Metropolitan West Flexible Income Fund
Data updated: 2024-06-11
C000201583 — Metropolitan West Flexible Income Fund. Long Securitized (MBS/ABS/CMBS) Bond · $355.57M AUM. Holdings, fees, performance and SEC filings.
C000201583 Fund Overview
Metropolitan West Flexible Income Fund is a US mutual fund managed by TCW Metropolitan West Funds, categorised as Long Securitized (MBS/ABS/CMBS) Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: TCW Metropolitan West Funds
- Category: Long Securitized (MBS/ABS/CMBS) Bond
- Assets under management: $355.57M
- 1-year return: 5.9%
- SEC CIK: 0001028621
- SEC series ID: S000062248
- Share class ID: C000201583
C000201583 Investment Objective and Strategy
Metropolitan West Flexible Income Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by TCW Metropolitan West Funds.
Investment objective
The Flexible Income Fund seeks a high level of current income with a secondary objective of long-term capital appreciation.
Principal investment strategy
The Fund intends to pursue its objective by utilizing a flexible investment approach that allocates investments across a range of global investment opportunities related to credit, currencies and interest rates. The portfolio management team expects to evaluate each investment idea based on the teams view of its current income potential, risk level, capital appreciation potential, and how it fits within the Funds overall portfolio in determining whether to buy or sell investments. The Adviser expects to allocate the Funds assets in response to changing market, financial, economic, and political factors and events that the Funds portfolio managers believe may affect the values of the Funds investments. The allocation of capital to sectors and securities within each sector in the Fund is expected to be primarily driven by the Advisers assessment of relative value offered by each sector and security, respectively.
The Adviser will actively manage the Funds risks on an on-going basis to mitigate the risks of excessive losses by the portfolio overall. In managing portfolio risk, the Adviser will take into consideration its view of the following: the potential relative performance of various market sectors, security selection available within a given sector, the risk/reward equation for different asset classes, liquidity conditions in various market sectors, the shape of the yield curve and projections for changes in the yield curve, potential fluctuations in the overall level of interest rates, and current monetary and fiscal policy. To satisfy its objective, the Fund has latitude to invest in a diversified mix of fixed income securities across a wide array of sectors, the credit quality spectrum and maturity profiles.
The Fund will invest at least 80% of its net assets, which includes borrowings for investment purposes, in fixed income securities and instruments that generate income. These investments include securities issued in the U.S. and abroad by domestic and foreign corporations and governments, including emerging markets. The Fund may invest in both investment grade and high yield fixed income securities (junk bonds), subject to investing no more than 65% of its total assets (measured at the time of investment) in securities rated below investment grade by Moodys Investors Service (Moodys), Standard & Poors Rating Group (S&P) or Fitch Ratings (Fitch), or, if unrated, determined by the Adviser to be of comparable quality. The Fund may invest in securities of any maturity, and there is no limit on the weighted average maturity of the Funds portfolio.
The Fund does not have a duration target. However, under normal conditions, the average portfolio duration will vary from zero to eight years. Duration is a measure of the expected life of a fixed income security that is used to determine the sensitivity of a security to changes in interest rates. Investments in the Fund include various types of bonds and debt securities, including corporate bonds, notes, mortgage-related and asset-backed securities (including collateralized debt obligations, which in turn include collateralized bond obligations and collateralized loan obligations), bank loans, municipal securities, U.S. and non-U.S. money-market securities, private placements and restricted securities. These investments may have interest rates that are fixed, variable or floating. The Fund may invest up to 35% of its total assets (measured at the time of investment) in asset-backed and mortgage-related securities rated below investment grade by Moodys, S&P or Fitch, or, if unrated, determined by the Adviser to be of comparable quality.
The Fund may invest, to the maximum extent permitted by applicable law, in foreign securities, and up to 50% of the Funds total assets may be invested in emerging markets and instruments that are economically tied to emerging market countries. The Fund considers emerging market countries to include all of the countries in the JPMorgan Emerging Markets Global Diversified Bond Index, the JPMorgan Corporate Emerging Markets Broad Diversified Bond Index and the JPMorgan Global Emerging Markets Bond Index. Instruments considered to be economically tied to emerging market countries include, without limitation, those that are principally traded in an emerging market country, or those that are issued by: (i) an issuer organized under the laws of or maintaining a principal place of business in an emerging market country, (ii) an issuer that derives or is expected to derive 50% of more of its total revenues, earnings or profits from business activity in an emerging market country, or that maintains or is expected to maintain 50% or more of its employees, assets, investments or operations in an emerging market country, or (iii) a governmental or quasi-governmental entity of an emerging market country.
The emerging market fixed-income securities in which the Fund may invest are not subject to any minimum credit quality standards, so long as the value of those investments does not cause the Fund to surpass its limits on investments in securities rated below investment grade. The Fund will normally limit its foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) to 40% of its total assets. The Fund reserves the right to hedge its exposure to foreign currencies to reduce the risk of loss from fluctuations in currency exchange rates, but will be under no obligation to do so under any circumstances. The Fund may invest up to 20% of its total assets in a combination of convertible bonds, preferred stock, and common stock of domestic and foreign companies. The Fund may sell securities and other instruments short provided that not more than 33 1 / 3 % of its net assets is held as collateral for those transactions.
The Fund may invest, without limitation, in derivative instruments, primarily futures and forward contracts, options, currency futures, and swap agreements (typically interest- and index-linked swaps, total return swaps and credit default swaps). Derivatives will be used in an effort to hedge investments, for risk management or to increase income or gains for the Fund.
C000201583 Holdings
Top 10 holdings of Metropolitan West Flexible Income Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| MSILF Government Portfolio | 4.90% |
| Dreyfus Government Cash Management | 4.37% |
| Treasury Bill | 3.91% |
| Fannie Mae or Freddie Mac | 3.72% |
| US Treasury N/b | 3.33% |
| Treasury Bill | 3.26% |
| Fannie Mae or Freddie Mac | 2.94% |
| Treasury Bill | 2.81% |
| Treasury Bill | 2.77% |
| Fannie Mae or Freddie Mac | 1.96% |
C000201583 Portfolio Allocation
Asset-class allocation of Metropolitan West Flexible Income Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Securitized | 63.4% |
| Fixed Income | 44.9% |
| Cash & Equivalents | 10.2% |
| Loans | 4.8% |
| Equity | 0.2% |
C000201583 Performance
Total returns for C000201583 (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 5.9% |
| 3 years (annualised) | 0.8% |
C000201583 Risk Information
Risk metrics for C000201583, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 5.8%
C000201583 Costs and Fees
C000201583 costs about $56 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.56%
- Gross expense ratio: 0.75%
- Portfolio turnover: 248%
- Brokerage commissions: 0.81 bps of average net assets (SEC N-CEN)
C000201583 Cashflows
Over the 12 months to 2024-03, Metropolitan West Flexible Income Fund had net inflows of $254.30M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2024-03 | $5.12M |
| 2024-02 | $3.48M |
| 2024-01 | $16.86M |
| 2023-12 | $26.08M |
| 2023-11 | $26.37M |
| 2023-10 | $22.81M |
C000201583 Debt Constituents
Largest debt holdings of Metropolitan West Flexible Income Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Debt holding | % of net assets |
|---|---|
| Treasury Bill | 3.91% |
| US Treasury N/b | 3.33% |
| Treasury Bill | 3.26% |
| Treasury Bill | 2.81% |
| Treasury Bill | 2.77% |
| US Treasury N/b | 1.70% |
| Wi Treas. Nt/bd | 0.99% |
| Goldman Sachs Group, Inc. | 0.76% |
| Vz Secured Financing Bv | 0.34% |
| Iron Mountain, Inc. | 0.33% |
C000201583 Prospectus and SEC Filings
Official Metropolitan West Flexible Income Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2023-07-25
- Prospectus (485BPOS) — filed 2021-07-26
- Prospectus supplement (497) — filed 2022-08-18
- Portfolio holdings (N-PORT) — filed 2024-05-23
- Portfolio holdings (N-PORT) — filed 2024-02-22
- Portfolio holdings (N-PORT) — filed 2023-11-21
- Annual census (N-CEN) — filed 2024-06-11
- Annual census (N-CEN) — filed 2023-06-02
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Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.