TCW Emerging Markets Local Currency Income Fund Q4 2024 Commentary

Summary

• The TCW Emerging Markets Local Currency Income Fund, I Class returned -7.64% for the fourth quarter of 2024, underperforming GBI-EM GD return of -6.98% by 66bps.
• During the fourth quarter of 2024, Emerging Markets local currency fixed income was impacted by a hawkish turn in the Federal Reserve’s outlook notwithstanding the 25bps rate cut in December 2024.
• We anticipate growth in EM to be relatively stable in 2025, with the EM-DM growth differential remaining at the wider end of the range over the last ten years.

sankai

Performance and Positioning 1

The TCW Emerging Markets Local Currency Income Fund, I Class (“Fund’) returned -7.64% for the fourth quarter of 2024, underperforming the JP Morgan Global Bond Index Emerging Markets Global Diversified (“GBI-EM GD”) return of -6.98% by 66bps. For the year 2024, the Fund returned -3.66%, underperforming the benchmark