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Thornburg Limited Term U.S. Government Strategy

Strategy Overview
The Limited Term U.S. Government Strategy employs an actively managed approach to build a portfolio of high quality short/intermediate-term obligations issued by the U.S. government, its agencies or instrumentalities with an average maturity of five years or less. The strategy seeks to provide income consistent with the preservation of capital and lower volatility relative to core bond strategies.
Strategy Inception Date
1 Mar 1988

Portfolio Managers

Portfolio Manager and Managing Director
Head of Fixed Income and Managing Director
Overview

Overview

Why Invest in This Strategy?

 

  • Actively managed portfolio of high-quality short- to intermediate-term obligations issued by the U.S. government, designed to exhibit low or negative correlation to equities and low share price volatility.
  • Proven bottom-up fundamental approach focused on investing in short- to intermediate-term obligations issued by the U.S. government and its agencies with an average maturity of five years or less.
  • Stability-seeking strategy that looks to provide U.S. government–guaranteed cash flows with low interest-rate exposure and relative stability.
Performance

Performance

Returns

(As of 30 Sep 2025)
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term U.S. Government Strategy - Gross (%)
6.20
4.15
5.25
1.18
1.93
4.94
Thornburg Limited Term U.S. Government Strategy - Net (%)
5.91
3.77
4.86
0.81
1.55
4.17
Bloomberg U.S. Government Intermediate Index (%)
5.28
3.51
4.35
0.36
1.55
4.61
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term U.S. Government Strategy - Gross (%)
6.20
4.15
5.25
1.18
1.93
4.94
Thornburg Limited Term U.S. Government Strategy - Net (%)
5.91
3.77
4.86
0.81
1.55
4.17
Bloomberg U.S. Government Intermediate Index (%)
5.28
3.51
4.35
0.36
1.55
4.61
2019
2020
2021
2022
2023
2024
Thornburg Limited Term U.S. Government Strategy - Gross (%)
4.55
4.69
-0.99
-7.21
4.91
3.32
Thornburg Limited Term U.S. Government Strategy - Net (%)
4.16
4.31
-1.35
-7.57
4.52
2.94
Bloomberg U.S. Government Intermediate Index (%)
5.20
5.73
-1.69
-7.73
4.30
2.44
Strategy Facts

Strategy Facts

(As of 30 Sep 2025)
Benchmark
Bloomberg U.S. Government Intermediate Index
Characteristics

Characteristics

Portfolio

(As of 30 Sep 2025)
Portfolio
Benchmark
Number of Holdings
141
Effective Duration
4.5 Yrs
3.5 Yrs
Average Effective Maturity
5.6 Yrs
3.9 Yrs
Portfolio
Benchmark
Weighted Average Coupon
2.8%
3.3%
Weighted Average Price
$92.98
Portfolio

Portfolio

Top Holdings

(As of 31 Aug 2025)
Name
Ticker/Symbol
Weight %
United States Treasury Inflation Indexed Bonds
91282CDX6
7.0
Fannie Mae Pool
3140XMZX7
4.4
FARM 21-1 Mortgage Trust
30768WAA6
3.0
Caledonia Generating, LLC
129268AB4
2.7
United States Treasury Note/Bond
91282CNC1
2.7
Freddie Mac Seasoned Credit Risk Transfer Trust 2017-4
35563PDD8
2.1
Fannie Mae Pool
3140XGAS8
2.0
Fannie Mae Pool
31418D2Y7
2.0
United States Treasury Note/Bond
91282CDY4
1.8
Freddie Mac Pool
3133SKBP5
1.6
Exposure Breakdown

Exposure Breakdown

(As of 30 Sep 2025)
Sector Allocation
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mortgage Passthrough
32.2
Collateralized Mortgage Obligation
30.5
Treasury-Domestic
14.9
98.5
Cash & Cash Equivalents
7.6
Asset Backed Securities
4.7
Commercial Mortgage Backed Security
4.5
Agency Debenture
4.0
1.5
Corporate
1.6
Sector Allocation
Portfolio (%)
Mortgage Passthrough
32.2
Collateralized Mortgage Obligation
30.5
Treasury-Domestic
14.9
Cash & Cash Equivalents
7.6
Asset Backed Securities
4.7
Commercial Mortgage Backed Security
4.5
Agency Debenture
4.0
Corporate
1.6
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
U.S. Government
92.4
100.0
Cash & Cash Equivalents
7.6
Credit Quality
Portfolio (%)
U.S. Government
92.4
Cash & Cash Equivalents
7.6
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Year 1
2.7
2.0
Year 2
3.3
23.5
Year 3
7.1
19.0
Year 4
13.7
14.1
Year 5
19.0
13.5
Year 6
3.7
8.3
Year 7
7.6
7.9
Year 8
6.8
3.6
Year 9
9.4
4.4
Year 10+
19.1
3.8
Cash
7.6
Maturity
Portfolio (%)
Year 1
2.7
Year 2
3.3
Year 3
7.1
Year 4
13.7
Year 5
19.0
Year 6
3.7
Year 7
7.6
Year 8
6.8
Year 9
9.4
Year 10+
19.1
Cash
7.6
Portfolio Managers

Portfolio Managers

Lon Erickson, CFA

Portfolio Manager and Managing Director
Lon Erickson is a portfolio manager for Thornburg Investment Management. He joined Thornburg in 2008 and was named a managing director and was promoted to portfolio manager in 2010. Prior to joining Thornburg Investment Management, Lon spent almost 11 years as an analyst for State Farm Insurance in the equity and corporate bond departments. Lon earned a bachelor’s degree in…
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Christian Hoffmann, CFA

Head of Fixed Income and Managing Director
Christian Hoffmann is head of fixed income and a portfolio manager for Thornburg Investment Management. He joined the firm in 2012 as a fixed income analyst and was promoted to associate portfolio manager in 2014. Christian was named a managing director in 2017, was promoted to portfolio manager in 2018, and to head of fixed income in 2024. Prior to…
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