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Thornburg Limited Term Income Strategy

Strategy Overview
The Limited Term Income Strategy employs a flexible and highly active approach to construct a core portfolio of U.S. dollar–denominated short/intermediate investment grade bonds. It is designed for stability, capital preservation and moderate interest rate exposure. The strategy seeks to drive returns through income and superior relative value issue selection in a dynamically changing fixed income environment.
Strategy Inception Date
1 Feb 1993

Portfolio Managers

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

Overview

Why Invest in This Strategy?

 

  • Flexible, active high-quality portfolio that consists primarily of U.S short- and intermediate-term investment grade bonds.
  • Proven bottom-up fundamental approach that seeks to identify attractive fixed income opportunities on a relative value basis.
  • Highly active strategy that seeks to deliver total return through income and preserve capital with moderate interest rate exposure.
Performance

Performance

Returns

(As of 30 Sep 2026)
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term Income Strategy - Gross (%)
-0.16
1.20
5.70
2.40
3.03
5.15
Thornburg Limited Term Income Strategy - Net (%)
-0.40
0.87
5.37
2.08
2.70
4.48
Bloomberg Intermediate U.S. Government/Credit Index (%)
-1.49
-0.31
4.31
0.83
1.71
4.12
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term Income Strategy - Gross (%)
-0.16
1.20
5.70
2.40
3.03
5.15
Thornburg Limited Term Income Strategy - Net (%)
-0.40
0.87
5.37
2.08
2.70
4.48
Bloomberg Intermediate U.S. Government/Credit Index (%)
-1.49
-0.31
4.31
0.83
1.71
4.12
1999
2017
2014
2008
2002
1996
1995
2021
2012
2011
2009
2000
2005
2018
2019
2020
2023
2024
2022
2013
2010
2007
2001
1998
2025
1994
1997
2003
2004
2006
2015
2016
Thornburg Limited Term Income Strategy - Gross (%)
1.40
3.22
4.28
-1.18
9.70
8.61
16.37
-0.33
8.41
6.05
15.86
10.56
2.31
1.72
6.26
8.09
6.99
5.21
-6.53
0.77
7.22
7.05
9.16
7.46
7.53
-2.40
6.64
5.28
3.42
4.51
1.34
3.99
Thornburg Limited Term Income Strategy - Net (%)
0.39
2.89
3.89
-2.02
8.68
7.59
15.42
-0.64
7.95
5.56
14.85
9.52
1.39
1.38
5.91
7.74
6.65
4.87
-6.82
0.39
6.23
6.14
8.13
6.38
7.18
-3.06
5.58
4.31
2.45
3.59
0.98
3.63
Bloomberg Intermediate U.S. Government/Credit Index (%)
0.39
2.14
3.13
5.08
9.84
4.05
15.33
-1.44
3.89
5.80
5.24
10.12
1.58
0.88
6.80
6.43
5.24
3.00
-8.23
-0.86
5.89
7.39
8.96
8.44
6.97
-1.93
7.87
4.31
3.04
4.08
1.07
2.08
Strategy Facts

Strategy Facts

(As of 30 Sep 2026)
Strategy Assets
$174.7 M
Benchmark
Bloomberg Intermediate U.S. Government/Credit Index
eVestment Category
US Intermediate Duration - Gov/Cred Fixed Income
Characteristics

Characteristics

Portfolio

(As of 30 Sep 2026)
Portfolio
Benchmark
Number of Holdings
823
—
Effective Duration
3.4 Yrs
3.6 Yrs
Average Effective Maturity
4.1 Yrs
4.1 Yrs
Portfolio
Benchmark
Weighted Average Coupon
4.2%
3.8%
Weighted Average Price
$94.28
—
Portfolio

Portfolio

Top Holdings

(As of 30 Sep 2026)
Name
Ticker/Symbol
Weight %
United States Treasury Note/Bond
91282CQQ7
3.1
United States Treasury Inflation Indexed Bonds
91282CPU9
2.0
United States Treasury Note/Bond
91282CRL7
1.8
United States Treasury Note/Bond
91282CPM7
1.2
United States Treasury Note/Bond
91282CRF0
1.0
Ginnie Mae II Pool
36179WR34
0.8
United States Treasury Note/Bond
91282CPN5
0.6
Ginnie Mae II Pool
36179W7K8
0.6
Diamond Infrastructure Funding, LLC
25265LAA8
0.6
Rate Mortgage Trust 2022-J1
75410RAJ5
0.5
Exposure Breakdown

Exposure Breakdown

(As of 30 Sep 2026)
Sector Allocation
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
Corporate Bond
31.9
25.3
Collateralized Mortgage Obligation
22.4
—
Asset Backed Securities
13.2
0.0
Treasury Domestic
12.1
64.7
Mortgage Passthrough
9.7
—
Short-Term Investments, Other Assets & Liabilities
4.8
—
Commercial Mortgage Backed Security
4.5
—
Preferred Stock
0.7
—
Loan Participation
0.3
—
Agency Debenture
0.2
1.9
Municipals
0.1
0.2
Treasury-Foreign
0.1
3.5
Sector Allocation
Portfolio (%)
Corporate Bond
31.9
Collateralized Mortgage Obligation
22.4
Asset Backed Securities
13.2
Treasury Domestic
12.1
Mortgage Passthrough
9.7
Short-Term Investments, Other Assets & Liabilities
4.8
Commercial Mortgage Backed Security
4.5
Preferred Stock
0.7
Loan Participation
0.3
Agency Debenture
0.2
Municipals
0.1
Treasury-Foreign
0.1
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
U.S. Government
31.0
65.6
AAA
20.2
3.1
AA
6.7
3.6
A
14.0
13.5
BBB
21.2
13.7
Below Invest. Grade
0.4
0.5
Not Rated
1.6
—
Short-Term Investments, Other Assets & Liabilities
4.8
—
Credit Quality
Portfolio (%)
U.S. Government
31.0
AAA
20.2
AA
6.7
A
14.0
BBB
21.2
Below Invest. Grade
0.4
Not Rated
1.6
Short-Term Investments, Other Assets & Liabilities
4.8
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Year 1
14.5
1.8
Year 2
10.2
21.9
Year 3
13.0
17.6
Year 4
13.3
13.7
Year 5
12.8
14.2
Year 6
6.3
7.8
Year 7
5.3
7.9
Year 8
2.6
5.1
Year 9
2.6
5.1
Year 10
12.8
—
Year 11+
1.6
—
Short-Term Investments, Other Assets & Liabilities
4.8
—
Maturity
Portfolio (%)
Year 1
14.5
Year 2
10.2
Year 3
13.0
Year 4
13.3
Year 5
12.8
Year 6
6.3
Year 7
5.3
Year 8
2.6
Year 9
2.6
Year 10
12.8
Year 11+
1.6
Short-Term Investments, Other Assets & Liabilities
4.8
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, Portfolio Manager 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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Literature

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