Thornburg Limited Term Income Fund (UCITS)
Overall Morningstar Rating among 142 EAA Fund USD Corporate Bond - Short Term funds, based on risk-adjusted returns for class I Dist shares, using a weighted average of the funds three-, five-, and ten-year ratings: respectively, 2 stars, 2 stars and 3 stars among 142, 131 and 67 funds, as of 31 Aug 2025.
Portfolio Managers
Consistent Outperformance vs. Peers
The fund has navigated interest rate cycles and market volatility while delivering income and consistent total return over time versus peers. Thornburg Limited Term Income Fund also has a history of providing:
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- Core Bond Like Returns with Less Volatility
- Superior Risk-Adjust Returns
- Consistent Outperformance versus Peers
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than quoted. For performance current to the most recent month end, visit thornburg.com or call 877-215-1330. Class I shares may not be available to all investors. Minimum investments for the I share class may be higher than those for other classes.
Thornburg Limited Term Income Fund (UCITS)
This solution is one of Thornburg’s flagship strategies. The strategy leans on our strong history of active fixed income investing in the short-term bond market. For more than 30 years, the fund has addressed the uncertainty of global markets by uncovering relative value within and across sectors and structures. We have applied the same philosophy and process to generate alpha versus benchmarks and competitors, since inception.
Our process combines a bottom-up and top-down approach, leading to higher conviction ideas while seeking better investment outcomes. We employ a flexible approach to construct a U.S. dollar-denominated short and intermediate investment-grade bond portfolio.
The strategy is designed for stability, capital preservation, and moderate interest rate exposure. In a dynamically changing fixed income environment, we seek to drive returns through income and superior relative value issue selection.
The strategy pursues three primary outcomes in our portfolios:
- First, we seek returns consistent with core fixed income but less volatile than core strategies.
- Second, we look for a return stream with a low or negative correlation to risky assets such as equities.
- And third, we focus on income consistent with the preservation of capital.
Investors seek to preserve capital through varied of market and economic conditions and this strategy has provided core bond-like returns. The strategy has delivered income and superior relative risk-adjusted returns through market volatility and interest rate cycles.
Our unique approach to assessing risk and reward across investment opportunities makes this solution distinctive.
Our investment approach, rooted in our ability to uncover relative value across different securities, allows us to exploit inefficiencies.
Our team brings deep expertise and experience across the fixed income universe. Putting our ideas together allows for a robust process, debate, and a focus on optimal investment outcomes. We analyze macroeconomic factors with our proprietary, fundamental credit research to select securities that align with fund objectives. Each idea is debated from multiple viewpoints to ensure that a high-conviction position is a decision we make together.
Risk is managed through qualitative and quantitative techniques within our portfolio, providing robust data on factor exposures, credit, interest rates, and volatility metrics. Investment risk is analyzed through intensive, bottom-up fundamental analysis and valuation for individual investments.
We deploy risk at attractive entry points when markets dislocate while defensively positioning when volatility is low. We employ lower turnover during normal market conditions, avoiding tactical decisions with less consistent positive outcomes.
We invest only in cash bonds, avoiding leverage and substantial exposure to derivatives. The portfolio is laddered, meaning we only purchase securities with a weighted average maturity between zero and 10 years. This provides us with a consistent source of natural liquidity while we pursue the most attractive, investment-grade fixed income opportunities.
We believe this strategy can outperform cash instruments such as Treasury bills and money market funds in a falling interest rate environment.
The strategy ideally provides a source of steady, high-quality income, serves as a ballast when equity markets are struggling, and is a robust complement to riskier areas of fixed income, such as high yield, bank loans, or emerging markets.
Fund Facts
(As of 31 Jul 2025)Performance
Returns
Hypothetical Growth of $10,000
(As of 31 Aug 2025)Distributions
(As of 4 Sep 2025)Characteristics
Portfolio
(As of 31 Jul 2025)Risk & Return Profile
(As of 31 Jul 2025)Portfolio
Top Holdings
(As of 31 Jul 2025)Exposure Breakdown
(As of 31 Jul 2025)Portfolio Managers

Lon Erickson, CFA

Christian Hoffmann, CFA
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