“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
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.
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.
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.
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.