Even the simplest press release about doubling your assets can start a media feeding frenzy. On Wednesday TCW [profile] retail sales chief Chuck Baldiswieler announced that the Los Angeles-based asset manager's mutual fund assets had passed $40 billion, and Bloomberg and InvestmentNews used the opportunity to bring up TCW's fight with its former chief investment officer, Jeff Gundlach.
InvestmentNews posted a Bloomberg article on the milestone. The trade pub initially added the following headline to the wire service's coverage: "TCW to Gundlach: We're doing just fine without you."
The InvestmentNews headline has since been changed to the less-punchy but still rivalry-laden "TCW fund assets double to $40B since Gundlach's departure."
The article notes that investors pulled out about $25 billion of TCW's $110 billion after management fired Gundlach in December 2009 and bought rival MetWest. Yet two and a half years later, post-Gundlach and post-MetWest acquisition, TCW now manages $128 billion, including $40 billion in mutual fund assets.
Gundlach's DoubleLine [profile], launched just after he left TCW, now boasts $35 billion.
Baldiswieler's original press release is below.
Company Press Release
TCW Mutual Fund Complex Tops $40 Billion in Assets
LOS ANGELES – June 13, 2012 – The TCW Group (TCW), a global asset manager, announced that total assets under management in its TCW and MetWest-branded mutual funds have surpassed $40 billion, continuing the remarkable growth of the fund complex.
Strong performance across fixed income, equity and international asset classes, combined with net inflows of more than $15 billion into the fund complex, has led to a four-fold increase in fund AUM since the close of 2009, when TCW announced the acquisition of Metropolitan West Asset Management. The MetWest acquisition, finalized in 2010, doubled TCW’s Fund assets, to just under $20 billion.
“We’re gratified at the continued support from our investors that has helped us reach this milestone. TCW and MetWest mutual funds have become recognized over the last several years for delivering strong, consistent results and that recognition is reflected in reaching $40 billion in assets,’’ said Charles “Chuck” Baldiswieler, President and Chief Executive Officer of TCW Funds, Inc.
Several funds in particular have powered TCW’s mutual fund growth. Assets in MetWest Total Return Bond Fund (MWTIX/MWTRX) have nearly tripled in the last two and a half years to over $20 billion, while the TCW Emerging Markets Income Fund (TGEIX/TGINX) has grown by more than $3.8 billion over that time to a current asset size of nearly $4 billion. The MetWest High Yield Bond Fund (MWHIX/MWHYX) has increased in size four-fold to $2.2 billion, the TCW Small Cap Growth Fund (TGSCX/TGSNX) has doubled in size to over $1.1 billion, while the TCW Select Equities Fund (TGCEX/TGCNX) has grown assets 75% to over $900 million.
The combined fund complex has attracted $4.7 billion in net inflows in 2012, including $2.2 billion into the MetWest Total Return Bond Fund, $940 million into the TCW Emerging Markets Income Fund, $800 million into the TCW Total Return Bond Fund (TGLMX/TGMNX), and more than $220 million into both the TCW Select Equities Fund and the TCW Relative Value Large Cap Fund (TGDIX/TGDVX).
TCW has significantly expanded its mutual fund offerings over the last two years by launching six new funds including the MetWest Unconstrained Bond Fund (MWCIX/MWCRX) and the TCW Global Bond Fund (TGGBX/TGGFX).
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 $128 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. Metropolitan West Asset Management LLC (MetWest), acquired by TCW in February 2010, is a wholly-owned subsidiary of TCW.
Past performance is no guarantee of future results.
Obtain a Prospectus
You should consider the investment objectives, risks, charges, and expenses of each Fund carefully before investing. The TCW Funds and MetWest Funds prospectuses and summary prospectuses contain this and other information about each Fund. You may download separate prospectuses for TCW and MetWest Funds from the Funds’ website at tcw.com. Please read each prospectus carefully before you invest or send money.
A Word about Risk
Bond Funds have the same interest rate, high yield and credit risks associated with the underlying bonds in the portfolio, all of which could reduce the Fund’s value. As interest rates rise, the value of the Fund can decline and an investor can lose principal. Emerging markets securities carry special risks, such as less developed or less efficient trading markets, a lack of company information, and differing auditing and legal standards. The securities markets of emerging markets countries can be extremely volatile. Investing in foreign currencies carries special risks including the risk that the value of the Fund’s investments denominated in foreign currencies will decline in value because the foreign currency has declined in value relative to the U.S. dollar. Stock Funds have the same equity and price volatility risks associated with the underlying stocks in the portfolio, all of which could reduce the Funds’ value. Funds investing in mid and small cap companies involve special risks including higher volatility and lower liquidity. As stock prices fluctuate, the value of the Funds can decline and an investor can lose principal.
The TCW Funds are distributed by TCW Funds Distributors.
The MetWest Funds are distributed by Foreside Fund Distributors, LLC. which is not affiliated with TCW. The MetWest Funds are advised by Metropolitan West Asset Management, LLC, which is a wholly-owned subsidiary of The TCW Group, Inc.