TCW: European investors interest in US fixed income increases

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.

Alicia Villegas
Alicia Villegas speaks Spanish and Italian and is Iberia Correspondent for InvestmentEurope. She was shortlisted for the Rising Star Award at the British Media Awards 2017 and Writer of the Year at the PPA Independent Publisher Awards 2016. Previously, she worked for almost three years at the seafood business website Undercurrent News as a market reporter. In Spain, she also worked for more than five years for several media outlets.

Read more from Alicia Villegas

Close Window
View the Magazine

I also agree to receive editorial emails from InvestmentEurope
I also agree to receive event communications for InvestmentEurope
I also agree to receive other communications emails from InvestmentEurope
I agree to the terms of service *

You need to fill all required fields!