A Message from President and CEO Jason Brady

Dear Shareholder:

I hope this letter finds you safe and healthy. Amid the COVID-19 pandemic, we’re all adjusting to the challenges of working and living new ways while trying to see into a cloudy future. In these uncertain times, all of us at Thornburg Investment Management are squarely focused on providing you with the best investment outcomes that we can.

Many of our portfolios were well positioned for higher volatility. While we did not predict the cause of this downturn, it’s clear that high prices make for more vulnerable markets. Given our solid liquidity and preparation, we’ve been able to take advantage of price swings as many assets were on sale after the market’s decline. Longer term, it appears even the extraordinary fiscal and monetary support will merely cushion the blow. After all, the reason policy makers’ actions have been so extreme is in large part because they view them as necessary.

Looking forward, our nimble, collaborative investment team is well suited to deliver. The reason that we have a benchmark agnostic, flexible approach is so that we can go where we find value, within the mandate and objectives of the portfolio. While many investment firms have good products and processes, Thornburg is designed to see the world differently, and our perspective from Santa Fe, NM, is especially valuable in challenging times. While many other professionals are siloed into narrow areas of expertise, without the ability to evaluate the bigger picture, we work across sectors and asset classes to find great investments and put them into balanced portfolios. The last few months have demonstrated the strength of our approach, given its adaptability and capacity to place new information in the context of broad portfolios quickly. Being nimble is part of Thornburg’s culture, and people across the organization are finding new ways to pitch in for the sake of our clients.

No one can predict with certainty what the market has in store for us, especially in the context of the current health crisis. What does seem certain, however, is that the events of the last few months are accelerating change that was already occurring, as well as underlining the vulnerability of many of the systems that many of us take for granted. That is true in our daily lives, as well as in financial markets. We believe our understanding of and participation in the interconnectedness of these markets is our core competency: We’re built for this.

Thank you so much for your time, and your business.

Jason Brady
President and CEO

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