Metropolitan West Opportunistic High Income Credit Fund - Class M (MWORX)

Overview

The fund described is an investment entity that aims to achieve its financial objectives through a unique and flexible investment strategy. It focuses primarily on generating income by investing in a diverse range of credit securities. A significant portion of its portfolio is allocated towards high-yield, high-risk debt securities, better known as “junk bonds,” which are rated below investment grade by major rating agencies such as Moody’s Investors Services, Inc., S&P Global Ratings, and Fitch Ratings, Inc. Additionally, it may invest in unrated securities that the Adviser believes are of similar quality. This approach is predicated on the willingness to embrace higher volatility and lower-quality debt instruments to potentially yield higher returns, positioning the fund in a niche market of income-generating investments.

Products and Services

• Income-Generating Credit Securities:

  This product line focuses on investments that offer regular income through interest payments. The fund invests in a variety of credit securities with the intent of producing income, encompassing both rated and unrated debt instruments. By diversifying its portfolio across different types of debt instruments, the fund aims to mitigate risks associated with any single investment while seeking to maximize income for its investors.

• High Volatility, Lower-Quality Debt Securities:

  Also known as “junk bonds,” these are investments in debt securities rated below investment grade. Junk bonds offer higher interest rates compared to safer bonds, compensating for their increased risk of default. The fund's strategy includes a significant allocation towards these securities, targeting investors who are willing to accept higher levels of risk and volatility for the potential of greater returns.

• Flexible Investment Approach:

  The fund employs a flexible investment strategy that allows it to adjust its holdings in response to changing market conditions and opportunities. This adaptability is crucial for managing the inherent risks of investing in high-yield, lower-quality debt instruments. Through dynamic asset allocation, the fund seeks to optimize its investment portfolio, enhancing its ability to achieve its income-generating objectives while attempting to manage exposure to undesired risks.