Thornburg Strategic Income Fund

FREEDOM TO INVEST GLOBALLY IN ANY INCOME-PRODUCING SECURITY

Thornburg Strategic Income Fund is a broadly flexible income-oriented portfolio with a wide investment mandate and the freedom to invest in any income-producing security, anywhere in the world. We aim to provide a strong, consistent income stream that preserves investors’ purchasing power, while not exposing them to undue risk.

 

“With this fund, we strive for competitive return and balanced risks through active research in the global market for income-producing products, and by comparing the relative risks and rewards across many asset classes and subclasses. True to Thornburg’s mantra, this portfolio is designed to go where the value is.”

— Jason Brady

 

BEYOND A SINGLE ASSET CLASS

Investors often associate higher income with the high-yield asset class, but moving down the credit-quality spectrum within one asset class doesn’t always provide it, and can expose investors to significant risks.

We seek the high and sustainable income that is associated with the high-yield asset class, without many of the risks and strictures inherent in it.

A BROAD PURVIEW

We invest flexibly and in a wide variety of asset classes: mortgages, Treasuries, corporates, preferred stocks, convertibles, foreign sovereign debt—anything in which the risk/reward tradeoff appears compelling.

Unlike a typical high-yield fund, we are not forced by a restrictive mandate to take credit risk in every corner of the portfolio.

HARNESSING THORNBURG’S OPEN, CONTINUOUS INVESTMENT PROCESS

Since the fund has such a broad scope and can invest in any income-producing security anywhere in the world, the way the team works together is the most important key to success. As a group, we look at everything out there. With so many market niches to examine, we are constantly engaged in comparing one compelling opportunity with another.

Our job with this portfolio is, in a sense, comparing apples to oranges. By sitting side-by-side and constantly exchanging information, we are able to make sure that all opportunities available are discussed, compared, contrasted, and ultimately, for most of them, discarded.

INDIVIDUAL, BOTTOM-UP ASSET AND CREDIT WORK

Hard, rigorous credit work on an individual, security-by-security basis underpins the selection process. The portfolio is built from the bottom up and performance is driven by individual asset behavior, not by monolithic moves in macroeconomic variables.

NO USE OF LEVERAGE

We don’t use leverage in Strategic Income Fund, and we don’t use derivatives to mask leverage.

REASONABLE PURSUIT OF REASONABLE OBJECTIVES

We don’t attempt to knock the ball out of the park every year, or even in any given year, but strive to balance the pursuit of attractive income with the assumption of a moderately higher level of risk.

BEST FIXED INCOME FUND FAMILY

2012 Lipper Fund Award2012 – 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.

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. Only fund families with at least five bond funds were eligible for the Fund Family Award.
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