Bond Funds

A Tradition of Disciplined Bond Management

Thornburg Investment Management was founded by Garrett Thornburg in 1982 on the belief that fixed income managers could do a better job of preserving wealth after investors account for inflation, taxes, and expenses. For more than 30 years, we have sought — via a responsible, straightforward, organic approach to bond management — to provide investors with attractive returns and relative stability of principal.

We launched our first mutual fund in 1984 in the form of the Limited Term Municipal Fund — a laddered portfolio of municipal bonds from throughout the country. Between then and 1995, we began a series of similar actively managed laddered portfolios, both taxable and tax-free, that can serve as core components of a diversified portfolio. From the Intermediate Municipal Fund to the Limited Term Income Fund, each of these conservative funds has followed the same tested strategy since inception. With fixed-income assets totaling $15 billion (as of 3/31/2019), Thornburg now offers both core and strategic portfolios, which are defined by their flexibility. The Strategic Income Fund and the Strategic Municipal Income Fund both enjoy broad latitude to invest anywhere along the yield curve, anywhere along the credit spectrum, and across a variety of asset classes.

A Conservative View of the Role of Bonds in a Portfolio

We view the role of bonds in a portfolio more conservatively than many asset managers. We don’t employ complex, exotic, and risky tactics in an effort to “juice” returns, and believe that a fixed-income position should serve as the ballast for a well-diversified portfolio, not as the sails of the ship.

A Straightforward, Organic Investment Approach

We seek the best relative value across a broad array of asset classes. Our strategies are typically simple and straightforward. We don’t reach for yield; we conduct rigorous credit research and invest only when the risk/reward tradeoff appears tilted decidedly in the shareholder’s favor. Whether in the flexible strategic funds or the more conservative core funds, our portfolios are run on a cash-only basis, meaning that we don’t employ leverage or complex trading tactics to try to grab return.

Thornburg’s structure as a global manager means that each of our portfolio managers and analysts works across a broad array of geographies, sectors, asset classes, and security types, and is conducive to a free exchange of ideas in the pursuit of the best relative-value opportunities.

Important Information