TCW Rising Markets Native Forex Revenue Fund Q2 2024 Commentary

Please see extra disclosures on the next web page(s).

1Past efficiency is not any assure of future outcomes.

2Calculated Based mostly on GBI-EM GD Composition as of 6/28/2024

The efficiency information offered represents previous efficiency and is not any assure of future outcomes. Returns assume all earnings objects are reinvested. Present efficiency could also be decrease or increased than the efficiency information offered. Efficiency information present to the latest month finish is out there on the Fund’s web site at TCW.com. Funding returns and principal worth will fluctuate with market circumstances. The worth of an funding within the Fund, when redeemed, could also be price kind of than its unique buy price.

It is best to think about the funding targets, dangers, costs and bills of a mutual fund rigorously earlier than investing. A Fund’s Prospectus and Abstract Prospectus comprise this and different details about the Fund. To obtain a Prospectus, please name 800-386-3829 or you might obtain the Prospectus from the Fund’s web site at TCW.com. Please learn it rigorously.

TCW Rising Markets Native Forex Revenue Fund

IMPORTANT DISCLOSURE

This materials could embrace estimates, projections and different “forward-looking” statements. Precise occasions could differ considerably from these offered. TCW assumes no obligation to replace any such statements.

This materials displays the present opinions of the writer however not essentially these of TCW and such opinions are topic to vary with out discover. TCW, its officers, administrators, workers or purchasers could have positions in securities or investments talked about on this publication, which positions could change at any time, with out discover. This materials could embrace estimates, projections and different “forward-looking” statements. Precise occasions could differ considerably from these offered. TCW assumes no obligation to replace any such statements. All projections and estimates are based mostly on present asset costs and are topic to vary.

Efficiency Element as of June 30, 2024

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Annual fund working bills as acknowledged within the Prospectus dated March 1, 2024, excluding curiosity and purchased fund charges and bills, if any.

The efficiency information offered represents previous efficiency and is not any assure of future outcomes. Returns assume all earnings objects are reinvested. Present efficiency could also be decrease or increased than the efficiency information offered. Efficiency information present to the latest month finish is out there on the Fund’s web site at TCW.com. Funding returns and principal worth will fluctuate with market circumstances. The worth of an funding within the Fund, when redeemed, could also be price kind of than its unique buy price. The annualized since inception return for the index displays the inception date of the Class I and N Share Funds. For interval 12/14/2010-6/30/2024. Efficient March 1, 2024, the Fund’s funding advisor has agreed to waive charges and/or reimburse bills to restrict the Fund’s whole annual working bills (excluding curiosity, brokerage, extraordinary bills and purchased fund charges and bills, if any) to 0.85% of common every day web property with respect to Class I shares and 0.90% of common every day web property with respect to Class N shares. The contractual price waiver/expense reimbursement will stay in place via March 1, 2025 and earlier than that date, the funding advisor could not terminate this association with out approval of the Board of Administrators.

JP Morgan GBI-EM World Diversified Index – A complete international native rising markets index that consists of commonly traded, liquid fixed-rate, home forex authorities bonds and consists of solely the international locations which give entry to their capital market to overseas buyers (excludes China and India). The index is market capitalization weighted, with a cap of 10% to anybody nation. The index is unhedged USD and figures don’t mirror any deduction for charges, bills or taxes. The index will not be accessible for direct funding; due to this fact its efficiency doesn’t mirror a discount for charges or bills incurred in managing a portfolio. The securities within the index could also be considerably completely different from these within the Fund.

Supply: TCW, FactSet, State Road B&T

Funding Dangers

Fastened earnings investments entail rate of interest danger, the chance of issuer default, issuer credit score danger, and worth volatility danger. Funds investing in bonds can lose their worth as rates of interest rise and an investor can lose principal. Fund share costs and returns will fluctuate with market circumstances, currencies, and the financial and political climates the place the investments are made. Rising markets securities carry particular dangers, equivalent to much less developed or much less environment friendly buying and selling markets, an absence of firm info, and differing auditing and authorized requirements. The securities markets of rising markets international locations could be extraordinarily unstable. The Fund’s investments denominated in foreign exchange will decline in worth if the overseas forex declines in worth relative to the U.S. greenback. Please see the Fund’s Prospectus for extra info on these and different dangers.

IMPORTANT DISCLOSURE

Glossary of Phrases

Foundation Level (‘BPS’)– One hundredth of 1 %, used mainly in expressing variations of rates of interest. Beta– The sensitivity of a inventory (portfolio) to the market (benchmark) within the capital asset pricing mannequin. It’s comprised of the volatility of a inventory and its correlation with the market (benchmark). Bond(s)– A set earnings instrument that represents a mortgage made by an investor to a borrower (usually company or governmental). A bond may very well be regarded as an I.O.U. between the lender and borrower that features the main points of the mortgage and its funds. A bond has an finish date when the principal of the mortgage is because of be paid to the bond proprietor and often consists of the phrases for variable or mounted curiosity funds that might be made by the borrower. Bonds are utilized by firms, municipalities, states, and sovereign governments to finance initiatives and operations. House owners of bonds are debtholders, or collectors, of the issuer. Carry– The return obtained from holding an funding (if constructive), or the price of holding it (if damaging). CEE– Central and Jap Europe. Central Financial institution– A monopolized and infrequently nationalized establishment given privileged management over the manufacturing and distribution of cash and credit score. C Score– C rated entities and devices reveal the bottom credit score high quality and an occasion of default is imminent. Credit score– A contractual settlement by which a borrower receives one thing of worth now and agrees to repay the lender at a later date, typically with curiosity. Credit score additionally refers back to the creditworthiness or credit score historical past of a person or firm. Forex– A typically accepted type of cash, together with cash and paper notes, which is issued by a authorities and circulated inside an financial system. Developed Markets (‘DM’)– A rustic with a comparatively excessive stage of financial progress and safety. Disinflation– A slowing within the price of worth inflation. Rising Market (‘EM’)– A rustic that has some traits of a developed market however will not be a developed market. This consists of international locations which may be developed markets sooner or later or have been previously. EMFX– Rising Markets currencies. Expense Ratio– A measure of what it prices an funding firm to function a mutual fund. FDI (Overseas Direct Funding)– An funding made by an organization or entity based mostly in a single nation, into an organization or entity based mostly abroad. Federal Reserve (the Fed)– The central financial institution of the USA which regulates the U.S. financial and monetary system. FX– Overseas Alternate. GDP (Gross Home Product) – The market worth of all closing items and providers produced inside a rustic in a given time frame. Progress– A diversified portfolio of shares that has capital appreciation as its main purpose, with little or no dividend payouts. Portfolio firms would primarily include firms with above-average progress in earnings that reinvest their earnings into enlargement, acquisitions, and/or analysis and growth. Excessive Yield– A bond that’s rated under funding grade. IMF (Worldwide Financial Fund)– A world group created for the aim of selling international financial and trade price stability, facilitating the enlargement and balanced progress of worldwide commerce and helping within the institution of a multilateral system of funds for present transactions. Inflation– A situation of an increase within the common stage of costs of products and providers in an financial system over a time frame. JP Morgan Authorities Bond Index-Rising Markets World Diversified (JP MorganGBI-EM GD)– A complete international native rising markets index that consists of commonly traded, liquid fixed-rate, home forex authorities bonds and consists of solely the international locations which give entry to their capital market to overseas buyers. The index is market capitalization weighted, with a cap of 10% to anybody nation. Native Forex– The commonest type of forex utilized in a rustic. This often encompasses the nationwide forex of the nation. Macro Stability– Macroeconomic stability exists when key financial relationships are in steadiness. Market Capitalization– Represents the mixture worth of an organization or inventory. It’s obtained by multiplying the variety of shares excellent by their present worth per share. Financial Coverage– The actions of a central financial institution, forex board or different regulatory committee that decide the dimensions and price of progress of the cash provide, which in flip impacts rates of interest. Mutual Funds– An funding car that’s made up of a pool of funds collected from many buyers for the aim of investing in securities equivalent to shares, bonds, money-market devices and comparable property. Mutual funds are operated by cash managers, who make investments the fund’s capital and try to provide capital features and earnings for the fund’s buyers. A mutual fund’s portfolio is structured and maintained to match the funding targets acknowledged in its prospectus. Off-Index/Benchmark– Securities that aren’t a part of the Fund’s benchmark index. Outperform– Outperform is when an funding is predicted to carry out higher than the return generated by a selected index or the general market. Because the efficiency of many investments is in comparison with a benchmark index, outperform refers to producing a better return than a selected benchmark over time. Outperform additionally refers to an analyst’s score on a safety, and outperform is a greater score than impartial and worse than a robust purchase suggestion. Chubby– A situation the place the portfolio publicity to a given asset class (or danger measure) exceeds that of the benchmark index. Danger Premium (or Yield Premium)– The minimal price of return demanded by holders of a dangerous asset in extra of the return on a risk-free asset with comparable maturity and period profile. S&P 500– The S&P 500 Index, or Customary & Poor’s 500 Index, is a market-capitalization-weighted index of 500 main publicly traded firms within the U.S. The index truly has 503 elements as a result of three of them have two share lessons listed. S&P 500

– The S&P 500 Index, or Customary & Poor’s 500 Index, is a market-capitalization-weighted index of 500 main publicly traded firms within the U.S. The index truly has 503 elements as a result of three of them have two share lessons listed. Underperform– When an funding is underperforming, it isn’t maintaining tempo with different securities or indices. Underweight– A situation the place a portfolio doesn’t maintain a enough quantity of a selected safety when in comparison with the safety’s weight within the underlying benchmark portfolio. United States Greenback (‘USD’)– Abbreviated as USD, the greenback is the forex for the USA of America. Volatility– A measure of the chance of worth strikes for a safety calculated from the usual deviation of day-to-day logarithmic historic worth adjustments. Yield– The earnings return on an funding. This refers back to the curiosity or dividends acquired from a safety and is often expressed yearly as a share based mostly on the funding’s price, its present market worth or its face worth.

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