Unsubscribe

Confirm you would like to unsubscribe from this list

You have unsaved changes on the page. Would you like to save them?

Remove strategy

Confirm you would like to remove this strategy from your list
Give Us a Call

Fund Operations
800.847.0200

FIND ANOTHER CONTACT

Thornburg Limited Term Income SMA

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 and Managing Director
Overview

Overview

Why Invest in This Strategy?

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

Key Facts

(As of 31 May 2025)
Assets
$176.3 M
Benchmark
Bloomberg Intermediate U.S. Government/Credit Index
Number of Holdings
710
eVestment Category
US Intermediate Duration - Gov/Cred Fixed Income
Performance

Performance

Returns

(As of 31 Mar 2025)
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term Income Strategy - Gross (%)
2.39
6.63
3.79
3.13
3.01
5.24
Thornburg Limited Term Income Strategy - Net (%)
2.31
6.30
3.46
2.81
2.68
4.56
Bloomberg Intermediate U.S. Government/Credit Index (%)
2.42
5.65
2.18
0.86
1.81
4.23
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term Income Strategy - Gross (%)
2.95
6.93
4.41
2.39
3.03
5.23
Thornburg Limited Term Income Strategy - Net (%)
2.81
6.59
4.08
2.07
2.69
4.55
Bloomberg Intermediate U.S. Government/Credit Index (%)
3.03
6.45
2.82
0.55
1.87
4.22
2019
2020
2021
2022
2023
2024
Thornburg Limited Term Income Strategy - Gross (%)
6.26
8.09
-0.33
-6.53
6.99
5.21
Thornburg Limited Term Income Strategy - Net (%)
5.91
7.74
-0.64
-6.82
6.65
4.87
Bloomberg Intermediate U.S. Government/Credit Index (%)
6.80
6.43
-1.44
-8.23
5.24
3.00
Characteristics

Characteristics

Portfolio

(As of 31 May 2025)
Portfolio
Benchmark
Effective Duration
3.5 Yrs
3.7 Yrs
Average Effective Maturity
4.4 Yrs
4.2 Yrs
Portfolio
Benchmark
Weighted Average Coupon
3.8%
3.5%
Weighted Average Price
$94.91
Portfolio

Portfolio

Top Holdings

(As of 30 Apr 2025)
Name
Ticker/Symbol
Weight %
United States Treasury Inflation Indexed Bonds
91282CBF7
1.8
Freddie Mac Pool
3132E0T85
1.6
Fannie Mae Pool
3140XMZX7
1.6
United States Treasury Note/Bond
91282CFF3
1.4
United States Treasury Inflation Indexed Bonds
91282CDX6
0.9
Rate Mortgage Trust 2022-J1
75410RAJ5
0.6
Freddie Mac Pool
3132DPBV9
0.6
Diamond Infrastructure Funding, LLC
25265LAA8
0.6
Fannie Mae Pool
3140XMBR6
0.5
New Residential Mortgage Loan Trust 2022-NQM3
64831QAA1
0.5
Exposure Breakdown

Exposure Breakdown

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

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
Corporate
34.8
29.4
Collateralized Mortgage Obligation
21.7
Asset Backed Securities
15.3
0.0
Mortgage Passthrough
11.6
Cash & Cash Equivalents
6.4
Treasury-Domestic
5.0
64.6
Commercial Mortgage Backed Security
4.2
Preferred Stock
0.6
Agency Debenture
0.2
2.1
Treasury-Foreign
0.1
3.3
Municipals
0.1
0.6
Sector Allocation
Portfolio (%)
Corporate
34.8
Collateralized Mortgage Obligation
21.7
Asset Backed Securities
15.3
Mortgage Passthrough
11.6
Cash & Cash Equivalents
6.4
Treasury-Domestic
5.0
Commercial Mortgage Backed Security
4.2
Preferred Stock
0.6
Agency Debenture
0.2
Treasury-Foreign
0.1
Municipals
0.1
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
U.S. Government
24.8
66.7
AAA
20.6
2.2
AA
7.3
3.3
A
16.6
13.9
BBB
23.5
13.8
Below Invest. Grade
0.2
0.0
Not Rated
0.7
Cash & Cash Equivalents
6.2
Credit Quality
Portfolio (%)
U.S. Government
24.8
AAA
20.6
AA
7.3
A
16.6
BBB
23.5
Below Invest. Grade
0.2
Not Rated
0.7
Cash & Cash Equivalents
6.2
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Year 1
13.6
2.1
Year 2
11.6
21.0
Year 3
9.9
17.5
Year 4
7.5
14.0
Year 5
14.0
14.1
Year 6
7.1
8.4
Year 7
7.4
8.1
Year 8
3.8
4.8
Year 9
4.6
5.4
Year 10+
14.2
4.6
Cash
6.2
Maturity
Portfolio (%)
Year 1
13.6
Year 2
11.6
Year 3
9.9
Year 4
7.5
Year 5
14.0
Year 6
7.1
Year 7
7.4
Year 8
3.8
Year 9
4.6
Year 10+
14.2
Cash
6.2
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

More Insights

2024 Outlook for ESG Equities
Outlook

2024 Outlook ESG: Will High Rates Curb Infrastructure Investment?

If net zero carbon emissions remains the long-term climate goal, high interest rates require discipline deciding which projects are financed and which are not.
A decommissioned lignite power station behind a village
ESG

ESG Momentum: Investing Isn’t One Dimensional

Investors should consider ESG momentum investing that enables active managers to consider misunderstood companies as opportunities for alpha generation.
Green policies and sustainability.
ESG

Green Policy vs Sustainability: Reconsidering ESG

For a long time, it seemed like ESG was trending towards a singular orthodoxy—that an "ESG Company" might be the one blessed by arbiters. That is no longer the case.
Security types icons with natural green vegetation patterns.
ESG

ESG Considerations In Securitized Fixed Income

At Thornburg, we feel a fully integrated investment approach is the most effective way to incorporate ESG factors into securitized fixed income analysis.
Onshore and offshore wind turbines on reclaimed land, Noordoostpolder, Flevoland, Netherlands
ESG

The Changing Face of ESG

As the disconnect between policy ambitions and on-the-ground realities widen, asset managers have to cope the challenge of the changing face of ESG.
ESG investing and practices are important, 4 kayaks lie stark against a Caribbean blue ocean
ESG

ESG Investing: Practices, Progress and Challenges

Jake Walko, Thornburg’s Director of ESG Investing & Global Investment Stewardship, speaks about ESG integration and the benefits of active management.