The TCW Group[see profile] has launched the MetWest Unconstrained Bond Fund, which will bet on a wide array of global fixed income sectors.
The new offering is the first new fund launched by Metropolitan West Asset Management[see profile] since TCW bought the firm in December 2009 and is MetWest’s first fund to offer international fixed income exposure. “In today’s low interest rate environment, fixed income investors may be better served by looking beyond the traditional benchmarks and interest-rate driven sectors,’’ stated Stephen Kane, a TCW managing director and co-PM of the fund.
“We believe the challenging global economic environment creates unique and attractive opportunities for a go-anywhere fund that is not tied to a specific benchmark.’’
MetWest Launches Unconstrained Bond Fund
LOS ANGELES – Oct. 3, 2011 – The TCW Group (TCW), an international asset-management firm, today announced launch of the MetWest Unconstrained Bond Fund (MWCRX, MWCIX), a mutual fund with the flexibility to invest across a wide array of global fixed income sectors in seeking to maximize positive absolute returns.
“In today’s low interest rate environment, fixed income investors may be better served by looking beyond the traditional benchmarks and interest-rate driven sectors,’’ said Stephen M. Kane, a TCW managing director and co-portfolio manager of the Fund. “We believe the challenging global economic environment creates unique and attractive opportunities for a go-anywhere fund that is not tied to a specific benchmark.’’
The MetWest Unconstrained Bond Fund is the first new fund launched by Metropolitan West Asset Management since its acquisition by TCW in December 2009 and is MetWest’s first fund to offer international fixed income exposure. TCW’s combined mutual fund complex has $32 billion in assets and has more than tripled in size since December 2009, when TCW announced the acquisition of MetWest.
“Successfully executing an unconstrained strategy requires a unique set of capabilities and resources,’’ said TCW managing director Charles “Chuck” Baldiswieler, who directs TCW’s retail distribution efforts. “The fixed income team at TCW brings a deep bench of expertise across global sectors and asset classes.”
The MetWest Unconstrained Bond Fund is a multi-sector bond fund that will invest across multiple fixed income sectors, including investment grade and high yield corporate bonds and bank loans, mortgage-backed securities, and emerging markets debt. Sector allocation will be determined through an integration of macroeconomic analysis and fundamental research of individual securities. The overall interest rate risk, or duration, of the Fund will be allowed to fluctuate significantly over the course of the business cycle. Given the current low level of interest rates, the portfolio managers plan to manage the Fund with very limited exposure to U.S. Treasury rates.
Kane and fellow portfolio managers Laird Landmann and Tad Rivelle, TCW’s chief investment officer for fixed income, lead the MetWest Total Return Bond Fund team that was named Morningstar Fixed Income Manager of the Year in 2005 and has been nominated for the award numerous times.
In addition to the MetWest Total Return Bond Fund, Rivelle is portfolio manager of the TCW Total Return Bond Fund, while Kane and Landmann are portfolio managers of the MetWest High Yield Bond Fund.
The MetWest Unconstrained Bond Fund will also draw on the resources of TCW teams that currently manage over $65 billion in fixed income assets. These teams include the group that manages the TCW Emerging Markets Income Fund and the TCW Emerging Markets Local Currency Income Fund.
A Word about Risk The Fund invests in below investment grade bonds and may be less liquid and subject to greater volatility. The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise the value of bond prices will decline. The Fund may also invest in more aggressive investments such as foreign securities which may expose the fund to currency and exchange rate fluctuations as well as derivatives. The use of certain derivatives may also have a leveraging effect which may increase the volatility of the Fund and reduce its returns.
About TCW Founded in 1971, The TCW Group, Inc., develops and manages a broad range of innovative, value-added investment products that strive to enhance and protect clients’ wealth. The firm has approximately $120 billion in assets under management. TCW clients include many of the largest corporate and public pension plans, financial institutions, endowments and foundations in the U.S., as well as a substantial number of foreign investors and high net worth individuals. TCW is a subsidiary of Société Générale. For more information, please refer to HYPERLINK "http://www.tcw.com/"www.tcw.com.
About MetWest Founded in 1996, Metropolitan West Asset Management LLC (MetWest) is a wholly-owned subsidiary of TCW. Since its founding MetWest has delivered strong fixed income returns for its clients through a value-driven investment philosophy and a client-centered culture. MetWest’s strategies, all of which are team-managed, have garnered six nominations for Morningstar’s Fixed Income Manager of the Year and received this distinguished honor in 2005. TCW announced the acquisition of MetWest in December 2009 and completed the transaction in February 2010.
* The Morningstar Fund Manager of the Year award winners are chosen based on Morningstar’s proprietary research and in-depth evaluation by its Fund analysts.