Confirm you would like to unsubscribe from this list

Don't save

Remove strategy

Confirm you would like to remove this strategy from your list

Welcome to Thornburg

Please select your location and role to help personalize the site.
Please review our Terms & Conditions


Please read the information below. By accessing this web site of Thornburg Investment Management, Inc. ("Thornburg" or "we"), you acknowledge that you understand and accept the following terms and conditions of use.


Products or services mentioned on this site are subject to legal and regulatory requirements in applicable jurisdictions and may not be licensed or available in all jurisdictions and there may be restrictions or limitations to whom this information may be made available. Unless otherwise indicated, no regulator or government authority has reviewed the information or the merits of the products and services referenced herein. Past performance is not a reliable indicator of future performance. Investments carry risks, including possible loss of principal.

Reference to a fund or security anywhere on this website is not a recommendation to buy, sell or hold that or any other security. The information is not a complete analysis of every material fact concerning any market, industry, or investment, nor is it intended to predict the performance of any investment or market.

All opinions and estimates included on this website constitute judgements of Thornburg as at the date of this website and are subject to change without notice.

All information and contents of this website are furnished "as is." Data has been obtained from sources considered reliable, but Thornburg makes no representation as to the completeness or accuracy of such information and has no obligation to provide updates or changes. Thornburg disclaims, to the fullest extent of the law, any implied or express warranty of any kind, including without limitation the implied warranties of merchantability, fitness for a particular purpose and non-infringement.

If you live in a state that does not allow disclaimers of implied warranties, our disclaimer may not apply to you.

Although Thornburg intends the information contained in this website to be accurate and reliable, errors sometimes occur. Thornburg does not warrant that the information to be free of errors, that the functions contained in the site will be uninterrupted, that defects will be corrected or that the site and servers are free from viruses or other harmful components. You agree that you are responsible for the means you use to access this website and understand that your hardware, software, the Internet, your Internet service provider, and other third parties involved in connecting you to our website may not perform as intended or desired. We also disclaim responsibility for damages third parties may cause to you through the use of this website, whether intentional or unintentional. For example, you understand that hackers could breach our security procedures, and that we will not be responsible for any related damages.

Thornburg Investment Management, Inc. is regulated by the U.S. Securities and Exchange under U.S. laws which may differ materially from laws in other jurisdictions.

Online Privacy and Cookie Policy

Please review our Online Privacy and Cookie Policy, which is hereby incorporated by reference as part of these terms and conditions.

Third Party Content

Certain website's content has been obtained from sources that Thornburg believes to be reliable as of the date presented but Thornburg cannot guarantee the accuracy, timeliness, completeness, or suitability for use of such content. The content does not take into account individual investor's circumstances, objectives or needs. The content is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services, nor does it constitute investment advice and should not be used as the basis for any investment decision.


No determination has been made regarding the suitability of any securities, financial instruments or strategies for any investor. The website's content is provided on the basis and subject to the explanations, caveats and warnings set out in this notice and elsewhere herein. The website's content does not purport to provide any legal, tax or accounting advice. Any discussion of risk management is intended to describe Thornburg's efforts to monitor and manage risk but does not imply low risk.

Limited License and Restrictions on Use

Except as otherwise stated in these terms of use or as expressly authorized by Thornburg in writing, you may not:

  • Modify, copy, distribute, transmit, post, display, perform, reproduce, publish, broadcast, license, create derivative works from, transfer, sell, or exploit any reports, data, information, content, software, RSS and podcast feeds, products, services, or other materials (collectively, "Materials") on, generated by or obtained from this website, whether through links or otherwise;
  • Redeliver any page, text, image or Materials on this website using "framing" or other technology;
  • Engage in any conduct that could damage, disable, or overburden (i) this website, (ii) any Materials or services provided through this website, or (iii) any systems, networks, servers, or accounts related to this website, including without limitation, using devices or software that provide repeated automated access to this website, other than those made generally available by Thornburg;
  • Probe, scan, or test the vulnerability of any Materials, services, systems, networks, servers, or accounts related to this website or attempt to gain unauthorized access to Materials, services, systems, networks, servers, or accounts connected or associated with this website through hacking, password or data mining, or any other means of circumventing any access-limiting, user authentication or security device of any Materials, services, systems, networks, servers, or accounts related to this website; or
  • Modify, copy, obscure, remove or display the Thornburg name, logo, trademarks, notices or images without Thornburg's express written permission. To obtain such permission, you may e-mail us at info@thornburg.com.

Severability, Governing Law

Failure by Thornburg to enforce any provision(s) of these terms and conditions shall not be construed as a waiver of any provision or right. This website is controlled and operated by Thornburg from its offices in Santa Fe, New Mexico. The laws of the State of New Mexico govern these terms and conditions. If you take legal action relating to these terms and conditions, you agree to file such action only in state or federal court in New Mexico and you consent and submit to the personal jurisdiction of those courts for the purposes of litigating any such action.


You acknowledge and agree that Thornburg may restrict, suspend or terminate these terms and conditions or your access to, and use, of the all or any part this website, including any links to third-party sites, at any time, with or without cause, including but not limited to any breach of these terms and conditions, in Thornburg's absolute discretion and without prior notice or liability.

Give Us a Call

Fund Operations

Man removing red domino from a line. Signifies the recognition and management of risk.

Portfolio managers can’t know every potential interplay among holdings through fundamental research alone. Our Portfolio Analytics and Risk Team provides key insights.

How do you think about risk? "It ain't what you don't know that gets you in trouble. It's what you know for sure that just ain't so." - Mark Twain

Portfolio managers prioritize security selection and portfolio construction. The former relies on an intimate knowledge of individual security valuation and fundamentals that may lead to powerful insights into future performance. The latter must be aided by mathematical analysis, as portfolio managers can’t know every potential interplay among portfolio holdings through fundamental research alone. This is where quantitative portfolio analytics come into play, providing multiple cross-sectional perspectives on performance and risk.

Quantitative insights must inform and enable action to support portfolio construction effectively. The definition of actionable may vary across strategies and through changing market conditions, underscoring the importance of continuously refining the analytics suite. Joint development effort between fundamental and quantitative professionals is critical to ensure careful consideration of all relevant factors for well-informed portfolio construction decisions.

Fundamental and quantitative professionals must work together to carefully consider all relevant factors for a well-informed portfolio construction process.

Our collaborative approach involves a development cycle where quantitative analysts work closely with portfolio managers to generate new analytics ideas. We design and build analytics prototypes that are shared and tested via PowerBI while continuously receiving feedback from the investment team. If a new report proves valuable, it transitions to the Data and IT groups for production implementation. The existing report is seamlessly updated throughout this process, ensuring uninterrupted front-end usability.

For a quantitative portfolio analytic to be relevant, portfolio managers must understand its purpose and methodology. This understanding transforms information into insight, turning something interesting into something actionable. By bridging the gap between fundamental and quantitative domains of expertise through collaboration, teams improve the understanding of each other’s language and points of view. As a result, we increase the relevance of the sophisticated analyses and the completeness of the information the PMs consider for their portfolio construction decisions.

We transform information into insight, turning something interesting into something actionable.

Analytics impacting portfolio construction and executive decisions can range from simple asset-weighted breakdowns of MPT (Modern Portfolio Theory) stats to complex factor-based risk management platforms. Regardless of the level of sophistication, every analytic must pass the ultimate usability test and become an intuitive tool for quantitative analysts and portfolio managers. Here is an incomplete list of self-serve reports that have successfully passed this test, followed by detailed case studies of the first three:

  • Time series of drill-down stress test outcomes
  • Factor-based active risk breakout and performance attribution
  • Portfolio basket vs. Universe basket composition and performance
  • Portfolio vs. Benchmark region and sector weights and fundamentals
  • Unified price target and ESG ratings tracker
  • Factor drift headwind and projections
  • Best-worst case by factor stress test outcomes
  • Drill-in and multi-period MPT (Modern Portfolio Theory) stats
  • Daily fund flows and trading activity

Time Series Stress Test Results

Stress test analysis based on the foresight of the investment team is a crucial part of our risk management process. It supplements standard measures like ex-ante tracking error, value at risk, and expected tail loss. The risk team collaborates with portfolio managers to build relevant stress test scenarios. Ultimately, portfolio managers decide whether to act on the insights provided by stress test outcomes.

It can be challenging to connect the overall outcome of stress tests to the individual components of a portfolio and the interactions among these components. To help address this, we developed a self-service report that presents a heatmap grid of the contributions to stress test outcomes across regions and sectors, alongside another heatmap indicating over- and underweights in the portfolio versus the benchmark by the same sector/region decomposition. Since relative (among strategies and across time) magnitudes of the stress test outcomes are informative, we add a third dimension to the heatmap — an ability to see how the individual contributions change over time.

This detailed breakout allows investment professionals to connect the dots from the factor-based stress test result to more familiar views of portfolio positioning through the granular contributions from sector and region pieces. It also allows them to see how these outcomes have changed through time in the context of portfolio adjustments and evolving market conditions. Access to the fundamental interpretation of a quant result provides a more comprehensive assessment of the potential risks to the portfolio. Ultimately, it enables better-informed decisions regarding any necessary adjustments to portfolio construction.

Breaking Out Factor-Based Active Risks

A series of factor-based self-service reports facilitates our active risk budget process (see the article “Three Dos and Don’ts for Managing Risk in Active Portfolios” for details on our active risk budget process). These reports break down active risk (ex-ante tracking error) and factor exposures relative to the benchmark into individual and group risk factors. The risk team utilizes these reports as a quantitative lens for portfolio construction, and fundamental portfolio managers find them valuable for summarizing their positioning around critical strategy-specific guardrails during portfolio reviews.

While these provide vital input for the risk team’s analyses, the outcomes from factor-centric reporting alone may not be enough for a fundamental portfolio manager to act on. To see these analytics through a fundamental lens, we further deconstruct the active risk from econometric or statistical factors into contributions from geographic, sector, and industry positioning over time.

Yet another view into the changes in active risk components is to see whether portfolio exposure (weight) to a specific factor (industry, sector) has changed or whether it was the standalone riskiness (volatility) of the said factor or industry that changed. We automated tracking of these exposures, weights, and volatilities, along with drill-downs to contributions from individual names. On a more ad-hoc basis, we perform trade simulations that model the impact on a portfolio’s risk profile when specific securities – already or not yet held in the portfolio – are subtracted or added.

Portfolio Basket vs. Universe Basket Composition and Performance

Basketing the portfolio into groups of stocks that perform differently over time has long been essential for achieving fundamentally diversified portfolios at Thornburg. When considering Thornburg’s baskets, evaluating them in the context of market/benchmark baskets is crucial. The composition of market baskets changes over time, which requires consistent monitoring to construct appropriately sized and diversified baskets in the portfolio.

While the names held in Thornburg portfolios are thoroughly researched and assigned to appropriate baskets by portfolio managers and analysts, the same meticulous fundamental analysis process cannot be repeated for each name in the entire investible universe. To address this, we created a real-time report that parses the broader equity universe into Thornburg’s traditional basket framework. We accomplish this through a proprietary algorithm based on the same econometric factors in our risk management process.

Aligned with Thornburg’s approach to enhancing the investment process with analytical tools, this dashboard tool was designed collaboratively with portfolio managers, thus leveraging fundamental and quantitative expertise. The dashboard uses proprietary scoring to automatically assign investible stocks to baskets based on their relative ranking in factor exposures. The resulting assignments provide early warnings when a name in the portfolio may have shifted from one basket to another due to recent valuation or company fundamentals changes. Most importantly, this tool facilitates basket construction by helping portfolio managers think about and navigate the shifting basket compositions of the portfolio benchmarks.

Discover more about:

Stay Connected

Subscribe now to stay up-to-date with Thornburg’s news and insights.

More Insights

The silent generation represented by two ladies hugging.
Advising Clients

Managing Legacy Wealth Part 1 The Wealth Holders

Become an expert in Managing Legacy Wealth and position yourself for success
Ozempic Insulin injection pen or insulin cartridge pen for diabetics. Medical equipment for diabetes parients.
International Growth

Therapies for Treating Obesity Create XL Opportunities

Groundbreaking new anti-obesity drugs are poised to revolutionize the healthcare industry, giving way to tremendous opportunities for investors.
Advising Clients

5 Essential Reasons the Public Need Financial Advisors

Financial Success Begins and Ends with a Financial Advisor
A few people using a map and a compass to pinpoint their current location and future destination.

Navigating Recession, the Fed, Inflation and Borrowing

Jeff Klingelhofer discusses when the recession may finally arrive, whether the Fed will tolerate inflation above its 2% target, and that surging government debt.
Business meeting with financial advisor in the office
Advising Clients

Help Clients Make Better Social Security Claiming Decisions

Social Security is another area where you demonstrate your value to clients.
Woman carrying shopping bags in a buy and hold strategy
Advising Clients

Morningstar Study Makes the Case for Buy and Hold

Convincing clients to stay the course is one of your greatest challenges.

Our insights. Your inbox.

Sign up to receive timely market commentary and perspectives from our financial experts delivered to your inbox weekly.
This field is for validation purposes and should be left unchanged.