To Elvis fans, TCB means “taking care of business.” To some investors, TCW means “taking care of wealth.” The TCW Group, which is a subsidiary of Société Générale, provides asset management services to such clients as corporations, retirement funds, financial services companies, endowments, and foundations, as well as wealthy retail investors. TCW Group has some $118 billion of assets under management invested in US equities, bonds, and alternative and international investments; it possesses expertise in concentrated core equities, mortgage-backed securities, and mezzanine investing. The company also manages closed-end funds and managed accounts, in addition to about 20 mutual funds. TCW was founded in 1971.
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CategoryInvestment & Asset Management
TCW values the opportunity to describe to investors the spectrum of approaches we use to deliver sustainable investment solutions coupled with long-term, risk-adjusted returns to our clients. These approaches range from negatively screened portfolios to those that seek to achieve a measurable positive social or environmental impact. In our view, sustainability factors will increasingly affect investments, financial markets, economic development, and communities around the world. The increasing relevance of sustainability factors to the calculation of investment risks and opportunities is not only consistent with our fiduciary duty, but more specifically, supports the fulfillment of our duty to clients. We believe that there is opportunity to use this outcome-focused SDG framework not only to identify attractive investment opportunities, but also to support the transition of Emerging Markets towards sustained, and sustainable, growth. In addition, we believe this robust scorecard framework can help guide our engagement practices to help sovereigns further align to the SDGs and drive forward positive change. Whereas green, social, and sustainability bonds are “use of proceeds” instruments – that is, funds raised from bond issuances directly support environmental and social projects – sustainability-linked bonds (SLBs) allow proceeds to be used for general purposes while holding issuers accountable to their publicized sustainability strategies. SLB structures tie financing costs to time-bound sustainability performance targets (SPTs). If an issuer fails to meet their identified SPT, then the coupon of the bond will usually “step-up” to compensate the investor. In 2019, Italian energy company Enel made headlines when it announced the world’s first SLB issuance with an SPT related to increasing the renewables base in its energy mix. Long considered a leader in ESG issuances, the company made public commitments to shift its energy production from fossil fuels to 100% renewables. Since 2019, it has been using SLBs to finance its corporate strategy.