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Intermediate Income SMA

Strategy Overview
The Intermediate Income Strategy is a high-quality core portfolio that employs bottom-up research to find undervalued opportunities across the investment-grade universe. The strategy is designed to provide investors a high level of current income consistent with the long-term preservation of capital.
Strategy Inception Date
1 Oct 2024

Portfolio Managers

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

Overview

Why Invest in This Strategy?

  • Income and Downside Protection — This strategy aims to deliver a high level of current income to investors while also prioritizing capital preservation.
  • High Quality — The strategy uses a flexible, active approach to invest in what we believe are the best relative value opportunities in investment-grade fixed income securities, including U.S. government, asset-backed, non-agency mortgage-related, and corporate debt securities.
  • Potential Outperformance — With the Federal Reserve expected to cut interest rates further, the strategy may outperform cash and other short-term bond strategy options.
Key Facts

Key Facts

(As of 30 Apr 2025)
Assets
$0.2 M
Benchmark
Bloomberg U.S. Aggregate Index
Number of Holdings
69
Performance

Performance

Returns

(As of 31 Mar 2025)
YTD
Inception
Thornburg Intermediate Income Strategy - Gross (%)
2.55
-0.17
Thornburg Intermediate Income Strategy - Net (%)
2.55
-0.18
Bloomberg U.S. Aggregate Index (%)
2.78
-0.37
YTD
Inception
Thornburg Intermediate Income Strategy - Gross (%)
2.81
0.08
Thornburg Intermediate Income Strategy - Net (%)
2.81
0.08
Bloomberg U.S. Aggregate Index (%)
3.18
0.03
Characteristics

Characteristics

Portfolio

(As of 30 Apr 2025)
Portfolio
Benchmark
Effective Duration
5.2 Yrs
6.0 Yrs
Average Effective Maturity
7.3 Yrs
8.3 Yrs
Portfolio
Benchmark
Weighted Average Coupon
3.5%
3.6%
Weighted Average Price
$67.47
Portfolio

Portfolio

Top Holdings

(As of 31 Mar 2025)
Name
Ticker/Symbol
Weight %
United States Treasury Note/Bond
912810RE0
8.0
United States Treasury Note/Bond
912810TN8
7.7
United States Treasury Note/Bond
91282CHT1
4.0
Freddie Mac Multifamily Structured Pass Through Certificates
3137HAD29
3.0
Freddie Mac Pool
3132DWDK6
2.9
Fannie Mae Pool
31418EKT6
2.8
Fannie Mae Pool
31418EGJ3
2.8
Freddie Mac Pool
3132D6BQ2
2.8
Fannie Mae Pool
3140XMY91
2.8
Fannie Mae Pool
31418ECQ1
2.8
Exposure Breakdown

Exposure Breakdown

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

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
Corporate
34.3
23.9
Mortgage Passthrough
24.9
24.8
Treasury-Domestic
22.7
45.0
Asset Backed Securities
12.7
0.5
Commercial Mortgage Backed Security
3.0
1.5
Cash & Cash Equivalents
2.4
Sector Allocation
Portfolio (%)
Corporate
34.3
Mortgage Passthrough
24.9
Treasury-Domestic
22.7
Asset Backed Securities
12.7
Commercial Mortgage Backed Security
3.0
Cash & Cash Equivalents
2.4
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
U.S. Government
51.4
AAA
12.0
A
8.5
BBB
26.6
Cash & Cash Equivalents
1.6
Credit Quality
Portfolio (%)
U.S. Government
51.4
AAA
12.0
A
8.5
BBB
26.6
Cash & Cash Equivalents
1.6
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
Year 1
16.3
1.1
Year 2
9.2
12.0
Year 3
7.7
10.3
Year 4
2.3
9.1
Year 5
15.1
10.4
Year 6
7.6
5.7
Year 7
1.4
6.8
Year 8
2.7
6.3
Year 9
7.2
7.1
Year 10+
28.8
31.1
Cash
1.6
Maturity
Portfolio (%)
Year 1
16.3
Year 2
9.2
Year 3
7.7
Year 4
2.3
Year 5
15.1
Year 6
7.6
Year 7
1.4
Year 8
2.7
Year 9
7.2
Year 10+
28.8
Cash
1.6
Portfolio Managers

Portfolio Managers

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…
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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…
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Portfolio managers are supported by the entire Thornburg investment team.

Literature

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