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Welcome to Thornburg

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TERMS AND CONDITIONS OF USE

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.

Disclaimers

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.

Suitability

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.

Termination

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.

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Advising Clients

How Will You Remember the Investment Decisions You Made in 2022?

When the calendar says 2023 and beyond, what will you remember about 2022 and the decisions you made in the wake of this year’s challenging investment markets?

For Professional clients or Eligible counterparties only.

Will you remember that unlike 2020 and 2021, when S&P 500 investors were rewarded with returns of 18.4% and 28.7%, 2022 was the year you got out of the market altogether? Or will you remember in the face of 2022’s challenges—which included rampant inflation, rising interest rates, horrific natural disasters, the persistent threat of COVID-19, and the ongoing war in Ukraine—you ignored the investment market and focused on your hobbies?

Will you remember that because of poor performance, you abandoned the stock and bond investment mix you’d maintained for years? Or will you remember that, aside from year-end portfolio rebalancing, your holdings remained relatively unchanged?

For many years, institutions and individuals have come to rely upon a long-term portfolio mix that has served them well. Developed by Nobel Laureate Harry Markowitz in 1952, and comprised of 60% stocks and 40% bonds, for many years the portfolio has rewarded investors with attractive investment returns earned by assuming low levels of risk.

From 1980 through July 2022, the 60/40 portfolio delivered positive returns in 35 of 42 years.  Investors who have relied upon this investment mix have seen their portfolios increase in value 83% of the time. As any statistician will tell you, the positive long-term performance of the 60/40 portfolio is “statistically significant”, not the result of chance or luck. With an average annual rate of return of 9.89% for the 30 years ending in 2021, 60/40 investors have been rewarded for staying the course. But this year, the strategy has performed poorly and is down 19.34% through October 5, 2022.

Despite the 60/40 portfolio’s positive long-term returns, this year’s poor performance has prompted investment experts to point investors in the direction of “alternatives” such as private equity, infrastructure, long/short strategies, and real estate. In addition to being asset types that are inaccessible to many investors, alternative managers also employ investment techniques such as using leverage or hedging that have the potential to either amplify gains or losses.

While alternatives do serve a purpose in diversified investment portfolios, they are not necessarily the best investment for everyday investors, because alternatives:

  • Are often more appropriate for large, institutional-type investment portfolios.
    While a small allocation to alternatives may make sense for typical investors, allocating a significant percentage of a portfolio to non-traditional investments makes sense for investors whose portfolios are valued at $1 million or more. Often, these investors are looking for negatively correlated investments that don’t rise and fall in tandem with stocks and/or those that may provide alternative streams of income. During years like 2022, when both the stock and bond markets have performed poorly, alternative investment positions have the potential to temper investment volatility.
  • Possess characteristics that everyday investors dislike.
    For many years, individual investors have grown to appreciate the transparency, regulatory oversight, liquidity, and manageable fees that characterize traditional investments. The same can’t be said for alternatives. In many cases, they are complex, unregulated, illiquid, and costly in terms of fees.
  • Are most beneficial when added to portfolios in anticipation of market downturns.
    Instead of adding alternative investments during market downturns, investors should add them to their portfolios when traditional investments are performing well and alternatives are out of favor.

Making significant investment portfolio changes during a bear market is never a good idea. Instead, successful investing is an endeavor that requires investors to muster incredible short-term patience to achieve their long-term financial goals.

 

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