Thornburg Limited Term U.S. Government SMA
BENCHMARK: Bloomberg U.S. Government Intermediate Index
Strategy Overview
The Limited Term U.S. Government Strategy employs an actively managed approach to build a portfolio of high quality short/intermediate-term obligations issued by the U.S. government, its agencies or instrumentalities with an average maturity of five years or less. The strategy seeks to provide income consistent with the preservation of capital and lower volatility relative to core bond strategies.
Strategy Inception Date
1 Mar 1988
Portfolio Managers
Portfolio Manager and Managing Director
Head of Fixed Income, Portfolio Manager and Managing Director
Overview
Key Facts
Key Facts
(As of 30 Sep 2026)Benchmark
Bloomberg U.S. Government Intermediate Index
Performance
Performance
Returns
(As of 30 Sep 2026)2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Composite - Gross (%)
1.90
1.53
1.71
4.55
4.69
-0.99
-7.21
4.91
3.32
7.52
Composite - Net (%)
1.52
1.16
1.33
4.16
4.31
-1.35
-7.57
4.52
2.94
7.12
Bloomberg U.S. Government Intermediate Index (%)
1.05
1.14
1.43
5.20
5.73
-1.69
-7.73
4.30
2.44
6.50
Characteristics
Characteristics
Portfolio
(As of 30 Sep 2026)Portfolio
Benchmark
Number of Holdings
137
—
Effective Duration
4.5 Yrs
3.4 Yrs
Average Effective Maturity
5.6 Yrs
3.8 Yrs
Portfolio
Benchmark
Weighted Average Coupon
3.2%
3.5%
Weighted Average Price
$89.68
—
Portfolio
Portfolio
Top Holdings
(As of 30 Sep 2026)Name
Ticker/Symbol
Weight %
United States Treasury Note/Bond
91282CRL7
4.2
FARM 21-1 Mortgage Trust
30768WAA6
3.9
United States Treasury Note/Bond
91282CPJ4
3.8
Caledonia Generating, LLC
129268AB4
3.2
Freddie Mac Pool
3132XGYH3
3.0
United States Treasury Inflation Indexed Bonds
91282CPU9
3.0
United States Treasury Note/Bond
91282CQQ7
2.9
Freddie Mac Seasoned Credit Risk Transfer Trust 2017-4
35563PDD8
2.5
Freddie Mac Pool
3133SKBP5
2.0
Fannie Mae Pool
31418D2Y7
2.0
Exposure Breakdown
Exposure Breakdown
(As of 30 Sep 2026)Sector Allocation
Portfolio (%)
Collateralized Mortgage Obligation
33.4
Mortgage Passthrough
32.5
Treasury Domestic
20.7
Agency Debenture
4.5
Asset Backed Securities
4.2
Commercial Mortgage Backed Security
3.7
Short-Term Investments, Other Assets & Liabilities
0.9
Credit Quality
Portfolio (%)
U.S. Government
99.1
Short-Term Investments, Other Assets & Liabilities
0.9
Maturity
Portfolio (%)
Year 1
2.0
Year 2
5.1
Year 3
12.1
Year 4
21.1
Year 5
8.4
Year 6
10.8
Year 7
7.9
Year 8
7.1
Year 9
2.9
Year 10
17.8
Year 11+
3.9
Short-Term Investments, Other Assets & Liabilities
0.9
Portfolio Managers
Portfolio Managers
Lon Erickson, CFA
Portfolio Manager and Managing Director
Lon Erickson is a portfolio manager for Thornburg Investment Management. He joined Thornburg in 2008 and was named a managing director and was promoted to portfolio manager in 2010. Prior to joining Thornburg Investment Management, Lon spent almost 11 years as an analyst for State Farm Insurance in the equity and corporate bond departments. Lon earned a bachelor’s degree in…
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Christian Hoffmann, CFA
Head of Fixed Income, Portfolio Manager and Managing Director
Christian Hoffmann is head of fixed income and a portfolio manager for Thornburg Investment Management. He joined the firm in 2012 as a fixed income analyst and was promoted to associate portfolio manager in 2014. Christian was named a managing director in 2017, was promoted to portfolio manager in 2018, and to head of fixed income in 2024. Prior to…
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Literature
More Insights
Markets & Economy
Beyond the Rate Debate: Navigating Today’s Fixed Income Signals
Bond markets continue searching for a storyline that sticks. Today’s challenge is determining where investors are being fairly compensated for risk and where valuations may be less forgiving. Hear Thornburg Portfolio Managers Christian Hoffmann, Ali Hassan, and Lon Erickson as they unpack the forces shaping fixed income markets today, from AI-driven debt issuance to tight credit spreads to a rates market sending mixed signals.
Markets & Economy
Fortune Favors the Disciplined: The Margin for Error Remains Low
We are surprised that so many fixed income asset classes remain priced for perfection. To navigate prospective dislocations, a disciplined, security-specific focus and relative value process is essential.
Global Credit
What Tight Credit Spreads Mean for Investors
Tight credit spreads and elevated valuations leave little room for error. Here's what fixed income investors should consider in today's market.