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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

Lon Erickson, CFA
Portfolio Manager and Managing Director
Christian Hoffmann, CFA
Head of Fixed Income and Managing Director
OverviewPerformanceStrategy FactsCharacteristicsPortfolioPortfolio ManagersLiterature
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.

Related Content

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Performance

Performance

Returns

(As of 30 Jun 2025)
Annualized Returns
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term U.S. Government Strategy - Gross (%)
4.27
6.87
3.43
0.91
1.83
4.92
Thornburg Limited Term U.S. Government Strategy - Net (%)
4.08
6.48
3.04
0.53
1.45
4.15
Bloomberg U.S. Government Intermediate Index (%)
3.97
6.26
2.85
0.15
1.55
4.61
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term U.S. Government Strategy - Gross (%)
5.62
4.81
3.97
1.09
1.92
4.93
Thornburg Limited Term U.S. Government Strategy - Net (%)
5.36
4.42
3.58
0.72
1.54
4.16
Bloomberg U.S. Government Intermediate Index (%)
4.98
4.24
3.42
0.32
1.60
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

Total return (net and gross) is based on composite performance.

Periods less than one year are not annualized.

In US$ terms. Returns may increase or decrease as a result of currency fluctuations.

Performance data for the Limited Term U.S. Government Strategy is from the Limited Term U.S. Government Composite, inception date of 1 March 1988. The Limited Term U.S. Government Composite includes all discretionary non-wrap accounts invested in the Limited Term U.S. Government Strategy. Returns are calculated using a time-weighted and asset-weighted calculation. Returns reflect the reinvestment of income and capital gains. Periods less than one year are not annualized. Individual account performance will vary. The performance data quoted represents past performance; it does not guarantee future results. Gross of fee returns are net of transaction costs. Net of fee returns are net of transaction costs and investment advisory fees. For periods prior to 2011, net returns for some accounts in the composite also reflect the deduction of administrative expenses. Thornburg Investment Management Inc.'s fee schedule is detailed in Part 2A of its ADV brochure. Performance results of the firm's clients will be reduced by the firm's management fees. For example, an account with a compounded annual total return of 10% would have increased by 159% over ten years. Assuming an annual management fee of 0.75%, this increase would be 142%.

Strategy Facts

Strategy Facts

(As of 31 Aug 2025)
Benchmark
Bloomberg U.S. Government Intermediate Index
Characteristics

Characteristics

Portfolio

(As of 31 Aug 2025)
Portfolio
Benchmark
Number of Holdings
145
—
Effective Duration
4.6 Yrs
3.5 Yrs
Average Effective Maturity
5.8 Yrs
3.9 Yrs
Portfolio
Benchmark
Weighted Average Coupon
2.8%
3.2%
Weighted Average Price
$92.84
—

Data based on representative account.

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
Download Holdings

Data based on representative account.

Exposure Breakdown

Exposure Breakdown

(As of 31 Aug 2025)
Sector
Sector Allocation
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mortgage Passthrough
32.7
—
Collateralized Mortgage Obligation
28.5
—
Treasury-Domestic
19.6
98.4
Cash & Cash Equivalents
4.9
—
Asset Backed Securities
4.6
—
Commercial Mortgage Backed Security
4.3
—
Agency Debenture
3.8
1.6
Corporate
1.5
—
Sector Allocation
Portfolio (%)
Mortgage Passthrough
32.7
Collateralized Mortgage Obligation
28.5
Treasury-Domestic
19.6
Cash & Cash Equivalents
4.9
Asset Backed Securities
4.6
Commercial Mortgage Backed Security
4.3
Agency Debenture
3.8
Corporate
1.5
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
U.S. Government
95.1
100.0
Cash & Cash Equivalents
4.9
—
Credit Quality
Portfolio (%)
U.S. Government
95.1
Cash & Cash Equivalents
4.9
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Year 1
3.2
2.5
Year 2
3.8
23.3
Year 3
8.3
18.9
Year 4
12.0
14.2
Year 5
15.7
13.5
Year 6
5.2
8.3
Year 7
12.2
7.9
Year 8
3.8
3.6
Year 9
9.2
4.4
Year 10+
21.6
3.4
Cash
4.9
—
Maturity
Portfolio (%)
Year 1
3.2
Year 2
3.8
Year 3
8.3
Year 4
12.0
Year 5
15.7
Year 6
5.2
Year 7
12.2
Year 8
3.8
Year 9
9.2
Year 10+
21.6
Cash
4.9

Data based on representative account.

Percentages may not add up to 100 due to rounding.

Cash includes cash equivalents. Weights are percentages of total portfolio unless otherwise noted.

Credit quality ratings use the highest rating available from either S&P Global Ratings or Moody's Investors Service. Unrated securities are evaluated by the firm using available data and their own analysis that may be similar to that of a nationally recognized rating agency; however, such determination is not equivalent to a national agency credit rating. "NR" = Not Rated.

Portfolio Managers

Portfolio Managers

Lon Erickson, CFA

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…
Learn More
Christian Hoffmann, CFA

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…
Learn More

Literature

Fact Sheet
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Thornburg Investment Insights: Corporate Earnings and Tariff Impacts
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2 min read
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Investment Landscape: Surveying Potential Risks and Opportunities
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5 min read
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