TCW Emerging Markets Income Fund

Investor Summary

The TCW Emerging Markets Income Fund is managed by a highly experienced team led by David I. Robbins (Group Managing Director, 42 years experience, managing since December 17, 2009), Christopher Hays (Managing Director, 16 years experience, joined May 1, 2024), Jae H. Lee (Managing Director, 25 years experience, joined May 1, 2024), and Penelope D. Foley (Lead Portfolio Manager until December 2025, 14 years experience). The fund operates under The TCW Group, Inc., with Bryan T. Whalen, CFA serving as Chief Investment Officer and Head of Fixed Income, overseeing over $170 billion in fixed income assets. Katie Koch serves as President and Chief Executive Officer, bringing 24 years of industry experience after joining TCW in 2023 from Goldman Sachs Asset Management where she managed $300 billion in public equity business as Partner and CIO. The fund was launched on May 29, 1998 and represents one of the longest-tenured emerging markets debt teams in the industry. TCW Group manages approximately $200 billion in total client assets and is headquartered in Los Angeles, with ownership interests held by TCW management, The Carlyle Group, and Nippon Life Insurance Company. The management team's extensive experience spans multiple market cycles and emphasizes fundamental research and high-conviction investing approaches.

Fund Strategy

The Fund's investment objective is to seek high total return from current income and capital appreciation. The Fund invests primarily in debt securities issued or guaranteed by companies, financial institutions and government entities in emerging market countries. Under normal circumstances, the fund invests at least 80% of the value of its net assets in debt securities issued or guaranteed by entities in Emerging Market Countries. The investment process is fundamentals and valuations-based, with an emphasis on capturing inflection points in sovereigns and focusing on corporates with deleveraging potential. The Fund is managed by one of the longest-tenured emerging markets debt teams in the industry focusing on fundamental research and high-conviction investing. The integrated top-down and bottom-up investment process emphasizes global and multi-sector diversification to generate attractive risk-adjusted returns from income and capital appreciation. The Fund employs a value-oriented investment approach combining top-down and bottom-up processes, emphasizing global and multi-sector diversification to optimize risk-adjusted returns. The experienced team leverages extensive credit research and market analysis to dynamically adjust portfolio allocations among sovereign debt, corporate debt (15-35% of the portfolio), and local currency debt (0-30%) based on relative value shifts within emerging markets. The fund exclusively invests in hard currency-denominated securities and maintains a diversified credit quality distribution ranging from AA to D-rated instruments. The Investment Team has an average of over 38 years of experience in emerging markets investing, through both up and down markets.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
7.72%	6%	4.98%

Executive Summary

The TCW Emerging Markets Income Fund returned 6.00% net in Q2 2026, outperforming its benchmark by 137bps, driven primarily by security selection in high yield and overweight positioning in Ukraine, Egypt, and Argentina. The managers maintain a constructive outlook on EM debt, emphasizing that the asset class benefits from stronger macroeconomic fundamentals than Developed Markets, including healthier fiscal trajectories, lower public debt burdens, and more disciplined monetary policy frameworks. Real yields across EM remain meaningfully above those in Developed Markets, providing attractive income and historically strong return drivers. The fund increased its high yield overweight to +14.58% and added exposure to Egypt, Indonesia, Ivory Coast, Mexico, Lebanon, India, and Saudi Arabia. Key risks include geopolitical uncertainty, dollar strength, and political volatility in select markets like Senegal. The managers view the US dollar as structurally overvalued and expect gradual weakness over the medium term, which would support local currency debt returns. They believe elevated real yields, improving fundamentals, and increasing country-level dispersion create a favorable environment for active management across both hard and local currency markets.

Forward Outlook

The managers remain constructive on the outlook for EM debt. Elevated real yields, improving sovereign fundamentals, attractive income levels, and increasing dispersion across countries and issuers continue to create a favorable backdrop for active investors. While geopolitical developments and policy uncertainty may contribute to periodic volatility, they believe both hard and local currency debt remain well positioned to benefit from resilient EM fundamentals, attractive valuations, and a gradually more supportive global macroeconomic environment. They continue to see a compelling opportunity set in local currency debt driven by elevated real yields, improving macroeconomic fundamentals, and the potential for further US dollar weakness over the medium term.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Jul 22 2026	2026 Q2	-	Debt, Dollar, emerging markets, high yield, Latin America, Local Currency, real yields, Sovereigns	-	TCW's EM Income Fund outperformed by 137bps in Q2 2026, driven by high yield selection and overweights in Ukraine, Egypt, and Argentina. The managers are constructive on EM debt given superior fundamentals versus Developed Markets, elevated real yields, and expected dollar weakness. They increased high yield exposure to +14.58% and added to Egypt, Indonesia, Mexico, and India while trimming Turkey and Colombia.
May 6 2026	2026 Q1	-	China, Currency, emerging markets, fixed income, geopolitics, Middle East, oil, volatility	-	TCW's EM debt fund outperformed despite Q1 volatility from Middle East conflict, benefiting from Venezuela overweight and energy exporter positioning. Managers view current stress as temporary shock rather than fundamental breakdown, using weakness to add selective exposure. Medium-term outlook remains constructive given stronger EM balance sheets and attractive valuations.
Feb 18 2026	2025 Q4	TGEIX, TGEPX, TGEZX, TGINX	Currency, Dollar, emerging markets, geopolitics, growth, Resilience, Sovereign Bonds, Trade Policy	-	TCW EM Income delivered strong 2025 returns despite Q4 underperformance from high yield selection and country positioning. The team expects continued EM resilience in 2026 driven by superior growth fundamentals and USD weakness. They're positioned for idiosyncratic opportunities with Latin America overweights while managing geopolitical risks and election-driven volatility across key markets.
Nov 13 2025	2025 Q3	-	Dollar, emerging markets, fixed income, inflation, rates, Sovereign, Spreads, Trade Policy	-	TCW's EM Income Fund outperformed in Q3 through high yield overweights and security selection, delivering 5.50% net returns. The team maintains constructive medium-term outlook despite global growth headwinds, positioning for USD weakness and trade flow redirection. Portfolio emphasizes idiosyncratic high yield opportunities with regional focus on Africa, Latin America and Europe while underweighting Asia.
Jul 28 2025	2025 Q2	-	Dollar, emerging markets, monetary policy, tariffs, Trade Policy, volatility	-	Emerging markets are positioned for resilience and outperformance despite global uncertainty from U.S. trade policy volatility. Attractive valuations, solid fundamentals, looser monetary policy, and improving inflation trends support the constructive outlook. Tariff wars remain the primary risk, but EM countries should benefit from dollar weakness and supply chain realignments while outperforming developed markets.
Mar 31 2025	2025 Q1	-	emerging markets, fixed income, Geopolitical, Spreads, tariffs, Trade Policy, volatility	-	TCW Emerging Markets Income Fund outperformed benchmark in Q1 2025 despite elevated trade policy risks. Management reduced high yield exposure while adding selective local currency positions. U.S. tariffs exceeded expectations, creating significant volatility, but team maintains constructive EM view with overweight Africa and Latin America positioning. Focus on re-underwriting positions and idiosyncratic opportunities amid uncertainty.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Jul 22 2026

2026 Q2

Debt, Dollar, emerging markets, high yield, Latin America, Local Currency, real yields, Sovereigns

TCW's EM Income Fund outperformed by 137bps in Q2 2026, driven by high yield selection and overweights in Ukraine, Egypt, and Argentina. The managers are constructive on EM debt given superior fundamentals versus Developed Markets, elevated real yields, and expected dollar weakness. They increased high yield exposure to +14.58% and added to Egypt, Indonesia, Mexico, and India while trimming Turkey and Colombia.

May 6 2026

2026 Q1

China, Currency, emerging markets, fixed income, geopolitics, Middle East, oil, volatility

TCW's EM debt fund outperformed despite Q1 volatility from Middle East conflict, benefiting from Venezuela overweight and energy exporter positioning. Managers view current stress as temporary shock rather than fundamental breakdown, using weakness to add selective exposure. Medium-term outlook remains constructive given stronger EM balance sheets and attractive valuations.

Feb 18 2026

2025 Q4

TGEIX, TGEPX, TGEZX, TGINX

Currency, Dollar, emerging markets, geopolitics, growth, Resilience, Sovereign Bonds, Trade Policy

TCW EM Income delivered strong 2025 returns despite Q4 underperformance from high yield selection and country positioning. The team expects continued EM resilience in 2026 driven by superior growth fundamentals and USD weakness. They're positioned for idiosyncratic opportunities with Latin America overweights while managing geopolitical risks and election-driven volatility across key markets.

Nov 13 2025

2025 Q3

Dollar, emerging markets, fixed income, inflation, rates, Sovereign, Spreads, Trade Policy

TCW's EM Income Fund outperformed in Q3 through high yield overweights and security selection, delivering 5.50% net returns. The team maintains constructive medium-term outlook despite global growth headwinds, positioning for USD weakness and trade flow redirection. Portfolio emphasizes idiosyncratic high yield opportunities with regional focus on Africa, Latin America and Europe while underweighting Asia.

Jul 28 2025

2025 Q2

Dollar, emerging markets, monetary policy, tariffs, Trade Policy, volatility

Emerging markets are positioned for resilience and outperformance despite global uncertainty from U.S. trade policy volatility. Attractive valuations, solid fundamentals, looser monetary policy, and improving inflation trends support the constructive outlook. Tariff wars remain the primary risk, but EM countries should benefit from dollar weakness and supply chain realignments while outperforming developed markets.

Mar 31 2025

2025 Q1

emerging markets, fixed income, Geopolitical, Spreads, tariffs, Trade Policy, volatility

TCW Emerging Markets Income Fund outperformed benchmark in Q1 2025 despite elevated trade policy risks. Management reduced high yield exposure while adding selective local currency positions. U.S. tariffs exceeded expectations, creating significant volatility, but team maintains constructive EM view with overweight Africa and Latin America positioning. Focus on re-underwriting positions and idiosyncratic opportunities amid uncertainty.

QUARTER	THEMES	TAGS
2026 Q2	Emerging Markets EM debt generated strong returns in Q2 2026 driven by improving risk sentiment and resilient fundamentals. EM continues to benefit from stronger macroeconomic fundamentals than Developed Markets, including healthier fiscal trajectories, lower public debt burdens, stronger growth prospects, and more disciplined monetary policy frameworks. The asset class now represents over $44 trillion, or roughly 27% of global debt, spanning more than 70 countries and 750 issuers.	Emerging Markets Debt Fundamentals Fiscal Growth
	High Yield High yield sovereigns outperformed investment grade sovereigns, returning 6.74% vs. 2.48% in Q2. EM high yield sovereigns continue to offer attractive carry and potential upside in countries where improving macroeconomic or political fundamentals are not yet fully reflected in valuations. The fund increased its high yield overweight to +14.58%, focusing on idiosyncratic and relative value opportunities.	High Yield Sovereigns Carry Spreads
	Dollar The managers view the US dollar as structurally overvalued. Despite higher U.S. front-end rates and recent support from elevated energy prices, the dollar's appreciation has been relatively muted. They believe much of the favorable U.S. terms-of-trade shock is temporary rather than structural, and expect a gradual resumption of USD weakness over the medium term as energy-related support fades and growth differentials narrow.	Dollar Currency Valuation Weakness
	Rates Real yields across much of the EM universe remain meaningfully above those available in Developed Markets, providing an important source of income and historically serving as a key driver of long-term returns. Elevated real yields continue to create a favorable backdrop for EM debt. The Federal Reserve faces a high hurdle for renewed tightening.	Real Yields Income Rates Fed
	Argentina Overweight positioning in Argentina benefited from a series of sovereign ratings upgrades, continued progress on economic reforms, and declining inflation. The managers view ongoing reforms and political stabilization in Argentina as supportive for investment and growth over time.	Argentina Reforms Inflation Ratings
	Ukraine Overweight positioning in Ukraine reflected continued support from the IMF and EU, improving confidence in liquidity and debt sustainability, and a more constructive outlook for Ukraine's prospects in the Russia/Ukraine war. The managers believe the eventual conclusion of the Russia-Ukraine conflict could unlock additional opportunities across parts of Central and Eastern Europe.	Ukraine IMF Debt Sustainability Conflict
	Egypt Security selection in Egypt benefited from improving external liquidity conditions, continued IMF-supported reform progress, and consistent, high carry. Positioning was entirely focused on off-index, short-dated local currency sovereign debt. The managers increased exposure to Egypt during the quarter.	Egypt Liquidity IMF Local Currency
	China China remains in a structurally slower but increasingly more sustainable growth regime. Growth continues to be constrained by property market weakness, subdued household confidence, excess industrial capacity, and elevated local government debt. Persistent disinflationary pressures and excess manufacturing capacity should continue to exert an influence on global goods prices. The fund lacked exposure to investment grade rated sovereigns such as China as high yield outperformed.	China Growth Property Deflation Manufacturing
2026 Q1	Oil Oil prices elevated in March 2026 due to Middle East conflict, benefiting energy exporters like Angola, Gabon, and Latin American producers. Energy shocks have disproportionate impact on EM economies given higher energy weight in CPI baskets. Higher oil prices act as tax on consumption for energy importers, particularly affecting Philippines and Southeast Asia.	Energy Commodities Middle East Inflation Exports
	Middle East Middle East conflict triggered market volatility and outflows in March 2026. Fund opportunistically increased exposure to select Middle Eastern names that had widened including Oman, Bahrain and Saudi Arabia. Disruptions around Strait of Hormuz create elevated uncertainty but also differentiated opportunities.	Geopolitics Volatility Opportunity Conflict Regional
	China China's outlook remains constrained by structural and cyclical headwinds. While authorities front-loaded targeted stimulus and exports remain robust, weak property sector transmission, subdued household confidence, and excess capacity continue to suppress domestic demand and pricing power. Fund maintains underweight position.	Property Stimulus Domestic Demand Exports Structural
	Inflation Energy shocks tend to have disproportionate impact on EM economies given higher weight of energy and food in CPI baskets. Inflation will likely increase over next 12 months, but combination of moderating growth and China's disinflationary exports will help mitigate pressure. EM central banks likely to hike rates to support currencies.	Energy Food Central Banks Rates Currency
	Dollar USD strengthened 1.67% during quarter, supported by improvement in terms of trade and rise in short-term yields. Recent dollar rally amplified against currencies with crowded positioning and energy importers. Absent sustained energy supply disruption, longer-term fundamentals do not support cyclical USD uptrend.	Currency Terms of Trade Yields Energy Positioning
	Venezuela Overweight positioning in Venezuela following U.S. capture of President Nicolás Maduro as part of Trump administration's campaign against narco-terrorists, paving way for economic recovery led by increase in oil production and potential for bond restructuring which could present further upside.	Politics Oil Production Restructuring Recovery Bonds
2025 Q4	Dividends The fund invests approximately 50% of its assets in the 10 highest dividend-yielding Dow Jones Industrial Average stocks, known as the Dogs of the Dow strategy. This systematic approach focuses on dividend yield as the primary selection criterion for equity investments.	Dividend Yield Dogs of the Dow Income DJIA Yield
2025 Q3	Trade Policy The Trump administration has backed down from most worst-case scenario threats, but new tariff ultimatums against China and Europe reinforce perception that uncertainties can re-emerge. Current U.S. effective tariff rate is around 17% - the highest level since the 1930s. This environment presents opportunities in the 68 country EMBI index, ranging from exporters of critical materials to domestic growth stories.	Tariffs China Europe Trade
	Inflation Inflationary pressures in EM countries have softened faster than expected during 2025, allowing for more decisive monetary policy response relative to advanced economies. This trend is likely to be extended by U.S. Fed easing in 2025 and 2026. The tariff shock may have disproportionately larger price impact in the U.S. or EU than in most EM countries.	Monetary Policy Fed Rates Disinflation
	Dollar Despite a 9% decline, the USD remains near multi-decade highs on a real effective basis. An economic slowdown in the U.S. and potential for further Fed easing could erode its carry and growth advantage, leaving room for additional USD weakness. Depreciation pressure may stem from increased USD hedge ratios by foreign investors amid trade policy uncertainty.	USD Currency Fed Weakness
	Rates EM remains uniquely positioned to take advantage of shifts in global trade dynamics with looser monetary policies in major economies anticipated. The Fed easing in 2025 and 2026 supports EM monetary policy flexibility. EM investment grade sovereign and corporate bonds offer 30 to 60 basis point premium over U.S. investment grade corporates.	Monetary Policy Fed Spreads Yields
2025 Q2	Resilience Emerging markets are positioned for resilience amid global uncertainty, with solid domestic fundamentals and prudent economic policies enabling outperformance versus developed markets. Countries with strong fundamentals should weather the projected global growth slowdown better than peers.	Fundamentals Outperformance Stability
	Trade Policy Tariff wars remain the top risk to the global economy, with the U.S. implementing reciprocal tariffs on all nations. While preliminary data shows modest impact so far, uncertainty remains elevated with ongoing trade negotiations and potential for additional tariffs through August.	Tariffs Negotiations Uncertainty Policy
	Rates Looser global monetary policy from major economies should benefit emerging markets, with improving inflation trends enabling more assertive monetary policy stances across most EM countries. Fed Chair Powell faces pressure from President Trump to ease rates.	Monetary Easing Central Banks
2025 Q1	Trade Policy U.S. import tariffs announced on April 2 exceeded worst-case expectations with universal and reciprocal levies. Tariff wars between the U.S. and rest of world are viewed as the number one risk to global economy and most emerging markets. Markets experienced volatility with MOVE Index nearly breaching 140 and VIX around 50.	Tariffs Trade War Volatility Global Growth Protectionism
	Emerging markets Fund focuses on emerging market debt securities with overweight positioning in Africa and Latin America against underweight in Asia and Middle East. Manager believes EM growth will outpace DM growth despite anticipated global slowdown. Spreads in 400-425bps range historically good trade on six to twelve month view.	EM Debt Spreads Regional Allocation Growth Differential Fixed Income
	Geopolitical Overweight positioning in Lebanon benefited from Israel-Hezbollah ceasefire and reduced geopolitical risk perception. Ukraine positioning gained from market optimism on potential peace or ceasefire. Trade tensions escalated significantly with China requiring monitoring of Trump-Xi communications.	Ceasefire Peace Regional Risk Conflict Diplomacy

QUARTER

THEMES

Emerging Markets

EM debt generated strong returns in Q2 2026 driven by improving risk sentiment and resilient fundamentals. EM continues to benefit from stronger macroeconomic fundamentals than Developed Markets, including healthier fiscal trajectories, lower public debt burdens, stronger growth prospects, and more disciplined monetary policy frameworks. The asset class now represents over $44 trillion, or roughly 27% of global debt, spanning more than 70 countries and 750 issuers.

Emerging Markets Debt Fundamentals Fiscal Growth

High Yield

High yield sovereigns outperformed investment grade sovereigns, returning 6.74% vs. 2.48% in Q2. EM high yield sovereigns continue to offer attractive carry and potential upside in countries where improving macroeconomic or political fundamentals are not yet fully reflected in valuations. The fund increased its high yield overweight to +14.58%, focusing on idiosyncratic and relative value opportunities.

High Yield Sovereigns Carry Spreads

Dollar

The managers view the US dollar as structurally overvalued. Despite higher U.S. front-end rates and recent support from elevated energy prices, the dollar's appreciation has been relatively muted. They believe much of the favorable U.S. terms-of-trade shock is temporary rather than structural, and expect a gradual resumption of USD weakness over the medium term as energy-related support fades and growth differentials narrow.

Dollar Currency Valuation Weakness

Rates

Real yields across much of the EM universe remain meaningfully above those available in Developed Markets, providing an important source of income and historically serving as a key driver of long-term returns. Elevated real yields continue to create a favorable backdrop for EM debt. The Federal Reserve faces a high hurdle for renewed tightening.

Real Yields Income Rates Fed

Argentina

Overweight positioning in Argentina benefited from a series of sovereign ratings upgrades, continued progress on economic reforms, and declining inflation. The managers view ongoing reforms and political stabilization in Argentina as supportive for investment and growth over time.

Argentina Reforms Inflation Ratings

Ukraine

Overweight positioning in Ukraine reflected continued support from the IMF and EU, improving confidence in liquidity and debt sustainability, and a more constructive outlook for Ukraine's prospects in the Russia/Ukraine war. The managers believe the eventual conclusion of the Russia-Ukraine conflict could unlock additional opportunities across parts of Central and Eastern Europe.

Ukraine IMF Debt Sustainability Conflict

Egypt

Security selection in Egypt benefited from improving external liquidity conditions, continued IMF-supported reform progress, and consistent, high carry. Positioning was entirely focused on off-index, short-dated local currency sovereign debt. The managers increased exposure to Egypt during the quarter.

Egypt Liquidity IMF Local Currency

China

China remains in a structurally slower but increasingly more sustainable growth regime. Growth continues to be constrained by property market weakness, subdued household confidence, excess industrial capacity, and elevated local government debt. Persistent disinflationary pressures and excess manufacturing capacity should continue to exert an influence on global goods prices. The fund lacked exposure to investment grade rated sovereigns such as China as high yield outperformed.

China Growth Property Deflation Manufacturing

2026 Q1

Oil

Oil prices elevated in March 2026 due to Middle East conflict, benefiting energy exporters like Angola, Gabon, and Latin American producers. Energy shocks have disproportionate impact on EM economies given higher energy weight in CPI baskets. Higher oil prices act as tax on consumption for energy importers, particularly affecting Philippines and Southeast Asia.

Energy Commodities Middle East Inflation Exports

Middle East

Middle East conflict triggered market volatility and outflows in March 2026. Fund opportunistically increased exposure to select Middle Eastern names that had widened including Oman, Bahrain and Saudi Arabia. Disruptions around Strait of Hormuz create elevated uncertainty but also differentiated opportunities.

Geopolitics Volatility Opportunity Conflict Regional

China

China's outlook remains constrained by structural and cyclical headwinds. While authorities front-loaded targeted stimulus and exports remain robust, weak property sector transmission, subdued household confidence, and excess capacity continue to suppress domestic demand and pricing power. Fund maintains underweight position.

Property Stimulus Domestic Demand Exports Structural

Inflation

Energy shocks tend to have disproportionate impact on EM economies given higher weight of energy and food in CPI baskets. Inflation will likely increase over next 12 months, but combination of moderating growth and China's disinflationary exports will help mitigate pressure. EM central banks likely to hike rates to support currencies.

Energy Food Central Banks Rates Currency

Dollar

USD strengthened 1.67% during quarter, supported by improvement in terms of trade and rise in short-term yields. Recent dollar rally amplified against currencies with crowded positioning and energy importers. Absent sustained energy supply disruption, longer-term fundamentals do not support cyclical USD uptrend.

Currency Terms of Trade Yields Energy Positioning

Venezuela

Overweight positioning in Venezuela following U.S. capture of President Nicolás Maduro as part of Trump administration's campaign against narco-terrorists, paving way for economic recovery led by increase in oil production and potential for bond restructuring which could present further upside.

Politics Oil Production Restructuring Recovery Bonds

2025 Q4

Dividends

The fund invests approximately 50% of its assets in the 10 highest dividend-yielding Dow Jones Industrial Average stocks, known as the Dogs of the Dow strategy. This systematic approach focuses on dividend yield as the primary selection criterion for equity investments.

Dividend Yield Dogs of the Dow Income DJIA Yield

2025 Q3

Trade Policy

The Trump administration has backed down from most worst-case scenario threats, but new tariff ultimatums against China and Europe reinforce perception that uncertainties can re-emerge. Current U.S. effective tariff rate is around 17% - the highest level since the 1930s. This environment presents opportunities in the 68 country EMBI index, ranging from exporters of critical materials to domestic growth stories.

Tariffs China Europe Trade

Inflation

Inflationary pressures in EM countries have softened faster than expected during 2025, allowing for more decisive monetary policy response relative to advanced economies. This trend is likely to be extended by U.S. Fed easing in 2025 and 2026. The tariff shock may have disproportionately larger price impact in the U.S. or EU than in most EM countries.

Monetary Policy Fed Rates Disinflation

Dollar

Despite a 9% decline, the USD remains near multi-decade highs on a real effective basis. An economic slowdown in the U.S. and potential for further Fed easing could erode its carry and growth advantage, leaving room for additional USD weakness. Depreciation pressure may stem from increased USD hedge ratios by foreign investors amid trade policy uncertainty.

USD Currency Fed Weakness

Rates

EM remains uniquely positioned to take advantage of shifts in global trade dynamics with looser monetary policies in major economies anticipated. The Fed easing in 2025 and 2026 supports EM monetary policy flexibility. EM investment grade sovereign and corporate bonds offer 30 to 60 basis point premium over U.S. investment grade corporates.

Monetary Policy Fed Spreads Yields

2025 Q2

Resilience

Emerging markets are positioned for resilience amid global uncertainty, with solid domestic fundamentals and prudent economic policies enabling outperformance versus developed markets. Countries with strong fundamentals should weather the projected global growth slowdown better than peers.

Fundamentals Outperformance Stability

Trade Policy

Tariff wars remain the top risk to the global economy, with the U.S. implementing reciprocal tariffs on all nations. While preliminary data shows modest impact so far, uncertainty remains elevated with ongoing trade negotiations and potential for additional tariffs through August.

Tariffs Negotiations Uncertainty Policy

Rates

Looser global monetary policy from major economies should benefit emerging markets, with improving inflation trends enabling more assertive monetary policy stances across most EM countries. Fed Chair Powell faces pressure from President Trump to ease rates.

Monetary Easing Central Banks

2025 Q1

Trade Policy

U.S. import tariffs announced on April 2 exceeded worst-case expectations with universal and reciprocal levies. Tariff wars between the U.S. and rest of world are viewed as the number one risk to global economy and most emerging markets. Markets experienced volatility with MOVE Index nearly breaching 140 and VIX around 50.

Tariffs Trade War Volatility Global Growth Protectionism

Emerging markets

Fund focuses on emerging market debt securities with overweight positioning in Africa and Latin America against underweight in Asia and Middle East. Manager believes EM growth will outpace DM growth despite anticipated global slowdown. Spreads in 400-425bps range historically good trade on six to twelve month view.

EM Debt Spreads Regional Allocation Growth Differential Fixed Income

Geopolitical

Overweight positioning in Lebanon benefited from Israel-Hezbollah ceasefire and reduced geopolitical risk perception. Ukraine positioning gained from market optimism on potential peace or ceasefire. Trade tensions escalated significantly with China requiring monitoring of Trump-Xi communications.

Ceasefire Peace Regional Risk Conflict Diplomacy

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
No Elevator Pitches found

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

No Elevator Pitches found

TICKER	COMMENTARY
No ticker commentary found.

TICKER

COMMENTARY

No ticker commentary found.

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
No Recent Buys Data

Ticker

Put/Call

Amount Bought

Shares Bought

% Change

Weight %

No Recent Buys Data

Ticker	Put/Call	Amount Sold	Shares Sold	% Change	Weight %	Status
No Recent Sells Data

Ticker

Put/Call

Amount Sold

Shares Sold

% Change

Weight %

Status

No Recent Sells Data

Industry	Prev Quarter %	Current Quarter %	Change
No industry data available

Industry

Prev Quarter %

Current Quarter %

Change

No industry data available

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th June 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Emerging Markets

High Yield

Dollar

Rates

Argentina

Ukraine

Egypt

China

Oil

Middle East

China

Inflation

Dollar

Venezuela

Dividends

Trade Policy

Inflation

Dollar

Rates

Resilience

Trade Policy

Rates

Trade Policy

Emerging markets

Geopolitical

Investor Pitches

Current Portfolio as of ( 30th June 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Penelope D. Foley Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

Join for free and get access to the buyside

Get insights from the world's most influential hedge fund investors direct to your inbox

Follow Us On:

Subscribe to receive email notification and updates for:

TCW Emerging Markets Income Fund