The Thornburg Equity Income Builder Strategy is a global investment strategy designed to produce attractive income and long-term growth. By focusing on high-quality companies around the world with the ability and commitment to pay and grow dividends, the strategy aims to deliver resilient income streams through changing market conditions.
We take an active, research-driven approach to uncover businesses with strong fundamentals, attractive valuations, and proven track records of rewarding shareholders. We also seek to reduce concentration risk by diversifying across regions and sectors, rather than relying heavily on U.S. markets alone.
A Proven History of Income and Growth
Launched in 2012, Equity Income Builder has navigated a wide range of market environments, including an extended period of low interest rates that followed the financial crisis, the COVID-19 pandemic, and the recent reappearance of volatility and inflation pressures. The strategy has remained consistent in its focus: delivering sustainable income and attractive total returns for investors who value quality and discipline.
An Investment Philosophy Grounded in Quality and Resilience
At the heart of the strategy is the belief that an attractive income stream, combined with downside protection, enables investors to compound capital across market cycles. The portfolio management team focuses on companies with strong business models, solid balance sheets, durable cash generation, and shareholder-friendly dividend policies. We take a long-term view and maintain the flexibility to invest wherever we find the most compelling combination of yield and value—a philosophy that guides every aspect of how the strategy is managed.
Experienced Portfolio Management Team
The strategy is led by portfolio managers Brian McMahon and Matt Burdett, who bring decades of experience in global equity investing. They work closely with the broader Thornburg investment team, sharing insights and perspectives that strengthen conviction and enhance decision-making.
Drawing on their deep experience, Brian and Matt take a high-conviction approach to stock selection. They blend active management with long-term thinking to build a portfolio of businesses they believe can deliver sustainable income and create lasting shareholder value. The team maintains a keen eye on valuations, paying a fair price for quality and ensuring each holding contributes meaningfully to the strategy’s income and risk objectives.
Stock Selection as a Key Driver of Returns
Stock selection has consistently been the primary driver of the strategy’s outperformance. By rigorously evaluating company fundamentals and prioritizing businesses with reliable cash generation and disciplined capital allocation, the team has identified companies that not only sustain dividends but also deliver long-term capital appreciation. This bottom-up focus, combined with a willingness to differ meaningfully from the benchmark, has contributed to excess returns relative to peers, particularly in recent periods of market stress when quality and valuation discipline have been rewarded.
A Core Holding for a Changing World
Equity Income Builder is designed to be a resilient core holding, participating in the growth potential of global equities while maintaining a disciplined focus on income generation, prudent risk management, and high-conviction, active investing.
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