Thornburg Limited Term Income Fund

SEEKING INCOME FROM HIGH-QUALITY U.S. DOLLAR-DENOMINATED BONDS

Thornburg Limited Term Income Fund is a flexible, actively managed, core portfolio of high-quality U.S. dollar-denominated bonds. This centerpiece investment-grade portfolio seeks a reasonable level of income and lower volatility than some peers, without overextending in the pursuit of yield.

“The fund is designed to look for the best opportunities available in the context of a high quality, laddered portfolio. We strive to bring as much income as is consistent with lower volatility and our focus on balancing risk with reward.”

— Jason Brady

A HIGH-QUALITY CORE PORTFOLIO

In this portfolio, issuer credit quality generally is high, as the fund invests at least 65% of its net assets in debt obligations rated A or higher by a nationally recognized statistical rating organization, or if no credit rating is available, those we judge to be of equivalent quality. When purchased, all bonds must be investment grade quality.

FLEXIBILITY

While Limited Term Income is structured as a 10-year ladder, we enjoy the flexibility to invest wherever we see the most value. Analysts and portfolio managers are expected to be conversant across a wide range of asset classes and geographies.

LOWER VOLATILITY

The fund is a 10-year laddered portfolio, managed with an eye toward mitigated volatility. As markets are inherently volatile, some price movement is expected. But through careful credit research and portfolio construction, we seek to mute price change.

SEEKING REASONABLE INCOME

Many “core” investment-grade bond funds seek to enhance yield by extending duration, lowering credit quality, and even through the use of leverage. While the fund is flexible in pursuit of its goals, we keep things reasonable. We want a reasonable level of income commensurate with a moderate level of risk; we won’t assume undue risk in pursuit of a few extra basis points.

AN ACTIVELY MANAGED LADDER

Laddering involves building a portfolio of staggered maturities so that a portion will mature each year. Money from maturing bonds provides an organic source of cash flow and is typically reinvested in longer-maturity bonds within the range of the ladder. For this fund, the ladder ranges from zero to 10 years.

BEST FIXED INCOME FUND FAMILY

2012 Lipper Fund Award 2012 – The firm ranked #1 out of 41 eligible firms in Lipper Inc.’s fixed income large firm universe for the three-year period ended 11/30/11.

2008 – The firm ranked #1 out of 41 eligible firms in Lipper Inc.’s fixed income large firm universe for the three-year period ended 12/31/07.

The Lipper Fund Awards program honors funds that have excelled in delivering consistently strong risk-adjusted performance, calculated with dividends reinvested and without sales charges, relative to peers. The Lipper Fund Awards program recognizes fund families with high average scores for all funds within a particular asset class or overall. Fund family awards are issued for the three-year period only. Thornburg did not win the awards for any years other than those listed above. Lipper’s Large Company universe was comprised of fund families with more than $40 billion in total net assets for the 2012 award and more than $28 billion for the 2008 award. Only fund families with at least five bond funds were eligible for the Fund Family Award.

Related Resources

Merrill Lynch Call Invite

March 19, 2020

Danan Kirby, CFA

Client Portfolio Manager Danan Kirby invites you to a call on Thornburg's Limited Term Income Fund to learn about our process and how we're protecting investors on the downside, while also seeking opportunity in this volatile market.

The State of the Credit Markets - What Lies Ahead

March 16, 2020

Hear our views on unfolding opportunities and risks across the credit spectrum—high yield, investment grade, leveraged loans and more-- as well as our assessment of market liquidity.

Amid Market Selloff, Jeff Klingelhofer on Bloomberg TV

Please see our glossaryglossary (www.thornburg.com/glossary) for a definition of terms.

Before investing, carefully consider the Fund’s investment goals, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your financial advisor or visit thornburg.com. Read them carefully before investing.

The views expressed are subject to change and do not necessarily reflect the views of Thornburg Investment Management, Inc. This information should not be relied upon as a recommendation or investment advice and is not intended to predict the performance of any investment or market.

Thornburg mutual funds are distributed by Thornburg Securities Corporation.

Investments carry risks, including possible loss of principal. Portfolios investing in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds. The value of bonds will fluctuate relative to changes in interest rates, decreasing when interest rates rise. This effect is more pronounced for longer-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. Investments in mortgage-backed securities (MBS) may bear additional risk. Investments in lower rated and unrated bonds may be more sensitive to default, downgrades, and market volatility; these investments may also be less liquid than higher rated bonds. Investments in derivatives are subject to the risks associated with the securities or other assets underlying the pool of securities, including illiquidity and difficulty in valuation. Investments in equity securities are subject to additional risks, such as greater market fluctuations. Additional risks may be associated with investments outside the United States, especially in emerging markets, including currency fluctuations, illiquidity, volatility, and political and economic risks. Investments in the Funds are not FDIC insured, nor are they bank deposits or guaranteed by a bank or any other entity.

March 2020

Jeff Klingelhofer, CFA

Co-Head of Investments and Portfolio Manager Jeff Klingelhofer joins Bloomberg TV to talk about the coronavirus-driven market selloff, the importance of defensive portfolio positioning, and when we can expect a market bottom and turnaround.

Income Stability with Principal Safety

March 2020

Fixed income managers tend to have a narrow mandate and a clear focus on specific areas. In contrast, Thornburg Limited Term Income Fund covers the entire taxable fixed income universe to find relative value. Lon Erickson, co-manager of the fund, stresses the importance of risk/reward evaluation within safety of the principal and income stability in this feature article on Ticker.com.

Will the U.S. enter a recession?

March 9, 2020

Nancy Lazar, head of economic research and founding partner at Cornerstone Macro, gives her 2020 U.S. economic forecast in this quick Q&A.