Thornburg Limited Term Income SMA
BENCHMARK: Bloomberg Intermediate U.S. Government/Credit Index
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
Key Facts
Key Facts
(As of 31 May 2026)Assets
$174.0 M
Benchmark
Bloomberg Intermediate U.S. Government/Credit Index
eVestment Category
US Intermediate Duration - Gov/Cred Fixed Income
Performance
Performance
Returns
(As of 31 Mar 2026)2020
2021
2022
2023
2024
2025
Composite - Gross (%)
8.09
-0.33
-6.53
6.99
5.21
7.53
Composite - Net (%)
7.74
-0.64
-6.82
6.65
4.87
7.18
Bloomberg Intermediate U.S. Government/Credit Index (%)
6.43
-1.44
-8.23
5.24
3.00
6.97
Characteristics
Characteristics
Portfolio
(As of 31 May 2026)Portfolio
Benchmark
Number of Holdings
785
—
Effective Duration
3.2 Yrs
3.7 Yrs
Average Effective Maturity
3.9 Yrs
4.2 Yrs
Portfolio
Benchmark
Weighted Average Coupon
3.9%
3.7%
Weighted Average Price
$96.60
—
Portfolio
Portfolio
Top Holdings
(As of 31 May 2026)Name
Ticker/Symbol
Weight %
United States Treasury Inflation Indexed Bonds
91282CPU9
2.1
United States Treasury Note/Bond
91282CQQ7
1.6
Ginnie Mae II Pool
36179W7K8
1.4
United States Treasury Note/Bond
91282CPM7
1.2
Ginnie Mae II Pool
36179WR34
0.8
United States Treasury Note/Bond
91282CPN5
0.6
Rate Mortgage Trust 2022-J1
75410RAJ5
0.6
Diamond Infrastructure Funding, LLC
25265LAA8
0.6
Freddie Mac Pool
3132E0T85
0.6
Fannie Mae Pool
31418FWW3
0.5
Exposure Breakdown
Exposure Breakdown
(As of 31 May 2026)Sector Allocation
Portfolio (%)
Corporate Bond
35.1
Collateralized Mortgage Obligation
22.6
Asset Backed Securities
13.6
Mortgage Passthrough
9.3
Treasury Domestic
7.4
Short-Term Investments, Other Assets & Liabilities
5.7
Commercial Mortgage Backed Security
5.0
Preferred Stock
0.6
Municipals
0.3
Agency Debenture
0.2
Treasury-Foreign
0.1
Credit Quality
Portfolio (%)
U.S. Government
27.4
AAA
19.6
AA
7.2
A
15.1
BBB
23.3
Below Invest. Grade
0.2
Not Rated
1.5
Short-Term Investments, Other Assets & Liabilities
5.7
Maturity
Portfolio (%)
Year 1
18.1
Year 2
8.4
Year 3
12.0
Year 4
14.5
Year 5
11.6
Year 6
6.4
Year 7
5.0
Year 8
2.0
Year 9
2.7
Year 10
11.9
Year 11+
1.7
Short-Term Investments, Other Assets & Liabilities
5.7
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
More Insights
Markets & Economy
Don’t Wait for the All Clear
Elevated yields, shifting macro dynamics, and nuances in the credit market are making bonds worth a second look. For investors sitting in cash or money market instruments, now could be the time to put that money to work in fixed income.
Fixed Income
Navigating Tight Credit Spreads With a Defensive Income Mindset
Spreads are near historic lows, limiting compensation for risk. Learn why selectivity, quality, and flexibility matter in today’s credit environment.
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A Disinflationary Paradox of High Oil Prices
A look at how sustained high oil prices act as a drag on demand, shifting inflation lower over time and echoing signals from an inverted yield curve.