The TCW Group, a global asset manager, is seeing increased interest from European investors in US fixed income products amid central banks’ activism and historically low rates.
Investors are looking to access fixed income asset classes such as high quality credit and sectors like ABS and MBS, which have different yield and liquidity characteristics in US markets.
As low bond yields and central bank activism contribute to a continued search for yield, TCW’s MetWest Total Return Bond UCITS fund has just marked a three-year anniversary. The fund is offering investors a total return strategy which encompasses all segments of the US fixed income universe. The US counterpart of this UCITS fund has a nearly 20-year track record and over $75bn in AUM.
TCW’s MetWest Total Return Bond UCITS fund is currently positioned defensively given the investment team’s view that the credit cycle is at its end. The fund’s duration remains shorter than the index, and sector positioning and issue selection remain conservative.
The fund currently has an underweight to corporate credit and high yield, and overweight positioning in structured products such as ABS and MBS.
“We are seeing renewed interest in this asset class in a number of markets throughout Europe, and investors are attracted to a portfolio management team with a strong track record and a disciplined, repeatable process that has shown long-term success across market cycles,” Gian Luca Giurlani, managing director of TCW Europe, said.