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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, Portfolio Manager 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 31 Aug 2026)
Assets
$1.0 M
Benchmark
Bloomberg U.S. Aggregate Index
Performance

Performance

Returns

(As of 30 Jun 2026)
YTD
1y
Inception
Composite - Gross (%)
0.67
3.43
2.45
Composite - Net (%)
0.52
3.12
2.14
Bloomberg U.S. Aggregate Index (%)
0.62
3.79
2.64
YTD
1y
Inception
Composite - Gross (%)
-0.21
1.76
1.76
Composite - Net (%)
-0.39
1.48
1.47
Bloomberg U.S. Aggregate Index (%)
-0.31
1.89
1.91
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Composite - Gross (%)
—
—
—
—
—
—
—
—
—
6.45
Composite - Net (%)
—
—
—
—
—
—
—
—
—
6.14
Bloomberg U.S. Aggregate Index (%)
—
—
—
—
—
—
—
—
—
7.30
Characteristics

Characteristics

Portfolio

(As of 31 Aug 2026)
Portfolio
Benchmark
Number of Holdings
96
—
Effective Duration
5.4 Yrs
5.8 Yrs
Average Effective Maturity
7.5 Yrs
8.1 Yrs
Portfolio
Benchmark
Weighted Average Coupon
4.0%
3.9%
Weighted Average Price
$93.15
—
Portfolio

Portfolio

Top Holdings

(As of 31 Aug 2026)
Name
Ticker/Symbol
Weight %
United States Treasury Note/Bond
912810RE0
7.2
United States Treasury Note/Bond
912810TN8
7.2
United States Treasury Note/Bond
91282CHT1
3.7
United States Treasury Note/Bond
91282CLF6
3.5
Freddie Mac Pool
3132DWDK6
2.4
Fannie Mae Pool
31418ECQ1
2.4
Fannie Mae Pool
31418EKT6
2.4
Fannie Mae Pool
31418EGJ3
2.4
Freddie Mac Pool
3132D6BQ2
2.3
Freddie Mac Pool
3132DWGY3
2.2
Exposure Breakdown

Exposure Breakdown

(As of 31 Aug 2026)
Sector Allocation
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
Corporate Bond
33.4
24.0
Treasury Domestic
29.1
46.3
Mortgage Passthrough
23.8
23.5
Asset Backed Securities
10.9
0.4
Collateralized Mortgage Obligation
1.7
—
Short-Term Investments, Other Assets & Liabilities
1.0
—
Sector Allocation
Portfolio (%)
Corporate Bond
33.4
Treasury Domestic
29.1
Mortgage Passthrough
23.8
Asset Backed Securities
10.9
Collateralized Mortgage Obligation
1.7
Short-Term Investments, Other Assets & Liabilities
1.0
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
80%
U.S. Government
55.5
70.3
AAA
10.1
3.0
AA
1.5
4.1
A
6.7
11.1
BBB
24.4
11.1
Below Invest. Grade
0.8
0.4
Short-Term Investments, Other Assets & Liabilities
1.0
—
Credit Quality
Portfolio (%)
U.S. Government
55.5
AAA
10.1
AA
1.5
A
6.7
BBB
24.4
Below Invest. Grade
0.8
Short-Term Investments, Other Assets & Liabilities
1.0
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Year 1
20.0
1.1
Year 2
6.0
12.8
Year 3
2.3
10.4
Year 4
9.7
8.8
Year 5
11.2
9.6
Year 6
0.8
6.3
Year 7
9.5
7.9
Year 8
7.9
8.0
Year 9
6.0
9.8
Year 10+
25.5
25.3
Short-Term Investments, Other Assets & Liabilities
1.0
—
Maturity
Portfolio (%)
Year 1
20.0
Year 2
6.0
Year 3
2.3
Year 4
9.7
Year 5
11.2
Year 6
0.8
Year 7
9.5
Year 8
7.9
Year 9
6.0
Year 10+
25.5
Short-Term Investments, Other Assets & Liabilities
1.0
Portfolio Managers

Portfolio Managers

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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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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