(PUB) Investing 2016

5

August 2016

Morningstar FundInvestor

Data through July 31, 2016 FINRA members: For internal or institutional use only. Metropolitan West High Yield Bond M

Ticker MWHYX

Yield 4.0%

SEC Yield 4.03%

Total Assets $1,046 mil

Mstar Category High Yield Bond

Benchmark 1: BofAML US HY Master II TR USD Benchmark 2: Barclays US Agg Bond TR USD Morningstar Analyst Rating 07-12-16 ‰

Investment Style Fixed Income

Historical Profile Return Risk Rating Average Below Avg QQQ Neutral

6 3 3 3 3 3 3 3

12.5 15.0 17.5 20.0

Growth of $10,000

Investment Values of Fund Investment Values of Benchmark 1

Morningstar Pillars Process

¶ Neutral ¶ Neutral ∞ Positive ¶ Neutral ∞ Positive

10.0

Performance

People Parent

Performance Quartile (within Category)

) & & & ( ) ( * ( * ) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 07-16 10.95 10.32 7.35 10.20 10.68 9.82 10.42 10.27 9.71 9.11 9.32 8.74 2.73 -21.59 54.69 13.94 0.35 14.20 6.84 0.33 -2.18 4.64 -3.02 0.54 4.80 -2.83 -1.25 -4.03 -1.39 -0.58 -2.17 2.46 -7.44 4.41 -4.23 -26.83 48.76 7.40 -7.49 9.98 8.86 -5.63 -2.73 -1.34 7.92 8.81 8.75 13.39 8.51 7.67 7.36 5.55 4.63 4.18 2.30 0.82 -6.08 -30.34 41.30 5.43 -7.32 6.83 1.29 -4.29 -6.36 2.35 0.83 0.93 0.87 0.93 0.84 0.79 0.70 0.56 0.46 0.40 0.21 0.00 0.00 0.00 0.04 0.05 0.12 0.05 0.28 0.14 0.00 0.00 1.10 1.05 0.98 0.99 0.88 0.85 0.85 0.81 0.82 0.89 0.85 7.25 8.01 8.15 10.24 9.29 7.73 7.14 6.20 5.20 4.41 4.19 80 25 23 17 53 87 61 44 73 28 94

Price

History

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ ‰ Á

NAV

Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $

Pillar Spectrum ∞ Positive

§ Negative

¶ Neutral

Performance 07-31-16 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

2012 2013 2014 2015 2016

4.73 1.19 5.06 2.57 14.20 3.08 -1.58 2.17 3.08 6.84 2.17 1.96 -2.23 -1.49 0.33 1.17 -0.59 -2.50 -0.25 -2.18

111

97 41

120

107

40

34

54

74

66

61

139 484

37

38

393 1,017 1,156 1,234 1,352

834

498

Rating and Risk Time Period Load-Adj Return %

Portfolio Analysis 06-30-16

0.82 2.79

— — —

Date of Maturity

Value $000

% Assets

Morningstar Rtn vs Cat

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Total Fixed Income: 219

Amount 000

Trailing

Total Return%

+/- Bmark 1

+/- Bmark 2

%Rank Cat

Growth of $10,000

Metropcs Wireless 6.625 11-15-20

18,348 19,168 1.89 17,119 18,403 1.82 14,786 16,795 1.66 11,994 14,089 1.39 22,781 13,824 1.36 23,007 13,629 1.34 12,250 12,792 1.26 12,500 12,568 1.24 10,371 11,256 1.11 10,514 11,099 1.10 10,017 10,670 1.05 12,945 10,620 1.05 10,050 10,200 1.01

1 Yr 3 Yr 5 Yr

1.15 2.06 3.81 6.56 8.63

3 Mo 6 Mo

1.94 -2.44 -0.52 5.24 -8.64 0.70 1.15 -3.77 -4.78 2.06 -2.34 -2.17 3.81 -2.16 0.24 6.56 -1.03 1.50

93 10,194 94 10,524 77 10,115 82 10,631 87 12,053 35 18,871

Tenet Healthcare 6%

10-01-20 02-15-20 07-02-24 10-01-26 11-01-66 05-01-23 07-15-21 01-31-22 07-15-22 08-01-21

-Avg QQ -Avg QQ

-Avg -Avg

Hca 6.5%

1 Yr

Delta Air Pt 2002-1 6.7 Homer City Generation L Engy Transfer Prtnrs L Regionalcare Hosp Partn Reynolds Grp Issuer 144 Cco Hldgs Llc / Cco Hld Amer Air Pt Tr 2013-1 5 Sirius Xm Radio 144A 5.

-Avg QQQQ

10 Yr Incept

Avg

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Other Measures

Standard Index

Best Fit Index

— — — — —

Alpha

0.2

-0.8 0.64

Beta

0.46

Tax Analysis

Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

R-Squared

8

84

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

-0.30 1.28 3.61

68 83 40

2.31 2.44 2.76

32 44 73

Standard Deviation

4.21 2.06 0.48

Vrx Escrow 144A 6.125% 04-15-25 Ardagh Packaging 144A F 05-15-21

Mean

Sharpe Ratio

Intl Lease Fin 144A 7.1

09-01-18

8,584 8,602 8,281 8,238 7,890 8,000 10,637

9,636 0.95 9,038 0.89 8,682 0.86 8,722 0.86 8,608 0.85 8,571 0.85 8,617 0.85

Potential Capital Gain Exposure: -13% of assets

Ngpl Pipeco 144A 7.119% 12-15-17

Morningstar's Take by Karin Anderson 07-12-16 Metropolitan West High Yield Bond benefits from an experienced group of managers, including Steve Kane, Laird Landmann, and Jamie Farnham, who've been at the helm since its 2002 inception, in addition to a well- resourced team of credit analysts and traders. While generally a stable team, this fund's management saw a change in April 2016 when longtime comanager Gino Nucci transitioned off the fund. The fund's process hinges on individual credit analysis, attractive valuations, and portfolio positioning basedon the team'sviewson thecreditcycle.Manyhigh- yield bond funds stick with a specific niche of the market, whether the cautious, moderate, or aggressive portions of the quality spectrum. But this fund's managers will make big adjustments depending on their view of the current stage of the credit cycle. This worked especially well around 2008's credit crisis, as the team grew more conservative with its Tier 3 bonds (roughly equivalent to CCCs)bymid-2008and then tripled thatstakeby the time the market turned in March 2009. This approach can thrive around market turning points but has less of an impact during the in-between

Reynolds Grp Issuer 5.7

10-15-20

Vrx Escrow 144A 5.875% 05-15-23

periods, as credit spreads gradually tighten. Given the team's belief that the economy is in the late stage of the credit cycle, it has kept a light stake in what it believes are richly valued Tier 3 credits (5% as of May 2016 compared with the Barclays U.S. High Yield 2% Issuer Cap Index's 16% weighting). That's held the fund back compared with more-aggressive peers in risk-fueled rallies, but it has also had missteps in issue selection as well as industry and cash positioning. For example, the fund held three coal companies that defaulted, which weighed heavily on returns in 2014 and in 2015. The team has also struggled with energy positioning: The fund's 20%-plus energy stake in late 2014 hurt as oil prices plummeted, while the team's decision to cut that stake to roughly 6% and hold a 23% cash stake as of March 2016 meant the fund missed out on the second quarter's rally. Therefore, the fund's Morningstar Analyst Rating is downgraded to Neutral from Bronze.

Churchill Downs 144A 5.

12-15-21

Cott Beverages 6.75% 01-01-20 Sprint Nextel 144A 9% 11-15-18

Current Investment Style

Sector Breakdown

% Assets

Government

0 0

Duration Ltd Mod Ext

Government Related

Quality High Med Low

Corporate

80

Agency MBS 0 Non-Agency Residential MBS 0 Commercial MBS 0 Covered Bond 0 Asset Backed 4 Municipal 0 Cash & Equivalents 16 Other 0

1 figure provided by fund

2.6 Yrs 4.7 Yrs

Avg Eff Duration 1 Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon

B

5.84%

Avg Wtd Price

100.56% of par

Composition - Net Cash

Coupon Range

% of Bonds

15.1 Bonds 0.0 Other

81.1

0% PIK

0.0

Stocks

3.9

0% to 4% 4% to 6% 6% to 8% 8% to 10%

10.3 52.6 26.4

Special Securities Restricted/Illiquid Secs Emerging-Markets Secs Options/Futures/Warrants

35

9.8 0.9

0 0

More than 10%

Address:

METROPOLITAN WEST ASSET MANAGEMENT Minimum Purchase:

$5000 Add: $0 $5000 Add: $100

IRA: $1000

LOS ANGELES CA 90017

Min Auto Inv Plan:

Credit Analysis

% bonds 06-30-16

800-241-4671

Sales Fees:

No-load

AAA

4 BB

37 32

Web Address:

www.mwamllc.com

Management Fee:

0.50%

AA

13 B

Inception:

09-30-02

Actual Fees:

Mgt:0.50% Dist:0.25%

A

1 Below B

9

Advisor:

Metropolitan West Asset Management, LLC.

Expense Projections: 3Yr:$279 5Yr:$486 10Yr:$1082

BBB

5 Not Rated 0

Subadvisor:

None

Income Distribution:

Monthly

D

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