Company: TSI
Filing Date: 2025-09-04
Form Type: N-CSRS
Source: 0001193125-25-195336
Chunk: 2

Company: TCW STRATEGIC INCOME FUND INC
Filing Date: 2025-09-04
Form: N-CSRS
Chunk 2
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 changed to a multi-asset class fund. Prior to this date, the Fund primarily invested in convertible securities. |

| (3) | Inception date of the Fund. |

Past performance is no guarantee of future results. Current performance may be lower or higher than that quoted. The market value and net asset value of the Fund’s shares will fluctuate with market conditions. Returns shown do not reflect the deduction of taxes that a shareholder would pay on the Fund’s distributions. You should not draw any conclusions about the Fund’s performance from the amount of the quarterly distribution or from the terms of the Fund’s distribution policy. Management Commentary Without a doubt, the most consequential market day in the first half of 2025 was April 2, when the Trump administration announced its anticipated tariff regime. Investors were caught surprised by the would-bereach — very few countries were left out — and magnitude of the levies to be assessed — well north of expectations — and reacted adversely. The immediate fallout was both swift and severe as equity markets plunged into bear territory, corporate credit spread premiums rose, and Treasury yields increased, the latter in direct opposition to the administration’s desire for lower borrowing costs. Given these developments, the 90-daypause in reciprocal tariff implementation was announced just one week later, setting off what would become a risk asset rally that lasted into quarter end. While a delay in tariffs and subsequent announcement of trade deals was a primary force behind the market’s recovery, better-than-expected inflation and macroeconomic data later in the period helped further support risk sentiment, especially given comments from some Federal Reserve officials that a return to policy easing may not be far off. The Treasury yield curve steepened in the first half of 2025 as a result, with the 2-Yearyield falling by 52 basis points (bps) while the yield on the 10-and 30-Yearfell by 34 and 1 bps, respectively. 1

Perhaps best representing the extent to which markets were whipsawed by the tariff rollout, the S&P 500 Index fell over 12% in early April before recovering more than 24% from the lows, ultimately closing the semi-annual period with a 6.2% advance. Meanwhile, fixed income sectors generally turned in positive returns as well, supported by lower Treasury yields during the period. The flagship Bloomberg U.S. Aggregate Bond Index returned 4.0% and finished ahead of risk-free Treasuries by 10 bps, spurred by robust returns from spread sectors.