LLC | | | | | |
| | | |
6.75% (5) | | | 10/15/32 | | | | 105,000 | | | | 106,623 | |
| | | | | | | | | | | | |
|
| Electrical Components & Equipment — 0.3% | |
| |
Energizer Holdings, Inc. | | | | | |
| | | |
4.38% (5) | | | 03/31/29 | | | | 125,000 | | | | 116,999 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Electronics — 0.1% | |
| |
Coherent Corp. | | | | | |
| | | |
5.00% (5) | | | 12/15/29 | | | $ | 65,000 | | | $ | 62,397 | |
| | | | | | | | | | | | |
|
| Entertainment — 3.4% | |
| |
Banijay Entertainment SAS (France) | | | | | |
| | | |
8.13% (5) | | | 05/01/29 | | | | 110,000 | | | | 114,093 | |
| |
Churchill Downs, Inc. | | | | | |
| | | |
4.75% (5) | | | 01/15/28 | | | | 70,000 | | | | 67,979 | |
| |
Everi Holdings, Inc. | | | | | |
| | | |
5.00% (5) | | | 07/15/29 | | | | 275,000 | | | | 273,463 | |
| |
Great Canadian Gaming Corp. | | | | | |
| | | |
8.75% (5) | | | 11/15/29 | | | | 100,000 | | | | 100,000 | |
| |
Live Nation Entertainment, Inc. | | | | | |
| | | |
4.75% (5) | | | 10/15/27 | | | | 115,000 | | | | 111,936 | |
| | | |
5.63% (5) | | | 03/15/26 | | | | 55,000 | | | | 54,873 | |
| |
Penn Entertainment, Inc. | | | | | |
| | | |
5.63% (5) | | | 01/15/27 | | | | 65,000 | | | | 63,862 | |
| |
WarnerMedia Holdings, Inc. | | | | | |
| | | |
5.14% | | | 03/15/52 | | | | 850,000 | | | | 640,849 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | 1,427,055 | |
| | | | | | | | | | | | |
|
| Environmental Control — 0.3% | |
| |
Paprec Holding SA (France) | | | | | |
| | | |
7.25% (5) | | | 11/17/29 | | | EUR | 100,000 | | | | 114,930 | |
| | | | | | | | | | | | |
|
| Food — 3.9% | |
| |
ELO SACA (France) | | | | | |
| | | |
6.00% (6) | | | 03/22/29 | | | EUR | 200,000 | | | | 187,552 | |
| |
Pilgrim’s Pride Corp. | | | | | |
| | | |
3.50% | | | 03/01/32 | | | | 675,000 | | | | 591,482 | |
|
Post Holdings, Inc. | |
| | | |
4.50% (5) | | | 09/15/31 | | | | 325,000 | | | | 296,176 | |
| | | |
5.50% (5) | | | 12/15/29 | | | | 325,000 | | | | 317,213 | |
| |
Smithfield Foods, Inc. | | | | | |
| | | |
5.20% (5) | | | 04/01/29 | | | | 217,000 | | | | 212,784 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | 1,605,207 | |
| | | | | | | | | | | | |
|
| Hand/Machine Tools — 0.3% | |
| |
IMA Industria Macchine Automatiche SpA (Italy) | | | | | |
| | | |
6.97% (3 mo. EUR EURIBOR + 3.750%) (1),(5) | | | 04/15/29 | | | EUR | 100,000 | | | | 109,558 | |
| | | | | | | | | | | | |
|
| Health Care-Products — 0.9% | |
|
Hologic, Inc. | |
| | | |
3.25% (5) | | | 02/15/29 | | | $ | 55,000 | | | | 50,574 | |
| |
Sotera Health Holdings LLC | | | | | |
| | | |
7.38% (5) | | | 06/01/31 | | | | 95,000 | | | | 97,268 | |
|
Teleflex, Inc. | |
| | | |
4.25% (5) | | | 06/01/28 | | | | 260,000 | | | | 249,517 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | 397,359 | |
| | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
33
TCW High Yield Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Health Care-Services — 9.3% | |
| |
Catalent Pharma Solutions, Inc. | | | | | |
| | | |
3.50% (5) | | | 04/01/30 | | | $ | 120,000 | | | $ | 116,474 | |
|
Centene Corp. | |
| | | |
2.45% | | | 07/15/28 | | | | 185,000 | | | | 166,594 | |
| | | |
2.63% | | | 08/01/31 | | | | 250,000 | | | | 208,053 | |
| | | |
3.00% | | | 10/15/30 | | | | 75,000 | | | | 65,051 | |
| | | |
4.25% | | | 12/15/27 | | | | 810,000 | | | | 783,869 | |
| |
HAH Group Holding Co. LLC | | | | | |
| | | |
9.75% (5) | | | 10/01/31 | | | | 136,000 | | | | 138,765 | |
|
HealthEquity, Inc. | |
| | | |
4.50% (5) | | | 10/01/29 | | | | 170,000 | | | | 162,058 | |
| |
Heartland Dental LLC/Heartland Dental Finance Corp. | | | | | |
| | | |
10.50% (5) | | | 04/30/28 | | | | 75,000 | | | | 79,904 | |
|
IQVIA, Inc. | |
| | | |
5.00% (5) | | | 05/15/27 | | | | 228,000 | | | | 225,287 | |
| |
Kedrion SpA (Italy) | | | | | |
| | | |
6.50% (5) | | | 09/01/29 | | | | 135,000 | | | | 126,981 | |
|
ModivCare, Inc. | |
| | | |
5.00% (5) | | | 10/01/29 | | | | 500,000 | | | | 342,045 | |
| |
Prime Healthcare Services, Inc. | | | | | |
| | | |
9.38% (5) | | | 09/01/29 | | | | 80,000 | | | | 81,388 | |
|
Star Parent, Inc. | |
| | | |
9.00% (5) | | | 10/01/30 | | | | 155,000 | | | | 161,318 | |
| |
Tenet Healthcare Corp. | | | | | |
| | | |
4.63% | | | 06/15/28 | | | | 290,000 | | | | 280,743 | |
| | | |
5.13% | | | 11/01/27 | | | | 920,000 | | | | 912,889 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | 3,851,419 | |
| | | | | | | | | | | | |
|
| Household Products/Wares — 0.7% | |
| |
Central Garden & Pet Co. | | | | | |
| | | |
4.13% | | | 10/15/30 | | | | 105,000 | | | | 95,347 | |
| | | |
4.13% (5) | | | 04/30/31 | | | | 90,000 | | | | 80,849 | |
| |
Spectrum Brands, Inc. | | | | | |
| | | |
3.88% (5) | | | 03/15/31 | | | | 153,000 | | | | 134,851 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | 311,047 | |
| | | | | | | | | | | | |
|
| Housewares — 0.8% | |
| |
Newell Brands, Inc. | | | | | |
| | | |
4.88% | | | 06/01/25 | | | | 349,000 | | | | 349,000 | |
| | | | | | | | | | | | |
|
| Insurance — 1.4% | |
| |
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer | | | | | |
| | | |
4.25% (5) | | | 10/15/27 | | | | 165,000 | | | | 156,676 | |
| | | |
7.00% (5) | | | 01/15/31 | | | | 100,000 | | | | 100,805 | |
| |
Farmers Insurance Exchange | | | | | |
| | | |
7.00% (10 yr. CMT + 3.864%) (1),(5) | | | 10/15/64 | | | | 150,000 | | | | 153,657 | |
| |
HUB International Ltd. | | | | | |
| | | |
7.25% (5) | | | 06/15/30 | | | | 115,000 | | | | 119,083 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Insurance (Continued) | |
| |
Panther Escrow Issuer LLC | | | | | |
| | | |
7.13% (5) | | | 06/01/31 | | | $ | 70,000 | | | $ | 71,569 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | 601,790 | |
| | | | | | | | | | | | |
|
| Internet — 0.9% | |
| |
Cogent Communications Group LLC | | | | | |
| | | |
7.00% (5) | | | 06/15/27 | | | | 100,000 | | | | 101,168 | |
|
Uber Technologies, Inc. | |
| | | |
7.50% (5) | | | 09/15/27 | | | | 259,000 | | | | 264,074 | |
| | | | | | | | | | | | |
| |
| | | | 365,242 | |
| | | | | | | | | | | | |
|
| Investment Companies — 0.7% | |
| |
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | | | | | |
| | | |
4.38% | | | 02/01/29 | | | | 74,000 | | | | 61,811 | |
| | | |
9.00% | | | 06/15/30 | | | | 85,000 | | | | 81,989 | |
| | | |
9.75% | | | 01/15/29 | | | | 135,000 | | | | 135,122 | |
| | | | | | | | | | | | |
| |
| | | | 278,922 | |
| | | | | | | | | | | | |
|
| Iron & Steel — 0.4% | |
|
ATI, Inc. | |
| | | |
5.13% | | | 10/01/31 | | | | 130,000 | | | | 122,811 | |
| | | |
7.25% | | | 08/15/30 | | | | 30,000 | | | | 31,085 | |
| | | | | | | | | | | | |
| |
| | | | 153,896 | |
| | | | | | | | | | | | |
|
| Lodging — 2.1% | |
| |
Hilton Domestic Operating Co., Inc. | | | | | |
| | | |
3.63% (5) | | | 02/15/32 | | | | 147,000 | | | | 129,248 | |
| |
Wyndham Hotels & Resorts, Inc. | | | | | |
| | | |
4.38% (5) | | | 08/15/28 | | | | 237,000 | | | | 225,712 | |
| |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. | | | | | |
| | | |
5.25% (5) | | | 05/15/27 | | | | 540,000 | | | | 536,911 | |
| | | | | | | | | | | | |
| |
| | | | 891,871 | |
| | | | | | | | | | | | |
|
| Machinery-Construction & Mining — 0.4% | |
| |
BWX Technologies, Inc. | | | | | |
| | | |
4.13% (5) | | | 06/30/28 | | | | 185,000 | | | | 176,660 | |
| | | | | | | | | | | | |
|
| Machinery-Diversified — 0.3% | |
| |
TK Elevator U.S. Newco, Inc. (Germany) | | | | | |
| | | |
5.25% (5) | | | 07/15/27 | | | | 115,000 | | | | 113,289 | |
| | | | | | | | | | | | |
|
| Media — 5.9% | |
| |
CCO Holdings LLC/CCO Holdings Capital Corp. | | | | | |
| | | |
5.13% (5) | | | 05/01/27 | | | | 355,000 | | | | 348,344 | |
| | | |
5.50% (5) | | | 05/01/26 | | | | 692,000 | | | | 690,665 | |
| |
CSC Holdings LLC | | | | | |
| | | |
6.50% (5) | | | 02/01/29 | | | | 725,000 | | | | 613,292 | |
| | | |
7.50% (5) | | | 04/01/28 | | | | 110,000 | | | | 72,621 | |
| | | |
11.75% (5) | | | 01/31/29 | | | | 14,000 | | | | 13,678 | |
| |
DISH DBS Corp. | | | | | |
| | | |
7.38% | | | 07/01/28 | | | | 132,000 | | | | 96,831 | |
| | | |
7.75% | | | 07/01/26 | | | | 30,000 | | | | 25,416 | |
See accompanying Notes to Financial Statements.
34
TCW High Yield Bond Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Media (Continued) | |
| |
Nexstar Media, Inc. | | | | | |
| | | |
4.75% (5) | | | 11/01/28 | | | $ | 140,000 | | | $ | 131,734 | |
| |
Sirius XM Radio, Inc. | | | | | |
| | | |
5.50% (5) | | | 07/01/29 | | | | 100,000 | | | | 97,136 | |
| |
VZ Secured Financing BV (Netherlands) | | | | | |
| | | |
3.50% (6) | | | 01/15/32 | | | EUR | 190,000 | | | | 188,720 | |
| | | |
5.00% (5) | | | 01/15/32 | | | $ | 200,000 | | | | 179,762 | |
| | | | | | | | | | | | |
| |
| | | | 2,458,199 | |
| | | | | | | | | | | | |
|
| Oil & Gas — 0.7% | |
|
Sunoco LP | |
| | | |
7.00% (5) | | | 05/01/29 | | | | 120,000 | | | | 123,966 | |
| |
Transocean Poseidon Ltd. | | | | | |
| | | |
6.88% (5) | | | 02/01/27 | | | | 57,000 | | | | 57,106 | |
| |
Transocean Titan Financing Ltd. | | | | | |
| | | |
8.38% (5) | | | 02/01/28 | | | | 120,000 | | | | 123,701 | |
| | | | | | | | | | | | |
| |
| | | | 304,773 | |
| | | | | | | | | | | | |
|
| Oil & Gas Services — 0.8% | |
| |
Archrock Partners LP/Archrock Partners Finance Corp. | | | | | |
| | | |
6.63% (5) | | | 09/01/32 | | | | 110,000 | | | | 110,578 | |
| |
USA Compression Partners LP/USA Compression Finance Corp. | | | | | |
| | | |
7.13% (5) | | | 03/15/29 | | | | 200,000 | | | | 203,946 | |
| | | | | | | | | | | | |
| |
| | | | 314,524 | |
| | | | | | | | | | | | |
|
| Packaging & Containers — 3.8% | |
| |
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. | | | | | |
| | | |
4.13% (5) | | | 08/15/26 | | | | 80,000 | | | | 69,690 | |
| | | |
5.25% (5) | | | 08/15/27 | | | | 320,000 | | | | 192,410 | |
| |
Ball Corp. | | | | | |
| | | |
6.88% | | | 03/15/28 | | | | 300,000 | | | | 308,589 | |
| |
Berry Global, Inc. | | | | | |
| | | |
4.88% (5) | | | 07/15/26 | | | | 28,000 | | | | 27,840 | |
| | | |
5.65% (5) | | | 01/15/34 | | | | 275,000 | | | | 275,058 | |
| |
Clearwater Paper Corp. | | | | | |
| | | |
4.75% (5) | | | 08/15/28 | | | | 239,000 | | | | 222,131 | |
| |
Graphic Packaging International LLC | | | | | |
| | | |
4.75% (5) | | | 07/15/27 | | | | 175,000 | | | | 172,074 | |
| |
Sealed Air Corp. | | | | | |
| | | |
4.00% (5) | | | 12/01/27 | | | | 124,000 | | | | 118,849 | |
| |
Silgan Holdings, Inc. | | | | | |
| | | |
4.13% | | | 02/01/28 | | | | 125,000 | | | | 120,011 | |
| |
Trivium Packaging Finance BV (Netherlands) | | | | | |
| | | |
5.50% (5) | | | 08/15/26 | | | | 55,000 | | | | 54,561 | |
| | | | | | | | | | | | |
| |
| | | | 1,561,213 | |
| | | | | | | | | | | | |
|
| Pharmaceuticals — 1.7% | |
| |
1375209 BC Ltd. (Canada) | | | | | |
| | | |
9.00% (5) | | | 01/30/28 | | | | 250,000 | | | | 249,620 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Pharmaceuticals (Continued) | |
|
Bausch Health Cos., Inc. (Canada) | |
| | | |
5.75% (5) | | | 08/15/27 | | | $ | 18,000 | | | $ | 14,976 | |
| |
Bayer U.S. Finance II LLC (Germany) | | | | | |
| | | |
6.50% (5) | | | 11/21/33 | | | | 135,000 | | | | 141,466 | |
|
Grifols SA (Spain) | |
| | | |
3.88% (6) | | | 10/15/28 | | | | 100,000 | | | | 98,574 | |
| | | |
4.75% (5) | | | 10/15/28 | | | | 159,000 | | | | 146,926 | |
| |
Option Care Health, Inc. | | | | | |
| | | |
4.38% (5) | | | 10/31/29 | | | | 50,000 | | | | 46,060 | |
| | | | | | | | | | | | |
| |
| | | | 697,622 | |
| | | | | | | | | | | | |
|
| Pipelines — 3.1% | |
| |
Energy Transfer LP | | | | | |
| | | |
6.63% (3 mo. USD LIBOR + 4.155%) (1),(7) | | | 02/15/28 | | | | 240,000 | | | | 236,304 | |
| |
Global Partners LP/GLP Finance Corp. | | | | | |
| | | |
6.88% | | | 01/15/29 | | | | 125,000 | | | | 124,865 | |
| |
NGL Energy Operating LLC/NGL Energy Finance Corp. | | | | | |
| | | |
8.13% (5) | | | 02/15/29 | | | | 65,000 | | | | 65,482 | |
| | | |
8.38% (5) | | | 02/15/32 | | | | 20,000 | | | | 20,195 | |
| |
TransMontaigne Partners LP/TLP Finance Corp. | | | | | |
| | | |
6.13% | | | 02/15/26 | | | | 182,000 | | | | 179,204 | |
| |
Venture Global Calcasieu Pass LLC | | | | | |
| | | |
4.13% (5) | | | 08/15/31 | | | | 285,000 | | | | 259,909 | |
| |
Venture Global LNG, Inc. | | | | | |
| | | |
7.00% (5) | | | 01/15/30 | | | | 273,000 | | | | 274,845 | |
| | | |
9.50% (5) | | | 02/01/29 | | | | 127,000 | | | | 140,466 | |
| | | | | | | | | | | | |
| |
| | | | 1,301,270 | |
| | | | | | | | | | | | |
|
| Real Estate — 0.2% | |
| |
Blackstone Property Partners Europe Holdings SARL (Luxembourg) | | | | | |
| | | |
1.00% (6) | | | 05/04/28 | | | EUR | 100,000 | | | | 99,341 | |
| | | | | | | | | | | | |
|
| REIT — 6.1% | |
| |
American Assets Trust LP | | | | | |
| | | |
3.38% | | | 02/01/31 | | | | 475,000 | | | | 411,768 | |
| |
GLP Capital LP/GLP Financing II, Inc. | | | | | |
| | | |
5.25% | | | 06/01/25 | | | | 230,000 | | | | 229,701 | |
| | | |
5.75% | | | 06/01/28 | | | | 473,000 | | | | 480,776 | |
| |
Hudson Pacific Properties LP | | | | | |
| | | |
3.25% | | | 01/15/30 | | | | 132,000 | | | | 96,640 | |
| | | |
3.95% | | | 11/01/27 | | | | 105,000 | | | | 94,351 | |
| | | |
4.65% | | | 04/01/29 | | | | 35,000 | | | | 28,056 | |
| |
Piedmont Operating Partnership LP | | | | | |
| | | |
2.75% | | | 04/01/32 | | | | 50,000 | | | | 39,798 | |
| | | |
6.88% | | | 07/15/29 | | | | 20,000 | | | | 20,648 | |
| |
VICI Properties LP | | | | | |
| | | |
4.95% | | | 02/15/30 | | | | 600,000 | | | | 589,476 | |
See accompanying Notes to Financial Statements.
35
TCW High Yield Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| REIT (Continued) | |
| |
VICI Properties LP/VICI Note Co., Inc. | | | | | |
| | | |
3.88% (5) | | | 02/15/29 | | | $ | 24,000 | | | $ | 22,613 | |
| | | |
4.63% (5) | | | 06/15/25 | | | | 512,000 | | | | 509,696 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | 2,523,523 | |
| | | | | | | | | | | | |
| | | |
| Retail — 3.6% | | | | | | | | | |
| |
Ferrellgas LP/Ferrellgas Finance Corp. | | | | | |
| | | |
5.38% (5) | | | 04/01/26 | | | | 250,000 | | | | 248,475 | |
| | | |
5.88% (5) | | | 04/01/29 | | | | 378,000 | | | | 353,298 | |
| |
FirstCash, Inc. | | | | | |
| | | |
5.63% (5) | | | 01/01/30 | | | | 165,000 | | | | 160,110 | |
| |
Lithia Motors, Inc. | | | | | |
| | | |
3.88% (5) | | | 06/01/29 | | | | 95,000 | | | | 87,262 | |
| |
Michaels Cos., Inc. | | | | | |
| | | |
5.25% (5) | | | 05/01/28 | | | | 360,000 | | | | 261,504 | |
| |
Murphy Oil USA, Inc. | | | | | |
| | | |
3.75% (5) | | | 02/15/31 | | | | 115,000 | | | | 102,267 | |
| |
Papa John’s International, Inc. | | | | | |
| | | |
3.88% (5) | | | 09/15/29 | | | | 294,000 | | | | 268,428 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | 1,481,344 | |
| | | | | | | | | | | | |
| | | |
| Software — 2.8% | | | | | | | | | |
| |
Helios Software Holdings, Inc./ION Corporate Solutions Finance SARL | | | | | |
| | | |
8.75% (5) | | | 05/01/29 | | | | 165,000 | | | | 167,943 | |
| |
Open Text Corp. (Canada) | | | | | |
| | | |
6.90% (5) | | | 12/01/27 | | | | 310,000 | | | | 322,676 | |
| |
RingCentral, Inc. | | | | | |
| | | |
8.50% (5) | | | 08/15/30 | | | | 65,000 | | | | 68,776 | |
| |
SS&C Technologies, Inc. | | | | | |
| | | |
5.50% (5) | | | 09/30/27 | | | | 445,000 | | | | 443,505 | |
| |
ZoomInfo Technologies LLC/ZoomInfo Finance Corp. | | | | | |
| | | |
3.88% (5) | | | 02/01/29 | | | | 165,000 | | | | 150,602 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | 1,153,502 | |
| | | | | | | | | | | | |
|
| Telecommunications — 3.4% | |
| |
Altice France SA | | | | | |
| | | |
5.13% (5) | | | 01/15/29 | | | | 200,000 | | | | 150,612 | |
| | | |
5.50% (5) | | | 10/15/29 | | | | 145,000 | | | | 109,839 | |
| | | |
8.13% (5) | | | 02/01/27 | | | | 125,000 | | | | 103,711 | |
| |
Consolidated Communications, Inc. | | | | | |
| | | |
6.50% (5) | | | 10/01/28 | | | | 155,000 | | | | 147,360 | |
| |
Frontier Communications Holdings LLC | | | | | |
| | | |
5.00% (5) | | | 05/01/28 | | | | 80,000 | | | | 78,740 | |
| | | |
5.88% (5) | | | 10/15/27 | | | | 247,000 | | | | 246,620 | |
| | | |
8.63% (5) | | | 03/15/31 | | | | 230,000 | | | | 247,050 | |
| |
Global Switch Finance BV (United Kingdom) | | | | | |
| | | |
1.38% (6) | | | 10/07/30 | | | EUR | 115,000 | | | | 116,729 | |
| |
SES GLOBAL Americas Holdings, Inc. (Luxembourg) | | | | | |
| | | |
5.30% (5) | | | 03/25/44 | | | | 159,000 | | | | 121,710 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| Telecommunications (Continued) | |
|
Zayo Group Holdings, Inc. | |
| | | |
4.00% (5) | | | 03/01/27 | | | $ | 95,000 | | | $ | 84,646 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | 1,407,017 | |
| | | | | | | | | | | | |
|
| Total Corporate Bonds | |
| |
(Cost: $32,200,465) | | | | 31,731,945 | |
| | | | | | | | | | | | |
|
| Total Fixed Income Securities | |
| |
(Cost: $39,084,893) | | | | 38,600,922 | |
| | | | | | | | | | | | |
|
CONVERTIBLE SECURITIES (0.2%) | |
|
CONVERTIBLE CORPORATE BONDS — 0.2% | |
|
| Commercial Services — 0.2% | |
|
Worldline SA (France) | |
| | | |
0.00% (6),(8) | | | 07/30/26 | | | EUR | 61,920 | | | | 62,446 | |
| | | | | | | | | | | | |
|
Total Convertible Corporate Bonds | |
| |
(Cost: $61,598) | | | | 62,446 | |
| | | | | | | | | | | | |
| | | |
| | | | | | | | | | | | |
| | | | | | Shares | | | | |
|
WARRANTS — 0.0% | |
|
| Entertainment — 0.0% | |
Cineworld Group PLC (9),(10) | | | | | | | 42,717 | | | | — | |
| | | | | | | | | | | | |
|
Total Warrants | |
| |
(Cost: $—) | | | | — | |
| | | | | | | | | | | | |
|
| MONEY MARKET INVESTMENTS — 6.2% | |
| | |
State Street Institutional U.S. Government Money Market Fund — Premier Class, 4.82% (11) | | | | 81,315 | | | | 81,315 | |
| | |
TCW Central Cash Fund, 4.84% (11),(12) | | | | 2,501,233 | | | | 2,501,233 | |
| | | | | | | | | | | | |
|
Total Money Market Investments | |
| |
(Cost: $2,582,548) | | | | 2,582,548 | |
| | | | | | | | | | | | |
|
Total Investments (99.3%) | |
| |
(Cost: $41,729,039) | | | | 41,245,916 | |
| |
Net Unrealized Appreciation on Unfunded Commitments — 0.00% | | | | 9 | |
| |
Excess Of Other Assets Over Liabilities (0.7%) | | | | 288,144 | |
| | | | | | | | | | | | |
| |
Net Assets (100.0%) | | | $ | 41,534,069 | |
| | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
36
TCW High Yield Bond Fund
October 31, 2024
| | | | | | | | | | | | | | | | | | |
| Futures Contracts | |
| | | | | |
Number of
Contracts | | Type | | Expiration
Date | | | Notional | | | Market
Value | | | Net Unrealized
Appreciation
(Depreciation) | |
Long Futures | |
| 2 | | 10-Year U.S. Treasury Note Futures | | | 12/19/24 | | | $ | 233,511 | | | $ | 227,500 | | | $ | (6,011 | ) |
| 22 | | 2-Year U.S. Treasury Note Futures | | | 12/31/24 | | | | 4,565,992 | | | | 4,530,797 | | | | (35,195 | ) |
| 36 | | 5-Year U.S. Treasury Note Futures | | | 12/31/24 | | | | 3,944,234 | | | | 3,860,437 | | | | (83,797 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | $ | 8,743,737 | | | $ | 8,618,734 | | | $ | (125,003 | ) |
| | | | | | | | | | | | | | | | | | |
Short Futures | |
| 5 | | Euro-Bobl Future | | | 12/6/24 | | | $ | (646,010 | ) | | $ | (641,348 | ) | | $ | 4,662 | |
| 1 | | Euro-Bund Future | | | 12/6/24 | | | | (144,000 | ) | | | (143,089 | ) | | | 911 | |
| 4 | | U.S. Ultra Long Bond Futures | | | 12/19/24 | | | | (535,024 | ) | | | (502,500 | ) | | | 32,524 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | $ | (1,325,034 | ) | | $ | (1,286,937 | ) | | $ | 38,097 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Forward Currency Exchange Contracts | |
| | | | | | |
| Counterparty | | Contracts to
Deliver | | | Units of
Currency | | | Settlement
Date | | | In Exchange for
U.S. Dollars | | | Contracts at
Value | | | Unrealized
Appreciation
(Depreciation) | |
| BUY (13) | | | | | | | | | | | | | | | |
Goldman Sachs & Co. | | | EUR | | | | 92,000 | | | | 01/17/25 | | | $ | 101,138 | | | $ | 100,202 | | | $ | (936 | ) |
Citibank N.A. | | | EUR | | | | 82,000 | | | | 01/17/25 | | | | 89,975 | | | | 89,311 | | | | (664 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | | | | | | | | | | | $ | 191,113 | | | $ | 189,513 | | | $ | (1,600 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| SELL (14) | | | | | | | | | | | | | | | |
Citibank N.A. | | | EUR | | | | 1,144,000 | | | | 01/17/25 | | | $ | 1,261,890 | | | $ | 1,245,996 | | | $ | 15,894 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Notes to the Schedule of Investments:
| REIT | | Real Estate Investment Trust. |
| (1) | | Floating or variable rate security. The interest shown reflects the rate in effect at October 31, 2024. |
| (2) | | Excluded from the investment total above is an unfunded delayed draw term loan commitment in an amount not to exceed $9,523, at an interest rate of 8.19% and a maturity of November 14, 2030. The investment is not accruing an unused commitment fee. |
| (3) | | This position represents an unsettled bank loan at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate, which will be adjusted on settlement date. |
| (4) | | Excluded from the investment total above is an unfunded delayed draw term loan commitment in an amount not to exceed $8,185, at an interest rate of 8.55% and a maturity of March 31, 2028. The investment is not accruing an unused commitment fee. |
| (5) | | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold, normally only to qualified institutional buyers. At October 31, 2024, the value of these securities amounted to $20,118,917 or 48.4% of net assets. These securities are determined to be liquid by the Fund’s investment advisor, unless otherwise noted, under procedures established by and under the general supervision of the Company’s Board of Directors. |
| (6) | | Investments issued under Regulation S of the Securities Act of 1933, as amended, may not be offered, sold, or delivered within the United States except under special exemptions. At October 31, 2024, the value of these securities amounted to $862,187 or 2.1% of net assets. |
| (8) | | Security is not accruing interest. |
| (9) | | For fair value measurement disclosure purposes, security is categorized as Level 3. Security is valued using significant unobservable inputs. |
| (10) | | Non-income producing security. |
| (11) | | Rate disclosed is the 7-day net yield as of October 31, 2024. |
| (13) | | Fund buys foreign currency, sells U.S. Dollar. |
| (14) | | Fund sells foreign currency, buys U.S. Dollar. |
See accompanying Notes to Financial Statements.
37
TCW High Yield Bond Fund
Schedule of Investments (Continued)
The summary of the TCW High Yield Bond Fund transactions in the affiliated funds for the period ended October 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Name of
Affiliated Fund | | Value at
October 31,
2023 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Number
of Shares
Held
October 31,
2024 | | | Value at
October 31,
2024 | | | Dividends and
Interest
Income
Received | | | Distributions
Received from
Net Realized
Gain | | | Net Realized
Gain (Loss)
on
Investments | | | Net change in
Unrealized
Gain (Loss)
on
Investments | |
TCW Central Cash Fund | | | | | | | | | | | | | |
| | $ | — | | | $ | 10,263,233 | | | $ | 7,762,000 | | | | 2,501,233 | | | $ | 2,501,233 | | | $ | 52,816 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 2,501,233 | | | $ | 52,816 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
38
TCW High Yield Bond Fund
Fair Valuation Summary | October 31, 2024 |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
Description | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | | Other
Significant
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Total | |
| | | | |
Fixed Income Securities | | | | | | | | | | | | | | | | |
Corporate Bonds* | | $ | — | | | $ | 31,731,945 | | | $ | — | | | $ | 31,731,945 | |
Bank Loans* | | | — | | | | 6,868,977 | | | | — | | | | 6,868,977 | |
Unfunded Commitments Appreciation | | | — | | | | 9 | | | | — | | | | 9 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Fixed Income Securities | | | — | | | | 38,600,931 | | | | — | | | | 38,600,931 | |
| | | | | | | | | | | | | | | | |
Convertible Corporate Bonds* | | | — | | | | 62,446 | | | | | | | | 62,446 | |
Money Market Investments | | | 2,582,548 | | | | — | | | | — | | | | 2,582,548 | |
Warrants | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 2,582,548 | | | $ | 38,663,377 | | | $ | — | | | $ | 41,245,925 | |
| | | | | | | | | | | | | | | | |
| | | | |
Asset Derivatives | | | | | | | | | | | | | | | | |
Futures Contracts | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | 38,097 | | | | — | | | | — | | | | 38,097 | |
Forward Currency Exchange Contracts | | | | | | | | | | | | | | | | |
Foreign Currency Risk | | | — | | | | 15,894 | | | | — | | | | 15,894 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 2,620,645 | | | $ | 38,679,271 | | | $ | — | | | $ | 41,299,916 | |
| | | | | | | | | | | | | | | | |
Liability Derivatives | | | | | | | | | | | | | | | | |
Futures Contracts | | | | | | | | | | | | | | | | |
Interest Rate Risk | | $ | (125,003 | ) | | $ | — | | | $ | — | | | $ | (125,003 | ) |
Forward Currency Exchange Contracts | | | | | | | | | | | | | | | | |
Foreign Currency Risk | | | — | | | | (1,600 | ) | | | — | | | | (1,600 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (125,003 | ) | | $ | (1,600 | ) | | $ | — | | | $ | (126,603 | ) |
| | | | | | | | | | | | | | | | |
| * | See Schedule of Investments for corresponding industries. |
See accompanying Notes to Financial Statements.
39
TCW Securitized Bond Fund
Schedule of Investments
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
FIXED INCOME SECURITIES — 120.9% of Net Assets | |
|
| ASSET-BACKED SECURITIES — 8.2% | |
| |
AMSR Trust Series 2020-SFR2, Class E2 | | | | | |
| | | |
4.28% (1) | | | 07/17/37 | | | $ | 7,713,000 | | | $ | 7,631,912 | |
| |
AMSR Trust Series 2020-SFR3, Class F | | | | | |
| | | |
3.55% (1) | | | 09/17/37 | | | | 2,682,000 | | | | 2,619,110 | |
| |
AMSR Trust Series 2020-SFR3, Class G | | | | | |
| | | |
4.99% (1) | | | 09/17/37 | | | | 6,402,000 | | | | 6,313,019 | |
| |
Apidos CLO XXXVII Ltd. Series 2021-37A, Class B | | | | | |
| | | |
6.49% (3 mo. USD Term SOFR + 1.862%) (1),(2) | | | 10/22/34 | | | | 6,795,000 | | | | 6,803,154 | |
| |
Carvana Auto Receivables Trust Series 2021-N3, Class R | | | | | |
| | | |
0.00% (1),(3) | | | 06/12/28 | | | | 25,650 | | | | 1,624,375 | |
| |
Carvana Auto Receivables Trust Series 2023-P1, Class R | | | | | |
| | | |
0.00% (1),(3) | | | 03/11/30 | | | | 2,950 | | | | 366,069 | |
| |
CIFC Funding Ltd. Series 2022-2A, Class INCB | | | | | |
| | | |
0.00% (1),(4),(5) | | | 04/19/35 | | | | 3,300,000 | | | | 2,449,920 | |
| |
Cologix Data Centers U.S. Issuer LLC Series 2021-1A, Class A2 | | | | | |
| | | |
3.30% (1) | | | 12/26/51 | | | | 4,000,000 | | | | 3,764,095 | |
| |
CoreVest American Finance Ltd. Series 2020-1, Class XA (I/O) | | | | | |
| | | |
2.41% (1),(5) | | | 03/15/50 | | | | 19,560,465 | | | | 493,520 | |
| |
CoreVest American Finance Ltd. Series 2020-1, Class XB (I/O) | | | | | |
| | | |
2.05% (1),(5) | | | 03/15/50 | | | | 38,948,500 | | | | 2,769,667 | |
| |
CoreVest American Finance Ltd. Series 2020-4, Class XA (I/O) | | | | | |
| | | |
3.81% (1),(5) | | | 12/15/52 | | | | 27,346,384 | | | | 904,580 | |
| |
CoreVest American Finance Ltd. Series 2020-4, Class XB (I/O) | | | | | |
| | | |
2.76% (1),(5) | | | 12/15/52 | | | | 27,500,000 | | | | 1,543,520 | |
| |
CoreVest American Finance Ltd. Series 2021-1, Class XA (I/O) | | | | | |
| | | |
2.87% (1),(5) | | | 04/15/53 | | | | 50,624,363 | | | | 1,723,987 | |
| |
FirstKey Homes Trust Series 2021-SFR3, Class E1 | | | | | |
| | | |
2.99% (1) | | | 12/17/38 | | | | 5,500,000 | | | | 5,142,974 | |
| |
FirstKey Homes Trust Series 2022-SFR3, Class E1 | | | | | |
| | | |
3.50% (1) | | | 07/17/38 | | | | 8,950,000 | | | | 8,521,447 | |
| |
Flexential Issuer Series 2021-1A, Class A2 | | | | | |
| | | |
3.25% (1) | | | 11/27/51 | | | | 7,580,000 | | | | 7,142,732 | |
|
GCI Funding I LLC Series 2021-1, Class A | |
| | | |
2.38% (1) | | | 06/18/46 | | | | 19,652,933 | | | | 17,749,759 | |
|
HOA Funding LLC Series 2021-1A, Class A2 | |
| | | |
4.72% (1) | | | 08/20/51 | | | | 6,140,100 | | | | 3,530,322 | |
|
Hotwire Funding LLC Series 2024-1A, Class C | |
| | | |
9.19% (1) | | | 06/20/54 | | | | 925,000 | | | | 964,343 | |
| |
HPS Loan Management Ltd. Series 10A-16, Class A2RR | | | | | |
| | | |
6.53% (3 mo. USD Term SOFR + 1.912%) (1),(2) | | | 04/20/34 | | | | 8,000,000 | | | | 8,009,600 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
| ASSET-BACKED SECURITIES (Continued) | |
|
JGWPT XXX LLC Series 2013-3A, Class A | |
| | | |
4.08% (1) | | | 01/17/73 | | | $ | 4,587,105 | | | $ | 4,307,340 | |
| |
Madison Park Funding XXXVIII Ltd. Series 2021-38A, Class B | | | | | |
| | | |
6.56% (3 mo. USD Term SOFR + 1.912%) (1),(2) | | | 07/17/34 | | | | 10,000,000 | | | | 10,010,000 | |
| |
New Residential Mortgage Loan Trust Series 2022-SFR2, Class E1 | | | | | |
| | | |
4.00% (1) | | | 09/04/39 | | | | 5,750,000 | | | | 5,283,360 | |
|
OHA Credit Funding 3 Ltd. Series 2019-3A, Class BR | |
| | | |
6.53% (3 mo. USD Term SOFR + 1.912%) (1),(2) | | | 07/02/35 | | | | 6,000,000 | | | | 6,009,000 | |
|
Progress Residential Trust Series 2021-SFR1, Class H | |
| | | |
5.00% (1) | | | 04/17/38 | | | | 4,890,000 | | | | 4,687,323 | |
| |
Progress Residential Trust Series 2021-SFR11, Class F | | | | | |
| | | |
4.42% (1) | | | 01/17/39 | | | | 2,874,000 | | | | 2,620,552 | |
|
Progress Residential Trust Series 2021-SFR2, Class G | |
| | | |
4.25% (1) | | | 04/19/38 | | | | 8,369,000 | | | | 8,182,712 | |
|
Progress Residential Trust Series 2021-SFR3, Class G | |
| | | |
4.25% (1) | | | 05/17/26 | | | | 3,400,000 | | | | 3,320,171 | |
|
Progress Residential Trust Series 2021-SFR7, Class F | |
| | | |
3.83% (1) | | | 08/17/40 | | | | 8,970,000 | | | | 8,060,857 | |
|
Progress Residential Trust Series 2024-SFR5, Class D | |
| | | |
3.38% (1),(5) | | | 08/09/29 | | | | 4,621,000 | | | | 4,139,780 | |
| |
Vantage Data Centers Issuer LLC Series 2020-1A, Class A2 | | | | | |
| | | |
1.65% (1) | | | 09/15/45 | | | | 8,800,000 | | | | 8,529,346 | |
| | | | | | | | | | | | |
| |
Total Asset-Backed Securities | | | | | |
| | |
(Cost: $179,837,328) | | | | | | | | 155,218,546 | |
| | | | | | | | | | | | |
|
COMMERCIAL MORTGAGE-BACKED SECURITIES —
AGENCY — 0.0% | |
| |
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Series K040, Class X3 (I/O) | | | | | |
| | | |
4.06% (5) | | | 11/25/42 | | | | 3,318,992 | | | | 33 | |
| |
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Series K042, Class X3 (I/O) | | | | | |
| | | |
1.60% (5) | | | 01/25/43 | | | | 76,625,000 | | | | 50,595 | |
| |
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Series K045, Class X3 (I/O) | | | | | |
| | | |
1.50% (5) | | | 04/25/43 | | | | 126,630,757 | | | | 510,459 | |
| |
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Series K046, Class X3 (I/O) | | | | | |
| | | |
1.51% (5) | | | 04/25/43 | | | | 94,964,072 | | | | 236,423 | |
| | | | | | | | | | | | |
| |
Total Commercial Mortgage-Backed Securities — Agency | | | | | |
| | |
(Cost: $21,107,992) | | | | | | | | 797,510 | |
| | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
40
TCW Securitized Bond Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| |
COMMERCIAL MORTGAGE-BACKED
SECURITIES — NON-AGENCY — 15.1% | | | | |
| |
1345 Avenue of the Americas & Park Avenue Plaza Trust Series 2005-1, Class A3 | | | | | |
| | | |
5.28% (1) | | | 08/10/35 | | | $ | 9,834,081 | | | $ | 9,720,827 | |
| |
Arbor Realty Commercial Real Estate Notes Ltd. Series 2021-FL4, Class AS | | | | | |
| | | |
6.62% (1 mo. USD Term SOFR + 1.814%) (1),(2) | | | 11/15/36 | | | | 11,800,000 | | | | 11,766,732 | |
| |
BAMLL Commercial Mortgage Securities Trust Series 2015-200P, Class F | | | | | |
| | | |
3.60% (1),(5) | | | 04/14/33 | | | | 4,500,000 | | | | 4,348,077 | |
| |
BBCMS Mortgage Trust Series 2024-5C25, Class B | | | | | |
| | | |
6.15% (5) | | | 03/15/57 | | | | 5,625,000 | | | | 5,691,568 | |
| |
BBCMS Mortgage Trust Series 2024-5C27, Class AS | | | | | |
| | | |
6.41% (5) | | | 07/15/57 | | | | 4,725,000 | | | | 4,920,526 | |
| |
BBCMS Mortgage Trust Series 2024-5C27, Class B | | | | | |
| | | |
6.70% (5) | | | 07/15/57 | | | | 4,565,000 | | | | 4,722,174 | |
| |
BBCMS Mortgage Trust Series 2024-5C29, Class AS | | | | | |
| | | |
5.63% | | | 09/15/57 | | | | 3,000,000 | | | | 3,031,578 | |
| |
BBCMS Mortgage Trust Series 2024-C24, Class AS | | | | | |
| | | |
5.87% | | | 02/15/57 | | | | 6,000,000 | | | | 6,156,255 | |
| |
BBCMS Mortgage Trust Series 2024-C26, Class AS | | | | | |
| | | |
6.09% (5) | | | 05/15/57 | | | | 6,003,000 | | | | 6,318,383 | |
| |
Benchmark Mortgage Trust Series 2019-B13, Class AM | | | | | |
| | | |
3.18% | | | 08/15/57 | | | | 5,000,000 | | | | 4,414,580 | |
| |
Benchmark Mortgage Trust Series 2019-B14, Class 225C | | | | | |
| | | |
3.29% (1),(5) | | | 12/15/62 | | | | 8,734,000 | | | | 618,896 | |
| |
Benchmark Mortgage Trust Series 2019-B14, Class 225D | | | | | |
| | | |
3.29% (1),(5) | | | 12/15/62 | | | | 20,303,000 | | | | 790,934 | |
| |
Benchmark Mortgage Trust Series 2024-V10, Class AS | | | | | |
| | | |
5.73% (5) | | | 09/15/57 | | | | 4,694,000 | | | | 4,761,053 | |
| |
BMO Mortgage Trust Series 2024-5C3, Class AS | | | | | |
| | | |
6.29% (5) | | | 02/15/57 | | | | 4,540,000 | | | | 4,680,928 | |
| |
BMO Mortgage Trust Series 2024-5C6, Class AS | | | | | |
| | | |
5.75% (5) | | | 09/15/57 | | | | 2,330,000 | | | | 2,361,379 | |
| |
BMO Mortgage Trust Series 2024-C8, Class AS | | | | | |
| | | |
5.91% (5) | | | 03/15/57 | | | | 4,011,000 | | | | 4,146,031 | |
| |
BPR Trust Series 2021-WILL, Class A | | | | | |
| | | |
6.67% (1 mo. USD Term SOFR + 1.864%) (1),(2) | | | 06/15/38 | | | | 4,475,549 | | | | 4,456,758 | |
| |
BX Commercial Mortgage Trust Series 2020-VIV4, Class A | | | | | |
| | | |
2.84% (1) | | | 03/09/44 | | | | 15,285,000 | | | | 13,549,345 | |
| |
BX Trust Series 2019-OC11, Class A | | | | | |
| | | |
3.20% (1) | | | 12/09/41 | | | | 8,000,000 | | | | 7,271,918 | |
| |
BX Trust Series 2019-OC11, Class B | | | | | |
| | | |
3.61% (1) | | | 12/09/41 | | | | 1,196,000 | | | | 1,092,560 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
| |
COMMERCIAL MORTGAGE-BACKED
SECURITIES — NON-AGENCY (Continued) | | | | |
| |
BX Trust Series 2019-OC11, Class C | | | | | |
| | | |
3.86% (1) | | | 12/09/41 | | | $ | 1,080,000 | | | $ | 986,816 | |
| |
CAMB Commercial Mortgage Trust Series 2019-LIFE, Class D | | | | | |
| | | |
6.85% (1 mo. USD Term SOFR + 2.047%) (1),(2) | | | 12/15/37 | | | | 6,425,000 | | | | 6,420,655 | |
| |
CAMB Commercial Mortgage Trust Series 2021-CX2, Class C | | | | | |
| | | |
2.77% (1),(5) | | | 11/10/46 | | | | 5,000,000 | | | | 3,882,370 | |
| |
Citigroup Commercial Mortgage Trust Series 2018-C5, Class AS | | | | | |
| | | |
4.41% (5) | | | 06/10/51 | | | | 5,599,188 | | | | 5,369,718 | |
| |
Citigroup Commercial Mortgage Trust Series 2020-555, Class A | | | | | |
| | | |
2.65% (1) | | | 12/10/41 | | | | 9,400,000 | | | | 8,070,730 | |
| |
COMM Mortgage Trust Series 2020-CX, Class B | | | | | |
| | | |
2.45% (1) | | | 11/10/46 | | | | 6,000,000 | | | | 4,877,730 | |
| |
CSMC Trust Series 2021-B33, Class A2 | | | | | |
| | | |
3.17% (1) | | | 10/10/43 | | | | 5,140,000 | | | | 4,418,302 | |
| |
CSMC Trust Series 2021-BPNY, Class A | | | | | |
| | | |
8.63% (1 mo. USD Term SOFR + 3.829%) (1),(2) | | | 08/15/26 | | | | 18,152,151 | | | | 16,200,846 | |
| |
DBGS Mortgage Trust Series 2018-BIOD, Class E | | | | | |
| | | |
6.80% (1 mo. USD Term SOFR + 1.996%) (1),(2) | | | 05/15/35 | | | | 7,500,000 | | | | 7,382,730 | |
| |
DBGS Mortgage Trust Series 2018-C1, Class AM | | | | | |
| | | |
4.63% (5) | | | 10/15/51 | | | | 5,136,000 | | | | 4,863,889 | |
| |
DOLP Trust Series 2021-NYC, Class A | | | | | |
| | | |
2.96% (1) | | | 05/10/41 | | | | 14,175,000 | | | | 12,219,349 | |
| |
Grace Trust Series 2020-GRCE, Class A | | | | | |
| | | |
2.35% (1) | | | 12/10/40 | | | | 13,360,000 | | | | 11,234,908 | |
| |
Houston Galleria Mall Trust Series 2015-HGLR, Class D | | | | | |
| | | |
3.98% (1) | | | 03/05/37 | | | | 9,500,000 | | | | 9,279,012 | |
| |
Hudson Yards Mortgage Trust Series 2019-55HY, Class A | | | | | |
| | | |
2.94% (1),(5) | | | 12/10/41 | | | | 1,750,000 | | | | 1,555,993 | |
| |
JPMorgan Chase Commercial Mortgage Securities Trust Series 2019-OSB, Class A | | | | | |
| | | |
3.40% (1) | | | 06/05/39 | | | | 6,865,000 | | | | 6,233,032 | |
| |
Life Mortgage Trust Series 2021-BMR, Class G | | | | | |
| | | |
7.87% (1 mo. USD Term SOFR + 3.064%) (1),(2) | | | 03/15/38 | | | | 6,345,074 | | | | 6,133,118 | |
| |
MKT Mortgage Trust Series 2020-525M, Class C | | | | | |
| | | |
2.94% (1),(5) | | | 02/12/40 | | | | 4,900,000 | | | | 3,575,583 | |
| |
MKT Mortgage Trust Series 2020-525M, Class D | | | | | |
| | | |
2.94% (1),(5) | | | 02/12/40 | | | | 7,500,000 | | | | 5,076,622 | |
| |
Morgan Stanley Capital I Trust Series 2019-H7, Class C | | | | | |
| | | |
4.13% | | | 07/15/52 | | | | 4,000,000 | | | | 3,573,668 | |
See accompanying Notes to Financial Statements.
41
TCW Securitized Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
COMMERCIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
Morgan Stanley Capital I Trust Series 2020-CNP, Class A | | | | | |
| | | |
2.43% (1),(5) | | | 04/05/42 | | | $ | 18,000,000 | | | $ | 15,105,159 | |
| |
One Bryant Park Trust Series 2019-OBP, Class A | | | | | |
| | | |
2.52% (1) | | | 09/15/54 | | | | 6,870,000 | | | | 6,001,544 | |
| |
SFAVE Commercial Mortgage Securities Trust Series 2015-5AVE, Class A2A | | | | | |
| | | |
3.66% (1),(5) | | | 01/05/43 | | | | 18,047,000 | | | | 15,740,841 | |
| |
SFAVE Commercial Mortgage Securities Trust Series 2015-5AVE, Class A2B | | | | | |
| | | |
4.14% (1),(5) | | | 01/05/43 | | | | 1,370,000 | | | | 1,169,649 | |
| |
SLG Office Trust Series 2021-OVA, Class E | | | | | |
| | | |
2.85% (1) | | | 07/15/41 | | | | 4,800,000 | | | | 3,841,345 | |
| |
SLG Office Trust Series 2021-OVA, Class G | | | | | |
| | | |
2.85% (1) | | | 07/15/41 | | | | 16,460,000 | | | | 11,251,682 | |
| |
Wells Fargo Commercial Mortgage Trust Series 2016-NXS6, Class XB | | | | | |
| | | |
0.58% (5) | | | 11/15/49 | | | | 106,409,000 | | | | 992,402 | |
| |
Wells Fargo Commercial Mortgage Trust Series 2024-SVEN, Class B | | | | | |
| | | |
6.26% (1),(5) | | | 06/10/37 | | | | 4,632,000 | | | | 4,694,563 | |
| | | | | | | | | | | | |
| |
Total Commercial Mortgage-Backed
Securities — Non-Agency | | | | | |
| | |
(Cost: $326,902,327) | | | | | | | | 284,972,758 | |
| | | | | | | | | | | | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY — 68.6% | |
| |
Federal Home Loan Mortgage Corp., Pool #A91162 | | | | | |
| | | |
5.00% | | | 02/01/40 | | | | 7,923,841 | | | | 7,973,354 | |
| |
Federal Home Loan Mortgage Corp., Pool #A92195 | | | | | |
| | | |
5.00% | | | 05/01/40 | | | | 2,145,710 | | | | 2,155,308 | |
| |
Federal Home Loan Mortgage Corp., Pool #G01959 | | | | | |
| | | |
5.00% | | | 12/01/35 | | | | 39,628 | | | | 39,954 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08710 | | | | | |
| | | |
3.00% | | | 06/01/46 | | | | 863,284 | | | | 761,599 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08833 | | | | | |
| | | |
5.00% | | | 07/01/48 | | | | 1,945,886 | | | | 1,926,006 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08840 | | | | | |
| | | |
5.00% | | | 08/01/48 | | | | 319,906 | | | | 316,430 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08848 | | | | | |
| | | |
4.50% | | | 11/01/48 | | | | 1,306,754 | | | | 1,262,966 | |
| |
Federal Home Loan Mortgage Corp., Pool #G08849 | | | | | |
| | | |
5.00% | | | 11/01/48 | | | | 2,177,586 | | | | 2,153,921 | |
| |
Federal Home Loan Mortgage Corp., Pool #G60238 | | | | | |
| | | |
3.50% | | | 10/01/45 | | | | 2,861,862 | | | | 2,626,578 | |
| |
Federal Home Loan Mortgage Corp., Pool #G60440 | | | | | |
| | | |
3.50% | | | 03/01/46 | | | | 20,419,976 | | | | 18,742,119 | |
| |
Federal Home Loan Mortgage Corp., Pool #G67709 | | | | | |
| | | |
3.50% | | | 03/01/48 | | | | 6,301,761 | | | | 5,757,785 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal Home Loan Mortgage Corp., Pool #G67717 | | | | | |
| | | |
4.00% | | | 11/01/48 | | | $ | 23,309,266 | | | $ | 21,975,688 | |
| |
Federal Home Loan Mortgage Corp., Pool #N70081 | | | | | |
| | | |
5.50% | | | 07/01/38 | | | | 1,267,662 | | | | 1,297,824 | |
| |
Federal Home Loan Mortgage Corp., Pool #P51350 | | | | | |
| | | |
5.00% | | | 03/01/36 | | | | 1,051,912 | | | | 1,060,361 | |
| |
Federal Home Loan Mortgage Corp., Pool #QD7213 | | | | | |
| | | |
2.00% | | | 02/01/52 | | | | 5,332,114 | | | | 4,235,992 | |
| |
Federal Home Loan Mortgage Corp., Pool #QE0312 | | | | | |
| | | |
2.00% | | | 04/01/52 | | | | 10,981,055 | | | | 8,723,680 | |
| |
Federal Home Loan Mortgage Corp., Pool #QG0601 | | | | | |
| | | |
4.50% | | | 04/01/53 | | | | 18,582,201 | | | | 17,704,485 | |
| |
Federal Home Loan Mortgage Corp., Pool #RA8693 | | | | | |
| | | |
4.50% | | | 04/01/53 | | | | 9,053,387 | | | | 8,600,489 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD7513 | | | | | |
| | | |
3.50% | | | 04/01/50 | | | | 12,429,760 | | | | 11,326,826 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8147 | | | | | |
| | | |
2.50% | | | 05/01/51 | | | | 13,717,421 | | | | 11,429,140 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8194 | | | | | |
| | | |
2.50% | | | 02/01/52 | | | | 2,514,815 | | | | 2,088,287 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8199 | | | | | |
| | | |
2.00% | | | 03/01/52 | | | | 6,974,379 | | | | 5,540,656 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8211 | | | | | |
| | | |
2.00% | | | 05/01/52 | | | | 23,313,717 | | | | 18,521,118 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8220 | | | | | |
| | | |
3.00% | | | 06/01/52 | | | | 5,768,029 | | | | 4,972,552 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8238 | | | | | |
| | | |
4.50% | | | 08/01/52 | | | | 5,745,123 | | | | 5,463,535 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8244 | | | | | |
| | | |
4.00% | | | 09/01/52 | | | | 10,857,180 | | | | 10,047,436 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8245 | | | | | |
| | | |
4.50% | | | 09/01/52 | | | | 26,411,780 | | | | 25,134,414 | |
| |
Federal Home Loan Mortgage Corp., Pool #SD8328 | | | | | |
| | | |
4.50% | | | 06/01/53 | | | | 9,969,603 | | | | 9,470,873 | |
| |
Federal Home Loan Mortgage Corp., Pool #ZT1491 | | | | | |
| | | |
3.50% | | | 11/01/48 | | | | 6,984,228 | | | | 6,363,812 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 2647, Class OV (P/O) | | | | | |
| | | |
0.00% (4) | | | 07/15/33 | | | | 400,767 | | | | 306,007 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3149, Class OD (P/O) (PAC) | | | | | |
| | | |
0.00% (4) | | | 05/15/36 | | | | 1,868,476 | | | | 1,519,080 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3315, Class S (I/O) (I/F) | | | | | |
| | | |
1.29% (-30 day USD SOFR Average + 6.296%) (2) | | | 05/15/37 | | | | 268,920 | | | | 16,432 | |
See accompanying Notes to Financial Statements.
42
TCW Securitized Bond Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3376, Class SX (I/O) (I/F) | | | | | |
| | | |
0.92% (-30 day USD SOFR Average + 5.926%) (2) | | | 10/15/37 | | | $ | 1,081,182 | | | $ | 86,308 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3410, Class IS (I/O) (I/F) | | | | | |
| | | |
1.15% (-30 day USD SOFR Average + 6.156%) (2) | | | 02/15/38 | | | | 1,529,221 | | | | 131,901 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3424, Class BI (I/O) (I/F) | | | | | |
| | | |
1.68% (-30 day USD SOFR Average + 6.686%) (2) | | | 04/15/38 | | | | 1,778,971 | | | | 176,555 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3519, Class SH (I/O) (I/F) | | | | | |
| | | |
0.38% (-30 day USD SOFR Average + 5.386%) (2) | | | 07/15/37 | | | | 115,722 | | | | 4,428 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3531, Class SC (I/O) (I/F) | | | | | |
| | | |
1.18% (-30 day USD SOFR Average + 6.186%) (2) | | | 05/15/39 | | | | 2,305,629 | | | | 209,165 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3541, Class SA (I/O) (I/F) | | | | | |
| | | |
1.63% (-30 day USD SOFR Average + 6.636%) (2) | | | 06/15/39 | | | | 908,406 | | | | 94,379 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3550, Class GS (I/O) (I/F) | | | | | |
| | | |
1.63% (-30 day USD SOFR Average + 6.636%) (2) | | | 07/15/39 | | | | 2,050,857 | | | | 201,275 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3788, Class SB (I/O) (I/F) | | | | | |
| | | |
1.36% (-30 day USD SOFR Average + 6.366%) (2) | | | 01/15/41 | | | | 3,005,585 | | | | 286,083 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 3885, Class PO (P/O) (PAC) | | | | | |
| | | |
0.00% (4) | | | 11/15/33 | | | | 621,133 | | | | 503,853 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 4030, Class HS (I/O) (I/F) | | | | | |
| | | |
1.49% (-30 day USD SOFR Average + 6.496%) (2) | | | 04/15/42 | | | | 1,134,227 | | | | 117,708 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 4135, Class DZ | | | | | |
| | | |
3.00% | | | 11/15/42 | | | | 4,462,339 | | | | 3,961,798 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 4351, Class MB (PAC) | | | | | |
| | | |
4.00% | | | 04/15/44 | | | | 16,673,139 | | | | 15,697,737 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 4604, Class PB (PAC) | | | | | |
| | | |
3.00% | | | 01/15/46 | | | $ | 2,072,309 | | | $ | 1,895,062 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 4772, Class ZA | | | | | |
| | | |
4.00% | | | 07/15/47 | | | | 5,633,799 | | | | 5,168,163 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 4896, Class DA | | | | | |
| | | |
3.00% | | | 01/15/49 | | | | 966,251 | | | | 862,716 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 5210, Class LB | | | | | |
| | | |
3.00% | | | 08/25/50 | | | | 16,601,979 | | | | 12,693,384 | |
| |
Federal Home Loan Mortgage Corp. REMICS Series 5224, Class DZ | | | | | |
| | | |
4.00% | | | 04/25/52 | | | | 6,983,519 | | | | 6,322,506 | |
| |
Federal Home Loan Mortgage Corp. STRIPS Series 277, Class 30 | | | | | |
| | | |
3.00% | | | 09/15/42 | | | | 7,825,287 | | | | 7,042,632 | |
| |
Federal Home Loan Mortgage Corp. STRIPS Series 377, Class C1 | | | | | |
| | | |
2.00% | | | 01/25/51 | | | | 68,834,806 | | | | 9,004,991 | |
| |
Federal National Mortgage Association, Pool #310033 | | | | | |
| | | |
6.00% | | | 07/01/47 | | | | 357,407 | | | | 373,211 | |
| |
Federal National Mortgage Association, Pool #555424 | | | | | |
| | | |
5.50% | | | 05/01/33 | | | | 983,210 | | | | 1,004,626 | |
| |
Federal National Mortgage Association, Pool #734384 | | | | | |
| | | |
5.50% | | | 07/01/33 | | | | 130,697 | | | | 133,540 | |
| |
Federal National Mortgage Association, Pool #934103 | | | | | |
| | | |
5.00% | | | 07/01/38 | | | | 116,904 | | | | 117,500 | |
| |
Federal National Mortgage Association, Pool #995573 | | | | | |
| | | |
6.00% | | | 01/01/49 | | | | 926,859 | | | | 968,667 | |
| |
Federal National Mortgage Association, Pool #AA3303 | | | | | |
| | | |
5.50% | | | 06/01/38 | | | | 1,300,978 | | | | 1,330,388 | |
| |
Federal National Mortgage Association, Pool #AB6210 | | | | | |
| | | |
3.00% | | | 09/01/42 | | | | 16,454,215 | | | | 14,721,781 | |
| |
Federal National Mortgage Association, Pool #AS7241 | | | | | |
| | | |
3.50% | | | 05/01/46 | | | | 5,263,763 | | | | 4,810,425 | |
| |
Federal National Mortgage Association, Pool #AS9454 | | | | | |
| | | |
4.00% | | | 04/01/47 | | | | 633,174 | | | | 594,595 | |
| |
Federal National Mortgage Association, Pool #BM5979 | | | | | |
| | | |
3.50% | | | 09/01/45 | | | | 5,336,477 | | | | 4,919,478 | |
See accompanying Notes to Financial Statements.
43
TCW Securitized Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal National Mortgage Association, Pool #BQ6913 | | | | | |
| | | |
2.00% | | | 12/01/51 | | | $ | 19,582,176 | | | $ | 15,579,446 | |
| |
Federal National Mortgage Association, Pool #BQ7056 | | | | | |
| | | |
2.00% | | | 01/01/52 | | | | 41,836,747 | | | | 33,259,668 | |
| |
Federal National Mortgage Association, Pool #BU7102 | | | | | |
| | | |
2.50% | | | 12/01/51 | | | | 10,265,088 | | | | 8,556,122 | |
| |
Federal National Mortgage Association, Pool #BV4119 | | | | | |
| | | |
2.50% | | | 03/01/52 | | | | 14,676,023 | | | | 12,170,200 | |
| |
Federal National Mortgage Association, Pool #BV4128 | | | | | |
| | | |
2.00% | | | 03/01/52 | | | | 8,832,024 | | | | 7,016,425 | |
| |
Federal National Mortgage Association, Pool #BV7761 | | | | | |
| | | |
2.50% | | | 03/01/52 | | | | 12,479,166 | | | | 10,374,232 | |
| |
Federal National Mortgage Association, Pool #BV8459 | | | | | |
| | | |
3.00% | | | 04/01/52 | | | | 17,363,331 | | | | 14,970,748 | |
| |
Federal National Mortgage Association, Pool #BV8464 | | | | | |
| | | |
3.00% | | | 04/01/52 | | | | 17,867,154 | | | | 15,405,146 | |
| |
Federal National Mortgage Association, Pool #BV8515 | | | | | |
| | | |
3.00% | | | 05/01/52 | | | | 14,060,874 | | | | 12,121,718 | |
| |
Federal National Mortgage Association, Pool #BW9886 | | | | | |
| | | |
4.50% | | | 10/01/52 | | | | 17,278,085 | | | | 16,439,780 | |
| |
Federal National Mortgage Association, Pool #BX6752 | | | | | |
| | | |
5.00% | | | 03/01/53 | | | | 4,998,362 | | | | 4,857,987 | |
| |
Federal National Mortgage Association, Pool #CA1540 | | | | | |
| | | |
4.00% | | | 04/01/48 | | | | 10,116,080 | | | | 9,524,538 | |
| |
Federal National Mortgage Association, Pool #CA1710 | | | | | |
| | | |
4.50% | | | 05/01/48 | | | | 4,662,113 | | | | 4,500,538 | |
| |
Federal National Mortgage Association, Pool #CA1711 | | | | | |
| | | |
4.50% | | | 05/01/48 | | | | 4,190,469 | | | | 4,045,240 | |
| |
Federal National Mortgage Association, Pool #CA2208 | | | | | |
| | | |
4.50% | | | 08/01/48 | | | | 4,424,376 | | | | 4,271,041 | |
| |
Federal National Mortgage Association, Pool #CB0610 | | | | | |
| | | |
2.50% | | | 05/01/51 | | | | 15,187,244 | | | | 12,737,156 | |
| |
Federal National Mortgage Association, Pool #CB2301 | | | | | |
| | | |
3.00% | | | 12/01/51 | | | | 6,124,353 | | | | 5,275,535 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal National Mortgage Association, Pool #CB2545 | | | | | |
| | | |
3.00% | | | 01/01/52 | | | $ | 10,464,154 | | | $ | 9,013,853 | |
| |
Federal National Mortgage Association, Pool #CB3151 | | | | | |
| | | |
2.00% | | | 03/01/52 | | | | 40,112,339 | | | | 31,985,957 | |
| |
Federal National Mortgage Association, Pool #CB3394 | | | | | |
| | | |
2.00% | | | 04/01/52 | | | | 6,209,621 | | | | 4,933,110 | |
| |
Federal National Mortgage Association, Pool #FM2342 | | | | | |
| | | |
3.50% | | | 12/01/46 | | | | 3,203,110 | | | | 2,952,815 | |
| |
Federal National Mortgage Association, Pool #FM9515 | | | | | |
| | | |
2.50% | | | 11/01/51 | | | | 19,147,793 | | | | 15,876,486 | |
| |
Federal National Mortgage Association, Pool #FS0139 | | | | | |
| | | |
2.50% | | | 01/01/52 | | | | 25,266,449 | | | | 21,160,295 | |
| |
Federal National Mortgage Association, Pool #FS6925 | | | | | |
| | | |
2.50% | | | 12/01/51 | | | | 22,625,516 | | | | 18,773,141 | |
| |
Federal National Mortgage Association, Pool #MA2995 | | | | | |
| | | |
4.00% | | | 05/01/47 | | | | 2,740,021 | | | | 2,573,259 | |
| |
Federal National Mortgage Association, Pool #MA4152 | | | | | |
| | | |
2.00% | | | 10/01/40 | | | | 9,796,780 | | | | 8,207,743 | |
| |
Federal National Mortgage Association, Pool #MA4547 | | | | | |
| | | |
2.00% | | | 02/01/52 | | | | 10,825,967 | | | | 8,602,988 | |
| |
Federal National Mortgage Association, Pool #MA4579 | | | | | |
| | | |
3.00% | | | 04/01/52 | | | | 32,272,177 | | | | 27,867,908 | |
| |
Federal National Mortgage Association, Pool #MA4626 | | | | | |
| | | |
4.00% | | | 06/01/52 | | | | 12,806,799 | | | | 11,857,606 | |
| |
Federal National Mortgage Association, Pool #MA4783 | | | | | |
| | | |
4.00% | | | 10/01/52 | | | | 9,584,819 | | | | 8,868,484 | |
| |
Federal National Mortgage Association, Pool #MA4784 | | | | | |
| | | |
4.50% | | | 10/01/52 | | | | 6,033,148 | | | | 5,740,429 | |
| |
Federal National Mortgage Association, Pool #MA5071 | | | | | |
| | | |
5.00% | | | 07/01/53 | | | | 2,796,680 | | | | 2,718,022 | |
| |
Federal National Mortgage Association, Pool #MA5107 | | | | | |
| | | |
5.50% | | | 08/01/53 | | | | 15,161,194 | | | | 15,030,998 | |
| |
Federal National Mortgage Association REMICS Series 2004-52, Class SW (I/O) (I/F) | | | | | |
| | | |
2.13% (-30 day USD SOFR Average + 6.986%)(2) | | | 07/25/34 | | | | 232,856 | | | | 16,559 | |
See accompanying Notes to Financial Statements.
44
TCW Securitized Bond Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal National Mortgage Association REMICS Series 2005-74, Class CP (I/F) (PAC) | | | | | |
| | | |
6.52% (-30 day USD SOFR Average + 24.330%) (2) | | | 05/25/35 | | | $ | 5,599 | | | $ | 5,599 | |
| |
Federal National Mortgage Association REMICS Series 2007-103, Class AI (I/O) (I/F) | | | | | |
| | | |
1.53% (-30 day USD SOFR Average + 6.386%) (2) | | | 03/25/37 | | | | 2,003,417 | | | | 162,144 | |
| |
Federal National Mortgage Association REMICS Series 2007-20, Class SI (I/O) (I/F) | | | | | |
| | | |
1.48% (-30 day USD SOFR Average + 6.336%) (2) | | | 03/25/37 | | | | 491,085 | | | | 22,471 | |
| |
Federal National Mortgage Association REMICS Series 2007-21, Class SE (I/O) (I/F) | | | | | |
| | | |
1.47% (-30 day USD SOFR Average + 6.326%) (2) | | | 03/25/37 | | | | 242,777 | | | | 11,439 | |
| |
Federal National Mortgage Association REMICS Series 2007-56, Class SG (I/O) (I/F) | | | | | |
| | | |
1.44% (-30 day USD SOFR Average + 6.296%) (2) | | | 06/25/37 | | | | 448,281 | | | | 20,178 | |
| |
Federal National Mortgage Association REMICS Series 2007-58, Class SV (I/O) (I/F) | | | | | |
| | | |
1.78% (-30 day USD SOFR Average + 6.636%) (2) | | | 06/25/37 | | | | 2,275,302 | | | | 228,747 | |
| |
Federal National Mortgage Association REMICS Series 2007-65, Class S (I/O) (I/F) | | | | | |
| | | |
1.63% (-30 day USD SOFR Average + 6.486%) (2) | | | 07/25/37 | | | | 217,422 | | | | 16,862 | |
| |
Federal National Mortgage Association REMICS Series 2008-1, Class AI (I/O) (I/F) | | | | | |
| | | |
1.28% (-30 day USD SOFR Average + 6.136%) (2) | | | 05/25/37 | | | | 1,828,830 | | | | 107,662 | |
| |
Federal National Mortgage Association REMICS Series 2008-13, Class SB (I/O) (I/F) | | | | | |
| | | |
1.27% (-30 day USD SOFR Average + 6.126%) (2) | | | 03/25/38 | | | | 1,826,314 | | | | 120,534 | |
| |
Federal National Mortgage Association REMICS Series 2008-23, Class SB (I/O) (I/F) | | | | | |
| | | |
1.88% (-30 day USD SOFR Average + 6.736%) (2) | | | 04/25/38 | | | | 1,720,268 | | | | 68,502 | |
| |
Federal National Mortgage Association REMICS Series 2008-35, Class SD (I/O) (I/F) | | | | | |
| | | |
1.48% (-30 day USD SOFR Average + 6.336%) (2) | | | 05/25/38 | | | | 201,332 | | | | 3,464 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal National Mortgage Association REMICS Series 2008-66, Class SG (I/O) (I/F) | | | | | |
| | | |
1.10% (-30 day USD SOFR Average + 5.956%) (2) | | | 08/25/38 | | | $ | 4,002,669 | | | $ | 314,122 | |
| |
Federal National Mortgage Association REMICS Series 2008-68, Class SA (I/O) (I/F) | | | | | |
| | | |
1.00% (-30 day USD SOFR Average + 5.856%) (2) | | | 08/25/38 | | | | 1,288,650 | | | | 72,217 | |
| |
Federal National Mortgage Association REMICS Series 2009-3, Class SH (I/O) (I/F) | | | | | |
| | | |
0.48% (-30 day USD SOFR Average + 5.336%) (2) | | | 06/25/37 | | | | 461,717 | | | | 23,935 | |
| |
Federal National Mortgage Association REMICS Series 2009-47, Class SV (I/O) (I/F) | | | | | |
| | | |
1.78% (-30 day USD SOFR Average + 6.636%) (2) | | | 07/25/39 | | | | 273,556 | | | | 26,880 | |
| |
Federal National Mortgage Association REMICS Series 2009-51, Class SA (I/O) (I/F) | | | | | |
| | | |
1.78% (-30 day USD SOFR Average + 6.636%) (2) | | | 07/25/39 | | | | 1,463,676 | | | | 136,963 | |
| |
Federal National Mortgage Association REMICS Series 2009-6, Class SD (I/O) (I/F) | | | | | |
| | | |
0.58% (-30 day USD SOFR Average + 5.436%) (2) | | | 02/25/39 | | | | 328,114 | | | | 8,268 | |
| |
Federal National Mortgage Association REMICS Series 2009-72, Class JS (I/O) (I/F) | | | | | |
| | | |
2.28% (-30 day USD SOFR Average + 7.136%) (2) | | | 09/25/39 | | | | 244,455 | | | | 24,907 | |
| |
Federal National Mortgage Association REMICS Series 2011-131, Class ST (I/O) | | | | | |
| | | |
1.57% (-30 day USD SOFR Average + 6.426%) (2) | | | 12/25/41 | | | | 11,833,190 | | | | 1,352,044 | |
| |
Federal National Mortgage Association REMICS Series 2011-149, Class Z | | | | | |
| | | |
4.50% | | | 01/25/42 | | | | 1,972,596 | | | | 1,965,868 | |
| |
Federal National Mortgage Association REMICS Series 2012-128, Class UY (PAC) | | | | | |
| | | |
2.50% | | | 11/25/42 | | | | 11,738,000 | | | | 10,137,870 | |
| |
Federal National Mortgage Association REMICS Series 2012-19, Class ZN | | | | | |
| | | |
3.50% | | | 01/25/42 | | | | 2,957,706 | | | | 2,660,667 | |
| |
Federal National Mortgage Association REMICS Series 2012-34, Class EB | | | | | |
| | | |
4.00% | | | 04/25/42 | | | | 2,000,000 | | | | 1,832,338 | |
| |
Federal National Mortgage Association REMICS Series 2013-101, Class BO (P/O) | | | | | |
| | | |
0.00% (4) | | | 10/25/43 | | | | 2,662,121 | | | | 1,965,324 | |
See accompanying Notes to Financial Statements.
45
TCW Securitized Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Federal National Mortgage Association REMICS Series 2013-101, Class CO (P/O) | | | | | |
| | | |
0.00% (4) | | | 10/25/43 | | | $ | 5,955,165 | | | $ | 4,410,262 | |
| |
Federal National Mortgage Association REMICS Series 2015-65, Class LZ | | | | | |
| | | |
3.50% | | | 09/25/45 | | | | 1,653,159 | | | | 1,412,104 | |
| |
Federal National Mortgage Association REMICS Series 2018-52, Class PZ (PAC) | | | | | |
| | | |
4.00% | | | 07/25/48 | | | | 1,462,639 | | | | 1,355,309 | |
| |
Federal National Mortgage Association REMICS Series 2018-54, Class KY (PAC) | | | | | |
| | | |
3.50% | | | 08/25/48 | | | | 1,550,000 | | | | 1,363,809 | |
| |
Federal National Mortgage Association REMICS Series 2019-57, Class LT | | | | | |
| | | |
2.50% | | | 10/25/49 | | | | 6,498,133 | | | | 5,498,109 | |
| |
Federal National Mortgage Association REMICS Series 2023-39, Class AI (I/O) | | | | | |
| | | |
2.00% | | | 07/25/52 | | | | 94,407,653 | | | | 11,974,283 | |
| |
Government National Mortgage Association, Pool #MA6080 | | | | | |
| | | |
3.00% | | | 08/20/49 | | | | 173,138 | | | | 149,070 | |
| |
Government National Mortgage Association, Pool #MA6209 | | | | | |
| | | |
3.00% | | | 10/20/49 | | | | 2,541,807 | | | | 2,188,466 | |
| |
Government National Mortgage Association, Pool #MA7418 | | | | | |
| | | |
2.50% | | | 06/20/51 | | | | 18,122,750 | | | | 15,396,564 | |
| |
Government National Mortgage Association, Pool #MA7589 | | | | | |
| | | |
2.50% | | | 09/20/51 | | | | 15,068,891 | | | | 12,795,100 | |
| |
Government National Mortgage Association, Pool #MA8347 | | | | | |
| | | |
4.50% | | | 10/20/52 | | | | 9,704,007 | | | | 9,276,808 | |
| |
Government National Mortgage Association REMICS Series 2011-70, Class BO (P/O) | | | | | |
| | | |
0.00% (4) | | | 05/20/41 | | | | 3,128,611 | | | | 2,360,258 | |
| |
Government National Mortgage Association REMICS Series 2015-162, Class ZG | | | | | |
| | | |
4.00% | | | 11/20/45 | | | | 4,078,816 | | | | 3,708,240 | |
| |
Government National Mortgage Association REMICS Series 2015-42, Class ZB | | | | | |
| | | |
3.00% | | | 03/20/45 | | | | 20,927,835 | | | | 18,622,085 | |
| |
Government National Mortgage Association REMICS Series 2015-43, Class DM | | | | | |
| | | |
2.50% | | | 03/20/45 | | | | 15,495,355 | | | | 13,477,931 | |
| |
Government National Mortgage Association REMICS Series 2015-44, Class Z | | | | | |
| | | |
3.00% | | | 03/20/45 | | | | 14,387,583 | | | | 12,320,891 | |
| |
Government National Mortgage Association REMICS Series 2015-92, Class MT | | | | | |
| | | |
3.00% | | | 01/20/45 | | | | 3,760,000 | | | | 3,212,895 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
AGENCY (Continued) | |
| |
Government National Mortgage Association REMICS Series 2016-51, Class DZ | | | | | |
| | | |
3.00% | | | 04/20/46 | | | $ | 11,726,129 | | | $ | 9,611,933 | |
| |
Government National Mortgage Association REMICS Series 2017-116, Class ZL | | | | | |
| | | |
3.00% | | | 06/20/47 | | | | 10,450,894 | | | | 8,082,418 | |
| |
Government National Mortgage Association REMICS Series 2017-117, Class ZN | | | | | |
| | | |
3.00% | | | 08/20/47 | | | | 1,142,506 | | | | 910,299 | |
| |
Government National Mortgage Association REMICS Series 2017-14, Class Z | | | | | |
| | | |
3.00% | | | 01/20/47 | | | | 1,576,731 | | | | 1,250,898 | |
| |
Government National Mortgage Association REMICS Series 2017-57, Class Z | | | | | |
| | | |
4.00% | | | 04/20/47 | | | | 5,425,075 | | | | 4,647,521 | |
| |
Government National Mortgage Association REMICS Series 2018-113, Class GZ | | | | | |
| | | |
3.00% | | | 05/20/47 | | | | 9,731,899 | | | | 8,403,874 | |
| |
Government National Mortgage Association REMICS Series 2018-153, Class ZG | | | | | |
| | | |
3.50% | | | 11/20/48 | | | | 5,011,181 | | | | 4,336,179 | |
| |
Government National Mortgage Association REMICS Series 2018-77, Class JY | | | | | |
| | | |
3.50% | | | 06/20/48 | | | | 1,996,184 | | | | 1,779,058 | |
| |
Government National Mortgage Association REMICS Series 2018-78, Class NZ | | | | | |
| | | |
3.50% | | | 06/20/48 | | | | 5,926,825 | | | | 5,265,828 | |
| |
Government National Mortgage Association REMICS Series 2018-97, Class DZ | | | | | |
| | | |
3.50% | | | 07/20/48 | | | | 2,873,926 | | | | 2,486,725 | |
| |
Government National Mortgage Association, TBA | | | | | |
| | | |
4.00% (6) | | | 05/01/52 | | | | 27,350,000 | | | | 25,465,435 | |
| | | |
2.00% (6) | | | 12/01/51 | | | | 11,400,000 | | | | 9,298,153 | |
| | | |
2.50% (6) | | | 12/01/51 | | | | 34,700,000 | | | | 29,413,125 | |
| | | |
5.00% (6) | | | 06/01/54 | | | | 39,450,000 | | | | 38,529,336 | |
| | | |
5.50% (6) | | | 06/01/54 | | | | 15,700,000 | | | | 15,611,821 | |
| | | |
4.50% (6) | | | 05/01/54 | | | | 30,525,000 | | | | 29,140,691 | |
| |
Uniform Mortgage-Backed Security, TBA | | | | | |
| | | |
3.00% (6) | | | 01/01/52 | | | | 20,175,000 | | | | 17,370,231 | |
| | | |
3.50% (6) | | | 02/01/52 | | | | 64,250,000 | | | | 57,468,541 | |
| | | |
2.00% (6) | | | 11/01/51 | | | | 63,700,000 | | | | 50,500,118 | |
| | | |
2.50% (6) | | | 12/01/51 | | | | 45,425,000 | | | | 37,609,629 | |
| | | |
5.00% (6) | | | 04/01/54 | | | | 25,575,000 | | | | 24,845,563 | |
| | | |
5.50% (6) | | | 04/01/54 | | | | 9,425,000 | | | | 9,334,610 | |
| | | |
4.00% (6) | | | 04/01/52 | | | | 48,350,000 | | | | 44,697,303 | |
| | | |
4.50% (6) | | | 04/01/54 | | | | 23,575,000 | | | | 22,390,120 | |
| | | | | | | | | | | | |
| |
Total Residential Mortgage-Backed Securities — Agency | | | | | |
| | |
(Cost: $1,364,256,450) | | | | | | | | 1,299,495,333 | |
| | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
46
TCW Securitized Bond Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY — 26.0% | |
| |
ABFC Trust Series 2007-WMC1, Class A2A | | | | | |
| | | |
5.60% (1 mo. USD Term SOFR + 0.864%) (2) | | | 06/25/37 | | | $ | 8,786,912 | | | $ | 7,164,839 | |
| |
ACE Securities Corp. Home Equity Loan Trust Series 2007-ASP1, Class A2C | | | | | |
| | | |
5.37% (1 mo. USD Term SOFR + 0.634%) (2) | | | 03/25/37 | | | | 10,413,815 | | | | 4,217,066 | |
| |
ACE Securities Corp. Home Equity Loan Trust Series 2007-ASP1, Class A2D | | | | | |
| | | |
5.61% (1 mo. USD Term SOFR + 0.874%) (2) | | | 03/25/37 | | | | 5,597,315 | | | | 2,266,400 | |
| |
Argent Securities Trust Series 2006-W4, Class A2C | | | | | |
| | | |
5.17% (1 mo. USD Term SOFR + 0.434%) (2) | | | 05/25/36 | | | | 16,366,159 | | | | 3,939,033 | |
| |
Argent Securities, Inc. Asset-Backed Pass-Through Certificates Series 2005-W3, Class M2 | | | | | |
| | | |
5.54% (1 mo. USD Term SOFR + 0.804%) (2) | | | 11/25/35 | | | | 7,603,398 | | | | 6,587,743 | |
| |
Banc of America Funding Trust Series 2004-B, Class 3A1 | | | | | |
| | | |
4.49% (5),(7) | | | 12/20/34 | | | | 135,878 | | | | 108,606 | |
| |
Banc of America Funding Trust Series 2006-3, Class 4A14 | | | | | |
| | | |
6.00% (7) | | | 03/25/36 | | | | 194,333 | | | | 160,500 | |
| |
Banc of America Funding Trust Series 2006-3, Class 5A3 | | | | | |
| | | |
5.50% (7) | | | 03/25/36 | | | | 950,327 | | | | 838,993 | |
| |
Banc of America Funding Trust Series 2006-D, Class 2A1 | | | | | |
| | | |
3.50% (5),(7) | | | 05/20/36 | | | | 42,467 | | | | 38,004 | |
| |
Banc of America Funding Trust Series 2006-D, Class 3A1 | | | | | |
| | | |
5.20% (5),(7) | | | 05/20/36 | | | | 1,234,645 | | | | 1,094,883 | |
| |
Bear Stearns ALT-A Trust Series 2005-2, Class 2A4 | | | | | |
| | | |
4.16% (5) | | | 04/25/35 | | | | 913 | | | | 824 | |
| |
Bear Stearns ALT-A Trust Series 2005-4, Class 23A1 | | | | | |
| | | |
5.54% (5) | | | 05/25/35 | | | | 1,322,031 | | | | 1,241,346 | |
| |
Bear Stearns ALT-A Trust Series 2006-4, Class 32A1 | | | | | |
| | | |
4.52% (5),(7) | | | 07/25/36 | | | | 282,866 | | | | 120,047 | |
| |
Bear Stearns ARM Trust Series 2004-12, Class 1A1 | | | | | |
| | | |
5.51% (5) | | | 02/25/35 | | | | 171,469 | | | | 159,161 | |
| |
Bear Stearns ARM Trust Series 2005-10, Class A3 | | | | | |
| | | |
6.64% (5) | | | 10/25/35 | | | | 1,095,446 | | | | 1,067,187 | |
| |
Bear Stearns ARM Trust Series 2006-2, Class 2A1 | | | | | |
| | | |
4.43% (5),(7) | | | 07/25/36 | | | | 555,406 | | | | 471,691 | |
| |
Bear Stearns ARM Trust Series 2007-1, Class 2A1 | | | | | |
| | | |
5.71% (5),(7) | | | 02/25/47 | | | | 94,149 | | | | 80,616 | |
| |
Bear Stearns Asset-Backed Securities I Trust Series 2005-AC6, Class 1A3 | | | | | |
| | | |
5.50% (5) | | | 09/25/35 | | | | 661,900 | | | | 619,592 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
Bear Stearns Asset-Backed Securities I Trust Series 2005-AC6, Class 1A4 | | | | | |
| | | |
5.40% (5) | | | 09/25/35 | | | $ | 1,415,255 | | | $ | 1,323,886 | |
| |
Bear Stearns Mortgage Funding Trust Series 2006-AR1, Class 2A1 | | | | | |
| | | |
5.29% (1 mo. USD Term SOFR + 0.554%) (2) | | | 08/25/36 | | | | 7,891,250 | | | | 7,232,157 | |
| |
Bear Stearns Mortgage Funding Trust Series 2006-AR3, Class 1A1 | | | | | |
| | | |
5.21% (1 mo. USD Term SOFR + 0.474%) (2) | | | 10/25/36 | | | | 237,617 | | | | 211,956 | |
| |
C-BASS Mortgage Loan Trust Series 2007-CB2, Class A2B | | | | | |
| | | |
3.55% | | | 02/25/37 | | | | 2,072,434 | | | | 1,233,173 | |
| |
C-BASS Mortgage Loan Trust Series 2007-CB2, Class A2C | | | | | |
| | | |
3.55% | | | 02/25/37 | | | | 7,128,775 | | | | 4,241,878 | |
| |
C-BASS Trust Series 2006-CB9, Class A4 | | | | | |
| | | |
5.31% (1 mo. USD Term SOFR + 0.574%) (2) | | | 11/25/36 | | | | 11,166,722 | | | | 5,035,429 | |
| |
Chase Mortgage Finance Trust Series 2006-A1, Class 2A1 | | | | | |
| | | |
5.82% (5),(7) | | | 09/25/36 | | | | 270,079 | | | | 232,285 | |
| |
Chase Mortgage Finance Trust Series 2007-A1, Class 8A1 | | | | | |
| | | |
6.74% (5) | | | 02/25/37 | | | | 867,535 | | | | 837,157 | |
| |
ChaseFlex Trust Series 2005-1, Class 1A5 | | | | | |
| | | |
6.50% | | | 02/25/35 | | | | 2,007,651 | | | | 1,424,386 | |
| |
CHL Mortgage Pass-Through Trust Series 2005-HYB5, Class 4A1 | | | | | |
| | | |
6.77% (5),(7) | | | 09/20/35 | | | | 7,789 | | | | 6,446 | |
| |
CHL Mortgage Pass-Through Trust Series 2007-HY5, Class 1A1 | | | | | |
| | | |
5.32% (5) | | | 09/25/47 | | | | 3,260 | | | | 2,538 | |
| |
CHL Mortgage Pass-Through Trust Series 2007-HYB1, Class 1A1 | | | | | |
| | | |
3.81% (5),(7) | | | 03/25/37 | | | | 28,428 | | | | 22,915 | |
| |
CIM Trust Series 2019-R3, Class A | | | | | |
| | | |
2.63% (1),(5) | | | 06/25/58 | | | | 8,289,623 | | | | 7,566,598 | |
| |
CIM Trust Series 2020-R1, Class A1 | | | | | |
| | | |
2.85% (1),(5) | | | 10/27/59 | | | | 16,749,214 | | | | 14,753,176 | |
| |
CIM Trust Series 2020-R3, Class A1A | | | | | |
| | | |
4.00% (1),(5) | | | 01/26/60 | | | | 11,114,830 | | | | 10,519,469 | |
| |
CIM Trust Series 2020-R6, Class A1A | | | | | |
| | | |
2.25% (1),(5) | | | 12/25/60 | | | | 9,633,486 | | | | 8,447,141 | |
| |
CIM Trust Series 2020-R7, Class A1A | | | | | |
| | | |
2.25% (1),(5) | | | 12/27/61 | | | | 14,913,138 | | | | 13,150,510 | |
| |
CIM Trust Series 2021-NR2, Class A1 | | | | | |
| | | |
5.57% (1) | | | 07/25/59 | | | | 8,448,373 | | | | 8,424,635 | |
| |
CIM Trust Series 2021-NR3, Class A1 | | | | | |
| | | |
5.57%(1) | | | 06/25/57 | | | | 3,951,815 | | | | 3,946,085 | |
See accompanying Notes to Financial Statements.
47
TCW Securitized Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
CIM Trust Series 2021-R3, Class A1A | | | | | |
| | | |
1.95% (1),(5) | | | 06/25/57 | | | $ | 10,834,402 | | | $ | 9,832,974 | |
| |
CIM Trust Series 2023-NR1, Class A1 | | | | | |
| | | |
6.00% (1) | | | 06/25/62 | | | | 10,410,346 | | | | 10,398,660 | |
| |
CIM Trust Series 2023-NR2, Class A1 | | | | | |
| | | |
6.00% (1) | | | 06/25/62 | | | | 7,327,171 | | | | 7,275,493 | |
| |
CIM Trust Series 2023-R1, Class A1A | | | | | |
| | | |
5.40% (1),(5) | | | 04/25/62 | | | | 6,909,271 | | | | 6,572,650 | |
| |
CIM Trust Series 2023-R1, Class A1B | | | | | |
| | | |
5.40% (1),(5) | | | 04/25/62 | | | | 13,400,000 | | | | 11,403,987 | |
| |
Citigroup Mortgage Loan Trust, Inc. Series 2006-AR5, Class 1A1A | | | | | |
| | | |
6.21% (5),(7) | | | 07/25/36 | | | | 1,499,595 | | | | 1,084,085 | |
| |
Citigroup Mortgage Loan Trust, Inc. Series 2007-12, Class 2A1 | | | | | |
| | | |
6.50% (1),(5),(7) | | | 10/25/36 | | | | 2,150,996 | | | | 1,077,942 | |
| |
CitiMortgage Alternative Loan Trust Series 2007-A5, Class 1A6 | | | | | |
| | | |
6.00% (7) | | | 05/25/37 | | | | 6,877,113 | | | | 6,281,668 | |
| |
Conseco Finance Corp. Series 1999-2, Class A7 | | | | | |
| | | |
6.44% | | | 12/01/30 | | | | 493,576 | | | | 495,132 | |
| |
Conseco Finance Securitizations Corp. Series 2000-4, Class A5 | | | | | |
| | | |
7.97% | | | 05/01/32 | | | | 45,277,023 | | | | 7,079,819 | |
| |
Countrywide Alternative Loan Trust Series 2005-84, Class 1A1 | | | | | |
| | | |
5.15% (5) | | | 02/25/36 | | | | 78,455 | | | | 66,013 | |
| |
Countrywide Alternative Loan Trust Series 2007-19, Class 1A34 | | | | | |
| | | |
6.00% (7) | | | 08/25/37 | | | | 11,170,397 | | | | 5,372,203 | |
| |
Credit Suisse First Boston Mortgage Securities Corp. Series 2005-12, Class 1A1 | | | | | |
| | | |
6.50% | | | 01/25/36 | | | | 6,004,309 | | | | 1,410,794 | |
| |
CSMC Mortgage-Backed Trust Series 2006-8, Class 3A1 | | | | | |
| | | |
6.00% (7) | | | 10/25/21 | | | | 607,148 | | | | 158,451 | |
| |
CSMC Mortgage-Backed Trust Series 2006-9, Class 5A1 | | | | | |
| | | |
5.50% | | | 11/25/36 | | | | 64,637 | | | | 1 | |
| |
CSMC Trust Series 2021-NQM5, Class A1 | | | | | |
| | | |
0.94% (1),(5) | | | 05/25/66 | | | | 3,783,284 | | | | 3,128,405 | |
| |
CSMC Trust Series 2021-RP11, Class A1 (I/O) | | | | | |
| | | |
1.50% (1),(5),(8),(9) | | | 10/25/61 | | | | 10,658,747 | | | | 597,849 | |
| |
CSMC Trust Series 2021-RP11, Class B1 | | | | | |
| | | |
3.75% (1),(5) | | | 10/25/61 | | | | 2,349,194 | | | | 1,260,233 | |
| |
CSMC Trust Series 2022-RPL1, Class A1 (I/O) | | | | | |
| | | |
0.52% (1),(5),(8),(9) | | | 04/25/61 | | | | 9,388,462 | | | | 133,957 | |
| |
CSMC Trust Series 2022-RPL1, Class B1 | | | | | |
| | | |
4.67% (1),(5) | | | 04/25/61 | | | | 2,112,634 | | | | 1,330,235 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
CSMCM Trust Series 2021-RP11, Class CERT | | | | | |
| | | |
3.78% (1) | | | 10/27/61 | | | $ | 516,819 | | | $ | 407,329 | |
| |
CSMCM Trust Series 2022-RPL1, Class CERT | | | | | |
| | | |
4.23% (1) | | | 04/25/61 | | | | 485,741 | | | | 413,741 | |
| |
Deutsche Alt-A Securities, Inc. Mortgage Loan Trust Series 2006-AR6, Class A6 | | | | | |
| | | |
5.23% (1 mo. USD Term SOFR + 0.494%) (2) | | | 02/25/37 | | | | 137,748 | | | | 117,186 | |
| |
DSLA Mortgage Loan Trust Series 2005-AR6, Class 2A1A | | | | | |
| | | |
5.45% (1 mo. USD Term SOFR + 0.694%) (2) | | | 10/19/45 | | | | 1,522,050 | | | | 1,359,240 | |
| |
DSLA Mortgage Loan Trust Series 2007-AR1, Class 2A1A | | | | | |
| | | |
5.01% (1 mo. USD Term SOFR + 0.254%) (2) | | | 03/19/37 | | | | 3,792,970 | | | | 3,208,775 | |
| |
Fieldstone Mortgage Investment Trust Series 2007-1, Class 2A2 | | | | | |
| | | |
5.51% (1 mo. USD Term SOFR + 0.384%) (2) | | | 04/25/47 | | | | 2,312,156 | | | | 1,701,146 | |
| |
First Franklin Mortgage Loan Trust Series 2006-FF18, Class A2C | | | | | |
| | | |
5.17% (1 mo. USD Term SOFR + 0.434%) (2) | | | 12/25/37 | | | | 8,597,593 | | | | 7,773,479 | |
| |
First Franklin Mortgage Loan Trust Series 2007-FF1, Class A2C | | | | | |
| | | |
5.13% (1 mo. USD Term SOFR + 0.394%) (2) | | | 01/25/38 | | | | 2,972,210 | | | | 1,542,898 | |
| |
First Franklin Mortgage Loan Trust Series 2007-FF1, Class A2D | | | | | |
| | | |
5.29% (1 mo. USD Term SOFR + 0.554%) (2) | | | 01/25/38 | | | | 14,547,764 | | | | 7,551,050 | |
| |
First Franklin Mortgage Loan Trust Series 2007-FF2, Class A1 | | | | | |
| | | |
5.13% (1 mo. USD Term SOFR + 0.394%) (2) | | | 03/25/37 | | | | 30,755,632 | | | | 15,932,057 | |
| |
First Franklin Mortgage Loan Trust Series 2007-FF2, Class A2C | | | | | |
| | | |
5.15% (1 mo. USD Term SOFR + 0.414%) (2) | | | 03/25/37 | | | | 20,368,102 | | | | 9,740,747 | |
| |
GS Mortgage-Backed Securities Trust Series 2022-PJ6, Class A3 | | | | | |
| | | |
2.50% (1),(5) | | | 01/25/53 | | | | 5,290,334 | | | | 4,288,449 | |
| |
GSAA Trust Series 2005-7, Class AF5 | | | | | |
| | | |
5.11% | | | 05/25/35 | | | | 31,653 | | | | 30,820 | |
| |
GSR Mortgage Loan Trust Series 2004-9, Class 3A1 | | | | | |
| | | |
5.90% (5) | | | 08/25/34 | | | | 747,746 | | | | 705,688 | |
| |
GSR Mortgage Loan Trust Series 2006-OA1, Class 2A2 | | | | | |
| | | |
5.37% (1 mo. USD Term SOFR + 0.634%) (2) | | | 08/25/46 | | | | 42,649,434 | | | | 9,624,203 | |
See accompanying Notes to Financial Statements.
48
TCW Securitized Bond Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
GSR Mortgage Loan Trust Series 2007-AR2, Class 2A1 | | | | | |
| | | |
5.25% (5) | | | 05/25/37 | | | $ | 1,458,686 | | | $ | 783,385 | |
| |
HSI Asset Loan Obligation Trust Series 2007-2, Class 2A12 | | | | | |
| | | |
6.00% (7) | | | 09/25/37 | | | | 453,553 | | | | 340,644 | |
| |
Impac CMB Trust Series 2005-1, Class 1A1 | | | | | |
| | | |
5.37% (1 mo. USD Term SOFR + 0.634%) (2),(7) | | | 04/25/35 | | | | 273,109 | | | | 259,843 | |
| |
Impac CMB Trust Series 2005-5, Class A2 | | | | | |
| | | |
5.29% (1 mo. USD Term SOFR + 0.334%) (2),(7) | | | 08/25/35 | | | | 1,675,565 | | | | 1,557,575 | |
| |
Impac Secured Assets Trust Series 2006-3, Class A1 | | | | | |
| | | |
5.19% (1 mo. USD Term SOFR + 0.454%) (2) | | | 11/25/36 | | | | 2,864,209 | | | | 2,555,325 | |
| |
IndyMac INDA Mortgage Loan Trust Series 2007-AR7, Class 1A1 | | | | | |
| | | |
3.48% (5),(7) | | | 11/25/37 | | | | 1,301,466 | | | | 1,066,496 | |
| |
IndyMac INDX Mortgage Loan Trust Series 2004-AR9, Class 4A | | | | | |
| | | |
5.31% (5) | | | 11/25/34 | | | | 136,987 | | | | 128,986 | |
| |
IndyMac INDX Mortgage Loan Trust Series 2005-AR23, Class 2A1 | | | | | |
| | | |
4.95% (5) | | | 11/25/35 | | | | 1,476,075 | | | | 1,167,819 | |
| |
IndyMac INDX Mortgage Loan Trust Series 2005-AR25, Class 2A1 | | | | | |
| | | |
3.86% (5) | | | 12/25/35 | | | | 1,072,853 | | | | 882,061 | |
| |
IndyMac INDX Mortgage Loan Trust Series 2005-AR7, Class 2A1 | | | | | |
| | | |
3.46% (5) | | | 06/25/35 | | | | 737,713 | | | | 594,127 | |
| |
IndyMac INDX Mortgage Loan Trust Series 2006-AR39, Class A1 | | | | | |
| | | |
5.21% (1 mo. USD Term SOFR + 0.474%) (2) | | | 02/25/37 | | | | 4,018,702 | | | | 3,641,494 | |
| |
IndyMac INDX Mortgage Loan Trust Series 2006-AR6, Class 2A1A | | | | | |
| | | |
5.25% (1 mo. USD Term SOFR + 0.514%) (2) | | | 06/25/46 | | | | 6,377,288 | | | | 5,407,065 | |
| |
IndyMac INDX Mortgage Loan Trust Series 2007-AR11, Class 1A1 | | | | | |
| | | |
3.23% (5) | | | 06/25/37 | | | | 10,603 | | | | 9,200 | |
| |
JPMorgan Alternative Loan Trust Series 2006-A2, Class 5A1 | | | | | |
| | | |
4.45% (5) | | | 05/25/36 | | | | 2,893,412 | | | | 1,638,008 | |
| |
JPMorgan Alternative Loan Trust Series 2006-A4, Class A8 | | | | | |
| | | |
4.41% (5),(7) | | | 09/25/36 | | | | 149,909 | | | | 171,927 | |
| |
JPMorgan Mortgage Acquisition Trust Series 2006-CH2, Class AF4 | | | | | |
| | | |
5.76% | | | 10/25/36 | | | | 3,436,509 | | | | 2,044,979 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
JPMorgan Mortgage Acquisition Trust Series 2006-WMC4, Class A3 | | | | | |
| | | |
4.97% (1 mo. USD Term SOFR + 0.234%) (2) | | | 12/25/36 | | | $ | 23,925,034 | | | $ | 11,983,675 | |
| |
JPMorgan Mortgage Trust Series 2006-A2, Class 5A3 | | | | | |
| | | |
7.04% (5) | | | 11/25/33 | | | | 234,204 | | | | 227,310 | |
| |
JPMorgan Mortgage Trust Series 2006-A4, Class 1A4 | | | | | |
| | | |
5.43% (5) | | | 06/25/36 | | | | 167,474 | | | | 116,860 | |
| |
JPMorgan Mortgage Trust Series 2006-A7, Class 2A4R | | | | | |
| | | |
4.44% (5),(7),(8) | | | 01/25/37 | | | | 6,340 | | | | 4,918 | |
| |
JPMorgan Mortgage Trust Series 2006-S2, Class 2A2 | | | | | |
| | | |
5.88% | | | 06/25/21 | | | | 26,233 | | | | — | |
| |
JPMorgan Mortgage Trust Series 2022-INV1, Class A8 | | | | | |
| | | |
3.00% (1),(5) | | | 03/25/52 | | | | 6,674,888 | | | | 5,414,735 | |
| |
JPMorgan Mortgage Trust Series 2024-3, Class A8 | | | | | |
| | | |
3.00% (1),(5) | | | 05/25/54 | | | | 10,800,000 | | | | 8,662,588 | |
| |
JPMortgage Trust Series 2021-4, Class A8 | | | | | |
| | | |
2.50% (1),(5) | | | 08/25/51 | | | | 10,544,878 | | | | 8,512,899 | |
| |
Lehman Mortgage Trust Series 2006-4, Class 4A1 | | | | | |
| | | |
6.00% | | | 08/25/21 | | | | 518,708 | | | | 360,454 | |
| |
Lehman XS Trust Series 2006-10N, Class 1A3A | | | | | |
| | | |
5.27% (1 mo. USD Term SOFR + 0.534%) (2) | | | 07/25/46 | | | | 5,602,615 | | | | 4,962,569 | |
| |
Lehman XS Trust Series 2006-12N, Class A2A1 | | | | | |
| | | |
4.49% (1 mo. USD Term SOFR + 0.414%) (2) | | | 08/25/46 | | | | 15 | | | | — | |
| |
Lehman XS Trust Series 2006-12N, Class A31A | | | | | |
| | | |
5.25% (1 mo. USD Term SOFR + 0.514%) (2) | | | 08/25/46 | | | | 1,640,589 | | | | 1,613,001 | |
| |
Lehman XS Trust Series 2006-13, Class 1A2 | | | | | |
| | | |
5.19% (1 mo. USD Term SOFR + 0.454%) (2) | | | 09/25/36 | | | | 11 | | | | — | |
| |
Lehman XS Trust Series 2006-9, Class A1B | | | | | |
| | | |
5.29% (1 mo. USD Term SOFR + 0.434%) (2) | | | 05/25/46 | | | | 16,171 | | | | — | |
| |
MASTR Alternative Loan Trust Series 2005-4, Class 1A1 | | | | | |
| | | |
6.50% | | | 05/25/35 | | | | 3,925,714 | | | | 3,213,851 | |
| |
MASTR Alternative Loan Trust Series 2006-2, Class 2A1 | | | | | |
| | | |
5.25% (1 mo. USD Term SOFR + 0.514%) (2),(8) | | | 03/25/36 | | | | 65,446 | | | | 6,393 | |
| |
MASTR Asset Securitization Trust Series 2006-3, Class 2A1 | | | | | |
| | | |
5.30% (1 mo. USD Term SOFR + 0.564%) (2) | | | 10/25/36 | | | | 28,197 | | | | 4,592 | |
| |
MASTR Asset-Backed Securities Trust Series 2006-AB1, Class A4 | | | | | |
| | | |
6.22% | | | 02/25/36 | | | | 164,030 | | | | 135,967 | |
See accompanying Notes to Financial Statements.
49
TCW Securitized Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
MASTR Seasoned Securitization Trust Series 2004-1, Class 4A1 | | | | | |
| | | |
7.56% (5) | | | 10/25/32 | | | $ | 2,907 | | | $ | 2,838 | |
| |
Merrill Lynch Alternative Note Asset Trust Series 2007-A1, Class A3 | | | | | |
| | | |
5.17% (1 mo. USD Term SOFR + 0.434%) (2) | | | 01/25/37 | | | | 743,990 | | | | 213,353 | |
| |
Merrill Lynch First Franklin Mortgage Loan Trust Series 2007-1, Class A2C | | | | | |
| | | |
5.35% (1 mo. USD Term SOFR + 0.614%) (2) | | | 04/25/37 | | | | 17,790,423 | | | | 7,027,882 | |
| |
Merrill Lynch First Franklin Mortgage Loan Trust Series 2007-1, Class A2D | | | | | |
| | | |
5.53% (1 mo. USD Term SOFR + 0.794%) (2) | | | 04/25/37 | | | | 4,542,315 | | | | 1,806,613 | |
| |
Merrill Lynch First Franklin Mortgage Loan Trust Series 2007-2, Class A2C | | | | | |
| | | |
5.33% (1 mo. USD Term SOFR + 0.594%) (2) | | | 05/25/37 | | | | 3,966,963 | | | | 2,829,983 | |
| |
Merrill Lynch First Franklin Mortgage Loan Trust Series 2007-3, Class A2B | | | | | |
| | | |
5.11% (1 mo. USD Term SOFR + 0.374%) (2) | | | 06/25/37 | | | | 737,782 | | | | 729,046 | |
| |
Merrill Lynch First Franklin Mortgage Loan Trust Series 2007-4, Class 2A3 | | | | | |
| | | |
5.17% (1 mo. USD Term SOFR + 0.434%) (2) | | | 07/25/37 | | | | 10,299,091 | | | | 10,060,212 | |
| |
Merrill Lynch Mortgage-Backed Securities Trust Series 2007-2, Class 1A1 | | | | | |
| | | |
6.30% (1 yr. CMT + 2.400%) (2),(7) | | | 08/25/36 | | | | 407,407 | | | | 347,406 | |
| |
Mid-State Capital Corp. Trust Series 2005-1, Class A | | | | | |
| | | |
5.75% | | | 01/15/40 | | | | 644,312 | | | | 642,510 | |
| |
Morgan Stanley ABS Capital I, Inc. Trust Series 2004-NC8, Class M2 | | | | | |
| | | |
5.81% (1 mo. USD Term SOFR + 1.074%) (2) | | | 09/25/34 | | | | 337,983 | | | | 342,756 | |
| |
Morgan Stanley Home Equity Loan Trust Series 2006-2, Class A4 | | | | | |
| | | |
5.41% (1 mo. USD Term SOFR + 0.674%) (2) | | | 02/25/36 | | | | 74,911 | | | | 74,657 | |
| |
Morgan Stanley Mortgage Loan Trust Series 2007-3XS, Class 2A6 | | | | | |
| | | |
6.26% | | | 01/25/47 | | | | 2,028,832 | | | | 602,554 | |
| |
Morgan Stanley Mortgage Loan Trust Series 2007-7AX, Class 2A1 | | | | | |
| | | |
5.09% (1 mo. USD Term SOFR + 0.354%) (2) | | | 04/25/37 | | | | 2,592,509 | | | | 702,683 | |
| |
Morgan Stanley Residential Mortgage Loan Trust Series 2024-INV3, Class A1 | | | | | |
| | | |
6.50% (1),(5) | | | 06/25/54 | | | | 8,726,272 | | | | 8,800,305 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
MortgageIT Trust Series 2005-4, Class A1 | | | | | |
| | | |
5.41% (1 mo. USD Term SOFR + 0.674%) (2) | | | 10/25/35 | | | $ | 350,337 | | | $ | 344,254 | |
| |
Oakwood Mortgage Investors, Inc. Series 1999-E, Class A1 | | | | | |
| | | |
7.61% (5) | | | 03/15/30 | | | | 4,706,907 | | | | 2,317,649 | |
| |
Ownit Mortgage Loan Trust Series 2006-6, Class A2C | | | | | |
| | | |
5.17% (1 mo. USD Term SOFR + 0.434%) (2) | | | 09/25/37 | | | | 13,579,841 | | | | 6,033,432 | |
| |
PRET LLC Series 2022-RN1, Class A1 | | | | | |
| | | |
3.72% (1) | | | 07/25/51 | | | | 7,067,980 | | | | 7,024,051 | |
| |
PRKCM Trust Series 2021-AFC2, Class A1 | | | | | |
| | | |
2.07% (1),(5) | | | 11/25/56 | | | | 5,258,883 | | | | 4,511,029 | |
| |
PRPM LLC Series 2021-9, Class A1 | | | | | |
| | | |
5.36% (1) | | | 10/25/26 | | | | 5,622,519 | | | | 5,573,492 | |
| |
PRPM LLC Series 2022-1, Class A1 | | | | | |
| | | |
3.72% (1) | | | 02/25/27 | | | | 10,952,768 | | | | 10,884,838 | |
| |
PRPM LLC Series 2022-3, Class A1 | | | | | |
| | | |
5.56% (1) | | | 06/25/27 | | | | 13,479,537 | | | | 13,440,488 | |
| |
RAAC Trust Series 2005-SP1, Class 4A1 | | | | | |
| | | |
7.00% | | | 09/25/34 | | | | 568,781 | | | | 553,643 | |
| |
RALI Trust Series 2005-QA13, Class 2A1 | | | | | |
| | | |
5.41% (5),(7) | | | 12/25/35 | | | | 333,419 | | | | 289,240 | |
| |
RALI Trust Series 2005-QA7, Class A21 | | | | | |
| | | |
5.77% (5),(7) | | | 07/25/35 | | | | 767,572 | | | | 722,066 | |
| |
RALI Trust Series 2005-QA8, Class CB21 | | | | | |
| | | |
5.55% (5),(7) | | | 07/25/35 | | | | 2,365,413 | | | | 1,291,751 | |
| |
RALI Trust Series 2006-QA1, Class A21 | | | | | |
| | | |
5.24% (5),(7) | | | 01/25/36 | | | | 8,684 | | | | 6,315 | |
| |
RALI Trust Series 2006-QA2, Class 1A1 | | | | | |
| | | |
5.10% (1 mo. USD Term SOFR + 0.364%) (2),(7) | | | 02/25/36 | | | | 10,240 | | | | 6,580 | |
| |
RALI Trust Series 2006-QO9, Class 1A2A | | | | | |
| | | |
5.15% (1 mo. USD Term SOFR + 0.414%) (2),(8) | | | 12/25/46 | | | | 5 | | | | 5 | |
| |
RALI Trust Series 2006-QS10, Class AV (I/O) | | | | | |
| | | |
0.56% (5),(8) | | | 08/25/36 | | | | 15,672,568 | | | | 272,284 | |
| |
RALI Trust Series 2006-QS5, Class A5 | | | | | |
| | | |
6.00% (7) | | | 05/25/36 | | | | 1,853,007 | | | | 1,511,019 | |
| |
RALI Trust Series 2006-QS6, Class 1AV (I/O) | | | | | |
| | | |
0.77% (5),(8) | | | 06/25/36 | | | | 21,693,456 | | | | 441,527 | |
| |
RALI Trust Series 2006-QS7, Class AV (I/O) | | | | | |
| | | |
0.72% (5),(8) | | | 06/25/36 | | | | 4,264,837 | | | | 83,651 | |
| |
RALI Trust Series 2007-QS1, Class 2AV (I/O) | | | | | |
| | | |
0.17% (5),(8) | | | 01/25/37 | | | | 1,120,980 | | | | 5,560 | |
| |
RALI Trust Series 2007-QS2, Class AV (I/O) | | | | | |
| | | |
0.03% (5),(8) | | | 01/25/37 | | | | 7,814,574 | | | | 75,619 | |
| |
RALI Trust Series 2007-QS3, Class AV (I/O) | | | | | |
| | | |
0.35% (5),(8) | | | 02/25/37 | | | | 35,901,126 | | | | 448,480 | |
See accompanying Notes to Financial Statements.
50
TCW Securitized Bond Fund
October 31, 2024
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
RALI Trust Series 2007-QS4, Class 3AV (I/O) | | | | | |
| | | |
0.36% (5),(8) | | | 03/25/37 | | | $ | 4,190,247 | | | $ | 45,393 | |
| |
RALI Trust Series 2007-QS5, Class AV (I/O) | | | | | |
| | | |
0.28% (5),(8) | | | 03/25/37 | | | | 5,382,520 | | | | 63,162 | |
| |
RALI Trust Series 2007-QS6, Class A45 | | | | | |
| | | |
5.75% (7) | | | 04/25/37 | | | | 1,237,538 | | | | 984,083 | |
| |
RALI Trust Series 2007-QS8, Class AV (I/O) | | | | | |
| | | |
0.43% (5),(8) | | | 06/25/37 | | | | 8,770,857 | | | | 113,755 | |
| |
Residential Asset Securitization Trust Series 2007-A3, Class 1A4 | | | | | |
| | | |
5.75% (7) | | | 04/25/37 | | | | 2,254,282 | | | | 1,045,867 | |
| |
RFMSI Trust Series 2005-SA5, Class 2A | | | | | |
| | | |
5.35% (5),(7) | | | 11/25/35 | | | | 6,877 | | | | 6,109 | |
| |
RFMSI Trust Series 2006-S9, Class A3 (PAC) | | | | | |
| | | |
5.75% (7) | | | 09/25/36 | | | | 280,138 | | | | 220,402 | |
| |
RFMSI Trust Series 2007-S2, Class A9 | | | | | |
| | | |
6.00% (7) | | | 02/25/37 | | | | 2,759,456 | | | | 2,055,873 | |
| |
RFMSI Trust Series 2007-SA2, Class 2A2 | | | | | |
| | | |
5.43% (5),(7) | | | 04/25/37 | | | | 8,120 | | | | 6,890 | |
| |
Roc Mortgage Trust Series 2021-RTL1, Class A1 | | | | | |
| | | |
3.49% (1),(5) | | | 08/25/26 | | | | 4,908,737 | | | | 4,902,424 | |
| |
Saxon Asset Securities Trust Series 2007-2, Class A2C | | | | | |
| | | |
5.09% (1 mo. USD Term SOFR + 0.354%) (2) | | | 05/25/47 | | | | 9,698,382 | | | | 6,906,269 | |
| |
Securitized Asset-Backed Receivables LLC Trust Series 2006-CB1, Class AF2 | | | | | |
| | | |
2.83% | | | 01/25/36 | | | | 2,607,496 | | | | 2,154,325 | |
| |
Securitized Asset-Backed Receivables LLC Trust Series 2007-BR1, Class A2C | | | | | |
| | | |
5.53% (1 mo. USD Term SOFR + 0.794%) (2) | | | 02/25/37 | | | | 7,215,803 | | | | 3,127,250 | |
| |
Securitized Asset-Backed Receivables LLC Trust Series 2007-NC2, Class A2B | | | | | |
| | | |
5.13% (1 mo. USD Term SOFR + 0.394%) (2) | | | 01/25/37 | | | | 10,840,153 | | | | 9,244,075 | |
| |
Sequoia Mortgage Trust Series 2003-8, Class A1 | | | | | |
| | | |
5.51% (1 mo. USD Term SOFR + 0.754%) (2) | | | 01/20/34 | | | | 186,850 | | | | 178,253 | |
| |
Soundview Home Loan Trust Series 2007-OPT3, Class 2A4 | | | | | |
| | | |
5.10% (1 mo. USD Term SOFR + 0.364%) (2) | | | 08/25/37 | | | | 4,000,000 | | | | 3,606,412 | |
| |
STARM Mortgage Loan Trust Series 2007-1, Class 1A1 | | | | | |
| | | |
6.41% (5) | | | 02/25/37 | | | | 1,336,110 | | | | 738,155 | |
| |
STARM Mortgage Loan Trust Series 2007-2, Class 2A1 | | | | | |
| | | |
5.53% (5) | | | 04/25/37 | | | | 79,717 | | | | 44,368 | |
| |
STARM Mortgage Loan Trust Series 2007-3, Class 1A1 | | | | | |
| | | |
6.76% (5) | | | 06/25/37 | | | | 1,693 | | | | 849 | |
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
Structured Adjustable Rate Mortgage Loan Trust Series 2004-12, Class 2A | | | | | |
| | | |
5.63% (5) | | | 09/25/34 | | | $ | 283,651 | | | $ | 274,977 | |
| |
Structured Adjustable Rate Mortgage Loan Trust Series 2004-14, Class 2A | | | | | |
| | | |
6.22% (5) | | | 10/25/34 | | | | 628,990 | | | | 616,462 | |
| |
Structured Adjustable Rate Mortgage Loan Trust Series 2006-5, Class 1A1 | | | | | |
| | | |
5.07% (5),(7) | | | 06/25/36 | | | | 1,246,643 | | | | 1,132,347 | |
| |
Structured Asset Mortgage Investments II Trust Series 2007-AR4, Class A5 | | | | | |
| | | |
5.29% (1 mo. USD Term SOFR + 0.554%) (2) | | | 09/25/47 | | | | 11,254,022 | | | | 9,813,020 | |
| |
Towd Point Mortgage Trust Series 2018-2, Class B1 | | | | | |
| | | |
3.80% (1),(5) | | | 03/25/58 | | | | 13,050,000 | | | | 11,247,723 | |
| |
WaMu Mortgage Pass-Through Certificates Trust Series 2004-AR14, Class A1 | | | | | |
| | | |
5.34% (5) | | | 01/25/35 | | | | 1,863,995 | | | | 1,704,949 | |
| |
WaMu Mortgage Pass-Through Certificates Trust Series 2005-AR14, Class 2A1 | | | | | |
| | | |
4.83% (5) | | | 12/25/35 | | | | 312,034 | | | | 281,744 | |
| |
WaMu Mortgage Pass-Through Certificates Trust Series 2005-AR18, Class 1A1 | | | | | |
| | | |
5.04% (5) | | | 01/25/36 | | | | 667,361 | | | | 636,248 | |
| |
WaMu Mortgage Pass-Through Certificates Trust Series 2006-AR11, Class 1A | | | | | |
| | | |
6.02% (1 yr. MTA + 0.960%) (2),(7) | | | 09/25/46 | | | | 1,792,673 | | | | 1,439,261 | |
| |
WaMu Mortgage Pass-Through Certificates Trust Series 2006-AR17, Class 1A1A | | | | | |
| | | |
4.34% (1 yr. MTA + 0.810%) (2) | | | 12/25/46 | | | | 1,813,152 | | | | 1,541,222 | |
| |
Washington Mutual Asset-Backed Certificates WMABS Trust Series 2007-HE2, Class 2A1 | | | | | |
| | | |
5.05% (1 mo. USD Term SOFR + 0.314%) (2) | | | 02/25/37 | | | | 15,128,790 | | | | 4,735,446 | |
| |
Washington Mutual Mortgage Pass-Through Certificates WMALT Trust Series 2006-1, Class 3A2 | | | | | |
| | | |
5.75% (7) | | | 02/25/36 | | | | 455,673 | | | | 414,912 | |
| |
Washington Mutual Mortgage Pass-Through Certificates WMALT Trust Series 2006-5, Class 1A1 | | | | | |
| | | |
5.45% (1 mo. USD Term SOFR + 0.714%) (2),(7) | | | 07/25/36 | | | | 978,210 | | | | 681,317 | |
| |
Washington Mutual MSC Mortgage Pass-Through Certificates Trust Series 2002-AR1, Class 1A1 | | | | | |
| | | |
6.58% (5) | | | 11/25/30 | | | | 13,104 | | | | 13,169 | |
| |
Wells Fargo Home Equity Asset-Backed Securities Trust Series 2007-1, Class A3 | | | | | |
| | | |
5.49% (1 mo. USD Term SOFR + 0.754%) (2) | | | 03/25/37 | | | | 5,521,000 | | | | 5,212,987 | |
See accompanying Notes to Financial Statements.
51
TCW Securitized Bond Fund
Schedule of Investments (Continued)
| | | | | | | | | | | | |
| Issues | | Maturity
Date | | | Principal
Amount | | | Value | |
|
RESIDENTIAL MORTGAGE-BACKED SECURITIES —
NON-AGENCY (Continued) | |
| |
Wells Fargo Mortgage-Backed Securities Trust Series 2006-AR11, Class A6 | | | | | |
| | | |
7.10% (5),(7) | | | 08/25/36 | | | $ | 788,404 | | | $ | 706,914 | |
| | | | | | | | | | | | |
| |
Total Residential Mortgage-Backed Securities — Non-Agency | | | | | |
| |
(Cost: $572,616,896) | | | | 491,530,839 | |
| | | | | | | | | | | | |
| |
| U.S. TREASURY SECURITIES — 3.0% | | | | |
| |
U.S. Treasury Bonds | | | | | |
| | | |
4.25% | | | 08/15/54 | | | | 965,000 | | | | 928,662 | |
| | | |
4.50% | | | 11/15/54 | | | | 15,000 | | | | 15,052 | |
| |
U.S. Treasury Notes | | | | | |
| | | |
3.50% | | | 09/30/26 | | | | 4,660,000 | | | | 4,603,570 | |
| | | |
3.50% | | | 09/30/29 | | | | 100,000 | | | | 97,153 | |
| | | |
3.88% | | | 08/15/34 | | | | 1,170,000 | | | | 1,132,067 | |
| | | |
4.13% | | | 10/31/26 | | | | 48,185,000 | | | | 48,153,002 | |
| | | |
4.13% | | | 10/31/29 | | | | 1,695,000 | | | | 1,693,477 | |
| | | | | | | | | | | | |
|
Total U.S. Treasury Securities | |
| |
(Cost: $56,654,734) | | | | 56,622,983 | |
| | | | | | | | | | | | |
|
Total Fixed Income Securities | |
| |
(Cost: $2,521,375,727) | | | | 2,288,637,969 | |
| | | | | | | | | | | | |
| | | | | | | | | | |
Issues | | | |
Shares | | |
Value | |
|
MONEY MARKET INVESTMENTS — 2.0% | |
| | |
State Street Institutional U.S. Government Money Market Fund — Premier Class, 4.82% (10) | | | 9,603,385 | | | $ | 9,603,385 | |
| | |
TCW Central Cash Fund, 4.84% (10),(11) | | | 28,651,674 | | | | 28,651,674 | |
| | | | | | | | | | |
| |
Total Money Market Investments | | | | | |
| | |
(Cost: $38,255,059) | | | | | | | 38,255,059 | |
| | | | | | | | | | |
| | |
Total Investments (122.9%) | | | | | | | | |
| | |
(Cost: $2,559,630,786) | | | | | | | 2,326,893,028 | |
| |
Liabilities In Excess Of Other Assets (-22.9%) | | | | (432,859,695 | ) |
| | | | | | | | | | |
| | |
Net Assets (100.0%) | | | | | | $ | 1,894,033,333 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Futures Contracts | | | | | | | |
| | | | | |
Number of
Contracts | | Type | | Expiration
Date | | | Notional | | | Market Value | | | Net Unrealized
Appreciation
(Depreciation) | |
Long Futures | | | | | | | | | | | | | | | | |
| 847 | | U.S. Ultra Long Bond Futures | | | 12/19/24 | | | $ | 112,992,778 | | | $ | 106,404,375 | | | $ | (6,588,403 | ) |
| 708 | | 5-Year U.S. Treasury Note Futures | | | 12/31/24 | | | | 76,887,673 | | | | 75,921,937 | | | | (965,736 | ) |
| 2,819 | | 2-Year U.S. Treasury Note Futures | | | 12/31/24 | | | | 584,809,629 | | | | 580,559,835 | | | | (4,249,794 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | $ | 774,690,080 | | | $ | 762,886,147 | | | $ | (11,803,933 | ) |
| | | | | | | | | | | | | | | | | | |
Short Futures | | | | | | | | | | | | | | | | |
| 981 | | 10-Year U.S. Treasury Note Futures | | | 12/19/24 | | | $ | (115,744,436 | ) | | $ | (111,588,750 | ) | | $ | 4,155,686 | |
| | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
52
TCW Securitized Bond Fund
October 31, 2024
Notes to the Schedule of Investments:
| ABS | | Asset-Backed Securities. |
| ARM | | Adjustable Rate Mortgage. |
| CLO | | Collateralized Loan Obligation. |
| I/F | | Inverse Floating rate security whose interest rate moves in the opposite direction of prevailing interest rates. |
| I/O | | Interest Only Security. |
| PAC | | Planned Amortization Class. |
| P/O | | Principal Only Security. |
| REMICS | | Real Estate Mortgage Investment Conduits. |
| SOFR | | Secured Overnight Financing Rate. |
| STRIPS | | Separate Trading of Registered Interest and Principal Securities. |
| TAC | | Target Amortization Class. |
| (1) | | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold, normally only to qualified institutional buyers. At October 31, 2024, the value of these securities amounted to $588,091,262 or 31.1% of net assets. These securities are determined to be liquid by the Fund’s investment advisor, unless otherwise noted, under procedures established by and under the general supervision of the Company’s Board of Directors. |
| (2) | | Floating or variable rate security. The interest shown reflects the rate in effect at October 31, 2024. |
| (3) | | This security is a residual or equity position that does not have a stated interest rate. This residual or equity position is entitled to recurring distributions which are generally equal to the remaining cash flow of payments made by underlying securities less contractual payments to debtholders and fund expenses. |
| (4) | | Security is not accruing interest. |
| (5) | | Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| (6) | | Security purchased on a forward commitment with an approximate principal amount. The actual principal amount and maturity date will be determined upon settlement when the security is delivered. |
| (7) | | A portion of the principal balance has been written-off during the period due to defaults in the underlying loans. Cost basis has been adjusted. |
| (8) | | For fair value measurement disclosure purposes, security is categorized as Level 3. Security is valued using significant unobservable inputs. |
| (9) | | Restricted security (Note 11). |
| (10) | | Rate disclosed is the 7-day net yield as of October 31, 2024. |
The summary of the TCW Securitized Bond Fund transactions in the affiliated funds for the period ended October 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Name of
Affiliated Fund | | Value at
October 31,
2023 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Number
of Shares
Held
October 31,
2024 | | | Value at
October 31,
2024 | | | Dividends and
Interest
Income
Received | | | Distributions
Received from
Net Realized
Gain | | | Net Realized
Gain (Loss)
on
Investments | | | Net change in
Unrealized
Gain (Loss)
on
Investments | |
TCW Central Cash Fund | | | | | | | | | | | | | |
| | $ | — | | | $ | 413,951,674 | | | $ | 385,300,000 | | | | 28,651,674 | | | $ | 28,651,674 | | | $ | 952,376 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 28,651,674 | | | $ | 952,376 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
53
TCW Securitized Bond Fund
Fair Valuation Summary | October 31, 2024 |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
Description | | Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) | | | Other
Significant
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Total | |
Fixed Income Securities | | | | | | | | | | | | | | | | |
Residential Mortgage-Backed Securities — Agency | | $ | — | | | $ | 1,299,495,333 | | | $ | — | | | $ | 1,299,495,333 | |
Residential Mortgage-Backed Securities — Non-Agency | | | — | | | | 489,243,204 | | | | 2,287,635 | | | | 491,530,839 | |
Commercial Mortgage-Backed Securities — Non-Agency | | | — | | | | 284,972,758 | | | | — | | | | 284,972,758 | |
Asset-Backed Securities | | | — | | | | 155,218,546 | | | | — | | | | 155,218,546 | |
U.S. Treasury Securities | | | 56,622,983 | | | | — | | | | — | | | | 56,622,983 | |
Commercial Mortgage-Backed Securities — Agency | | | — | | | | 797,510 | | | | — | | | | 797,510 | |
| | | | | | | | | | | | | | | | |
Total Fixed Income Securities | | | 56,622,983 | | | | 2,229,727,351 | | | | 2,287,635 | | | | 2,288,637,969 | |
| | | | | | | | | | | | | | | | |
Money Market Investments | | | 38,255,059 | | | | — | | | | — | | | | 38,255,059 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 94,878,042 | | | $ | 2,229,727,351 | | | $ | 2,287,635 | | | $ | 2,326,893,028 | |
| | | | | | | | | | | | | | | | |
Asset Derivatives | | | | | | | | | | | | | | | | |
Futures Contracts | | | | | | | | | | | | | | | | |
Interest Rate Risk | | | 4,155,686 | | | | — | | | | — | | | | 4,155,686 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 99,033,728 | | | $ | 2,229,727,351 | | | $ | 2,287,635 | | | $ | 2,331,048,714 | |
| | | | | | | | | | | | | | | | |
Liability Derivatives | | | | | | | | | | | | | | | | |
Futures Contracts | | | | | | | | | | | | | | | | |
Interest Rate Risk | | $ | (11,803,933 | ) | | $ | — | | | $ | — | | | $ | (11,803,933 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (11,803,933 | ) | | $ | — | | | $ | — | | | $ | (11,803,933 | ) |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
54
TCW Funds, Inc.
Statements of Assets and Liabilities | October 31, 2024 |
| | | | | | | | | | | | |
| | | TCW
Central Cash
Fund | | | TCW
Core Fixed
Income Fund | | | TCW
Global
Bond Fund | |
ASSETS | | | | | | | | | | | | |
Investments, at Value (1) | | $ | 2,025,605,379 | | | $ | 884,060,050 | | | $ | 21,594,786 | |
Investment in Affiliated Issuers, at Value | | | — | | | | 58,589,783 | | | | 517,200 | (2) |
Foreign Currency, at Value | | | — | | | | 85 | | | | 1,780 | (3) |
Repurchase agreement at value (Cost $) | | | 800,000,000 | (4) | | | — | | | | — | |
Cash | | | — | | | | 4,125,928 | | | | 3,121 | |
Receivable for Securities Sold | | | — | | | | 13,158,040 | | | | 431,681 | |
Receivable for Fund Shares Sold | | | — | | | | 1,184,441 | | | | 2,250 | |
Interest and Dividends Receivable | | | 2,198,963 | | | | 4,184,263 | | | | 146,618 | |
Receivable from Investment Advisor | | | — | | | | 41,969 | | | | 33,870 | |
Unrealized Appreciation on Forward Currency Exchange Contracts | | | — | | | | 219,254 | | | | 111,164 | |
Cash Collateral Held for Brokers | | | — | | | | 4,223,360 | | | | 152,997 | |
Prepaid Expenses | | | — | | | | 36,271 | | | | 26,975 | |
| | | | | | | | | | | | |
Total Assets | | | 2,827,804,342 | | | | 969,823,444 | | | | 23,022,442 | |
| | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | |
Distributions Payable | | | 194,192 | | | | 3,259,997 | | | | 46,753 | |
Payable for Securities Purchased | | | 100,000,000 | | | | 30,563,768 | | | | 343,156 | |
Payable for Purchase of When-Issued Securities | | | — | | | | 92,427,464 | | | | 2,818,865 | |
Payable for Fund Shares Redeemed | | | — | | | | 3,646,290 | | | | — | |
Accrued Directors’ Fees and Expenses | | | 11,913 | | | | 18,720 | | | | 19,341 | |
Deferred Accrued Directors’ Fees and Expenses | | | — | | | | 7,287 | | | | 7,287 | |
Accrued Management Fees | | | — | | | | 289,229 | | | | 8,456 | |
Accrued Distribution Fees | | | — | | | | 26,714 | | | | 1,861 | |
Payable for Daily Variation Margin on Open Financial Futures Contracts | | | — | | | | 105,158 | | | | 4,719 | |
Payable for Daily Variation Margin on Open Centrally Cleared Swap Contracts | | | — | | | | 5,812 | | | | 2,586 | |
Collateral Pledged by Brokers | | | — | | | | 260,000 | | | | — | |
Unrealized Depreciation on Forward Currency Exchange Contracts | | | — | | | | 4,388 | | | | 108,901 | |
Transfer Agent Fees Payable | | | 1,787 | | | | 165,473 | | | | 7,360 | |
Administration Fee Payable | | | 11,911 | | | | 43,050 | | | | 6,624 | |
Audit Fees Payable | | | 8,934 | | | | 46,097 | | | | 36,899 | |
Accounting Fees Payable | | | — | | | | 95,865 | | | | 4,105 | |
Custodian Fees Payable | | | 11,913 | | | | 74,025 | | | | 31,182 | |
Legal Fees Payable | | | 298 | | | | 31,452 | | | | 602 | |
Other Accrued Expenses | | | 1,092 | | | | 48,157 | | | | 16,639 | |
| | | | | | | | | | | | |
Total Liabilities | | | 100,242,040 | | | | 131,118,946 | | | | 3,465,336 | |
| | | | | | | | | | | | |
NET ASSETS | | $ | 2,727,562,302 | | | $ | 838,704,498 | | | $ | 19,557,106 | |
| | | | | | | | | | | | |
NET ASSETS CONSIST OF: | | | | | | | | | | | | |
Paid-in Capital | | $ | 2,727,611,890 | | | $ | 1,089,049,270 | | | $ | 23,346,511 | |
Accumulated Earnings (Loss) | | | (49,588 | ) | | | (250,344,772 | ) | | | (3,789,405 | ) |
| | | | | | | | | | | | |
NET ASSETS | | $ | 2,727,562,302 | | | $ | 838,704,498 | | | $ | 19,557,106 | |
| | | | | | | | | | | | |
NET ASSETS ATTRIBUTABLE TO: | | | | | | | | | | | | |
I Class Share | | $ | — | | | $ | 619,344,341 | | | $ | 10,951,759 | |
| | | | | | | | | | | | |
N Class Share | | $ | — | | | $ | 123,171,885 | | | $ | 8,605,347 | |
| | | | | | | | | | | | |
Plan Class Share | | $ | — | | | $ | 96,188,272 | | | $ | — | |
| | | | | | | | | | | | |
Cash Management Shares | | $ | 2,727,562,302 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | |
CAPITAL SHARES OUTSTANDING: (5) | | | | | | | | | | | | |
I Class Share | | | — | | | | 64,182,008 | | | | 1,329,444 | |
| | | | | | | | | | | | |
N Class Share | | | — | | | | 12,793,530 | | | | 1,044,792 | |
| | | | | | | | | | | | |
Plan Class Share | | | — | | | | 9,916,197 | | | | — | |
| | | | | | | | | | | | |
Cash Management Shares | | | 2,727,611,890 | | | | — | | | | — | |
| | | | | | | | | | | | |
NET ASSET VALUE PER SHARE: (6) | | | | | | | | | | | | |
I Class Share | | $ | — | | | $ | 9.65 | | | $ | 8.24 | |
| | | | | | | | | | | | |
N Class Share | | $ | — | | | $ | 9.63 | | | $ | 8.24 | |
| | | | | | | | | | | | |
Plan Class Share | | $ | — | | | $ | 9.70 | | | $ | — | |
| | | | | | | | | | | | |
Cash Management Shares | | $ | 1.00 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | |
| (1) | The identified cost for the TCW Central Cash Fund, the TCW Core Fixed Income Fund and the TCW Global Bond Fund at October 31, 2024 was $2,025,605,379, $918,956,625 and $22,745,418, respectively. |
| (2) | The identified cost for the TCW Core Fixed Income Fund and the TCW Global Bond Fund at October 31, 2024 was $58,589,783 and $513,686, respectively. |
| (3) | The identified cost for the TCW Core Fixed Income Fund and the TCW Global Bond Fund at October 31, 2024 was $73 and $1,656, respectively. |
| (4) | The identified cost was $750,000,000. |
| (5) | The number of authorized shares, with a par value of $0.001 per share is 4,000,000,000 for each of the I Class, N Class, Plan Class shares and Cash Management Shares. |
| (6) | Represents offering price and redemption price per share. |
See accompanying Notes to Financial Statements.
55
TCW Funds, Inc.
Statements of Assets and Liabilities | October 31, 2024 |
| | | | | | | | |
| | | TCW
High Yield
Bond Fund | | | TCW
Securitized
Bond Fund | |
ASSETS | | | | | | | | |
Investments, at Value (1) | | $ | 38,744,683 | | | $ | 2,298,241,354 | |
Investment in Affiliated Issuers, at Value (2) | | | 2,501,233 | | | | 28,651,674 | |
Foreign Currency, at Value | | | 12 | (3) | | | 1 | |
Cash | | | 41,822 | | | | 14,691 | |
Receivable for Securities Sold | | | 462,843 | | | | 4,195,766 | |
Receivable for Sale of When-Issued Securities | | | — | | | | 12,514,001 | |
Receivable for Fund Shares Sold | | | 2,094 | | | | 2,638,140 | |
Interest and Dividends Receivable | | | 534,181 | | | | 7,221,610 | |
Receivable from Investment Advisor | | | 42,166 | | | | 12,798 | |
Unrealized Appreciation on Forward Currency Exchange Contracts | | | 15,894 | | | | — | |
Net unrealized appreciation on unfunded commitments | | | 9 | | | | — | |
Receivable for Daily Variation Margin on Open Financial Futures Contracts | | | — | | | | 19,190 | |
Cash Collateral Held for Brokers | | | 125,000 | | | | 17,072,092 | |
Prepaid Expenses | | | 6,963 | | | | 61,372 | |
| | | | | | | | |
Total Assets | | | 42,476,900 | | | | 2,370,642,689 | |
| | | | | | | | |
LIABILITIES | | | | | | | | |
Distributions Payable | | | 220,979 | | | | 10,806,850 | |
Payable for Securities Purchased | | | 253,760 | | | | 26,429,203 | |
Payable for Purchase of When-Issued Securities | | | 165,000 | | | | 435,342,329 | |
Payable for Fund Shares Redeemed | | | 147,505 | | | | 1,773,797 | |
Accrued Directors’ Fees and Expenses | | | 18,152 | | | | 17,944 | |
Deferred Accrued Directors’ Fees and Expenses | | | 6,294 | | | | 7,287 | |
Accrued Management Fees | | | 16,304 | | | | 683,126 | |
Accrued Distribution Fees | | | 728 | | | | 68,507 | |
Payable for Daily Variation Margin on Open Financial Futures Contracts | | | 6,542 | | | | — | |
Unrealized Depreciation on Forward Currency Exchange Contracts | | | 1,600 | | | | — | |
Transfer Agent Fees Payable | | | 19,932 | | | | 503,199 | |
Administration Fee Payable | | | 7,786 | | | | 138,083 | |
Audit Fees Payable | | | 33,338 | | | | 118,909 | |
Accounting Fees Payable | | | 15,008 | | | | 315,661 | |
Custodian Fees Payable | | | 22,457 | | | | 250,114 | |
Legal Fees Payable | | | 2,041 | | | | 69,788 | |
Other Accrued Expenses | | | 5,405 | | | | 84,559 | |
| | | | | | | | |
Total Liabilities | | | 942,831 | | | | 476,609,356 | |
| | | | | | | | |
NET ASSETS | | $ | 41,534,069 | | | $ | 1,894,033,333 | |
| | | | | | | | |
NET ASSETS CONSIST OF: | |
Paid-in Capital | | $ | 49,382,750 | | | $ | 2,754,863,579 | |
Accumulated Earnings (Loss) | | | (7,848,681 | ) | | | (860,830,246 | ) |
| | | | | | | | |
NET ASSETS | | $ | 41,534,069 | | | $ | 1,894,033,333 | |
| | | | | | | | |
NET ASSETS ATTRIBUTABLE TO: | |
I Class Share | | $ | 41,534,069 | | | $ | 1,576,957,717 | |
| | | | | | | | |
N Class Share | | $ | — | | | $ | 312,171,488 | |
| | | | | | | | |
Plan Class Share | | $ | — | | | $ | 4,904,128 | |
| | | | | | | | |
CAPITAL SHARES OUTSTANDING: (4) | |
I Class Share | | | 6,775,294 | | | | 200,949,834 | |
| | | | | | | | |
N Class Share | | | — | | | | 38,554,660 | |
| | | | | | | | |
Plan Class Share | | | — | | | | 621,776 | |
| | | | | | | | |
NET ASSET VALUE PER SHARE: (5) | |
I Class Share | | $ | 6.13 | | | $ | 7.85 | |
| | | | | | | | |
N Class Share | | $ | — | | | $ | 8.10 | |
| | | | | | | | |
Plan Class Share | | $ | — | | | $ | 7.89 | |
| | | | | | | | |
| (1) | The identified cost for the TCW High Yield Bond Fund and the TCW Securitized Bond Fund at October 31, 2024 was $39,227,806 and $2,530,979,112, respectively. |
| (2) | The identified cost for the TCW High Yield Bond Fund and the TCW Securitized Bond Fund at October 31, 2024 was $2,501,233 and $28,651,674, respectively. |
| (3) | The identified cost for the TCW High Yield Bond Fund and the TCW Securitized Bond Fund at October 31, 2024 was $12 and $1, respectively. |
| (4) | The number of authorized shares, with a par value of $0.001 per share is 4,000,000,000 for each of the I Class, N Class and Plan Class shares. |
| (5) | Represents offering price and redemption price per share. |
See accompanying Notes to Financial Statements.
56
TCW Funds, Inc.
Statements of Operations | Year Ended October 31, 2024 |
| | | | | | | | | | | | |
| | | TCW
Central Cash
Fund(1) | | | TCW
Core Fixed
Income Fund | | | TCW
Global Bond
Fund | |
INVESTMENT INCOME | |
Income: | |
Dividends | | $ | 167,910 | | | $ | 1,379,210 | | | $ | 28,921 | |
Dividends from Investment in Affiliated Issuers | | | — | | | | 1,161,384 | | | | 22,275 | |
Interest | | | 45,123,546 | | | | 39,925,957 | | | | 915,129 | (2) |
| | | | | | | | | | | | |
Total | | | 45,291,456 | | | | 42,466,551 | | | | 966,325 | |
| | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
Management Fees | | | — | | | | 3,854,036 | | | | 95,872 | |
Accounting Services Fees | | | — | | | | 54,703 | | | | 17,434 | |
Administration Fees | | | 11,913 | | | | 60,052 | | | | 25,759 | |
Transfer Agent Fees: | | | | | | | | | | | | |
I Class | | | — | | | | 411,633 | | | | 7,751 | |
N Class | | | — | | | | 155,342 | | | | 8,323 | |
Plan Class | | | — | | | | 15,685 | | | | — | |
Cash Management Shares | | | 1,787 | | | | — | | | | — | |
Custodian Fees | | | 11,913 | | | | 116,156 | | | | 98,855 | |
Professional Fees | | | 9,232 | | | | 146,131 | | | | 55,209 | |
Directors’ Fees and Expenses | | | 11,913 | | | | 74,400 | | | | 74,297 | |
Registration Fees: | | | | | | | | | | | | |
I Class | | | — | | | | 32,499 | | | | 17,964 | |
N Class | | | — | | | | 20,704 | | | | 17,731 | |
Plan Class | | | — | | | | 21,791 | | | | — | |
Distribution Fees: | | | | | | | | | | | | |
N Class | | | — | | | | 355,186 | | | | 21,563 | |
Compliance Expense | | | — | | | | 582 | | | | 582 | |
Shareholder Reporting Expense | | | — | | | | 8,538 | | | | 2,451 | |
Other | | | 4,057 | | | | 114,244 | | | | 3,120 | |
| | | | | | | | | | | | |
Total | | | 50,815 | | | | 5,441,682 | | | | 446,911 | |
| | | | | | | | | | | | |
Less Expenses Borne by Investment Advisor: | | | | | | | | | | | | |
I Class | | | — | | | | (221,219 | ) | | | (169,253 | ) |
N Class | | | — | | | | (305,238 | ) | | | (152,306 | ) |
Plan Class | | | — | | | | (81,160 | ) | | | — | |
| | | | | | | | | | | | |
Net Expenses | | | 50,815 | | | | 4,834,065 | | | | 125,352 | |
| | | | | | | | | | | | |
Net Investment Income | | | 45,240,641 | | | | 37,632,486 | | | | 840,973 | |
| | | | | | | | | | | | |
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |
Net Realized Gain (Loss) on: | |
Investments | | | (49,588 | ) | | | 11,946,209 | | | | (150,416 | ) |
Investments in Affiliated Issuers | | | — | | | | — | | | | (123,714 | ) |
Foreign Currency | | | — | | | | 27,012 | | | | 1,055 | |
Forward Currency Exchange Contracts | | | — | | | | (473,586 | ) | | | (216,963 | ) |
Futures Contracts | | | — | | | | 621,874 | | | | 55,470 | |
Options Written | | | — | | | | — | | | | 593 | |
Swap Agreements | | | — | | | | 169,721 | | | | (1,973 | ) |
Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | |
Investments | | | — | | | | 63,814,787 | | | | 1,492,866 | |
Foreign Currency | | | — | | | | 11,903 | | | | (484 | ) |
Forward Currency Exchange Contracts | | | — | | | | 257,511 | | | | 10,955 | |
Futures Contracts | | | — | | | | (1,297,953 | ) | | | (143,338 | ) |
Investments in Affiliated Issuers | | | — | | | | — | | | | 174,910 | |
Options Written | | | — | | | | — | | | | (948 | ) |
Swap Agreements | | | — | | | | (870,703 | ) | | | 8,386 | |
| | | | | | | | | | | | |
Net Realized and Unrealized Gain (Loss) on Investments | | | (49,588 | ) | | | 74,206,775 | | | | 1,106,399 | |
| | | | | | | | | | | | |
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 45,191,053 | | | $ | 111,839,261 | | | $ | 1,947,372 | |
| | | | | | | | | | | | |
| (1) | For the period July 15, 2024 (Commencement of Operations) Through October 31, 2024 |
| (2) | Net of foreign taxes withheld of $502 for the TCW Global Bond Fund. |
See accompanying Notes to Financial Statements.
57
TCW Funds, Inc.
Statements of Operations | Year Ended October 31, 2024 |
| | | | | | | | |
| | | TCW
High Yield
Bond Fund | | | TCW
Securitized
Bond Fund | |
INVESTMENT INCOME | |
Income: | |
Dividends | | $ | 55,475 | | | $ | 1,412,627 | |
Dividends from Investment in Affiliated Issuers | | | 52,816 | | | | 952,376 | |
Interest | | | 3,236,607 | | | | 105,345,866 | |
| | | | | | | | |
Total | | | 3,344,898 | | | | 107,710,869 | |
| | | | | | | | |
Expenses: | | | | | | | | |
Management Fees | | | 218,927 | | | | 8,325,605 | |
Accounting Services Fees | | | 49,574 | | | | 148,592 | |
Administration Fees | | | 26,569 | | | | 127,006 | |
Transfer Agent Fees: | | | | | | | | |
I Class | | | 47,720 | | | | 1,516,263 | |
N Class | | | 13,204 | | | | 364,712 | |
Plan Class | | | — | | | | 6,477 | |
Custodian Fees | | | 51,376 | | | | 187,310 | |
Professional Fees | | | 14,976 | | | | 352,778 | |
Directors’ Fees and Expenses | | | 72,144 | | | | 74,564 | |
Registration Fees: | | | | | | | | |
I Class | | | 20,552 | | | | 36,562 | |
N Class | | | 16,747 | | | | 28,525 | |
Plan Class | | | — | | | | 18,546 | |
Distribution Fees: | | | | | | | | |
N Class | | | 16,299 | | | | 894,904 | |
Compliance Expense | | | 582 | | | | 582 | |
Shareholder Reporting Expense | | | 7,430 | | | | 15,235 | |
Other | | | 12,083 | | | | 174,611 | |
| | | | | | | | |
Total | | | 568,183 | | | | 12,272,272 | |
| | | | | | | | |
Less Expenses Borne by Investment Advisor: | | | | | | | | |
I Class | | | (230,795 | ) | | | (850,077 | ) |
N Class | | | (53,794 | ) | | | (448,827 | ) |
Plan Class | | | — | | | | (25,412 | ) |
| | | | | | | | |
Net Expenses | | | 283,594 | | | | 10,947,956 | |
| | | | | | | | |
Net Investment Income | | | 3,061,304 | | | | 96,762,913 | |
| | | | | | | | |
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |
Net Realized Gain (Loss) on: | |
Investments | | | (1,523,815 | ) | | | (13,006,187 | ) |
Foreign Currency | | | 34 | | | | 45,003 | |
Forward Currency Exchange Contracts | | | (7,160 | ) | | | (418,417 | ) |
Futures Contracts | | | 96,379 | | | | 4,977,452 | |
Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | |
Investments | | | 5,118,397 | | | | 176,121,409 | |
Foreign Currency | | | 236 | | | | 2,895 | |
Forward Currency Exchange Contracts | | | 15,404 | | | | (1,157 | ) |
Futures Contracts | | | (89,212 | ) | | | 20,930,038 | |
| | | | | | | | |
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions | | | 3,610,263 | | | | 188,651,036 | |
| | | | | | | | |
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 6,671,567 | | | $ | 285,413,949 | |
| | | | | | | | |
See accompanying Notes to Financial Statements.
58
TCW Funds, Inc.
Statements of Changes in Net Assets
| | | | | | | | | | | | |
| | | TCW
Central Cash
Fund (1) | | | TCW
Core Fixed Income
Fund | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | |
OPERATIONS | |
Net Investment Income | | $ | 45,240,641 | | | $ | 37,632,486 | | | $ | 43,975,538 | |
Net Realized Gain (Loss) on Investments, Futures Contracts, Swap Contracts and Foreign Currency Transactions | | | (49,588 | ) | | | 12,291,230 | | | | (89,866,308 | ) |
Change in Unrealized Appreciation on Investments, Futures Contracts, Foreign Currency Transactions and Swap Contracts | | | — | | | | 61,915,545 | | | | 43,978,185 | |
| | | | | | | | | | | | |
Increase (Decrease) in Net Assets Resulting from Operations | | | 45,191,053 | | | | 111,839,261 | | | | (1,912,585 | ) |
| | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | |
Distributions to Shareholders | | | (45,240,641 | ) | | | (42,725,492 | ) | | | (37,334,973 | ) |
| | | | | | | | | | | | |
NET CAPITAL SHARE TRANSACTIONS | |
I Class | | | — | | | | (113,917,492 | ) | | | (199,744,870 | ) |
N Class | | | — | | | | (38,601,564 | ) | | | (12,226,897 | ) |
Plan Class | | | — | | | | (112,580,761 | ) | | | 122,792,145 | |
Cash Management Shares | | | 2,727,611,890 | | | | — | | | | — | |
| | | | | | | | | | | | |
Increase (Decrease) in Net Assets Resulting from Net Capital Shares Transactions | | | 2,727,611,890 | (2) | | | (265,099,817 | ) | | | (89,179,622 | ) |
| | | | | | | | | | | | |
Increase (Decrease) in Net Assets | | | 2,727,562,302 | | | | (195,986,048 | ) | | | (128,427,180 | ) |
NET ASSETS | |
Beginning of year | | | — | | | | 1,034,690,546 | | | | 1,163,117,726 | |
| | | | | | | | | | | | |
End of year | | $ | 2,727,562,302 | | | $ | 838,704,498 | | | $ | 1,034,690,546 | |
| | | | | | | | | | | | |
| (1) | For the period July 15, 2024 (Commencement of Operations) through October 31, 2024. |
| (2) | All transactions are with other affiliated TCW Funds. |
See accompanying Notes to Financial Statements.
59
TCW Funds, Inc.
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | |
| | | TCW
Global Bond
Fund | | | TCW
High Yield Bond
Fund | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | |
OPERATIONS | |
Net Investment Income | | $ | 840,973 | | | $ | 788,506 | | | $ | 3,061,304 | | | $ | 3,456,716 | |
Net Realized Loss on Investments, Futures Contracts, Options Written, Swap Contracts and Foreign Currency Transactions | | | (435,948 | ) | | | (918,473 | ) | | | (1,434,562 | ) | | | (2,916,003 | ) |
Change in Unrealized Appreciation on Investments, Futures Contracts, Options Written, Foreign Currency Transactions and Swap Contracts | | | 1,542,347 | | | | 417,168 | | | | 5,044,825 | | | | 2,391,711 | |
| | | | | | | | | | | | | | | | |
Increase in Net Assets Resulting from Operations | | | 1,947,372 | | | | 287,201 | | | | 6,671,567 | | | | 2,932,424 | |
| | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | |
Distributions to Shareholders | | | (581,421 | ) | | | (482,626 | ) | | | (2,908,463 | ) | | | (3,588,507 | ) |
Return of Capital | | | — | | | | (143,424 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total Distributions to Shareholders | | | (581,421 | ) | | | (626,050 | ) | | | (2,908,463 | ) | | | (3,588,507 | ) |
| | | | | | | | | | | | | | | | |
NET CAPITAL SHARE TRANSACTIONS | |
I Class | | | 361,584 | | | | 1,381,823 | | | | (8,974,075 | ) | | | (3,103,885 | ) |
N Class | | | 27,961 | | | | 378,629 | | | | (6,918,553 | ) | | | (2,611,642 | ) |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets Resulting from Net Capital Shares Transactions | | | 389,545 | | | | 1,760,452 | | | | (15,892,628 | ) | | | (5,715,527 | ) |
| | | | | | | | | | | | | | | | |
Increase (Decrease) in Net Assets | | | 1,755,496 | | | | 1,421,603 | | | | (12,129,524 | ) | | | (6,371,610 | ) |
NET ASSETS | |
Beginning of year | | | 17,801,610 | | | | 16,380,007 | | | | 53,663,593 | | | | 60,035,203 | |
| | | | | | | | | | | | | | | | |
End of year | | $ | 19,557,106 | | | $ | 17,801,610 | | | $ | 41,534,069 | | | $ | 53,663,593 | |
| | | | | | | | | | | | | | | | |
See accompanying Notes to Financial Statements.
60
TCW Funds, Inc.
Statements of Changes in Net Assets
| | | | | | | | |
| | | TCW
Securitized Bond
Fund | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | |
OPERATIONS | |
Net Investment Income | | $ | 96,762,913 | | | $ | 151,304,125 | |
Net Realized Loss on Investments, Futures Contracts and Foreign Currency Transactions | | | (8,402,149 | ) | | | (151,179,049 | ) |
Change in Unrealized Appreciation on Investments, Futures Contracts and Foreign Currency Transactions | | | 197,053,185 | | | | (19,667,214 | ) |
| | | | | | | | |
Increase (Decrease) in Net Assets Resulting from Operations | | | 285,413,949 | | | | (19,542,138 | ) |
| | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | |
Distributions to Shareholders | | | (132,779,468 | ) | | | (162,939,921 | ) |
| | | | | | | | |
NET CAPITAL SHARE TRANSACTIONS | |
I Class | | | (700,307,268 | ) | | | (291,133,572 | ) |
N Class | | | (101,983,001 | ) | | | (90,384,369 | ) |
Plan Class | | | 2,279,445 | | | | 1,155,401 | |
| | | | | | | | |
Decrease in Net Assets Resulting from Net Capital Shares Transactions | | | (800,010,824 | ) | | | (380,362,540 | ) |
| | | | | | | | |
Decrease in Net Assets | | | (647,376,343 | ) | | | (562,844,599 | ) |
NET ASSETS | |
Beginning of year | | | 2,541,409,676 | | | | 3,104,254,275 | |
| | | | | | | | |
End of year | | $ | 1,894,033,333 | | | $ | 2,541,409,676 | |
| | | | | | | | |
See accompanying Notes to Financial Statements.
61
TCW Funds, Inc.
Notes to Financial Statements
Note 1 — Organization
TCW Funds, Inc. (the “Company”), a Maryland corporation, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2024, the Company consisted of 12 no-load mutual funds (each series a “Fund” and collectively the “Funds”). TCW Investment Management Company LLC (the “Advisor”) is the investment advisor to and an affiliate of the Funds and is registered under the Investment Advisers Act of 1940, as amended. Each Fund has its own investment objective and strategies. The following is a brief description of the investment objectives and principal investment strategies for the Funds that are covered in this report:
| | |
TCW Fund | | Investment Objectives and Principal Investment Strategies |
| Diversified Fixed Income Funds | | |
| |
| TCW Central Cash Fund | | The Fund seeks maximum current income, consistent with preservation of capital, daily liquidity and a stable share price of $1.0000. The Fund is a government money market fund. |
| |
| TCW Core Fixed Income Fund | | Seeks to maximize current income and achieve above average total return consistent with prudent investment management over a full market cycle by investing at least 80% of the value of its net assets, plus any borrowings for investment purposes, in debt securities. The Fund may also invest up to 5% of its net assets in below investment grade bonds (commonly known as “junk bonds”). |
| |
| TCW Global Bond Fund | | Seeks total return by investing at least 80% of the value of its net assets, plus any borrowings for investment purposes, in debt securities. Under normal market conditions, the Fund invests in securities of issuers located in at least three different countries (one of which may be the United States) and invests at least 30% of its net assets in securities of issuers located outside the United States. The Fund does not limit its investments to a particular credit or ratings category and may invest up to 35% of its net assets in below investment grade bonds (commonly known as “junk bonds”). |
| |
| TCW High Yield Bond Fund | | Seeks to maximize income and achieve above average total return consistent with reasonable risk over a full market cycle by investing at least 80% of the value of its net assets, plus any borrowings for investment purposes, in high yield/below investment grade bonds (commonly known as “junk bonds”). The Fund may invest up to 20% of its net assets in equity securities (including common stock and convertible and non-convertible preferred stocks) and bank loans of companies in the high yield universe. The Fund reorganized into the TCW High Yield Bond ETF, a newly-created series of TCW ETF Trust, on November 18, 2024. |
62
TCW Funds, Inc.
October 31, 2024
Note 1 — Organization (Continued)
| | |
TCW Fund | | Investment Objectives and Principal Investment Strategies |
| |
| TCW Securitized Bond Fund (formerly, TCW Total Return Bond Fund) | | Seeks to maximize current income and achieve above average total return consistent with prudent investment management over a full market cycle by investing at least 80% of the value of its net assets, plus any borrowings for investment purposes, in debt securities issued by securitized vehicles and similar instruments. At least 50% of the Fund’s net assets will be invested in securitized obligations guaranteed by the U.S. government or its agencies, instrumentalities or sponsored corporations; privately issued mortgage-backed and asset-backed securities rated at time of investment Aa3 or higher by Moody’s Investors Service, Inc., AA- or higher by S&P Global Ratings or the equivalent by any other nationally recognized statistical organization; other obligations of the U.S. government or its agencies, instrumentalities or sponsored corporations; and money market instruments. Under normal market conditions, the portfolio managers seek to construct an investment portfolio with a weighted average duration of no more than eight years. |
All of the Funds currently offer two classes of shares: I Class and N Class, except for the TCW Central Cash Fund, which only offers Cash Management Shares, and the TCW Core Fixed Income Fund and TCW Securitized Bond Fund, which also offer Plan Class shares. The three classes of a Fund are substantially the same except that the N Class shares are subject to a distribution fee (see Note 7).
Note 2 — Significant Accounting Policies
The following is a summary of significant accounting policies, which are in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and which are consistently followed by the Funds in the preparation of their financial statements. Each Fund is considered an investment company under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 946, Financial Services — Investment Companies. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements.
Principles of Accounting: The Funds use the accrual method of accounting for financial reporting purposes.
Net Asset Value: The net asset value (“NAV”) per share of each class of a Fund is determined by dividing the Fund’s net assets attributable to each class by the number of shares issued and outstanding of that class on each day the New York Stock Exchange (“NYSE”) is open for trading.
Security Valuations: Securities listed or traded on the NYSE and other stock exchanges were valued at the latest sale price on the exchange. Securities traded on the NASDAQ stock market (“NASDAQ”) were valued during the period using official closing prices as reported by NASDAQ, which may not have been the last sale price. Investments in open-end mutual funds including money market funds were valued based on the NAV per share as reported by the investment companies. All other securities for which
63
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
over-the-counter (“OTC”) market quotations were readily available, including short-term securities, swap agreements and forward currency exchange contracts, were valued with prices furnished by independent pricing services or by broker-dealers.
Pursuant to Rule 2a-5 under the 1940 Act, the Company’s Board of Directors (the “Board”, and each member thereof, a “Director”) has designated the Advisor as the “valuation designee” with respect to the fair valuation of the Fund’s portfolio securities, subject to oversight by and periodic reporting to the Board. Fair valued securities are those for which market quotations were not readily available, including in circumstances under which it was determined by the Advisor that prices received were not reflective of their market values.
Fair value is defined as the price that a Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Funds disclose investments in their financial statements in a three-tier hierarchy. This hierarchy is utilized to establish classification of fair value measurements based on inputs. Inputs that go into fair value measurement refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the inputs market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances.
The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
| | |
| Level 1 — | | quoted prices in active markets for identical investments. |
| Level 2 — | | other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.). |
| Level 3 — | | significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). |
Changes in valuation techniques may result in transfers in or out of an investment’s assigned Level within the hierarchy. The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to each security.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized as Level 3.
In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition, as well as changes related to liquidity of investments, could cause a security to be reclassified between Level 1, Level 2, or Level 3.
64
TCW Funds, Inc.
October 31, 2024
Note 2 — Significant Accounting Policies (Continued)
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement.
Fair Value Measurements: Descriptions of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value on a recurring basis are as follows:
Asset-backed securities (“ABS”) and mortgage-backed securities (“MBS”). The fair value of ABS and MBS is estimated based on pricing models that consider the estimated cash flows of each debt tranche of the issuer, establish a benchmark yield, and develop an estimated tranche-specific spread to the benchmark yield based on the unique attributes of the tranche including, but not limited to, the prepayment speed assumptions and attributes of the collateral. To the extent the inputs are observable and timely, the values would be categorized as Level 2 of the fair value hierarchy; otherwise, they would be categorized as Level 3.
Bank loans. The fair value of bank loans is estimated using recently executed transactions, market price quotations, credit/market events, and cross-asset pricing. Inputs are generally observable and are obtained from independent sources. Bank loans are generally categorized as Level 2 of the fair value hierarchy.
Corporate bonds. The fair value of corporate bonds is estimated using recently executed transactions, market price quotations (where observable), bond spreads, or credit default swap spreads adjusted for any basis difference between cash and derivative instruments. Corporate bonds are generally categorized as Level 2 of the fair value hierarchy; in instances where prices, spreads, or any of the other aforementioned key inputs are unobservable, they are categorized as Level 3 of the hierarchy.
Foreign currency contracts. The fair values of foreign currency contracts are derived from indices, reference rates, and other inputs or a combination of these factors. To the extent that these factors can be observed, foreign currency contracts are categorized as Level 2 of the fair value hierarchy.
Futures contracts. Futures contracts are generally valued at the settlement price established at the close of business each day by the exchange on which they are traded. They are categorized as Level 1.
Government and agency securities. Government and agency securities are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, quoted market prices, and reference data. Accordingly, government and agency securities are normally categorized as Level 1 or 2 of the fair value hierarchy depending on the liquidity and transparency of the market.
Money market funds. Money market funds are open-end mutual funds that invest in short-term debt securities. To the extent that these funds are valued based upon the reported NAV, they are categorized as Level 1 of the fair value hierarchy.
Municipal bonds. Municipal bonds are fair valued based on pricing models that take into account, among other factors, information received from market makers and broker-dealers, current trades, bid-wanted lists, offerings, market movements, the callability of the bond, state of issuance, benchmark yield curves, and bond insurance. To the extent that these inputs are observable and timely, the fair values of municipal bonds are categorized as Level 2; otherwise, the fair values are categorized as Level 3.
Options and Swaptions contracts. Exchange-listed options contracts are traded on securities exchanges and are fair valued based on quoted prices from the applicable exchange, and to the extent valuation
65
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
adjustments are not applied, they are categorized as Level 1. If valuation adjustments are applied and such adjustments are observable and timely, the fair values of exchange-listed options contracts would be categorized as Level 2; otherwise the fair values would be categorized as Level 3. Options and swaptions contracts traded over-the-counter (“OTC”) are fair valued based on pricing models and incorporate various inputs such as interest rates, credit spreads, currency exchange rates and volatility measurements for in-the-money, at-the-money, and out-of-the-money contracts based on a given strike price. To the extent that these inputs are observable and timely, the fair values of OTC options and swaptions contracts would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.
Restricted securities. Restricted securities, including illiquid Rule 144A securities, issued by non-public entities are categorized as Level 3 of the fair value hierarchy because they trade infrequently, and therefore the inputs are unobservable. Any other restricted securities valued similar to publicly traded securities may be categorized as Level 2 or 3 of the fair value hierarchy depending on whether a discount is applied and significant to the fair value.
Short-term investments. Short-term investments are valued using market price quotations, and are categorized as Level 1 or Level 2 of the fair value hierarchy.
Total return swaps. Total return swaps are fair valued using pricing models that take into account, among other factors, index spread curves, nominal values, modified duration values and cash flows. To the extent that these inputs are observable and timely, the fair values of credit default swaps would be categorized as Level 2; otherwise, the fair values would be categorized as Level 3.
Warrants. Warrants are generally valued based on quoted prices from the applicable exchange. To the extent these securities are actively traded, and valuation adjustments are not applied, they are generally categorized as Level 1 of the fair value hierarchy.
The summary of the fair valuations according to the inputs used as of October 31, 2024 in valuing the Funds’ investments is listed after the Schedule of Investments for each Fund.
Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:
| | | | | | | | |
TCW Core Fixed Income Fund | | Asset-Backed
Securities | | | Total | |
Balance as of October 31, 2023 | | $ | 3,702,701 | | | $ | 3,702,701 | |
Accrued Discounts (Premiums) | | | — | | | | — | |
Realized Gain (Loss) | | | — | | | | — | |
Change in Unrealized Appreciation (Depreciation)* | | | 193,804.83 | | | | 193,805 | |
Purchases | | | — | | | | — | |
Sales | | | (299,561 | ) | | | (299,561 | ) |
Transfers in to Level 3 | | | — | | | | — | |
Transfers out of Level 3 | | | — | | | | — | |
| | | | | | | | |
Balance as of October 31, 2024 | | $ | 3,596,945 | | | $ | 3,596,945 | |
| | | | | | | | |
| * | The change in unrealized appreciation (depreciation) on securities still held at October 31, 2024 was $193,805 and is included in the related net realized gains (losses) and net change in appreciation (depreciation) in the Statements of Operations. |
66
TCW Funds, Inc.
October 31, 2024
Note 2 — Significant Accounting Policies (Continued)
| | | | | | | | | | | | |
TCW Global Bond Fund | | Common
Stock | | | Residential
Mortgage-Backed
Securities —
Non-Agency | | | Total | |
Balance as of October 31, 2023 | | $ | 8,462 | | | $ | 53,009 | | | $ | 61,471 | |
Accrued Discounts (Premiums) | | | — | | | | 30,701 | | | | 30,701 | |
Realized Gain (Loss) | | | 585 | | | | 5 | | | | 590 | |
Change in Unrealized Appreciation (Depreciation)* | | | 2,054 | | | | (41,604 | ) | | | (39,550 | ) |
Purchases | | | — | | | | 49,309 | | | | 49,309 | |
Sales | | | (681 | ) | | | (662 | ) | | | (1,343 | ) |
Transfers in to Level 3 | | | — | | | | — | | | | — | |
Transfers out of Level 3 | | | — | | | | — | | | | — | |
| | | | | | | | | | | | |
Balance as of October 31, 2024 | | $ | 10,420 | | | $ | 90,758 | | | $ | 101,178 | |
| | | | | | | | | | | | |
| * | The change in unrealized appreciation (depreciation) on securities still held at October 31, 2024 was $(41,471) and is included in the related net realized gains (losses) and net change in appreciation (depreciation) in the Statements of Operations. |
| | | | | | | | |
TCW High Yield Bond Fund | | Common
Stock | | | Total | |
Balance as of October 31, 2023 | | $ | — | | | $ | — | |
Accrued Discounts (Premiums) | | | — | | | | — | |
Realized Gain (Loss) | | | (324,419 | ) | | | (324,419 | ) |
Change in Unrealized Appreciation (Depreciation)* | | | 327,224 | | | | 327,224 | |
Purchases | | | — | | | | — | |
Sales | | | (2,805 | ) | | | (2,805 | ) |
Transfers in to Level 3 | | | — | | | | — | |
Transfers out of Level 3 | | | — | | | | — | |
| | | | | | | | |
Balance as of October 31, 2024 | | $ | — | | | $ | — | |
| | | | | | | | |
| * | The change in unrealized appreciation (depreciation) on securities still held at October 31, 2024 was $0 and is included in the related net realized gains (losses) and net change in appreciation (depreciation) in the Statements of Operations. |
| | | | | | | | |
TCW Securitized Bond Fund | | Residential
Mortgage-Backed
Securities —
Non-Agency | | | Total | |
Balance as of October 31, 2023 | | $ | 1,717,528 | | | $ | 1,717,528 | |
Accrued Discounts (Premiums) | | | (200,709 | ) | | | (200,709 | ) |
Realized Gain (Loss) | | | (34,399 | ) | | | (34,399 | ) |
Change in Unrealized Appreciation (Depreciation)* | | | 49,907 | | | | 49,907 | |
Purchases | | | 916,615 | | | | 916,615 | |
Sales | | | (161,307 | ) | | | (161,307 | ) |
Transfers in to Level 3 | | | — | | | | — | |
Transfers out of Level 3 | | | — | | | | — | |
| | | | | | | | |
Balance as of October 31, 2024 | | $ | 2,287,635 | | | $ | 2,287,635 | |
| | | | | | | | |
| * | The change in unrealized appreciation (depreciation) on securities still held at October 31, 2024 was $34,346 and is included in the related net realized gains (losses) and net change in appreciation (depreciation) in the Statements of Operations. |
67
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
Significant unobservable valuation inputs for Level 3 investments as of October 31, 2024 are as follows:
| | | | | | | | | | | | | | | | |
Description | | Fair Value at
10/31/2024 | | | Valuation Techniques | | Unobservable
Input | | Price or Price Range | | Average
Weighted
Price | | Input to
Valuation If
Input
Increases | |
TCW Core Fixed Income Fund | |
Asset-Backed Securities | | $ | 3,596,945 | | | Broker Quote | | Offered Quote | | $ 91.125 | | $ 91.125 | | | Increase | |
TCW Global Bond Fund | |
Common Stock | | $ | 10,420 | | | Third-party Vendor | | Vendor Prices | | $ 30.292 | | $ 30.292 | | | Increase | |
Residential Mortgage-Backed Securities — Non-Agency | | $ | 38,671 | | | Broker Quote | | Offered Quote | | $ 9.166 | | $ 9.166 | | | Increase | |
Residential Mortgage-Backed Securities — Non-Agency | | $ | 52,087 | | | Third-party Vendor | | Vendor Prices | | $ 4.161 | | $ 4.161 | | | Increase | |
TCW High Yield Bond Fund | |
Warrants | | $ | 0 | | | Broker Quote | | Offered Quote | | $ 0.000 | | $ 0.000 | | | Increase | |
TCW Securitized Bond Fund | |
Residential Mortgage-Backed Securities — Non-Agency | | $ | 1,697,431 | | | Broker Quote | | Offered Quote | | $ 0.968 – $ 5.609 | | $ 1.986 | | | Increase | |
Residential Mortgage-Backed Securities — Non-Agency | | $ | 590,204 | | | Third-party Vendor | | Vendor Prices | | $ 0.496 – $ 9.768 | | $ 1.495 | | | Increase | |
Security Transactions and Related Investment Income: Dividend income is recorded on the ex-dividend date. Interest income is recognized on an accrual basis. Realized gains and losses on investments are recorded on the basis of specific identification.
Allocation of Operating Activity for Multiple Classes: Investment income, common expenses and realized and unrealized gains and losses are allocated among the share classes of the Funds based on the relative net assets of each class. Distribution fees, which are directly attributable to a class of shares, are charged to the operations of that class. All other expenses are charged to each Fund or class as incurred on a specific identification basis. Differences in class-specific fees and expenses will result in differences in net investment income for each class, and in turn differences in dividends paid by each class.
Dividends and Distributions: Dividends and distributions to shareholders are recorded on the ex-dividend date. The Funds declare and pay, or reinvest, dividends from net investment income monthly. Capital gains realized by a Fund will be distributed at least annually.
Income and capital gain distributions are determined in accordance with income tax regulations which may differ from GAAP. These differences are primarily due to differing treatments for foreign currency transactions, derivative transactions, market discount and premium, losses deferred due to wash sales, excise tax regulations and employing equalization in determining amounts to be distributed to Fund shareholders. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications between paid-in capital, undistributed net investment income (loss), and/or undistributed accumulated realized gain (loss). Undistributed net investment income or loss may include temporary book and tax basis differences which will reverse in subsequent periods. Any taxable income or capital gain remaining at fiscal year-end is distributed in the following year.
68
TCW Funds, Inc.
October 31, 2024
Note 2 — Significant Accounting Policies (Continued)
Use of Estimates: The preparation of the accompanying financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates.
Foreign Currency Translation: The books and records of each Fund are maintained in U.S. dollars as follows: (1) foreign currency denominated securities and other assets and liabilities stated in foreign currencies are translated using the daily spot rate; and (2) purchases, sales, income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions. The resultant exchange gains and losses are included in net realized or net unrealized gain (loss) in the Statements of Operations. Pursuant to U.S. federal income tax regulations, certain foreign exchange gains and losses included in realized and unrealized gains and losses are included in, or are a reduction of, ordinary income for federal income tax purposes.
Foreign Taxes: The Funds may be subject to withholding taxes on income and capital gains imposed by certain countries in which they invest. The withholding tax on income is netted against the income accrued or received. Any reclaimable taxes are recorded as income. The withholding tax on realized or unrealized gain is recorded as a liability.
Derivative Instruments: Derivatives are financial instruments which are valued based on the values of one or more indicators, such as a security, asset, currency, interest rate, or index. Derivative transactions can create investment leverage and may be highly volatile. A derivative contract may result in a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. It is possible that a derivative transaction will result in a loss greater than the principal amount invested. The Funds may not be able to close out a derivative transaction at a favorable time or price.
For the year ended October 31, 2024, the following Funds had derivatives and transactions in derivatives, grouped in the following risk categories:
TCW Core Fixed Income Fund
| | | | | | | | | | | | | | | | |
| | | Credit Risk | | | Foreign
Currency
Risk | | | Interest
Rate
Risk | | | Total | |
Statement of Assets and Liabilities: | | | | | | | | | | | | | |
Asset Derivatives | |
Swap Agreements (1) | | $ | — | | | $ | — | | | $ | 237,905 | | | $ | 237,905 | |
Futures Contracts (2) | | | — | | | | — | | | | 320,648 | | | | 320,648 | |
Forward Currency Exchange Contracts | | | — | | | | 219,254 | | | | — | | | | 219,254 | |
| | | | | | | | | | | | | | | | |
Total Value | | $ | — | | | $ | 219,254 | | | $ | 558,553 | | | $ | 777,807 | |
| | | | | | | | | | | | | | | | |
Liability Derivatives | |
Forward Currency Exchange Contracts | | $ | — | | | $ | (4,388 | ) | | $ | — | | | $ | (4,388 | ) |
Futures Contracts (2) | | | — | | | | — | | | | (3,136,204 | ) | | | (3,136,204 | ) |
| | | | | | | | | | | | | | | | |
Total Value | | $ | — | | | $ | (4,388 | ) | | $ | (3,136,204 | ) | | $ | (3,140,592 | ) |
| | | | | | | | | | | | | | | | |
69
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
TCW Core Fixed Income Fund (Continued)
| | | | | | | | | | | | | | | | |
| | | Credit Risk | | | Foreign
Currency
Risk | | | Interest
Rate
Risk | | | Total | |
Statement of Operations: | |
Net Realized Gain (Loss) | |
Forward Currency Exchange Contracts | | $ | — | | | $ | (473,586 | ) | | $ | — | | | $ | (473,586 | ) |
Futures Contracts | | | — | | | | — | | | | 621,874 | | | | 621,874 | |
Swap Agreements | | | — | | | | — | | | | 169,721 | | | | 169,721 | |
| | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) | | $ | — | | | $ | (473,586 | ) | | $ | 791,595 | | | $ | 318,009 | |
| | | | | | | | | | | | | | | | |
Net Change in Appreciation (Depreciation) | |
Forward Currency Exchange Contracts | | $ | — | | | $ | 257,511 | | | $ | — | | | $ | 257,511 | |
Futures Contracts | | | — | | | | — | | | | (1,297,953 | ) | | | (1,297,953 | ) |
Swap Agreements | | | — | | | | — | | | | (870,703 | ) | | | (870,703 | ) |
| | | | | | | | | | | | | | | | |
Net Change in Appreciation (Depreciation) | | $ | — | | | $ | 257,511 | | | $ | (2,168,656 | ) | | $ | (1,911,145 | ) |
| | | | | | | | | | | | | | | | |
Number of Contracts or Notional Amounts (5) | |
Forward Currency Exchange Contracts | | | $ — | | | | $21,662,672 | | | | $ — | | | | $21,662,672 | |
Futures Contracts | | | — | | | | — | | | | 1,980 | | | | 1,980 | |
Swap Agreements | | | $ — | | | | $ — | | | | $8,888,000 | | | | $8,888,000 | |
TCW Global Bond Fund
| | | | | | | | | | | | | | | | |
| | | Credit Risk | | | Foreign
Currency
Risk | | | Interest
Rate
Risk | | | Total | |
Statement of Assets and Liabilities: | | | | | | | | | | | | | | | | |
Asset Derivatives | | | | | | | | | | | | | | | | |
Swap Agreements (1) | | $ | — | | | $ | — | | | $ | 2,413 | | | $ | 2,413 | |
Futures Contracts (2) | | | — | | | | — | | | | 31,129 | | | | 31,129 | |
Forward Currency Exchange Contracts | | | — | | | | 111,164 | | | | — | | | | 111,164 | |
| | | | | | | | | | | | | | | | |
Total Value | | $ | — | | | $ | 111,164 | | | $ | 33,542 | | | $ | 144,706 | |
| | | | | | | | | | | | | | | | |
Liability Derivatives | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | $ | — | | | $ | (108,901 | ) | | $ | — | | | $ | (108,901 | ) |
Swap Agreements | | | — | | | | — | | | | (4,529 | ) | | | (4,529 | ) |
Futures Contracts | | | — | | | | — | | | | (144,210 | ) | | | (144,210 | ) |
| | | | | | | | | | | | | | | | |
Total Value | | $ | — | | | $ | (108,901 | ) | | $ | (148,739 | ) | | $ | (257,640 | ) |
| | | | | | | | | | | | | | | | |
Statement of Operations: | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | $ | — | | | $ | (216,963 | ) | | $ | — | | | $ | (216,963 | ) |
Futures Contracts | | | — | | | | — | | | | 55,470 | | | | 55,470 | |
Investments (3) | | | — | | | | (385 | ) | | | — | | | | (385 | ) |
Options Written | | | — | | | | 593 | | | | — | | | | 593 | |
Swap Agreements | | | — | | | | — | | | | (1,973 | ) | | | (1,973 | ) |
| | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) | | $ | — | | | $ | (216,755 | ) | | $ | 53,497 | | | $ | (163,258 | ) |
| | | | | | | | | | | | | | | | |
Net Change in Appreciation (Depreciation) | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | $ | — | | | $ | 10,955 | | | $ | — | | | $ | 10,955 | |
Futures Contracts | | | — | | | | — | | | | (143,338 | ) | | | (143,338 | ) |
Investments (4) | | | — | | | | 2,349 | | | | — | | | | 2,349 | |
Options Written | | | — | | | | (948 | ) | | | — | | | | (948 | ) |
Swap Agreements | | | — | | | | — | | | | 8,386 | | | | 8,386 | |
| | | | | | | | | | | | | | | | |
Net Change in Appreciation (Depreciation) | | $ | — | | | $ | 12,356 | | | $ | (134,952 | ) | | $ | (122,596 | ) |
| | | | | | | | | | | | | | | | |
70
TCW Funds, Inc.
October 31, 2024
Note 2 — Significant Accounting Policies (Continued)
TCW Global Bond Fund (Continued)
| | | | | | | | | | | | | | | | |
| | | Credit Risk | | | Foreign
Currency
Risk | | | Interest
Rate
Risk | | | Total | |
Number of Contracts or Notional Amounts (5) | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | | $ — | | | | $9,423,723 | | | | $ — | | | | $9,423,723 | |
Options Purchased | | | $ — | | | | $190,000 | | | | $ — | | | | $190,000 | |
Options Written | | | $ — | | | | $190,000 | | | | $ — | | | | $190,000 | |
Futures Contracts | | | — | | | | — | | | | 87 | | | | 87 | |
Swap Agreements | | | $ — | | | | $ — | | | | $672,727 | | | | $672,727 | |
TCW High Yield Bond Fund
| | | | | | | | | | | | | | | | |
| | | Credit Risk | | | Foreign
Currency
Risk | | | Interest
Rate
Risk | | | Total | |
Statement of Assets and Liabilities: | | | | | | | | | | | | | | | | |
Asset Derivatives | | | | | | | | | | | | | | | | |
Futures Contracts (2) | | $ | — | | | $ | — | | | $ | 38,097 | | | $ | 38,097 | |
Forward Currency Exchange Contracts | | | — | | | | 15,894 | | | | — | | | | 15,894 | |
| | | | | | | | | | | | | | | | |
Total Value | | $ | — | | | $ | 15,894 | | | $ | 38,097 | | | $ | 53,991 | |
| | | | | | | | | | | | | | | | |
Liability Derivatives | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | $ | — | | | $ | (1,600 | ) | | $ | — | | | $ | (1,600 | ) |
Futures Contracts (2) | | | — | | | | — | | | | (125,003 | ) | | | (125,003 | ) |
| | | | | | | | | | | | | | | | |
Total Value | | $ | — | | | $ | (1,600 | ) | | $ | (125,003 | ) | | $ | (126,603 | ) |
| | | | | | | | | | | | | | | | |
Statement of Operations: | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | $ | — | | | $ | (7,160 | ) | | $ | — | | | $ | (7,160 | ) |
Futures Contracts | | | — | | | | — | | | | 96,379 | | | | 96,379 | |
| | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) | | $ | — | | | $ | (7,160 | ) | | $ | 96,379 | | | $ | 89,219 | |
| | | | | | | | | | | | | | | | |
Net Change in Appreciation (Depreciation) | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | $ | — | | | $ | 15,404 | | | $ | — | | | $ | 15,404 | |
Futures Contracts | | | — | | | | — | | | | (89,212 | ) | | | (89,212 | ) |
| | | | | | | | | | | | | | | | |
Net Change in Appreciation (Depreciation) | | $ | — | | | $ | 15,404 | | | $ | (89,212 | ) | | $ | (73,808 | ) |
| | | | | | | | | | | | | | | | |
Number of Contracts or Notional Amounts (5) | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | | $ — | | | | $1,421,632 | | | | $ — | | | | $1,421,632 | |
Futures Contracts | | | — | | | | — | | | | 82 | | | | 82 | |
TCW Securitized Bond Fund
| | | | | | | | | | | | | | | | |
| | | Credit
Risk | | | Foreign
Currency
Risk | | | Interest
Rate
Risk | | | Total | |
Statement of Assets and Liabilities: | | | | | | | | | | | | | | | | |
Asset Derivatives | | | | | | | | | | | | | | | | |
Futures Contracts (2) | | $ | — | | | $ | — | | | $ | 4,155,687 | | | $ | 4,155,687 | |
| | | | | | | | | | | | | | | | |
Total Value | | $ | — | | | $ | — | | | $ | 4,155,687 | | | $ | 4,155,687 | |
| | | | | | | | | | | | | | | | |
Liability Derivatives | | | | | | | | | | | | | | | | |
Futures Contracts (2) | | $ | — | | | $ | — | | | $ | (11,803,933 | ) | | $ | (11,803,933 | ) |
| | | | | | | | | | | | | | | | |
Total Value | | $ | — | | | $ | — | | | $ | (11,803,933 | ) | | $ | (11,803,933 | ) |
| | | | | | | | | | | | | | | | |
71
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
TCW Securitized Bond Fund (Continued)
| | | | | | | | | | | | | | | | |
| | | Credit
Risk | | | Foreign
Currency
Risk | | | Interest
Rate
Risk | | | Total | |
Statement of Operations: | | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | $ | — | | | $ | (418,417 | ) | | $ | — | | | $ | (418,417 | ) |
Futures Contracts | | | — | | | | — | | | | 4,977,452 | | | | 4,977,452 | |
| | | | | | | | | | | | | | | | |
Net Realized Gain (Loss) | | $ | — | | | $ | (418,417 | ) | | $ | 4,977,452 | | | $ | 4,559,035 | |
| | | | | | | | | | | | | | | | |
Net Change in Appreciation (Depreciation) | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | $ | — | | | $ | (1,157 | ) | | $ | — | | | $ | (1,157 | ) |
Futures Contracts | | | — | | | | — | | | | 20,930,038 | | | | 20,930,038 | |
| | | | | | | | | | | | | | | | |
Net Change in Appreciation (Depreciation) | | $ | — | | | $ | (1,157 | ) | | $ | 20,930,038 | | | $ | 20,928,881 | |
| | | | | | | | | | | | | | | | |
Number of Contracts or Notional Amounts (5) | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | | $ — | | | | $10,574,436 | | | | $ — | | | | $10,574,436 | |
Futures Contracts | | | — | | | | — | | | | 4,399 | | | | 4,399 | |
| (1) | Includes cumulative appreciation (depreciation) of swap agreements as reported in the Schedule of Investments. Only variation margin on October 31, 2024 is reported within the Statement of Assets and Liabilities. |
| (2) | Includes cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only variation margin on October 31, 2024 is reported within the Statement of Assets and Liabilities. |
| (3) | Represents realized loss for purchased options during the year. |
| (4) | Represents change in unrealized appreciation (depreciation) for purchased options during the year. |
| (5) | Amount disclosed represents average number of contracts or notional amounts, which are representative of the volume traded for the year ended on October 31, 2024. |
Counterparty Credit Risk: Derivative contracts may be exposed to counterparty risk. Losses can occur if the counterparty does not perform under the contract.
The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds.
With exchange-traded futures and centrally cleared swaps, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Funds do not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
For OTC derivatives, the Funds mitigate their counterparty risk by entering into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with each counterparty. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master
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Note 2 — Significant Accounting Policies (Continued)
Agreement, the Funds may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event a Fund’s net assets declines by a stated percentage or a Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the counterparty.
Collateral requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to- market amount for each transaction under such agreement and comparing that amount to the value of any collateral pledged or received by a Fund.
Cash collateral that has been pledged to cover obligations of a Fund is reported separately on the Statement of Assets and Liabilities. Non-cash collateral pledged by a Fund, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold, typically $250,000 or $500,000, before a transfer is required, which is determined at the close of each business day and the collateral is transferred on the next business day. To the extent amounts due to a Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by entering into agreements only with counterparties that the Advisor believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities. The Funds have implemented the disclosure requirements pursuant to ASC 210 Balance Sheet (“ASC 210”), Disclosures about Offsetting Assets and Liabilities that requires disclosures to make financial statements that are prepared under GAAP more comparable to those prepared under International Financial Reporting Standards.
Master Agreements and Netting Arrangements. Certain Funds are parties to various agreements, including but not limited to International Swaps and Derivatives Association Agreements and related Credit Support Annex, Master Repurchase Agreements, and Master Securities Forward Transactions Agreements (collectively “Master Agreements”), which govern the terms of certain transactions with select counterparties. These Master Agreements generally include provisions for general obligations, representations, agreements, collateral, and certain events of default or termination. These Master Agreements also include provisions for netting arrangements that help reduce credit and counterparty risk associated with relevant transactions (“netting arrangements”). The netting arrangements are generally tied to credit-related events that, if triggered, would cause an event of default or termination giving a Fund or counterparty the right to terminate early and cause settlement, on a net basis, of all transactions under the applicable Master Agreement. In the event of an early termination as a result of an event of default under the Master Agreement, the total value exposure of all transactions will be offset against collateral exchanged to date, which would result in a net receivable or payable that would be due from or to the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions
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Note 2 — Significant Accounting Policies (Continued)
on or prohibitions against the right of offset in the event of a bankruptcy or insolvency of the counterparty. Credit-related events include, but are not limited to, bankruptcy, failure to make timely payments, restructuring, obligation acceleration, obligation default, a material decline in net assets, decline in credit rating or repudiation/moratorium. Any election made by a counterparty to early terminate the transactions under a Master Agreement could have a material adverse impact on a Fund’s financial statements. A Fund’s overall exposure to credit risk, subject to netting arrangements can change substantially within a short period, as it is affected by each transaction subject to the arrangement.
Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under the Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions under the relevant Master Agreement with a counterparty in a given Fund exceeds a specified threshold, net of collateral already in place, typically $250,000 or $500,000 depending on the counterparty and the type of Master Agreement. Collateral under the Master Agreements is usually in the form of cash or U.S. Treasury Bills but could include other types of securities. If permitted under the Master Agreement, certain funds may rehypothecate cash collateral received from a counterparty. The value of all derivative transactions outstanding under a Master Agreement is calculated daily to determine the amount of collateral to be received or pledged by the counterparty. Posting of collateral for OTC derivative transactions are covered under tri-party collateral agreements between the Fund, the Fund’s custodian, and each counterparty. Collateral for centrally cleared derivatives transactions are posted with the applicable derivatives clearing organization.
The following table presents TCW Core Fixed Income Fund’s OTC derivative assets by counterparty net of amounts available for offset under an ISDA Master Agreement or similar agreements and net of the related collateral received or pledged by the Fund as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Counterparty | | Gross Derivative
Assets
in the Statement of
Assets and
Liabilities | | | Collateral
Received (1) | | | Derivatives Assets
(Liabilities) Available
for Offset | | | Net Amount
of Derivative
Assets (2) | |
Bank of America | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | $ | 2,495 | | | $ | — | | | $ | — | | | $ | 2,495 | |
Citibank N.A. | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | | 212,595 | | | | (210,282 | ) | | | (2,313 | ) | | | — | |
Goldman Sachs & Co. | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | | 4,164 | | | | — | | | | (2,091 | ) | | | 2,073 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 219,254 | | | $ | (210,282 | ) | | $ | (4,404 | ) | | $ | 4,568 | |
| | | | | | | | | | | | | | | | |
| (1) | Excess of collateral received for individual counterparty may not be shown for financial reporting purposes. |
| (2) | Represents the net amount receivable from the counterparty in the event of default. |
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Note 2 — Significant Accounting Policies (Continued)
The following table presents TCW Core Fixed Income Fund’s OTC derivative liabilities by counterparty net of amounts available for offset under an ISDA Master Agreement or similar agreements and net of the related collateral received or pledged by the Fund as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Counterparty | | Gross Derivatives
Liabilities
in the Statement of
Assets and
Liabilities | | | Collateral
Pledged (1) | | | Derivatives (Assets)
Liabilities Available
for Offset | | | Net Amount
of Derivative
Liabilities (2) | |
Citibank N.A. | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | $ | 2,313 | | | $ | — | | | $ | (2,313 | ) | | $ | — | |
Goldman Sachs & Co. | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | | 2,091 | | | | — | | | | (2,091 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 4,404 | | | $ | — | | | $ | (4,404 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | Excess of collateral received for individual counterparty may not be shown for financial reporting purposes. |
| (2) | Represents the net amount receivable from the counterparty in the event of default. |
The following table presents TCW Global Bond Fund’s OTC derivative assets by counterparty net of amounts available for offset under an ISDA Master Agreement or similar agreements and net of the related collateral received or pledged by the Fund as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Counterparty | | Gross Derivative
Assets
in the Statement of
Assets and
Liabilities | | | Collateral
Received (1) | | | Derivatives Assets
(Liabilities) Available
for Offset | | | Net Amount
of Derivative
Assets (2) | |
Citibank N.A. | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | $ | 66,779 | | | $ | — | | | $ | (66,779 | ) | | $ | — | |
Goldman Sachs & Co. | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | | 43,299 | | | | — | | | | (30,683 | ) | | | 12,616 | |
State Street Bank & Trust Co. | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | | 1,086 | | | | — | | | | — | | | | 1,086 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 111,164 | | | $ | — | | | $ | (97,462 | ) | | $ | 13,702 | |
| | | | | | | | | | | | | | | | |
| (1) | Excess of collateral received for individual counterparty may not be shown for financial reporting purposes. |
| (2) | Represents the net amount receivable from the counterparty in the event of default. |
The following table presents TCW Global Bond Fund’s OTC derivative liabilities by counterparty net of amounts available for offset under an ISDA Master Agreement or similar agreements and net of the related collateral received or pledged by the Fund as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Counterparty | | Gross Derivative
Assets
in the Statement of
Assets and
Liabilities | | | Collateral
Pledged (1) | | | Derivatives (Assets)
Liabilities Available
for Offset | | | Net Amount
of Derivative
Liabilities (2) | |
Citibank N.A. | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | $ | 78,243 | | | $ | 11,464 | | | $ | (66,779 | ) | | $ | — | |
Goldman Sachs & Co. | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | | 30,683 | | | | — | | | | (30,683 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 108,926 | | | $ | 11,464 | | | $ | (97,462 | ) | | $ | — | |
| | | | | | | | | | | | | | | | |
| (1) | Excess of collateral received for individual counterparty may not be shown for financial reporting purposes. |
| (2) | Represents the net amount receivable from the counterparty in the event of default. |
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Notes to Financial Statements (Continued)
Note 2 — Significant Accounting Policies (Continued)
The following table presents TCW High Yield Bond Fund’s OTC derivative assets by counterparty net of amounts available for offset under an ISDA Master Agreement or similar agreements and net of the related collateral received or pledged by the Fund as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Counterparty | | Gross Derivative
Assets
in the Statement of
Assets and
Liabilities | | | Collateral
Received (1) | | | Derivatives Assets
(Liabilities) Available
for Offset | | | Net Amount
of Derivative
Assets (2) | |
Citibank N.A. | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | $ | 15,894 | | | $ | — | | | $ | (664 | ) | | $ | 15,230 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 15,894 | | | $ | — | | | $ | (664 | ) | | $ | 15,230 | |
| | | | | | | | | | | | | | | | |
| (1) | Excess of collateral received for individual counterparty may not be shown for financial reporting purposes. |
| (2) | Represents the net amount receivable from the counterparty in the event of default. |
The following table presents TCW High Yield Bond Fund’s OTC derivative liabilities by counterparty net of amounts available for offset under an ISDA Master Agreement or similar agreements and net of the related collateral received or pledged by the Fund as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Counterparty | | Gross Derivative
Assets
in the Statement of
Assets and
Liabilities | | | Collateral
Pledged (1) | | | Derivatives (Assets)
Liabilities Available
for Offset | | | Net Amount
of Derivative
Liabilities (2) | |
Citibank N.A. | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | $ | 664 | | | $ | — | | | $ | (664 | ) | | $ | — | |
Goldman Sachs & Co. | | | | | | | | | | | | | | | | |
Foreign Currency Exchange Contracts | | | 936 | | | | — | | | | — | | | | 936 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,600 | | | $ | — | | | $ | (664 | ) | | $ | 936 | |
| | | | | | | | | | | | | | | | |
| (1) | Excess of collateral received for individual counterparty may not be shown for financial reporting purposes. |
| (2) | Represents the net amount receivable from the counterparty in the event of default. |
Note 3 — Portfolio Investments
Mortgage-Backed Securities: The Funds may invest in MBS which represent interests in pools of mortgages in which payments of both principal and interest on the securities are generally made monthly, in effect “passing through” monthly payments made by borrowers on the residential or commercial mortgage loans which underlie the securities (net of any fees paid to the issuer or guarantor of the securities). Mortgage pass-through securities differ from other forms of debt securities which normally provide for periodic payment of interest in fixed amounts with principal payments at maturity or specified call dates. The Funds may also invest in Collateralized Mortgage Obligations (“CMOs”). CMOs are debt obligations collateralized by residential or commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass-through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed by Ginnie Mae, Freddie Mac or Fannie Mae. The issuer of a series of CMOs may elect to be treated for tax purposes as a Real Estate Mortgage Investment Conduit. CMOs are structured into multiple classes, each bearing a different stated maturity. Monthly payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to investors holding the shortest maturity class. Investors holding the longer
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Note 3 — Portfolio Investments (Continued)
maturity classes usually receive principal only after shorter classes have been retired. An investor may be partially protected against a sooner than desired return of principal because of the sequential payments. The Funds may invest in stripped MBS. Stripped MBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. In certain cases, one class will receive all of the interest (the interest only or “IO” class), while the other class will receive all of the principal (the principal only or “PO” class). The yield to maturity on IOs is sensitive to the rate of principal repayments (including prepayments) on the related underlying mortgage assets, and principal payments may have a material effect on yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, a Fund may not fully recoup its initial investment in IOs.
Inflation-Indexed Bonds: The Funds may invest in inflation-indexed bonds, which are fixed income securities whose principal value or coupon is periodically adjusted according to the rate of inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income.
Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten, twenty, or thirty years, although it is possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount.
If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the current market value of the bonds is not guaranteed, and will fluctuate. The Funds may also invest in other inflation- related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided, the adjusted principal value of the bond repaid at maturity may be less than the original principal.
The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real interest rates in turn are tied to the relationship between nominal interest rates and the rate of inflation. Therefore, if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds.
While the values of these securities are expected to be protected from long-term inflationary trends, short-term increases in inflation may lead to declines in values. If interest rates rise due to reasons other than inflation (for example, due to changes in currency exchange rates), investors in these securities may not be protected to the extent that the increase is not reflected in the bond’s inflation measure.
When-Issued, Delayed-Delivery, To Be Announced (“TBA”) and Forward Commitment Transactions: The Funds may enter into when-issued, delayed-delivery, TBA or forward commitment transactions in order to lock in the purchase price of the underlying security or to adjust the interest rate exposure of each Fund’s existing portfolio. In when-issued, delayed-delivery, TBA or forward commitment transactions, a Fund commits to purchase or sell particular securities, with payment and delivery to take place at a future date.
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Note 3 — Portfolio Investments (Continued)
Although the Fund does not pay for the securities or start earning interest on them until they are delivered, it immediately assumes the risks of ownership, including the risk of price fluctuation. If a Fund’s counterparty fails to deliver a security purchased on a when-issued, delayed-delivery, TBA or forward commitment basis, there may be a loss, and the Fund may have missed an opportunity to make an alternative investment.
Prior to settlement of these transactions, the value of the subject securities will fluctuate with market conditions. In addition, because the Fund is not required to pay for when-issued, delayed-delivery, TBA or forward commitment securities until the delivery date, they may result in a form of leverage to the extent the Fund does not set aside liquid assets to cover the commitment. To guard against this deemed leverage, the Fund monitors the obligations under these transactions on a daily basis and ensures that the Fund has sufficient liquid assets to cover them.
Dollar Roll Transactions: The Funds may enter into dollar roll transactions with financial institutions to take advantage of opportunities in the MBS market. A dollar roll transaction involves a simultaneous sale of securities by a Fund with an agreement to repurchase substantially similar securities at an agreed upon price and date, but generally will be collateralized at time of delivery by different pools of mortgages with different prepayment histories than those securities sold. These transactions are accounted for as financing transactions as opposed to sales and purchases. The differential between the sale price and the repurchase price is recorded as deferred income and recognized between the settlement dates of the sale and repurchase. During the period between the sale and repurchase, a Fund will not be entitled to receive interest and principal payments on the securities sold. Dollar roll transactions involve risk that the market value of the security sold by a Fund may decline below the repurchase price of the security and the counterparties may potentially be unable to complete the transaction. There were no such transactions by the Funds for the year ended October 31, 2024.
Repurchase Agreements: The Funds may enter into repurchase agreements under the terms of a Master Repurchase Agreement (“MRA”). In a repurchase agreement, the Funds purchase a security from a counterparty who agrees to repurchase the same security at a mutually agreed upon date and price. The MRA permits each Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from each Fund. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Pursuant to the terms of the MRA, each Fund receives securities as collateral with a market value in excess of the repurchase price. Upon a bankruptcy or insolvency of the MRA counterparty, the Fund recognizes a liability with respect to such excess collateral to reflect the Fund’s obligation under bankruptcy law to return the excess to the counterparty. The TCW Central Cash Fund had repurchase agreements outstanding as of October 31, 2024.
Reverse Repurchase Agreements: The Funds may enter into reverse repurchase agreements. Under a reverse repurchase agreement, a Fund sells portfolio assets subject to an agreement by the Fund to repurchase the same assets at an agreed upon price and date. The Funds may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction. During the term of the reverse repurchase agreement, the Funds continue to receive the principal and interest payments on the securities sold. There were no reverse repurchase agreements outstanding during the year ended October 31, 2024.
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TCW Funds, Inc.
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Note 3 — Portfolio Investments (Continued)
Securities Lending: The Funds may lend their securities to qualified brokers. The loans must be collateralized at all times primarily with cash although the Funds can accept money market instruments or U.S. Government securities with a market value at least equal to the market value of the securities on loan. As with any extensions of credit, the Funds may bear the risk of delay in recovery or even loss of rights in the collateral if the borrowers of the securities fail financially. The Funds earn additional income for lending their securities by investing the cash collateral in short-term investments. The Funds did not lend any securities during the year ended October 31, 2024.
Derivatives:
Forward Currency Exchange Contracts: The Funds enter into forward currency exchange contracts as a hedge against fluctuations in foreign exchange rates. Forward currency exchange contracts are marked-to-market daily and the change in market value is recorded by the Funds as unrealized gains or losses in the Statement of Assets and Liabilities. When a contract is closed or delivery is taken, a Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of the foreign currency relative to the U.S. dollar. The TCW Core Fixed Income Fund, the TCW Global Bond Fund, and the TCW Securitized Bond Fund entered into forward currency exchange contracts during the year ended October 31, 2024 to hedge against the foreign currency exposure within the Funds. Outstanding forward currency exchange contracts at October 31, 2024 are disclosed in the Schedule of Investments.
Futures Contracts: The Funds may enter into futures contracts. A Fund may seek to manage a variety of different risks through the use of futures contracts, such as interest rate risk, equity price risk, and currency risk. A Fund may use index futures to hedge against broad market risks to its portfolio or to gain broad market exposure. Securities index futures contracts are contracts to buy or sell units of a securities index at a specified future date at a price agreed upon when the contract is made, and are settled in cash. Positions in futures may be closed out only on an exchange or board of trade which provides a secondary market for such futures. Because futures contracts are exchange-traded, they typically have minimal exposure to counterparty risk. Parties to a futures contract are not required to post the entire notional amount of the contract, but rather a small percentage of that amount (by way of margin), both at the time they enter into futures transactions, and then on a daily basis if their positions decline in value; as a result, futures contracts are highly leveraged. Such payments are known as variation margin and are recorded by a Fund as unrealized gains or losses. Because futures markets are highly leveraged, they can be extremely volatile, and there can be no assurance that the pricing of a futures contract will correlate precisely with the pricing of the asset or index underlying it or the asset or liability of a Fund that is the subject of the hedge. It may not always be possible for a Fund to enter into a closing transaction with respect to a futures contract it has entered into at a favorable time or price. When a Fund enters into a futures transaction, it is subject to the risk that the value of the futures contract will move in a direction unfavorable to it.
When a Fund uses futures contracts for hedging purposes, it is likely that the Fund will have an asset or liability that will offset any loss (or gain) on the transactions, at least in part. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The TCW Core Fixed Income Fund, the TCW Global Bond Fund, the TCW High Yield Bond Fund, and the TCW Securitized Bond Fund utilized futures
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TCW Funds, Inc.
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Note 3 — Portfolio Investments (Continued)
during the year ended October 31, 2024 to help manage interest rate duration of those Funds. Futures contracts outstanding at October 31, 2024 are listed on the Schedule of Investments.
Options: The Funds may purchase and sell put and call options on a security or an index of securities to enhance investment performance and/or to protect against changes in market prices. The Funds may also enter into currency options to hedge against or to take advantage of currency fluctuations.
A call option gives the holder the right to purchase, and obligates the writer to sell, a security at the strike price at any time before the expiration date. A put option gives the holder the right to sell, and obligates the writer to buy, a security at the exercise price at any time before the expiration date. A Fund may purchase put options to protect portfolio holdings against a decline in market value of a security or securities held by it. A Fund may also purchase a put option hoping to profit from an anticipated decline in the value of the underlying security. If a Fund holds the security underlying the option, the option premium and any transaction costs will reduce any profit the Fund might have realized had it sold the underlying security instead of buying the put option. A Fund may purchase call options to hedge against an increase in the price of securities that the Fund ultimately wants to buy. A Fund may also purchase a call option as a long directional investment hoping to profit from an anticipated increase in the value of the underlying security. In order for a call option to be profitable, the market price of the underlying security must rise sufficiently above the exercise price to cover the premium and transaction costs. These costs will reduce any profit a Fund might have realized had it bought the underlying security at the time it purchased the call option.
Purchasing foreign currency options gives a Fund the right, but not the obligation, to buy or sell specified amounts of currency at a rate of exchange that may be exercised by a certain date. These currency options may be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.
When a Fund purchases an option, it runs the risk that it will lose its entire investment in the option in a relatively short period of time, unless the Fund exercises the option or enters into a closing sale transaction before the option’s expiration. If the price of the underlying security does not rise (in the case of a call) or fall (in the case of a put) to an extent sufficient to cover the option premium and transaction costs, the Fund will lose part or all of its investment in the option. Premiums paid for purchasing options that expire are treated as realized losses.
Options purchased or sold by a Fund may be traded on a securities or options exchange. Such options typically have minimal exposure to counterparty risk. However, an exchange or market may at times find it necessary to impose restrictions on particular types of options transactions, such as opening transactions. If an underlying security ceases to meet qualifications imposed by an exchange or the Options Clearing Corporation, new series of options on that security will no longer be opened to replace the expiring series, and opening transactions in existing series may be prohibited.
OTC options are options not traded on exchanges or backed by clearinghouses. Rather, they are entered into directly between a Fund and the counterparty to the option. In the case of an OTC option purchased by a Fund, the value of the option to the Fund will depend on the willingness and ability of the option writer to perform its obligations to the Fund. In addition, OTC options may not be transferable and there may be little or no secondary market for them, so they may be considered illiquid. It may not be possible to enter into closing transactions with respect to OTC options or otherwise to terminate such options, and as a result a Fund may be required to remain obligated on an unfavorable OTC option until its expiration.
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TCW Funds, Inc.
October 31, 2024
Note 3 — Portfolio Investments (Continued)
Swap Agreements: The Funds may enter into swap agreements. Swap agreements are typically two-party contracts entered into primarily by institutional investors. In a standard “swap” transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments, which may be adjusted for an interest factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to a “notional amount” (i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or in a “basket” of securities representing a particular index).
In a total return swap, one party typically agrees to pay to the other a short-term interest rate in return for a payment at one or more times in the future based on the increase in the value of an underlying security or other asset, or index of securities or assets; if the underlying security, asset, or index declines in value, the party that pays the short-term interest rate must also pay to its counterparty a payment based on the amount of the decline. A Fund may take either side of such a swap, and so may take a long or short position in the underlying security, asset, or index. A Fund may enter into a total return swap to hedge against an exposure in its portfolio — such as interest rate risk (including to adjust the duration or credit quality of a Fund’s bond portfolio), equity risk, or credit risk — or generally to put cash to work efficiently in the markets in anticipation of, or as a replacement for, cash investments. A Fund may also enter into a total return swap to gain exposure to securities or markets in which it might not be able to invest directly (in so-called market access transactions).
Interest rate swaps are agreements in which one party pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, a party may pay a fixed rate and receive a floating rate. In more complex swaps, the notional principal amount may decline (or amortize) over time. A Fund’s maximum risk of loss due to counterparty default is the discounted NAV of the cash flows paid to/received from the counterparty over the interest rate swap’s remaining life.
The Funds may write (sell) and purchase put and call swaptions. Swaption contracts written by the Funds represent an option that gives the purchaser the right, but not the obligation, to enter into a new swap agreement, or to shorten, extend, cancel or modify an existing swap agreement, on a future date on specified terms. See “Swap Agreements” below. Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when it writes a swaption than it will incur when it purchases a swaption. When a Fund purchases a swaption, it risks losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However, when a Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of the underlying agreement. During the year ended October 31, 2024, none of the Funds held written swaptions.
A Fund may enter into credit default swap transactions as a “buyer” or “seller” of credit protection. In a credit default swap, one party provides what is in effect insurance against a default or other adverse credit event affecting an issuer of debt securities (typically referred to as a “reference entity”). In general, the buyer of credit protection is obligated to pay the protection seller an upfront amount or a periodic stream of payments over the term of the swap. If a “credit event” occurs, the buyer has the right to deliver to the seller bonds (or other obligations of the reference entity with a value up to the full notional value of the swap), and to receive a payment equal to the par value of the bonds or other obligations. Credit events that would trigger a request that the seller make payment are specific to each credit default swap agreement, but generally include bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default, or
81
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 3 — Portfolio Investments (Continued)
repudiation/moratorium. When a Fund buys protection, it may or may not own securities of the reference entity. When a Fund sells protection under a credit default swap, the position may have the effect of creating leverage in the Fund’s portfolio through the Fund’s indirect long exposure to the issuer or securities on which the swap is written. When a Fund sells protection, it may do so either to earn additional income or to create such a “synthetic” long position.
Whenever a Fund enters into a swap agreement, it takes on counterparty risk — the risk that its counterparty will be unable or unwilling to meet its obligations under the swap agreement. A Fund also takes the risk that the market will move against its position in the swap agreement. In the case of a total return swap, the swap will change in value depending on the change in value of the asset or index on which the swap is written. When a Fund enters into any type of swap for hedging purposes, it is likely that the Fund will have an asset or liability that will offset any loss (or gain) on the swap, at least in part. Swap agreements may be non-transferable or otherwise highly illiquid, and a Fund may not be able to terminate or transfer a swap agreement at any particular time or at an acceptable price.
During the term of a swap transaction, changes in the value of the swap are recognized as unrealized gains or losses by marking-to-market to reflect the market value of the swap. When the swap is terminated, a Fund will record a realized gain or loss equal to the difference, if any, between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the agreement. Upfront swap premium payments paid or received by a Fund, if any, are recorded within the value of the open swap agreement on the Fund’s Statement of Assets and Liabilities and represent payments paid or received upon entering into the swap agreement to compensate for differences between stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, and other relevant factors). These upfront payments are recorded as realized gains or losses on each Fund’s Statement of Operations upon termination or maturity of the swap agreement.
During the term of a swap transaction, the periodic net payments can be made for a set period of time or may be triggered by a predetermined credit event. The net periodic payments may be based on a fixed or variable interest rate, the change in market value of a specified security, basket of securities or index, or the return generated by a security. These periodic payments received or made by the Funds are recorded as realized gains and losses, respectively. During the year ended October 31, 2024, the TCW Core Fixed Income Fund and the TCW Global Bond Fund entered into interest rate swaps to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds which may decrease when interest rates rise (interest rate risk).
Note 4 — Risk Considerations
Market Risk: The Funds’ investments will fluctuate with market conditions, and so will the value of your investment in the Funds. You could lose money on your investment in the Funds or the Funds could underperform other investments.
Liquidity Risk: The Funds’ investments in illiquid securities may reduce the returns of the Funds because they may not be able to sell the illiquid securities at an advantageous time or price. Investments in high-yield securities, foreign securities, derivatives or other securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risk. Certain investments in private placements and Rule 144A securities may be considered illiquid investments. The Funds may invest in private placements and Rule 144A securities.
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TCW Funds, Inc.
October 31, 2024
Note 4 — Risk Considerations (Continued)
Interest Rate Risk: The values of the Funds’ investments fluctuate in response to movements in interest rates. If rates rise, the values of debt securities generally fall. The longer the average duration of a Fund’s investment portfolio, the greater the change in value.
Mortgage-Backed Securities Risk: Each Fund may invest in mortgage-backed securities. The values of some mortgage-backed securities may expose a Fund to a lower rate of return upon reinvestment of principal. When interest rates rise, the value of mortgage-related securities generally will decline; however, when interest rates are declining, the value of mortgage-related securities with prepayment features may not increase as much as other fixed-income securities. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may shorten or extend the effective maturity of the security beyond what was anticipated at the time of purchase. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.
Derivatives Risk: Use of derivatives, which at times is an important part of the Funds’ investment strategies, involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Investments in derivatives could cause the Funds to lose more than the principal amount invested. Also, suitable derivative transactions may not be available in all circumstances and there can be no assurance that the Funds will achieve their objective through the use of the derivatives.
Credit Risk: The values of any of the Funds’ investments may also decline in response to events affecting the issuer or its credit rating. The lower-rated debt securities in which a Fund may invest are considered speculative and are subject to greater volatility and risk of loss than investment-grade securities, particularly in deteriorating economic conditions. The value of some mortgage-related securities in which the Funds invest also may fall because of unanticipated levels of principal prepayments that can occur when interest rates decline. Certain Funds invest a material portion of their assets in securities of issuers that hold mortgage- and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults. Continuing shifts in the market’s perception of credit quality on securities backed by commercial and residential mortgage loans and other financial assets may result in increased volatility of market price and periods of illiquidity that can negatively impact the valuation of certain issuers held by the Funds.
MBS and ABS are characterized and classified in a variety of different ways. These classifications include a view of the securities’ cash flow structure (pass-through, sequential pay, prepayment-protected, interest only, principal only, etc.), the security of the claim on the underlying assets (senior, mezzanine and subordinated), as well as types of underlying collateral (prime conforming loans, prime non-conforming loans, Alt-A loans, subprime loans, commercial loans, etc.). In many cases, the classification incorporates a degree of subjectivity: a particular loan might be categorized as “prime” by the underwriting standards of one mortgage issuer while another might classify the loan as “subprime.” In addition to other functions, the risk associated with an investment in a mortgage loan must take into account the nature of the collateral, the form and the level of credit enhancement, the vintage of the loan, the geography of the loan, the purpose of the loan (refinance versus purchase versus equity takeout), the borrower’s credit quality (e.g., FICO score), and whether the loan is a first trust deed or a second lien.
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TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 4 — Risk Considerations (Continued)
Counterparty Risk: The Funds may be exposed to counterparty risk, the risk that an entity with which the Funds have unsettled or open transactions may not fulfill its obligations.
Foreign Currency Risk: The Funds may be exposed to the risk that the value of the Funds’ investments denominated in foreign currencies will decline in value because the foreign currencies have declined in value relative to the U.S. dollar.
Foreign Investing Risk: The Funds may be exposed to the risk that the Funds’ share prices will fluctuate with market conditions, currency exchange rates and the economic and political climates in countries where the Funds invest.
Investment Style Risk: Certain Funds may also be subject to investment style risk. The Advisor’s investment styles may be out of favor at times or may not produce the best results over short or longer time periods and may increase the volatility of a Fund’s share price.
LIBOR Risk: The London Interbank Offered Rate (“LIBOR”) was a leading benchmark or reference rate for various commercial and financial contracts, including corporate and municipal bonds, bank loans, asset backed and mortgage-related securities, interest rate swaps and other derivatives. In July 2017, the United Kingdom’s Financial Conduct Authority (FCA), which regulates LIBOR, announced the gradual phase out of the LIBOR rate, with nearly all LIBOR rate publications having ceased as of June 30, 2023 (some LIBOR rates continue to be published, but only on a temporary and synthetic basis). Alternatives to LIBOR have been established and others may be developed. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, has identified the Secured Overnight Financing Rate (SOFR) as the preferred alternative rate to LIBOR. SOFR is a relatively new index calculated by short-term repurchase agreements, backed by Treasury securities. There remains uncertainty surrounding the nature of any replacement rates. The transition to a new reference rate may result in (i) increased volatility or illiquidity in markets for instruments or contracts that previously relied on or still rely on LIBOR, (ii) a reduction in the value of certain instruments or contracts held by a Fund, (iii) reduced effectiveness of related Fund transactions, such as hedging, (iv) additional tax, accounting and regulatory risks, or (v) costs incurred in connection with closing out positions and entering into new trades. Any pricing adjustments to a Fund’s investments resulting from a substitute reference rate may also adversely affect a Fund’s performance and/or NAV. There is no assurance that the composition or characteristics of any such alternative reference rate will be similar to or produce the same value or economic equivalence as LIBOR or that instruments or contracts using an alternative rate will have the same volume or liquidity.
Bank Loan Risk: There is a risk of investing in corporate loans made by commercial banks and other financial institutions or institutional investors to companies that need capital to grow or restructure, which includes interest rate risk, liquidity risk and prepayment risk. A Fund may also be subject to the credit risk of other financial institutions and the risks associated with insufficient collateral securing a bank loan, limited available public information about a bank loan, delayed settlement, and less protection for holders of bank loans as compared to holders of registered securities. Bank loans are not registered and otherwise may not be treated as securities under the federal securities laws, meaning investors in loans have less protection against improper practices than investors in securities that are registered under or are otherwise subject to the protections of the securities laws.
84
TCW Funds, Inc.
October 31, 2024
Note 5 — Federal Income Taxes
It is the policy of each Fund to comply with the requirements under Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net taxable income, including any net realized gains on investments, to its shareholders. Therefore, no federal income tax provision is required.
At October 31, 2024, the components of distributable earnings on a tax basis were as follows:
| | | | | | | | | | | | |
| | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Gain | | | Total
Distributable
Earnings | |
TCW Central Cash Fund | | $ | — | | | $ | — | | | $ | — | |
TCW Core Fixed Income Fund | | | 971,238 | | | | — | | | | 971,238 | |
TCW Global Bond Fund | | | 19,770 | | | | — | | | | 19,770 | |
TCW High Yield Bond Fund | | | 529,747 | | | | — | | | | 529,747 | |
TCW Securitized Bond Fund | | | 28,281,308 | | | | — | | | | 28,281,308 | |
At the end of the previous fiscal year ended October 31, 2023, the components of distributable earnings on a tax basis were as follows:
| | | | | | | | | | | | |
| | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Gain | | | Total
Distributable
Earnings | |
TCW Core Fixed Income Fund | | $ | 10,087,880 | | | $ | — | | | $ | 10,087,880 | |
TCW Global Bond Fund | | | — | | | | — | | | | — | |
TCW High Yield Bond Fund | | | 410,784 | | | | — | | | | 410,784 | |
TCW Securitized Bond Fund | | | 39,003,960 | | | | — | | | | 39,003,960 | |
Permanent differences incurred during the year ended October 31, 2024, resulting from differences in book and tax accounting, have been reclassified at year-end between undistributed net investment income (loss), undistributed (accumulated) net realized gain (loss) and paid-in capital as follows, with no impact to the net asset value per share:
| | | | | | | | | | | | |
| | | Undistributed
Net
Investment
Income
(Loss) | | | Undistributed
(Accumulated)
Net Realized
Gain (Loss) | | | Paid-in
Capital | |
TCW Central Cash Fund | | $ | — | | | $ | — | | | $ | — | |
TCW Core Fixed Income Fund | | | (3,461,926 | ) | | | 3,461,926 | | | | — | |
TCW Global Bond Fund | | | (396,324 | ) | | | 393,535 | | | | 2,789 | |
TCW High Yield Bond Fund | | | 9,858 | | | | (9,858 | ) | | | — | |
TCW Securitized Bond Fund | | | (6,233,301 | ) | | | 6,233,301 | | | | — | |
During the year ended October 31, 2024, the tax character of distributions paid was as follows:
| | | | | | | | | | | | | | | | |
| | | Ordinary
Income | | | Long-Term
Capital Gain | | | Return of
Capital | | | Total
Distributions | |
TCW Central Cash Fund | | $ | 45,240,641 | | | $ | — | | | $ | — | | | $ | 45,240,641 | |
TCW Core Fixed Income Fund | | | 42,725,492 | | | | — | | | | — | | | | 42,725,492 | |
TCW Global Bond Fund | | | 581,421 | | | | — | | | | — | | | | 581,421 | |
TCW High Yield Bond Fund | | | 2,908,463 | | | | — | | | | — | | | | 2,908,463 | |
TCW Securitized Bond Fund | | | 132,779,468 | | | | — | | | | — | | | | 132,779,468 | |
85
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 5 — Federal Income Taxes (Continued)
During the previous fiscal year ended October 31, 2023, the tax character of distributions paid was as follows:
| | | | | | | | | | | | | | | | |
| | | Ordinary
Income | | | Long-Term
Capital Gain | | | Return of
Capital | | | Total
Distributions | |
TCW Core Fixed Income Fund | | $ | 37,334,974 | | | $ | — | | | $ | — | | | $ | 37,334,974 | |
TCW Global Bond Fund | | | 482,626 | | | | — | | | | 143,424 | | | | 626,050 | |
TCW High Yield Bond Fund | | | 3,588,507 | | | | — | | | | — | | | | 3,588,507 | |
TCW Securitized Bond Fund | | | 162,939,921 | | | | — | | | | — | | | | 162,939,921 | |
At October 31, 2024, net unrealized appreciation (depreciation) on investments for federal income tax purposes was as follows:
| | | | | | | | | | | | | | | | |
| | | Unrealized
Appreciation | | | Unrealized
(Depreciation) | | | Net
Unrealized
Appreciation
(Depreciation) | | | Cost of
Investments for
Federal Income
Tax Purposes | |
TCW Central Cash Fund | | $ | — | | | $ | — | | | $ | — | | | $ | 2,825,605,379 | |
TCW Core Fixed Income Fund | | | 5,597,718 | | | | (45,624,756 | ) | | | (40,027,038 | ) | | | 982,676,871 | |
TCW Global Bond Fund | | | 369,162 | | | | (1,638,082 | ) | | | (1,268,920 | ) | | | 23,380,906 | |
TCW High Yield Bond Fund | | | 773,943 | | | | (1,114,939 | ) | | | (340,996 | ) | | | 41,586,912 | |
TCW Securitized Bond Fund | | | 51,181,489 | | | | (262,157,393 | ) | | | (210,975,904 | ) | | | 2,537,868,932 | |
At October 31, 2024, the following Funds had net realized loss carryforwards for federal income tax purposes:
| | | | | | | | | | | | |
| | | No Expiration | |
| | | Short-Term
Capital
Losses | | | Long-Term
Capital
Losses | | | Total | |
TCW Central Cash Fund | | $ | 49,588 | | | $ | — | | | $ | 49,588 | |
TCW Core Fixed Income Fund | | | 143,290,530 | | | | 64,737,234 | | | | 208,027,764 | |
TCW Global Bond Fund | | | 1,079,305 | | | | 1,414,130 | | | | 2,493,435 | |
TCW High Yield Bond Fund | | | 2,224,653 | | | | 5,591,764 | | | | 7,816,417 | |
TCW Securitized Bond Fund | | | 445,276,571 | | | | 222,052,228 | | | | 667,328,799 | |
The Funds did not have any unrecognized tax benefits at October 31, 2024, nor were there any increases or decreases in unrecognized tax benefits for the year ended October 31, 2024. The Funds are subject to examination by the U.S. Federal and state tax authorities for returns filed for the prior three and four fiscal years, respectively.
Note 6 — Fund Management Fees and Other Expenses
The Funds pay to the Advisor, as compensation for services rendered, facilities furnished and expenses borne by it, the following annual management fees as a percentage of daily net assets:
| | | | |
TCW Core Fixed Income Fund | | | 0.40 | % |
TCW Global Bond Fund | | | 0.50 | % |
TCW High Yield Bond Fund | | | 0.45 | % |
TCW Securitized Bond Fund | | | 0.40 | % |
The TCW Central Cash Fund does not pay management fees to the Advisor.
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TCW Funds, Inc.
October 31, 2024
Note 6 — Fund Management Fees and Other Expenses (Continued)
The Advisor limits the operating expenses of the Funds not to exceed the following expense ratios relative to the Funds’ average daily net assets:
| | | | |
TCW Core Fixed Income Fund | | | | |
I Class | | | 0.49 | % (1) |
N Class | | | 0.70 | % (1) |
P Class | | | 0.44 | % (1) |
TCW Global Bond Fund | | | | |
I Class | | | 0.60 | % (1) |
N Class | | | 0.70 | % (1) |
TCW High Yield Bond Fund | | | | |
I Class | | | 0.55 | % (1) |
N Class | | | 0.80 | % (1) |
TCW Securitized Bond Fund | | | | |
I Class | | | 0.49 | % (1) |
N Class | | | 0.70 | % (1) |
P Class | | | 0.44 | % (1) |
| (1) | These limitations are based on an agreement between the Advisor and Company. |
Any advisory fee reduced or withheld, or expense reimbursement paid, pursuant to the Expense Limitation Agreement will be reimbursed by the appropriate Fund to the Advisor in the first, second or third fiscal year after the fiscal year of the reduction or reimbursement. The Advisor may not receive reimbursement for previous reductions or reimbursements before payment of a Fund’s operating expenses for the current year, and cannot cause a Fund to exceed the expense limitation in effect for that Fund (i) at the time the fees and expenses would have been incurred or (ii) at the time the Advisor would recoup that reduction or reimbursement. In addition, any recoupment may not exceed any more restrictive limitation to which the Advisor has agreed.
At October 31, 2024, the balance of recoupable expenses with expiration dates for the Funds were as follows:
| | | | | | | | | | | | |
Fund | | Expires
10/31/2026 | | | Expires
10/31/2027 | | | Total | |
TCW Core Fixed Income Fund | | $ | 366,979 | | | | 473,555 | | | $ | 840,534 | |
TCW Global Bond Fund | | | 61,859 | | | | 66,875 | | | | 128,734 | |
TCW High Yield Bond Fund | | | 97,660 | | | | 114,727 | | | | 212,387 | |
TCW Securitized Bond Fund | | | 491,126 | | | | 1,137,578 | | | | 1,628,704 | |
| | | | | | | | | | | | |
Total | | | 1,017,624 | | | | 1,792,735 | | | | 2,810,359 | |
| | | | | | | | | | | | |
Directors’ Fees: Directors who are not affiliated with the Advisor receive compensation from the Funds which are shown on the Statements of Operations. Directors may elect to defer receipt of their fees in accordance with the terms of a Non-Qualified Deferred Compensation Plan. Deferred compensation is included within directors’ fees and expenses in the Statements of Assets and Liabilities.
Note 7 — Distribution Plan
TCW Funds Distributors LLC (“Distributor”), an affiliate of the Advisor and the Funds, serves as the nonexclusive distributor of each class of the Funds’ shares. The Funds have a distribution plan pursuant to Rule 12b-1 under the 1940 Act with respect to the N Class shares of each Fund. Under the terms of the plan, each Fund compensates the Distributor at a rate equal to 0.25% of the average daily net assets of the Fund attributable to its N Class shares for distribution and related services.
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TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 8 — Purchases and Sales of Securities
Investment transactions (excluding short-term investments) for the year ended October 31, 2024 were as follows:
| | | | | | | | | | | | | | | | |
| | | Purchases
at Cost | | | Sales or Maturity
Proceeds | | | U.S. Government
Purchases at Cost | | | U.S. Government
Sales or Maturity
Proceeds | |
TCW Central Cash Fund | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
TCW Core Fixed Income Fund | | | 49,465,084 | | | | 261,488,225 | | | | 4,603,309,289 | | | | 4,732,361,770 | |
TCW Global Bond Fund | | | 11,168,727 | | | | 10,966,944 | | | | 46,025,496 | | | | 46,128,331 | |
TCW High Yield Bond Fund | | | 26,644,015 | | | | 39,838,190 | | | | 2,052,233 | | | | 2,472,510 | |
TCW Securitized Bond Fund | | | 200,072,334 | | | | 639,654,785 | | | | 8,173,476,877 | | | | 8,822,003,547 | |
Note 9 — Capital Share Transactions
Transactions in each Fund’s shares were as follows:
| | | | | | | | |
| TCW Central Cash Fund | | Year Ended
October 31, 2024 (1) | |
| Cash Management Shares | | Shares | | | Amount | |
Shares Sold | | | 20,636,368,000 | | | $ | 20,636,368,000 | |
Shares Issued upon Reinvestment of Dividends | | | 44,340,793 | | | | 44,340,793 | |
Shares Redeemed | | | (17,953,096,903 | ) | | | (17,953,096,903 | ) |
| | | | | | | | |
Net Increase | | | 2,727,611,890 | | | $ | 2,727,611,890 | |
| | | | | | | | |
| (1) | For the period July 15, 2024 (Commencement of Operations) through October 31, 2024. |
| | | | | | | | | | | | | | | | |
| TCW Core Fixed Income Fund | | Year Ended
October 31, 2024 | | | Year Ended
October 31, 2023 | |
| I Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 11,613,744 | | | $ | 112,200,678 | | | | 28,990,684 | | | $ | 282,929,164 | |
Shares Issued upon Reinvestment of Dividends | | | 3,056,608 | | | | 29,512,430 | | | | 2,768,894 | | | | 26,888,376 | |
Shares Redeemed | | | (26,431,625 | ) | | | (255,630,600 | ) | | | (52,807,381 | ) | | | (509,562,410 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (11,761,273 | ) | | $ | (113,917,492 | ) | | | (21,047,803 | ) | | $ | (199,744,870 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| N Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 2,484,201 | | | $ | 23,968,112 | | | | 4,704,564 | | | $ | 46,067,032 | |
Shares Issued upon Reinvestment of Dividends | | | 495,967 | | | | 4,776,696 | | | | 424,979 | | | | 4,116,606 | |
Shares Redeemed | | | (7,006,174 | ) | | | (67,346,372 | ) | | | (6,490,795 | ) | | | (62,410,535 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (4,026,006 | ) | | $ | (38,601,564 | ) | | | (1,361,252 | ) | | $ | (12,226,897 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Plan Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 5,348,173 | | | $ | 52,094,155 | | | | 13,818,064 | | | $ | 135,059,962 | |
Shares Issued upon Reinvestment of Dividends | | | 672,278 | | | | 6,513,032 | | | | 399,058 | | | | 3,876,958 | |
Shares Redeemed | | | (17,277,813 | ) | | | (171,187,948 | ) | | | (1,666,445 | ) | | | (16,144,775 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (11,257,362 | ) | | $ | (112,580,761 | ) | | | 12,550,677 | | | $ | 122,792,145 | |
| | | | | | | | | | | | | | | | |
88
TCW Funds, Inc.
October 31, 2024
Note 9 — Capital Share Transactions (Continued)
| | | | | | | | | | | | | | | | |
| | |
| TCW Global Bond Fund | | Year Ended
October 31, 2024 | | | Year Ended
October 31, 2023 | |
| I Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 67,681 | | | $ | 557,181 | | | | 146,270 | | | $ | 1,191,951 | |
Shares Issued upon Reinvestment of Dividends | | | 38,546 | | | | 315,445 | | | | 37,595 | | | | 307,452 | |
Shares Redeemed | | | (61,989 | ) | | | (511,042 | ) | | | (14,400 | ) | | | (117,580 | ) |
| | | | | | | | | | | | | | | | |
Net Increase | | | 44,238 | | | $ | 361,584 | | | | 169,465 | | | $ | 1,381,823 | |
| | | | | | | | | | | | | | | | |
| | | | |
| N Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 34,701 | | | $ | 287,863 | | | | 69,280 | | | $ | 569,669 | |
Shares Issued upon Reinvestment of Dividends | | | 31,531 | | | | 257,903 | | | | 33,676 | | | | 275,386 | |
Shares Redeemed | | | (63,799 | ) | | | (517,805 | ) | | | (57,900 | ) | | | (466,426 | ) |
| | | | | | | | | | | | | | | | |
Net Increase | | | 2,433 | | | $ | 27,961 | | | | 45,056 | | | $ | 378,629 | |
| | | | | | | | | | | | | | | | |
| | |
| TCW High Yield Bond Fund | | Year Ended
October 31, 2024 | | | Year Ended
October 31, 2023 | |
| I Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 1,129,738 | | | $ | 6,844,132 | | | | 2,443,292 | | | $ | 14,436,986 | |
Shares Sold — shares converted from N Class (1) | | | 952,475 | | | | 5,898,777 | | | | — | | | | — | |
Shares Issued upon Reinvestment of Dividends | | | 421,164 | | | | 2,538,503 | | | | 513,380 | | | | 3,021,019 | |
Shares Redeemed | | | (3,998,445 | ) | | | (24,255,487 | ) | | | (3,478,640 | ) | | | (20,561,890 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (1,495,068 | ) | | $ | (8,974,075 | ) | | | (521,968 | ) | | $ | (3,103,885 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| N Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 326,639 | | | $ | 1,959,297 | | | | 297,220 | | | $ | 1,769,166 | |
Shares Issued upon Reinvestment of Dividends | | | 61,935 | | | | 375,999 | | | | 74,380 | | | | 440,416 | |
Shares Redeemed | | | (553,504 | ) | | | (3,355,072 | ) | | | (809,680 | ) | | | (4,821,224 | ) |
Shares Redeemed — shares converted to I Class (1) | | | (946,576 | ) | | | (5,898,777 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (1,111,506 | ) | | $ | (6,918,553 | ) | | | (438,080 | ) | | $ | (2,611,642 | ) |
| | | | | | | | | | | | | | | | |
| (1) | N Class shares were converted into I Class shares at the close of business on October 18, 2024. |
| | | | | | | | | | | | | | | | |
| | |
| TCW Securitized Bond Fund | | Year Ended
October 31, 2024 | | | Year Ended
October 31, 2023 | |
| I Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 78,747,377 | | | $ | 626,162,709 | | | | 117,980,752 | | | $ | 957,348,605 | |
Shares Issued upon Reinvestment of Dividends | | | 9,112,707 | | | | 71,638,741 | | | | 10,300,195 | | | | 83,844,031 | |
Shares Redeemed | | | (177,803,352 | ) | | | (1,398,108,718 | ) | | | (163,662,241 | ) | | | (1,332,326,208 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (89,943,268 | ) | | $ | (700,307,268 | ) | | | (35,381,294 | ) | | $ | (291,133,572 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| N Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 4,642,950 | | | $ | 37,921,944 | | | | 9,841,693 | | | $ | 80,908,674 | |
Shares Issued upon Reinvestment of Dividends | | | 2,597,932 | | | | 21,068,641 | | | | 2,719,199 | | | | 22,844,296 | |
Shares Redeemed | | | (19,763,032 | ) | | | (160,973,586 | ) | | | (23,227,636 | ) | | | (194,137,339 | ) |
| | | | | | | | | | | | | | | | |
Net Decrease | | | (12,522,150 | ) | | $ | (101,983,001 | ) | | | (10,666,744 | ) | | $ | (90,384,369 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| Plan Class | | Shares | | | Amount | | | Shares | | | Amount | |
Shares Sold | | | 504,526 | | | $ | 3,994,339 | | | | 455,426 | | | $ | 3,710,979 | |
Shares Issued upon Reinvestment of Dividends | | | 3,249 | | | | 25,642 | | | | 9,716 | | | | 80,407 | |
Shares Redeemed | | | (219,607 | ) | | | (1,740,536 | ) | | | (321,785 | ) | | | (2,635,985 | ) |
| | | | | | | | | | | | | | | | |
Net Increase | | | 288,168 | | | $ | 2,279,445 | | | | 143,357 | | | $ | 1,155,401 | |
| | | | | | | | | | | | | | | | |
Note 10 — Affiliate Ownership
As of October 31, 2024, affiliates of the Funds and Advisor owned 100.00% and 84.79% of the net assets of the TCW Central Cash Fund and the TCW Global Bond Fund, respectively.
89
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 11 — Restricted Securities
The Funds are permitted to invest in securities that have legal or contractual restrictions on resale. These securities may be sold privately, but are required to be registered before being sold to the public (exemption rules apply). Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). However, the Company considers 144A securities to be restricted if those securities have been deemed illiquid. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Restricted securities held by the Funds at October 31, 2024 are listed below.
| | | | | | | | | | | | | | | | |
| | | | |
| TCW Securitized Bond Fund | | | | | | | | | | | | |
Issuer Description | | Acquisition
Date | | | Acquisition
Cost | | | Aggregate
Value | | | Percentage
of Net Assets | |
CSMC Trust Series 2021-RP11, Class A1, 1.50%, due 10/25/1961 | | | 2/16/24 | | | $ | 609,213 | | | $ | 597,849 | | | | 0.03 | % |
CSMC Trust Series 2022-RPL1, Class A1, 0.52%, due 4/25/1961 | | | 2/16/24 | | | | 159,662 | | | | 133,957 | | | | 0.01 | % |
| | | | | | | | | | | | | | | | |
| | | | | | $ | 768,875 | | | $ | 731,806 | | | | 0.04 | % |
| | | | | | | | | | | | | | | | |
Note 12 — Commitments and Contingencies
The TCW High Yield Bond Fund had the following unfunded commitments and unrealized gain by investment as of October 31, 2024:
| | | | | | | | | | | | |
| TCW High Yield Bond Fund | | | | | | | | | |
Unfunded Commitments | | Maturity | | | Amount | | | Unrealized
Gain | |
DG Investment Intermediate Holdings 2, Inc. 2024 Delayed Draw Term Loan | | | 03/31/28 | | | $ | 8,185 | | | $ | 17 | |
Ryan, LLC, Delayed Draw Term Loan | | | 11/14/30 | | | | 9,523 | | | | (8 | ) |
| | | | | | | | | | | | |
| | | | | | | 17,708 | | | | 9 | |
| | | | | | | | | | | | |
In the normal course of business, the Trust enters into contracts which provide a variety of representations and warranties, and that provide general indemnifications. Such contracts include those with certain service providers, brokers and trading counterparties. Any exposure to the Trust under these arrangements is unknown as it would involve future claims that may be made against the Trust; however, based on the Trust’s experience, the risk of loss is remote and no such claims are expected to occur. As such, the Trust has not accrued any liability in connection with such indemnifications.
Note 13 — Committed Line Of Credit
The Funds have entered into a $100,000,000 committed revolving line of credit agreement with State Street Bank and Trust Company (the “Bank”) for temporary borrowing purposes, renewable annually. The interest rate on borrowing is the higher of the Federal Funds Effective Rate plus 0.10% plus 1.25% or the Overnight Bank Funding Rate plus 0.10% plus 1.25%. There were no borrowings from the line of credit as of or during the year ended October 31, 2024. The Funds pay the Bank a commitment fee equal to 0.25% per annum on any unused portion of the committed line amount. The commitment fees incurred by the Funds are presented in the Statements of Operations. The commitment fees are allocated to each applicable portfolio in proportion to its relative average daily net assets and the interest expenses are charged directly to the applicable portfolio.
90
TCW Funds, Inc.
October 31, 2024
Note 14 — Indemnifications
Under the Company’s organizational documents, its Officers and Directors may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Company. In addition, the Company entered into an agreement with each of the Directors which provides that the Company will indemnify and hold harmless each Director against any expenses actually and reasonably incurred by such Director in any proceeding arising out of or in connection with the Director’s services to the Company, to the fullest extent permitted by the Company’s Articles of Incorporation and By-Laws, the Maryland General Corporation Law, the Securities Act, and the 1940 Act, each as now or hereinafter in force. Additionally, in the normal course of business, the Company enters into agreements with service providers that may contain indemnification clauses. The Company’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects the risk of loss to be remote. The Company has not accrued any liability in connection with such indemnification.
Note 15 — New Accounting Pronouncements
In January 2021, the Financial Accounting Standards Board issued Accounting Standards Update No. 2021- 01 (“ASU 2021-01”), “Reference Rate Reform (Topic 848).” ASU 2021-01 is an update of ASU 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR; regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which deferred the sunset day of this guidance to December 31, 2024. Management is currently evaluating the implications, if any, of the additional requirements and its impact on the Funds’ financial statements.
In June 2022, the FASB issued ASU No. 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”). ASU 2022-03 (1) clarifies the guidance in ASC 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and (2) requires specific disclosures related to such an equity security. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023 and interim periods within that fiscal year, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2022-03 on our financial statements.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). This change is intended to improve reportable segment
disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment’s profit or loss and assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity’s segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), clarifying when an
entity may report one or more additional measures to assess segment performance, requiring enhanced
91
TCW Funds, Inc.
Notes to Financial Statements (Continued)
Note 15 — New Accounting Pronouncements (Continued)
interim disclosures and providing new disclosure requirements for entities with a single reportable segment, among other new disclosure requirements. The amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. There have been no impacts to date.
Note 16 — Subsequent Events
The TCW High Yield Bond Fund, a series of the Company, reorganized into the TCW High Yield Bond ETF, a newly-created series of TCW ETF Trust, on November 18, 2024.
92
TCW Central Cash Fund
Financial Highlights — Cash Management Shares
| | | | |
| | | For the period
July 15, 2024
(Commencement
of Operations)
through
October 31, 2024 | |
Net Asset Value per Share, Beginning of year | | $ | 1.00 | |
| | | | |
Income (Loss) from Investment Operations: | | | | |
Net Investment Income (1) | | | 0.02 | |
| | | | |
Total from Investment Operations | | | 0.02 | |
| | | | |
Less Distributions: | | | | |
Distributions from Net Investment Income | | | (0.02 | ) |
| | | | |
Total Distributions | | | (0.02 | ) |
| | | | |
Net Asset Value per Share, End of year | | $ | 1.00 | |
| | | | |
Total Return | | | 1.64 | % (2) |
|
Ratios/Supplemental Data: | |
| |
Net Assets, End of year (in thousands) | | $ | 2,727,562 | |
| |
Ratio of Expenses to Average Net Assets | | | 0.01 | % (3) |
| |
Ratio of Net Investment Income to Average | | | | |
| |
Net Assets | | | 5.34 | % (3) |
| (1) | Computed using average shares outstanding throughout the period. |
| (2) | For the period July 15, 2024 (Commencement of Operations) through October 31, 2024. |
See accompanying Notes to Financial Statements.
93
TCW Core Fixed Income Fund
Financial Highlights — I Class
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 9.08 | | | $ | 9.39 | | | $ | 11.56 | | | $ | 11.98 | | | $ | 11.41 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.38 | | | | 0.36 | | | | 0.20 | | | | 0.11 | | | | 0.20 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.63 | | | | (0.36 | ) | | | (2.17 | ) | | | (0.09 | ) | | | 0.61 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.01 | | | | — | | | | (1.97 | ) | | | 0.02 | | | | 0.81 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.44 | ) | | | (0.31 | ) | | | (0.17 | ) | | | (0.14 | ) | | | (0.24 | ) |
Distributions from Return of Capital | | | — | | | | — | | | | (0.03 | ) | | | (0.04 | ) | | | — | |
Distributions from Net Realized Gain | | | — | | | | — | | | | (0.00 | ) (2) | | | (0.26 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.44 | ) | | | (0.31 | ) | | | (0.20 | ) | | | (0.44 | ) | | | (0.24 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 9.65 | | | $ | 9.08 | | | $ | 9.39 | | | $ | 11.56 | | | $ | 11.98 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 11.15 | % | | | (0.29 | %) | | | (17.10 | %) | | | 0.19 | % | | | 7.14 | % |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 619,344 | | | $ | 689,215 | | | $ | 911,213 | | | $ | 1,471,072 | | | $ | 1,344,787 | |
|
Ratio of Expenses to Average Net Assets: | |
| | | | | |
Before Expense Reimbursement | | | 0.52 | % | | | 0.50 | % | | | 0.53 | % | | | 0.51 | % | | | 0.51 | % |
| | | | | |
After Expense Reimbursement | | | 0.49 | % | | | 0.49 | % | | | 0.49 | % | | | 0.49 | % | | | 0.49 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 3.92 | % | | | 3.69 | % | | | 1.90 | % | | | 0.94 | % | | | 1.66 | % |
| | | | | |
Portfolio Turnover Rate | | | 453.67 | % | | | 442.34 | % | | | 473.72 | % | | | 469.87 | % | | | 371.22 | % |
| (1) | Computed using average shares outstanding throughout the period. |
| (2) | Amount rounds to less than $0.01 per share. |
See accompanying Notes to Financial Statements.
94
TCW Core Fixed Income Fund
Financial Highlights — N Class
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 9.05 | | | $ | 9.38 | | | $ | 11.53 | | | $ | 11.95 | | | $ | 11.38 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (1) | | | 0.37 | | | | 0.35 | | | | 0.19 | | | | 0.09 | | | | 0.18 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.63 | | | | (0.39 | ) | | | (2.16 | ) | | | (0.09 | ) | | | 0.60 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.00 | | | | (0.04 | ) | | | (1.97 | ) | | | | | | | 0.78 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | |
Distributions from Net Investment Income | | | (0.42 | ) | | | (0.29 | ) | | | (0.15 | ) | | | (0.12 | ) | | | (0.21 | ) |
Distributions from Net Realized Gain | | | — | | | | — | | | | (0.00 | ) (2) | | | (0.26 | ) | | | — | |
Distributions from Return of Capital | | | — | | | | — | | | | (0.03 | ) | | | (0.04 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.42 | ) | | | (0.29 | ) | | | (0.18 | ) | | | (0.42 | ) | | | (0.21 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 9.63 | | | $ | 9.05 | | | $ | 9.38 | | | $ | 11.53 | | | $ | 11.95 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 11.12 | % | | | (0.56 | )% | | | (17.22 | )% | | | 0.00 | % | | | 6.92 | % |
|
Ratios/Supplemental Data: | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 123,172 | | | $ | 152,264 | | | $ | 170,497 | | | $ | 223,562 | | | $ | 241,938 | |
|
Ratio of Expenses to Average Net Assets: | |
| | | | | |
Before Expense Reimbursement | | | 0.83 | % | | | 0.80 | % | | | 0.82 | % | | | 0.80 | % | | | 0.80 | % |
| | | | | |
After Expense Reimbursement | | | 0.62 | % | | | 0.64 | % | | | 0.64 | % | | | 0.65 | % | | | 0.67 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 3.79 | % | | | 3.56 | % | | | 1.77 | % | | | 0.78 | % | | | 1.53 | % |
| | | | | |
Portfolio Turnover Rate | | | 453.67 | % | | | 442.34 | % | | | 473.72 | % | | | 469.87 | % | | | 371.22 | % |
| (1) | Computed using average shares outstanding throughout the period. |
| (2) | Amount rounds to less than $0.01 per share. |
See accompanying Notes to Financial Statements.
95
TCW Core Fixed Income Fund
Financial Highlights — Plan Class
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | | |
February 28, 2020
(Commencement
of Operations)
through
October 31, 2020 | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | |
Net Asset Value per Share, Beginning of year | | $ | 9.13 | | | $ | 9.44 | | | $ | 11.61 | | | $ | 12.06 | | | $ | 11.72 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (1) | | | 0.39 | | | | 0.37 | | | | 0.25 | | | | 0.11 | | | | 0.18 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.62 | | | | (0.37 | ) | | | (2.21 | ) | | | (0.11 | ) | | | 0.29 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 1.01 | | | | — | | | | (1.96 | ) | | | 0.00 | | | | 0.47 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from Net Investment Income | | | (0.44 | ) | | | (0.31 | ) | | | (0.18 | ) | | | (0.14 | ) | | | (0.13 | ) |
Distributions from Net Realized Gain | | | — | | | | — | | | | (0.00 | ) (2) | | | (0.26 | ) | | | N/A | |
Return of capital | | | — | | | | — | | | | (0.03 | ) | | | (0.05 | ) | | | N/A | |
| | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.44 | ) | | | (0.31 | ) | | | (0.21 | ) | | | (0.45 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 9.70 | | | $ | 9.13 | | | $ | 9.44 | | | $ | 11.61 | | | $ | 12.06 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 11.17 | % | | | (0.11 | %) | | | (17.07 | %) | | | (0.01 | %) | | | 3.98 | % (3) |
| | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of year (in thousands) | | $ | 96,188 | | | $ | 193,212 | | | $ | 81,408 | | | $ | 867 | | | $ | 0.00 | (4) |
| | | | | |
Ratio of Expenses to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Before Expense Reimbursement | | | 0.50 | % | | | 0.48 | % | | | 0.51 | % | | | 7.54 | % | | | 14,703.31 | % (5) |
| | | | | |
After Expense Reimbursement | | | 0.44 | % | | | 0.44 | % | | | 0.44 | % | | | 0.44 | % | | | 0.44 | % (5) |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 3.96 | % | | | 3.83 | % | | | 2.46 | % | | | 0.97 | % | | | 2.20 | % (5) |
| | | | | |
Portfolio Turnover Rate | | | 453.67 | % | | | 442.34 | % | | | 473.72 | % | | | 469.87 | % | | | 371.22 | % (3) |
| (1) | Computed using average shares outstanding throughout the period. |
| (2) | Amount rounds to less than $0.01 per share. |
| (3) | For the period February 28, 2020 (Commencement of Operations) through October 31, 2020. |
| (4) | Amount Rounds to less than $1,000. |
See accompanying Notes to Financial Statements.
96
TCW Global Bond Fund
Financial Highlights — I Class
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 7.65 | | | $ | 7.75 | | | $ | 10.18 | | | $ | 10.66 | | | $ | 10.26 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (1) | | | 0.36 | | | | 0.36 | | | | 0.24 | | | | 0.20 | | | | 0.25 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.48 | | | | (0.17 | ) | | | (2.50 | ) | | | (0.20 | ) | | | 0.54 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.84 | | | | 0.19 | | | | (2.26 | ) | | | — | | | | 0.79 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from Net Investment Income | | | (0.25 | ) | | | (0.22 | ) | | | (0.03 | ) | | | (0.20 | ) | | | (0.15 | ) |
Distributions from Return of Capital | | | — | | | | (0.07 | ) | | | (0.13 | ) | | | (0.06 | ) | | | — | |
Distributions from Net Realized Gain | | | — | | | | — | | | | (0.01 | ) | | | (0.22 | ) | | | (0.24 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.25 | ) | | | (0.29 | ) | | | (0.17 | ) | | | (0.48 | ) | | | (0.39 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 8.24 | | | $ | 7.65 | | | $ | 7.75 | | | $ | 10.18 | | | $ | 10.66 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 11.03 | % | | | 2.22 | % | | | (22.45 | %) | | | (0.18 | %) | | | 7.99 | % |
| | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 10,952 | | | $ | 9,830 | | | $ | 8,650 | | | $ | 24,332 | | | $ | 10,822 | |
| | | | | |
Ratio of Expenses to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Before Expense Reimbursement | | | 2.16 | % | | | 1.66 | % | | | 1.67 | % | | | 1.15 | % | | | 1.66 | % |
| | | | | |
After Expense Reimbursement | | | 0.60 | % | | | 0.60 | % | | | 0.60 | % | | | 0.60 | % | | | 0.60 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 4.37 | % | | | 4.40 | % | | | 2.59 | % | | | 1.87 | % | | | 2.40 | % |
| | | | | |
Portfolio Turnover Rate | | | 266.63 | % | | | 221.66 | % | | | 208.60 | % | | | 245.94 | % | | | 228.14 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
97
TCW Global Bond Fund
Financial Highlights — N Class
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 7.65 | | | $ | 7.75 | | | $ | 10.17 | | | $ | 10.66 | | | $ | 10.26 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (1) | | | 0.35 | | | | 0.35 | | | | 0.26 | | | | 0.19 | | | | 0.24 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.48 | | | | (0.17 | ) | | | (2.52 | ) | | | (0.21 | ) | | | 0.55 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.83 | | | | 0.18 | | | | (2.26 | ) | | | (0.02 | ) | | | 0.79 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from Net Investment Income | | | (0.24 | ) | | | (0.22 | ) | | | (0.03 | ) | | | (0.19 | ) | | | (0.15 | ) |
Distributions from Net Realized Gain | | | — | | | | — | | | | (0.01 | ) | | | (0.22 | ) | | | (0.24 | ) |
Distributions from Return of Capital | | | — | | | | (0.06 | ) | | | (0.12 | ) | | | (0.06 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.24 | ) | | | (0.28 | ) | | | (0.16 | ) | | | (0.47 | ) | | | (0.39 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 8.24 | | | $ | 7.65 | | | $ | 7.75 | | | $ | 10.17 | | | $ | 10.66 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 10.91 | % | | | 2.12 | % | | | (22.45 | )% | | | (0.38 | )% | | | 7.93 | % |
| | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 8,605 | | | $ | 7,971 | | | $ | 7,730 | | | $ | 10,742 | | | $ | 10,972 | |
| | | | | |
Ratio of Expenses to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Before Expense Reimbursement | | | 2.47 | % | | | 1.95 | % | | | 2.15 | % | | | 1.53 | % | | | 1.94 | % |
| | | | | |
After Expense Reimbursement | | | 0.70 | % | | | 0.70 | % | | | 0.70 | % | | | 0.70 | % | | | 0.70 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 4.27 | % | | | 4.29 | % | | | 2.80 | % | | | 1.77 | % | | | 2.29 | % |
| | | | | |
Portfolio Turnover Rate | | | 266.63 | % | | | 221.66 | % | | | 208.60 | % | | | 245.94 | % | | | 228.14 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
98
TCW High Yield Bond Fund
Financial Highlights — I Class
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 5.72 | | | $ | 5.80 | | | $ | 6.89 | | | $ | 6.66 | | | $ | 6.49 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (1) | | | 0.38 | | | | 0.35 | | | | 0.28 | | | | 0.23 | | | | 0.24 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.40 | | | | (0.06 | ) | | | (0.94 | ) | | | 0.24 | | | | 0.19 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.78 | | | | 0.29 | | | | (0.66 | ) | | | 0.47 | | | | 0.43 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from Net Investment Income | | | (0.37 | ) | | | (0.37 | ) | | | (0.30 | ) | | | (0.24 | ) | | | (0.26 | ) |
Distributions from Net Realized Gain | | | — | | | | — | | | | (0.13 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.37 | ) | | | (0.37 | ) | | | (0.43 | ) | | | (0.24 | ) | | | (0.26 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 6.13 | | | $ | 5.72 | | | $ | 5.80 | | | $ | 6.89 | | | $ | 6.66 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 13.89 | % | | | 4.95 | % | | | (9.97 | %) | | | 7.18 | % | | | 6.88 | % |
| | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 41,534 | | | $ | 47,270 | | | $ | 50,992 | | | $ | 96,223 | | | $ | 85,990 | |
| | | | | |
Ratio of Expenses to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Before Expense Reimbursement | | | 1.10 | % | | | 0.88 | % | | | 0.84 | % | | | 0.76 | % | | | 0.97 | % |
| | | | | |
After Expense Reimbursement | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % | | | 0.55 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 6.33 | % | | | 5.95 | % | | | 4.46 | % | | | 3.36 | % | | | 3.67 | % |
| | | | | |
Portfolio Turnover Rate | | | 65.36 | % | | | 62.85 | % | | | 94.04 | % | | | 82.13 | % | | | 111.34 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
99
TCW Securitized Bond Fund
Financial Highlights — I Class
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 7.39 | | | $ | 7.96 | | | $ | 10.14 | | | $ | 10.46 | | | $ | 10.07 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (1) | | | 0.37 | | | | 0.43 | | | | 0.33 | | | | 0.21 | | | | 0.26 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.60 | | | | (0.53 | ) | | | (2.28 | ) | | | (0.25 | ) | | | 0.44 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.97 | | | | (0.10 | ) | | | (1.95 | ) | | | (0.04 | ) | | | 0.70 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from Net Investment Income | | | (0.51 | ) | | | (0.47 | ) | | | (0.23 | ) | | | (0.20 | ) | | | (0.31 | ) |
Distributions from Return of Capital | | | — | | | | — | | | | — | | | | (0.01 | ) | | | — | |
Distributions from Net Realized Gain | | | — | | | | — | | | | — | | | | (0.07 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.51 | ) | | | (0.47 | ) | | | (0.23 | ) | | | (0.28 | ) | | | (0.31 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 7.85 | | | $ | 7.39 | | | $ | 7.96 | | | $ | 10.14 | | | $ | 10.46 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 13.32 | % | | | (1.51 | %) | | | (19.58 | %) | | | (0.40 | %) | | | 7.08 | % |
| | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 1,576,958 | | | $ | 2,149,490 | | | $ | 2,595,866 | | | $ | 4,264,583 | | | $ | 5,737,736 | |
| | | | | |
Ratio of Expenses to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Before Expense Reimbursement | | | 0.54 | % | | | 0.50 | % | | | 0.55 | % | | | 0.52 | % | | | 0.55 | % |
| | | | | |
After Expense Reimbursement | | | 0.49 | % | | | 0.49 | % | | | 0.49 | % | | | 0.49 | % | | | 0.49 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 4.69 | % | | | 5.28 | % | | | 3.59 | % | | | 2.07 | % | | | 2.50 | % |
| | | | | |
Portfolio Turnover Rate | | | 327.85 | % | | | 303.12 | % | | | 386.85 | % | | | 493.39 | % | | | 269.04 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
100
TCW Securitized Bond Fund
Financial Highlights — N Class
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Net Asset Value per Share, Beginning of year | | $ | 7.62 | | | $ | 8.21 | | | $ | 10.46 | | | $ | 10.78 | | | $ | 10.37 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (1) | | | 0.36 | | | | 0.43 | | | | 0.33 | | | | 0.19 | | | | 0.23 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.63 | | | | (0.56 | ) | | | (2.37 | ) | | | (0.25 | ) | | | 0.47 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.99 | | | | (0.13 | ) | | | (2.04 | ) | | | (0.06 | ) | | | 0.70 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from Net Investment Income | | | (0.51 | ) | | | (0.46 | ) | | | (0.21 | ) | | | (0.18 | ) | | | (0.29 | ) |
Distributions from Net Realized Gain | | | — | | | | — | | | | — | | | | (0.07 | ) | | | — | |
Distributions from Return of Capital | | | — | | | | — | | | | — | | | | (0.01 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.51 | ) | | | (0.46 | ) | | | (0.21 | ) | | | (0.26 | ) | | | (0.29 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 8.10 | | | $ | 7.62 | | | $ | 8.21 | | | $ | 10.46 | | | $ | 10.78 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 13.01 | % | | | (1.75 | )% | | | (19.70 | )% | | | (0.58 | )% | | | 6.86 | % |
| | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net Assets, End of year (in thousands) | | $ | 312,171 | | | $ | 389,444 | | | $ | 506,866 | | | $ | 818,608 | | | $ | 1,844,170 | |
| | | | | |
Ratio of Expenses to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Before Expense Reimbursement | | | 0.83 | % | | | 0.77 | % | | | 0.79 | % | | | 0.81 | % | | | 0.79 | % |
| | | | | |
After Expense Reimbursement | | | 0.70 | % | | | 0.70 | % | | | 0.70 | % | | | 0.70 | % | | | 0.73 | % |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 4.47 | % | | | 5.07 | % | | | 3.40 | % | | | 1.83 | % | | | 2.21 | % |
| | | | | |
Portfolio Turnover Rate | | | 327.85 | % | | | 303.12 | % | | | 386.85 | % | | | 493.39 | % | | | 269.04 | % |
| (1) | Computed using average shares outstanding throughout the period. |
See accompanying Notes to Financial Statements.
101
TCW Securitized Bond Fund
Financial Highlights — Plan Class
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | | |
February 28, 2020
(Commencement
of Operations)
through
October 31, 2020 | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | |
Net Asset Value per Share, Beginning of year | | $ | 7.42 | | | $ | 8.00 | | | $ | 10.19 | | | $ | 10.50 | | | $ | 10.33 | |
| | | | | | | | | | | | | | | | | | | | |
Income (Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (1) | | | 0.37 | | | | 0.44 | | | | 0.36 | | | | 0.22 | | | | 0.20 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.61 | | | | (0.55 | ) | | | (2.31 | ) | | | (0.24 | ) | | | 0.13 | |
| | | | | | | | | | | | | | | | | | | | |
Total from Investment Operations | | | 0.98 | | | | (0.11 | ) | | | (1.95 | ) | | | (0.02 | ) | | | 0.33 | |
| | | | | | | | | | | | | | | | | | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | |
Distributions from Net Investment Income | | | (0.51 | ) | | | (0.47 | ) | | | (0.24 | ) | | | (0.21 | ) | | | (0.16 | ) |
Distributions from Net Realized Gain | | | — | | | | — | | | | — | | | | (0.07 | ) | | | N/A | |
Return of capital | | | — | | | | — | | | | — | | | | (0.01 | ) | | | N/A | |
| | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.51 | ) | | | (0.47 | ) | | | (0.24 | ) | | | (0.29 | ) | | | (0.16 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per Share, End of year | | $ | 7.89 | | | $ | 7.42 | | | $ | 8.00 | | | $ | 10.19 | | | $ | 10.50 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 13.35 | % | | | (1.68 | %) | | | (19.43 | %) | | | (0.25 | %) | | | 3.22 | % (2) |
| | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of year (in thousands) | | $ | 4,904 | | | $ | 2,476 | | | $ | 1,522 | | | $ | 571 | | | $ | 0 | (3) |
| | | | | |
Ratio of Expenses to Average Net Assets: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Before Expense Reimbursement | | | 1.16 | % | | | 1.32 | % | | | 2.98 | % | | | 6.69 | % | | | 14,761.71 | % (4) |
| | | | | |
After Expense Reimbursement | | | 0.44 | % | | | 0.44 | % | | | 0.44 | % | | | 0.44 | % | | | 0.44 | % (4) |
| | | | | |
Ratio of Net Investment Income to Average Net Assets | | | 4.70 | % | | | 5.31 | % | | | 3.88 | % | | | 2.13 | % | | | 2.84 | % (4) |
| | | | | |
Portfolio Turnover Rate | | | 327.85 | % | | | 303.12 | % | | | 386.85 | % | | | 493.39 | % | | | 269.04 | % (2) |
| (1) | Computed using average shares outstanding throughout the period. |
| (2) | For the period February 28, 2020 (Commencement of Operations) through October 31, 2020. |
| (3) | Amount Rounds to less than $1,000. |
See accompanying Notes to Financial Statements.
102
TCW Funds, Inc.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of
TCW Funds, Inc.:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of TCW Central Cash Fund, TCW Core Fixed Income Fund, TCW Global Bond Fund, TCW High Yield Bond Fund, and TCW Securitized Bond Fund (formerly TCW Total Return Bond Fund) (collectively, the “TCW Fixed Income Funds”) five of the twelve funds constituting the TCW Funds, Inc., including the schedules of investments, as of October 31, 2024; the related statements of operations for the year the ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended for the TWC Fixed Income Funds, except for TCW Central Cash Fund; the related statements of operations, changes in net assets, and the financial highlights for the periods indicated in the table below for TCW Central Cash Fund; and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the funds listed above constituting TCW Funds, Inc. as of October 31, 2024, and the results of their operations for the year then ended (or for the period listed in the table below), the changes in their net assets for each of the two years in the period then ended (or for the period listed in the table below), and the financial highlights for each of the five years in the period then ended (or for the period listed in the table below), in conformity with accounting principles generally accepted in the United States of America.
| | | | | | |
Individual Fund Comprising the TCW Fixed Income Funds | | Statement of Operations | | Statement of Changes in Net Assets | | Financial Highlights |
| TCW Central Cash Fund | | For the period from July 15, 2024 (commencement of operations) through October 31, 2024 | | For the period from July 15, 2024 (commencement of operations) through October 31, 2024 | | For the period from July 15, 2024 (commencement of operations) through October 31, 2024 |
Basis for Opinion
These financial statements and financial highlights are the responsibility of the TCW Fixed Income Funds’ management. Our responsibility is to express an opinion on the TCW Fixed Income Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the TCW Fixed Income Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The TCW Fixed Income Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the TCW Fixed Income Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the
103
TCW Funds, Inc.
Report of Independent Registered Public Accounting Firm (Continued)
accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Los Angeles, California
December 23, 2024
We have served as the auditor of one or more TCW/Metropolitan West Funds investment companies since 1990.
104
Privacy Policy
The TCW Group, Inc. and Subsidiaries
TCW Investment Management Company LLC
TCW Asset Management Company LLC
Metropolitan West Asset Management, LLC
TCW PT Management Company LLC
TCW Asset Backed Finance Management Company LLC
| | | | |
TCW Funds, Inc. TCW Strategic Income Fund, Inc. TCW Metropolitan West Funds Sepulveda Management LLC | | TCW Direct Lending LLC TCW Direct Lending VII LLC TCW Direct Lending VIII LLC | | TCW Star Direct Lending LLC TCW ETF Trust TCW Spirit Direct Lending LLC |
Effective December 2024
WHAT YOU SHOULD KNOW
At TCW, we recognize the importance of keeping information about you secure and confidential. We do not sell or share your nonpublic personal and financial information with marketers or others outside our affiliated group of companies.
We carefully manage information among our affiliated group of companies to safeguard your privacy and to provide you with consistently excellent service.
We are providing this notice to you to comply with the requirements of Regulation S-P, “Privacy of Consumer Financial information,” issued by the United States Securities and Exchange Commission.
OUR PRIVACY POLICY
We, The TCW Group, Inc. and its subsidiaries, the TCW Funds, Inc., TCW Strategic Income Fund, Inc., the TCW Metropolitan West Funds, Sepulveda Management LLC, TCW Direct Lending LLC, TCW Direct Lending VII LLC, TCW Direct Lending VIII LLC, TCW Star Direct Lending LLC, TCW ETF Trust, and TCW Spirit Direct Lending LLC (collectively, “TCW”) are committed to protecting the nonpublic personal and financial information of our customers and consumers who obtain or seek to obtain financial products or services primarily for personal, family or household purposes. We fulfill our commitment by establishing and implementing policies and systems to protect the security and confidentiality of this information.
In our offices, we limit access to nonpublic personal and financial information about you to those TCW personnel who need to know the information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards to protect your nonpublic personal and financial information.
CATEGORIES OF INFORMATION WE COLLECT
We may collect the following types of nonpublic personal and financial information about you from the following sources:
| | ◾ | | Your name, address and identifying numbers, and other personal and financial information, from you and from identification cards and papers you submit to us, on applications, subscription agreements or other forms or communications. |
| | ◾ | | Information about your account balances and financial transactions with us, our affiliated entities, or nonaffiliated third parties, from our internal sources, from affiliated entities and from nonaffiliated third parties. |
| | ◾ | | Information about your account balances and financial transactions and other personal and financial information, from consumer credit reporting agencies or other nonaffiliated third parties, to verify information received from you or others. |
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CATEGORIES OF INFORMATION WE DISCLOSE TO NONAFFILIATED THIRD PARTIES
We may disclose your name, address and account and other identifying numbers, as well as information about your pending or past transactions and other personal financial information, to nonaffiliated third parties, for our everyday business purposes such as necessary to execute, process, service and confirm your securities transactions and mutual fund transactions, to administer and service your account and commingled investment vehicles in which you are invested, to market our products and services through joint marketing arrangements or to respond to court orders and legal investigations.
We may disclose nonpublic personal and financial information concerning you to law enforcement agencies, federal regulatory agencies, self-regulatory organizations or other nonaffiliated third parties, if required or requested to do so by a court order, judicial subpoena or regulatory inquiry.
We do not otherwise disclose your nonpublic personal and financial information to nonaffiliated third parties, except where we believe in good faith that disclosure is required or permitted by law. Because we do not disclose your nonpublic personal and financial information to nonaffiliated third parties, our Customer Privacy Policy does not contain opt-out provisions.
CATEGORIES OF INFORMATION WE DISCLOSE TO OUR AFFILIATED ENTITIES
| | ◾ | | We may disclose your name, address and account and other identifying numbers, account balances, information about your pending or past transactions and other personal financial information to our affiliated entities for any purpose. |
| | ◾ | | We regularly disclose your name, address and account and other identifying numbers, account balances and information about your pending or past transactions to our affiliates to execute, process and confirm securities transactions or mutual fund transactions for you, to administer and service your account and commingled investment vehicles in which you are invested, or to market our products and services to you. |
INFORMATION ABOUT FORMER CUSTOMERS
We do not disclose nonpublic personal and financial information about former customers to nonaffiliated third parties unless required or requested to do so by a court order, judicial subpoena or regulatory inquiry, or otherwise where we believe in good faith that disclosure is required or permitted by law.
QUESTIONS
Should you have any questions about our Customer Privacy Policy, please contact us by email or by regular mail at the address at the end of this policy.
REMINDER ABOUT TCW’S FINANCIAL PRODUCTS
Financial products offered by The TCW Group, Inc. and its subsidiaries, the TCW Funds, Inc., TCW Strategic Income Fund, Inc., the TCW Metropolitan West Funds, Sepulveda Management LLC, TCW Direct Lending LLC, TCW Direct Lending VII LLC, TCW Direct Lending VIII LLC, TCW Star Direct Lending LLC, TCW ETF Trust, and TCW Spirit Direct Lending LLC.
| | ◾ | | Are not guaranteed by a bank; |
| | ◾ | | Are not obligations of The TCW Group, Inc. or of its subsidiaries; |
| | ◾ | | Are not insured by the Federal Deposit Insurance Corporation; and |
| | ◾ | | Are subject to investment risks, including possible loss of the principal amount committed or invested, and earnings thereon. |
| | | | |
THE TCW GROUP, INC. TCW FUNDS, INC. TCW STRATEGIC INCOME FUND INC. TCW METROPOLITAN WEST FUNDS SEPULVEDA MANAGEMENT LLC TCW DIRECT LENDING LLC | | | | TCW DIRECT LENDING VII LLC TCW DIRECT LENDING VIII LLC TCW STAR DIRECT LENDING LLC TCW ETF TRUST TCW SPIRIT DIRECT LENDING LLC |
Attention: Privacy Officer | 515 South Flower Street | Los Angeles, CA 90071 | email: privacy@tcw.com
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Investment Management and Advisory Agreement Disclosure (Unaudited)
Approval of Investment Advisory Agreement — TCW Central Cash Fund
The Fund named above, which is a series of the Corporation, has retained TCW Investment Management Company LLC (the “Advisor”) to manage its assets pursuant to an Investment Advisory Agreement (the “Agreement”), which has been approved by the Board of Directors of the Corporation, including all of the Directors who are not “interested persons” (“Independent Directors”), within the meaning of the Investment Company Act of 1940, as amended (the “1940 Act”). Following an initial two-year term with respect to the Fund, the Agreement continues in effect from year-to-year provided that the continuance is specifically approved at least annually by the vote of the holders of at least a majority of the outstanding shares of the Fund, or by the Board of Directors, and, in either event, by a majority of the Independent Directors of the Corporation casting votes in person at a meeting called for that purpose (the “Annual 15(c) Process”).
At a meeting held on June 10, 2024 (the “Meeting”), the Board, including all of the Independent Directors, approved the Agreement for an initial two-year term with respect to the Fund.
At the Meeting, the Board received and considered information (both written and oral) provided to assist it in the review of the Agreement and made assessments with respect to the Fund. The Independent Directors were advised by independent legal counsel with respect to these matters. The Independent Directors discussed the approval of the Agreement with representatives of the Advisor and among themselves in private sessions on various occasions at which no representatives of the Advisor were present.
In addition, the Board received extensive information at the Meeting in relation to its consideration of the renewal of the Advisory Agreement with respect to the existing series of the Corporation, as well as presentations at previous meetings from management about the Corporation and its other series. That other information considered by the Board addressed many of the factors discussed below, including, but not limited to, information about the services provided by the Advisor, its structure, organization, operations and personnel, the financial condition of the Advisor and the profitability to the Advisor from the Advisory Agreement, compliance procedures and resources, investment performance of other series and any similar strategies, expected expenses of the Fund, planned distribution and marketing of the Fund, and other information considered relevant.
In addition to the information furnished by the Advisor, the Directors were provided with advice from their independent legal counsel discussing their fiduciary duties related to their approval of the Agreement and discussed these matters with their counsel.
The Directors’ determinations were made on the basis of each Director’s business judgment after consideration of all the information presented. In deciding to recommend the approval of the Agreement with respect to the Fund, the Independent Directors did not identify any single piece of information or particular factor that, in isolation, was the controlling factor. Each Independent Director may also have weighed factors differently. This summary describes the most important, but not all, of the factors considered by the Board and the Independent Directors.
Nature, Extent and Quality of Services
The Board considered the general nature, extent, and quality of services provided to the existing series of the Corporation and expected to be provided to the Fund by the Advisor. The Board evaluated the Advisor’s experience in serving as manager of mutual funds and considered the benefits to shareholders of investing
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in a fund complex that is served by a large organization that also serves a variety of other investment advisory clients, including separate accounts, other pooled investment vehicles, registered investment companies and commingled funds.
The Board also considered the breadth of the compliance programs of the Advisor, as well as the compliance operations of the Advisor that would be applicable to the Fund. The Board noted the significant role played by the Advisor, as valuation designee, with respect to the valuation of portfolio securities, including research and analysis related to fair valued securities and due diligence and oversight of pricing vendors. The Board concluded that it was satisfied with the nature, extent and quality of the services anticipated to be provided to the Fund by the Advisor under the proposed Agreement.
Investment Performance
The Directors noted that the Advisor does not manage similar money market portfolios but considered the overall track record of the Advisor with fixed income strategies. After review, the Directors concluded that the Fund has the potential to achieve acceptable performance.
Advisory Fees, Expenses and Profitability
The Board noted that the Advisor proposes that there would not be any advisory fee charged and that, therefore, the Fund’s management fee and the total expense ratio would be competitive with peer funds that charge advisory fees. For that reason, the Board did not review the comparative advisory fees for peer funds.
The Board also recognized that the absence of an advisory fee means that the Advisor would not generate profits from the Agreement.
Based on these various considerations, the Board concluded that the proposed contractual advisory fee for the Fund under the proposed Agreement would be fair and bear a reasonable relationship to the services to be rendered.
Economies of Scale and Ancillary Benefits
The Board considered the potential of the Advisor to achieve economies of scale as the Fund grows in size. The Board noted that the Fund will benefit through additional investment in the Corporation’s business and the provision of improved or additional infrastructure and services to the Fund and its shareholders. The Board considered the Advisor’s ongoing investment in its technology, systems, staffing and other aspects of its business that can benefit the Fund, noting that all these endeavors are a means by which the Advisor is sharing economies of scale with the Fund and its shareholders through reinvestment in products and services that are designed to benefit the Fund and its shareholders. The Board considered the new personnel hired over recent years and the extent to which that hiring could be expected to benefit shareholders.
The Board considered ancillary benefits to be received by the Advisor and its affiliates as a result of the relationship of the Advisor with the Fund, including that the Fund would be used to manage the cash holdings of other funds advised by the Advisor. The Board concluded that any potential benefits to be derived by the Advisor from its relationship with the Fund were consistent with the services proposed to be provided by the Advisor to the new series.
As a result of these considerations, the Board was satisfied about the extent to which economies of scale will be shared with the Fund and its shareholders. Based on all the information they reviewed, the Board
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concluded that the proposed fee structure was reasonable and reflected a sharing of any economies of scale.
Conclusions
Based on their overall review, including their consideration of each of the factors referred to above (and others), the Directors concluded that the Agreement is fair and reasonable to the Fund and its shareholders, that the Fund’s shareholders will receive reasonable value under the Fund’s proposed fee structure, and that the approval of the Agreement was in the best interests of the Fund and its shareholders.
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Investment Management and Advisory Agreement Disclosure (Unaudited) (Continued)
Renewal of Investment Advisory and Management Agreement
TCW Funds, Inc. (the “Corporation”) and TCW Investment Management Company LLC (the “Advisor”) are parties to an Investment Advisory and Management Agreement (the “Agreement”), pursuant to which the Advisor is responsible for managing the investments of each separate investment series (each, a “Fund” and collectively, the “Funds”) of the Corporation. Unless terminated by either party, the Agreement continues in effect from year to year provided that the continuance is specifically approved at least annually by the vote of the holders of at least a majority of the outstanding shares of the Funds, or by the Board of Directors of the Corporation (the “Board”), and, in either event, by a majority of the Directors who are not “interested persons” of the Corporation, as such term is defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “Independent Directors”), casting votes in person at a meeting called for that purpose.
At an in-person meeting on September 9, 2024, the Board approved the renewal of the Agreement for an additional one-year term from February 6, 2025 through February 5, 2026. The renewal of the Agreement was approved by the Board (including by a majority of the Independent Directors) upon the recommendation of the Independent Directors. The Independent Directors also met by videoconference in a working session on August 22, 2024 to hear presentations by representatives of the Advisor, to ask related questions, to review and discuss materials provided by the Advisor for their consideration, and to meet separately with their independent legal counsel. On September 9, 2024, they also met separately with their independent legal counsel to review and discuss supplemental information that had been requested on their behalf by their independent legal counsel and presented by the Advisor. The information, material facts, and conclusions that formed the basis for the Independent Directors’ recommendation and the Board’s subsequent approval are described below.
1. Information received
Materials reviewed — During the course of each year, the Directors receive a wide variety of materials relating to the services provided by the Advisor, including reports on the Advisor’s investment processes, as well as on each Fund’s investment results, portfolio composition, portfolio trading practices, compliance monitoring, shareholder services, and other information relating to the nature, extent, and quality of services provided by the Advisor to the Funds. In addition, the Board reviewed information furnished to the Independent Directors in response to a detailed request sent to the Advisor on their behalf. The information in the Advisor’s responses included extensive materials regarding each Fund’s investment results, advisory fee comparisons to advisory fees charged by the Advisor to its institutional clients, financial and profitability information regarding the Advisor, descriptions of various services provided to the Funds and to other advisory and sub-advisory clients, descriptions of functions such as compliance monitoring and portfolio trading practices, and information about the personnel providing investment management services to each Fund. The Directors also considered information provided by an independent data provider, Broadridge, comparing the investment performance and the fee and expense levels of each Fund to those of appropriate peer groups of mutual funds selected by Broadridge. After reviewing this information, the Directors requested additional information from the Advisor, which the Advisor provided and the Directors considered.
Review process — The Directors’ determinations were made on the basis of each Director’s business judgment after consideration of all the information presented. The Independent Directors were advised by their independent legal counsel throughout the renewal process and received and reviewed advice from
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their independent legal counsel regarding legal and industry standards applicable to the renewal of the Agreement, including a legal memorandum from their independent legal counsel discussing their fiduciary duties related to their approval of the continuation of the Agreement. The Independent Directors also discussed the renewal of the Agreement with the Advisor’s representatives and in private sessions at which no representatives of the Advisor were present. In deciding to recommend the renewal of the Agreement with respect to each Fund, the Independent Directors did not identify any single piece of information or particular factor that, in isolation, was the controlling factor. Each Independent Director may also have weighed factors differently. This summary describes the most important, but not all, of the factors considered by the Board and the Independent Directors.
2. Nature, extent, and quality of services provided by the Advisor
The Board and the Independent Directors considered the depth and quality of the Advisor’s investment management process, including its research and strong analytical capabilities; the experience, capability, and integrity of its senior management and other personnel; the advance planning and transition arrangements put in place with respect to the changes in key portfolio management and other personnel; the overall resources available to the Advisor; and the ability of its organizational structure to address the fluctuations in assets that have been experienced over the past several years. The Board and the Independent Directors considered the Advisor’s continued commitment and ability to attract and retain well-qualified investment professionals, noting in particular the Advisor’s hiring of professionals in various areas over the past several years, including recruiting and hiring a highly qualified President and Chief Executive Officer to replace the outgoing head of The TCW Group, Inc., the parent company of the Advisor (“TCW”), and several additional executive-level personnel, continued upgrading of resources in its middle office and back office operations and other areas, as well as a continuing and extensive program of infrastructure and systems enhancements, including business continuity and cyber security, and budgeting for certain future initiatives. The Board and the Independent Directors noted the significant role played by the Advisor, as valuation designee, with respect to the valuation of portfolio securities, including research and analysis related to fair valued securities and due diligence and oversight of pricing vendors. The Board and the Independent Directors also considered that the Advisor made available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, operations, administration, research, portfolio accounting, and legal matters. They noted the substantial additional resources made available by TCW. The Board and the Independent Directors examined and discussed a detailed description of the extensive additional services provided to the Funds to support their operations and compliance, as compared to the much narrower range of services provided to the Advisor’s institutional and sub-advised clients, as well as the Advisor’s oversight and coordination of numerous outside service providers to the Funds. They further noted the high level of regular communication between the Advisor and the Independent Directors. The Advisor explained its responsibility to supervise the activities of the Funds’ various service providers, as well as supporting the Independent Directors and their meetings, regulatory filings, and various operational personnel, and the related costs.
The Board and the Independent Directors concluded that the nature, extent, and quality of the services provided by the Advisor are of a high quality and have benefited and should continue to benefit the Funds and their shareholders.
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Investment Management and Advisory Agreement Disclosure (Unaudited) (Continued)
3. Investment results
The Board and the Independent Directors considered the investment results of each Fund in light of its investment objective(s) and principal investment strategies. They compared each Fund’s total returns with the total returns of other mutual funds in peer group reports prepared by Broadridge with respect to various longer and more recent periods all ended May 31, 2024, and, at the request of the Board, as of July 31, 2024. The Board and the Independent Directors reviewed information as to peer group selections presented by Broadridge and discussed the methodology for those selections with Broadridge. In reviewing each Fund’s relative performance, the Board and the Independent Directors took into account each Fund’s investment strategies, distinct characteristics, asset size and diversification.
The Board and the Independent Directors noted that each Fund’s performance was satisfactory over the relevant periods. The Board and the Independent Directors noted that the investment performance of the majority of the Funds was generally close to or above the median performance of the applicable peer group during the three-year period emphasized by Broadridge in the supplemental materials. For those Funds that lagged peer group averages, they noted that the Advisor had discussed with the Board the reasons for the underperformance, including the investment climate and prevailing market conditions during relevant periods as well as the Advisor’s discipline in maintaining a consistent investment style. The Board considered in particular the Advisor’s explanations for the performance of those Funds that ranked in the fourth or fifth quintile of their peer groups for the prior three-year period. The Board indicated that it would continue to monitor portfolio investment performance on a regular basis and discuss with the Advisor from time to time any instances of long-term underperformance as appropriate. The Board and the Independent Directors noted that the performance of some Funds for periods when they lagged their peer group averages remained satisfactory when assessed on a risk-adjusted basis because performance quintiles do not necessarily reflect the degree of risk employed by peer funds to achieve their returns. The Board also considered the Advisor’s assessment of the Funds’ performance during the recent period of significant market volatility and rising interest rates.
With respect to the fixed income Funds, the Board and the Independent Directors recognized the Advisor’s deliberate strategy to manage risk in light of its critical view of the fixed income securities markets and overall investment market conditions at present and in the near term. For that reason, the Board and the Independent Directors believed that relative performance also should be considered in light of future market conditions expected by the Advisor and positioning of the Funds’ portfolios in light of those expectations. The Board and the Independent Directors noted the Advisor’s view that longer term performance can be more meaningful for active fixed income funds than shorter term performance because fixed income market cycles are generally longer than three years.
For the U.S. fixed income Funds, the Board and the Independent Directors noted the conservative profile of certain of these Funds, which generally experienced less volatility compared to various other funds in the applicable peer group. They also noted the Advisor’s relatively conservative posture for these Funds with respect to duration and interest rate and credit risks.
For the Securitized Bond Fund, the Board and the Independent Directors noted that the Fund’s performance was in the second quintile for the ten-year period, the fourth quintile for the five-year period, and the fifth quintile for the three- and one-year periods. The Board and the Independent Directors considered the Advisor’s explanation that underperformance was driven by the Fund’s higher duration and greater exposure to mortgage-backed securities than its peers, which the Advisor believes may position the
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Fund for outperformance going forward. The Board noted that the Advisor had recommended, and the Board had approved, changes to the Fund’s name and principal investment strategies effective August 19, 2024.
For the Core Fixed Income Fund, the Board and the Independent Directors noted that the Fund’s performance was in the fourth quintile for the ten- and five-year periods and the fifth quintile for the three- and one-year periods. The Board and the Independent Directors considered the Advisor’s explanation that underperformance was driven by the Fund’s higher duration and greater exposure to mortgage-backed securities than its peers, which the Advisor believes may position the Fund for outperformance going forward. The Board and the Independent Directors also considered its underperformance relative to its peers and its benchmark index for all periods reviewed.
For the High Yield Bond Fund, the Board and the Independent Directors noted that the Fund’s performance was in the first quintile for the ten-year period, second quintile for the five-year period, third quintile for the three-year period and fifth quintile for the one-year period. The Board noted that the Advisor had recommended, and the Board had approved, the reorganization of the Fund into the TCW High Yield Bond ETF, a newly created exchange-traded fund that is a series of TCW ETF Trust, estimated to occur later in the year.
For the Enhanced Commodity Strategy Fund, the Board and the Independent Directors noted that the Fund’s performance was in the third quintile for the ten- and three-year periods, the second quintile for the five-year period and the fourth quintile for the one-year period. The Board noted that the Advisor had recommended, and the Board had approved, the liquidation of the Fund effective on or about October 31, 2024.
For the Global Bond Fund, the Board and the Independent Directors noted that the Fund’s performance was in the fourth quintile for the ten-, five-, three- and one-year periods. The Board and the Independent Directors considered the Advisor’s explanation that underperformance for the three-year period was driven by the Fund’s higher duration as compared to many of its peers. The Board further considered that the Fund outperformed its benchmark index for the one-, five- and ten-year periods.
For the Short Term Bond Fund, the Board and the Independent Directors noted that the Fund’s performance was in the fourth quintile for the ten- and one-year periods, third quintile for the five-year period and first quintile for the three-year period. The Board noted that the Advisor had recommended, and the Board had approved, the liquidation of the Fund effective on or about October 31, 2024.
With respect to the U.S. equity Funds, the Board and the Independent Directors noted that the performance of the Funds for most of the various periods reviewed ranked in the first, second or third quintiles, except that one Fund, the Select Equities Fund, ranked in the fourth quintile over certain periods.
The Select Equities Fund ranked in the second quintile for the ten- and one-year periods and the fourth quintile for the five- and three-year periods. The Board and the Independent Directors considered the Advisor’s explanation that underperformance for the three-year period was driven in part by the Fund’s more modest positions in companies that were key contributors to the competitor funds’ returns. The Board and the Independent Directors also considered the Fund’s stronger performance over the ten- and one-year periods.
For the Relative Value Large Cap Fund, the Board and the Independent Directors noted that the Fund’s performance was in the second quintile for the ten-year period and the first quintile for the five-, three- and one-year periods.
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Investment Management and Advisory Agreement Disclosure (Unaudited) (Continued)
For the Relative Value Mid Cap Fund, the Board and the Independent Directors noted that the Fund’s performance was in the third quintile for the ten- and three-year periods and in the first quintile for the five- and one-year periods.
For the Global Real Estate Fund, the Board and the Independent Directors noted that the Fund’s performance was in the first quintile for the five-, three- and one-year periods.
For the Conservative Allocation Fund, an asset allocation Fund, the Board and the Independent Directors noted that the Fund’s performance was in the first quintile for the ten-, five, and one-year periods and the second quintile for the three-year period.
With respect to the international and emerging markets Funds, the Board and the Independent Directors noted that the performance of these Funds ranked in the fourth or fifth quintiles over many of the various time periods reviewed but had shown improvement over the one-year period. The Board and the Independent Directors considered the Advisor’s discussion of performance, including the challenging international and emerging market conditions in recent years and the impact of being overweight in emerging market properties during a period of rapid property rule change in China.
For the Emerging Markets Income Fund, the Board and the Independent Directors noted that the Fund’s performance was in the third quintile for the ten-year period, the fourth quintile for the five-year period, the fifth quintile for the three-year period and second quintile for the one-year period. The Board and the Independent Directors considered the Advisor’s discussion of performance, including that the Fund’s relative underperformance was driven by security selection in high yield, largely in Chinese real estate during the three-year period. The Board and the Independent Directors noted that more stringent limits were placed on the Fund’s high yield exposure to manage downside risk, boosting the Fund’s performance to the top quartile for the one-year period ended July 31, 2024
For the Emerging Markets Local Currency Income Fund, the Board and the Independent Directors noted that the Fund’s performance was in the fourth quintile for the ten-year period, the fifth quintile for the five- and three-year periods and the third quintile for the one-year period. The Board and the Independent Directors considered the Advisor’s discussion of relative underperformance for the Fund for certain periods and the enhancements to the Fund’s investment process as a result.
The Board and the Independent Directors concluded that the Advisor was implementing each Fund’s investment objective(s) and that the Advisor’s record in managing the Funds indicated that its continued management should benefit each Fund and its shareholders over the long term.
4. Advisory fees and total expenses
The Board and the Independent Directors compared the management fees (which Broadridge defines to include the advisory fee and the administrative fee) and total expenses of each Fund (each as a percentage of average net assets) with the median management fee and operating expense level of the other mutual funds in the relevant Broadridge peer groups. These comparisons assisted the Board and the Independent Directors by providing a reasonable statistical measure to assess each Fund’s fees relative to its relevant peers. The Board and the Independent Directors observed that each Fund’s management fee, after giving effect to applicable waivers and/or reimbursements, was below or near the median of the peer group funds on a current basis. The Board and the Independent Directors also observed that each Fund’s total expenses, after giving effect to applicable waivers and/or reimbursements, were near or below the median of the peer group funds. The Board and the Independent Directors also noted the contractual expense
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limitations to which the Advisor has agreed with respect to each Fund and that the Advisor historically has absorbed any expenses in excess of these limits. The Board and the Independent Directors noted that for several Funds, their below-median management fee and total expenses were in part due to substantial waiver and/or reimbursement pursuant to the contractual expense limitations. The Board and the Independent Directors concluded that the competitive fees charged by the Advisor, and competitive expense ratios, should continue to benefit each Fund and its shareholders.
The Board and the Independent Directors also reviewed information regarding the advisory fees charged by the Advisor to its institutional and sub-advisory clients with similar investment mandates. The Board and the Independent Directors concluded that, although the fees paid by those clients generally were lower than advisory fees paid by the Funds, the differences appropriately reflected the more extensive services provided by the Advisor to the Funds and the Advisor’s significantly greater responsibilities and expenses with respect to the Funds, including the additional time spent by portfolio managers for reasons such as managing the more active cash flows from purchases and redemptions by shareholders, the additional risks of managing a pool of assets for public investors, administrative burdens, daily pricing, valuation and liquidity responsibilities, the supervision of vendors and service providers, and the costs of additional infrastructure and operational resources and personnel and of complying with and supporting the more comprehensive regulatory and governance regime applicable to mutual funds.
5. The Advisor’s costs, level of profits, and economies of scale
The Board and the Independent Directors reviewed information regarding the Advisor’s costs of providing services to the Funds, as well as the resulting level of profits to the Advisor. They reviewed the Advisor’s stated assumptions and methods of allocating certain costs, such as personnel costs, which constitute the Advisor’s largest operating cost. The Board and the Independent Directors recognized that the Advisor should be entitled to earn a reasonable level of profits for the services that it provides to each Fund. The Board and the Independent Directors also reviewed a comparison of the Advisor’s profitability with respect to the Funds to the profitability of certain unaffiliated publicly traded asset managers, which the Advisor believed supported its view that the Advisor’s profitability was reasonable. Based on their review, the Board and the Independent Directors concluded that they were satisfied that the Advisor’s level of profitability from its relationship with each Fund was not unreasonable or excessive.
The Board and the Independent Directors considered the extent to which potential economies of scale could be realized as the Funds grow and whether the advisory fees reflect those potential economies of scale. They recognized that the advisory fees for the Funds do not have breakpoints, which would otherwise result in lower advisory fee rates as the Funds grow larger. They also recognized the Advisor’s view that the advisory fees compare favorably to peer group fees and expenses and remain competitive even at higher asset levels and that the relatively low advisory fees reflect the potential economies of scale. The Board and the Independent Directors recognized the benefits of the Advisor’s substantial past and ongoing investment in the advisory business, such as successfully recruiting and retaining key professional talent, systems and technology upgrades, added resources dedicated to legal, compliance, risk management and cybersecurity programs, and improvements to the overall firm infrastructure, as well as the financial pressures of competing against much larger firms and passive investment products. The Board and the Independent Directors further noted the Advisor’s past and current subsidies of the operating expenses of newer and smaller Funds and the Advisor’s commitment to maintain reasonable overall operating expenses for each Fund. The Board and the Independent Directors also recognized that the Funds benefit from receiving investment advice from an organization with other types of advisory clients in addition to
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Investment Management and Advisory Agreement Disclosure (Unaudited) (Continued)
mutual funds. The Board and the Independent Directors considered the risk borne by the Advisor that the Funds’ net assets and thus the Advisor’s fees might decline in the event of redemptions and that smaller Funds might not grow to become profitable. The Board and the Independent Directors concluded that the Advisor was satisfactorily sharing potential economies of scale with the Funds through low fees and expenses, and through reinvesting in its capabilities for serving the Funds and their shareholders.
6. Ancillary benefits
The Board and the Independent Directors also considered ancillary benefits received or to be received by the Advisor and its affiliates as a result of the relationship of the Advisor with the Funds. The Board and the Independent Directors noted that, in addition to the fees the Advisor receives under the Agreement, the Advisor receives additional benefits in connection with management of the Funds in the form of reports, research and other services from brokers and their affiliates in return for brokerage commissions paid to such brokers. The Board and the Independent Directors concluded that any potential benefits received or to be derived by the Advisor from its relationships with the Funds are reasonably related to the services provided by the Advisor to the Funds.
7. Conclusions
Based on their overall review, including their consideration of each of the factors referred to above (and others), the Board and the Independent Directors concluded that the Agreement is fair and reasonable to each Fund and its shareholders, that each Fund’s shareholders received reasonable value in return for the advisory fees and other amounts paid to the Advisor by each Fund, and that the renewal of the Agreement was in the best interests of each Fund and its shareholders.
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Supplemental Information
Proxy Voting Guidelines
The policies and procedures that the Company uses to determine how to vote proxies are available without charge. The Board has delegated the Company’s proxy voting authority to the Advisor.
Disclosure of Proxy Voting Guidelines
The proxy voting guidelines of the Advisor are available:
| | 1. | By calling 800-FUND-TCW (800-386-3829) to obtain a hard copy; or |
| | 2. | By going to the SEC website at http://www.sec.gov. |
When the Company receives a request for a description of the Advisor’s proxy voting guidelines, it will deliver the description that is disclosed in the Company’s Statement of Additional Information. This information will be sent out via first class mail (or other means designed to ensure equally prompt delivery) within three business days of receiving the request.
The Advisor, on behalf of the Company, prepares and files Form N-PX with the SEC not later than August 31 of each year, which includes the Company’s proxy voting record for the most recent twelve-month period ended June 30 of that year. The Company’s proxy voting record for the most recent twelve-month period ended June 30 is available:
| | 1. | By calling 800-FUND-TCW (800-386-3829) to obtain a hard copy; or |
| | 2. | By going to the SEC website at http://www.sec.gov. |
When the Company receives a request for the Company’s proxy voting record, it will send the information disclosed in the Company’s most recently filed report on Form N-PX via first class mail (or other means designed to ensure equally prompt delivery) within three business days of receiving the request.
The Company also discloses its proxy voting record on its website as soon as is reasonably practicable after its report on Form N-PX is filed with the SEC.
Availability of Quarterly Portfolio Schedule
The Company files a complete schedule of its portfolio holdings with the SEC for the first and third quarters of its fiscal year on Form NPORT-P. Such filings occur no later than 60 days after the end of the Funds’ first and third quarters and are available on the SEC’s website at www.sec.gov.
117
TCW Funds, Inc.
Shareholder Meeting Results (Unaudited)
Special Meeting of Shareholders to Approve Directors — Voting Results
On February 15, 2024, the Corporation held a Special Meeting of Shareholders to elect nine Directors of the Corporation. Shareholders of record on January 5, 2024 were entitled to vote on the proposal to elect Directors. All Funds voted together. Each nominee for Director named below was elected and will hold office until his or her successor has been duly elected and qualified. The following votes were recorded:
PROPOSAL: Election of Directors.
| | | | | | | | |
Director Nominee | | Shares Voted
For | | | Shares
Withheld | |
Patrick C. Haden | | | 778,061,060 | | | | 5,620,273 | |
Martin Luther King III | | | 778,550,805 | | | | 6,106,575 | |
Megan McClellan | | | 779,047,346 | | | | 5,392,670 | |
Peter McMillan | | | 777,261,038 | | | | 5,676,943 | |
Patrick Moore | | | 779,274,376 | | | | 5,718,850 | |
Victoria B. Rogers | | | 778,911,008 | | | | 5,469,537 | |
Robert G. Rooney | | | 780,047,992 | | | | 5,788,337 | |
Michael Swell | | | 780,102,419 | | | | 5,562,293 | |
Andrew Tarica | | | 778,119,775 | | | | 5,585,230 | |
118
TCW Funds, Inc.
Tax Information Notice (Unaudited) | October 31, 2024 |
Under Section 854(b)(2) of the Code, the Funds hereby designate the following maximum amounts as qualified dividends for purposes of the maximum rate under Section 1(h)(11) of the Code for the fiscal year ended October 31, 2024.
| | | | |
Fund | | Qualified
Dividend Income | |
TCW Global Bond Fund | | $ | 3,076 | |
This information is given to meet certain requirements of the Code and should not be used by shareholders for preparing their income tax returns. In February 2025, shareholders will receive Form 1099-DIV which will show the actual distribution received and include their share of qualified dividends during the calendar year of 2024. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their individual tax returns.
119
TCW Funds, Inc.
515 South Flower Street
Los Angeles, California 90071
800 FUND TCW
(800 386 3829)
www.TCW.com
INVESTMENT ADVISOR
TCW Investment Management Company LLC
515 South Flower Street
Los Angeles, California 90071
TRANSFER AGENT
U.S. Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
555 West 5th Street
Los Angeles, California 90013
CUSTODIAN & ADMINISTRATOR
State Street Bank & Trust Company
One Congress Street, Suite 1
Boston, Massachusetts 02114-2016
DISTRIBUTOR
TCW Funds Distributors LLC
515 South Flower Street
Los Angeles, California 90071
DIRECTORS
Patrick C. Haden
Director and Vice Chairman of the Board
Martin Luther King III
Director
Megan McClellan
Director
Peter McMillan
Director
Patrick Moore
Director
Victoria B. Rogers
Director
Robert G. Rooney
Director
Michael Swell
Director
Andrew Tarica
Director and Chairman of the Board
OFFICERS
Megan McClellan
President and Principal Executive Officer
Drew Bowden
Executive Vice President
Richard M. Villa
Treasurer and Principal Financial and Accounting Officer
Gladys Xiques
Chief Compliance Officer and Anti-Money Laundering Officer
Lisa Eisen
Tax Officer
Eric W. Chan
Assistant Treasurer
Peter Davidson
Vice President and Secretary
TCW FAMILY OF FUNDS
EQUITY FUNDS
TCW Global Real Estate Fund
TCW Relative Value Large Cap Fund
TCW Relative Value Mid Cap Fund
TCW Select Equities Fund
ASSET ALLOCATION FUND
TCW Conservative Allocation Fund
FIXED INCOME FUNDS
TCW Central Cash Fund
TCW Core Fixed Income Fund
TCW Global Bond Fund
TCW High Yield Bond Fund
TCW Securitized Bond Fund
INTERNATIONAL FUNDS
TCW Emerging Markets Income Fund
TCW Emerging Markets Local Currency Income Fund
FUNDarEQ1024
| (b) | The Registrant’s Financial Highlights are included as part of the Financial Statements filed under Item 7(a) of this Form. |
| Item 8. | Changes in and Disagreements with Accountants for Open-End Management Investment Companies. |
Not applicable.
| Item 9. | Proxy Disclosures for Open-End Management Investment Companies. |
Proxy Disclosures for Open-End Management Investment Companies are included as part of the Financial Statements filed under Item 7(a) of this Form.
| Item 10. | Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
Renumeration Paid to Directors, Officers, and Others of Open-End Investment Companies is included as part of the Financial Statements filed under Item 7(a) of this Form.
| Item 11. | Statement Regarding Basis for Approval of Investment Advisory Contract. |
The Registrant’s Statement Regarding Basis for Approval of Investment Advisory Contract is included as part of the Financial Statements filed under Item 7(a) of this Form.
| Item 12. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
| Item 13. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
| Item 14. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
| Item 15. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors since the Registrant last provided disclosure in response to this Item.
| Item 16. | Controls and Procedures. |
| (a) | The Principal Executive Officer and Principal Financial and Accounting Officer have concluded, as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) are effective, as of such date, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934, as amended. |
| (b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
| Item 17. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
| Item 18. | Recovery of Erroneously Awarded Compensation. |
Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | | |
| (Registrant) | | TCW Funds, Inc. | | |
| By (Signature and Title) | | | | |
| | /s/ Megan McClellan | | |
| | Megan McClellan | | |
| | President and Principal Executive Officer | | |
| | |
| Date | | January 2, 2025 | | |
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| | | | |
| By (Signature and Title) | | | | |
| | /s/ Megan McClellan | | |
| | Megan McClellan | | |
| | President and Principal Executive Officer | | |
| | |
| Date | | January 2, 2025 | | |
| | |
| By (Signature and Title) | | | | |
| | /s/ Richard M. Villa | | |
| | Richard M. Villa | | |
| | Treasurer and Principal Financial and Accounting Officer | | |
| | |
| Date | | January 2, 2025 | | |
