TCW Investment Management Company is a Los Angeles, California-based financial advisor providing various investment management services for institutional and individual clients. The firm is fee-based and serves thousands of clients. TCW also has a large team of financial advisors on staff.
As a fee-based firm, TCW can receive compensation from both client-paid fees and third-party commissions. On the flip side, a fee-only firm can only receive compensation from the fees its clients pay.
TCW Investment Management Company Background
Founded in 1987, TCW is a wholly-owned subsidiary of the TCW Group, Inc. The firm specializes in U.S. Equities, U.S. fixed-income, international and alternative investment strategies. TCW mainly relies on investment advisory accounts, public and private open- and closed-end commingled investment vehicles and wrap fee programs.
The firm has multiple divisions that manage its accounts, including its Marketable Securities Division, Alternative Investments/Structured Investments Division and Managed Accounts Division.
TCW Investment Management Company Client Types and Minimum Account Sizes
TCW serves individuals and high-net-worth individuals, corporate and public pension plans, registered investment companies, financial institutions, endowments, foundations, foreign investors and foreign investment companies.
The firm’s minimum account size requirements vary based on account type type. Its minimum sizes generally range from $2,000 to $100 million, depending on the investment vehicle or investment strategy used.
Services Offered by TCW Investment Management Company
Overall, TCW provides investment advisory services and wrap fee programs. The firm says it occasionally serves as a sub-advisor. It has several different divisions and investments strategies that it uses.
TCW Investment Management Company Investment Philosophy
TCW focuses on preserving capital for its clients and extracting value by utilizing deep, fundamental “bottom-up” research and analysis, according to its firm brochure. The firm employs credit sector-based research that it says focuses on the ability to generate free cash flow, asset value and seniority in the capital structure. In determining a company’s asset value, TCW utilizes discounted cash flow analysis, percentage of replacement cost and various other methods.
The firm’s key strategies include fixed-income strategies, equities strategies and international strategies.
Fees Under TCW Investment Management Company
TCW charges asset-based fees for its investment management services, and the exact rates vary depending on the account or investment vehicle being used. The firm has different fee schedules for the following accounts and strategies: U.S. fixed-income funds, U.S. equities funds, international funds, undertakings for collective investment in transferable securities (UCITS), U.S. fixed-income strategies, U.S. equities strategies, balanced strategies and international strategies. The management fees for these accounts generally range from 0.10% to 1.80% of AUM.
TCW’s wrap accounts and dual accounts come with rates ranging from 0.28% to 0.50%. The firm doesn’t specify the rates for its separate accounts and its global multi-asset allocation program.
What to Watch Out For
TCW’s account size requirements vary depending on the account or strategy you use. For instance, wrap accounts come with a minimum requirement of $100,000, while mutual funds require at least $2,000. The firm’s fixed income and equities strategies also have different account size requirements, so you’ll want to make sure you meet the minimum threshold before investing with TCW.
Another thing to note is that advisors who are registered broker-dealers can earn additional compensation from the sale of investment products. This can create a conflict of interest if such advisors neglect a client’s best interest for personal gain. TCW is a fiduciary, meaning it must work in each client’s best interest, but the firm’s compensation structures are nonetheless important to note.
Opening an Account With TCW Investment Management Company
If you're interested in opening an account with TCW Investment Management Company, you can call the firm at (213) 244-0000 or send an email, whichever is more convenient for you.
All information was accurate as of the writing of this article.
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