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Home » Investments » Separately Managed Accounts » Thornburg Limited Term Income SMA
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Thornburg Limited Term Income SMA

Strategy Overview
The Limited Term Income Strategy employs a flexible and highly active approach to construct a core portfolio of U.S. dollar–denominated short/intermediate investment grade bonds. It is designed for stability, capital preservation and moderate interest rate exposure. The strategy seeks to drive returns through income and superior relative value issue selection in a dynamically changing fixed income environment.
Strategy Inception Date
1 Feb 1993

Portfolio Managers

Lon Erickson, CFA
Portfolio Manager and Managing Director
Christian Hoffmann, CFA
Head of Fixed Income and Managing Director
OverviewKey FactsPerformanceCharacteristicsPortfolioPortfolio ManagersLiterature
Overview

Overview

Why Invest in This Strategy?

  • Flexible, active high-quality core portfolio that consists primarily of U.S short- and intermediate-term investment grade bonds.
  • Proven bottom-up fundamental approach that incorporates a top-down macroeconomic overlay to identify attractive fixed income opportunities on a relative value basis.
  • Highly active strategy that seeks to deliver total return through income and capital appreciation and preserve capital with moderate interest rate exposure.

Related Content

Outlook
Mid-Year Fixed Income Outlook: Uncertainty Yields Tight Credit Spreads
Fixed Income
Investor Update: A Potential Reprieve for the Municipal Bond Tax Exemption
Markets & Economy
Fixed Income: Finding Income and Playing Defense Through Volatility
Key Facts

Key Facts

(As of 30 Jun 2025)
Assets
$178.4 M
Benchmark
Bloomberg Intermediate U.S. Government/Credit Index
Number of Holdings
711
eVestment Category
US Intermediate Duration - Gov/Cred Fixed Income
Performance

Performance

Returns

(As of 30 Jun 2025)
Annualized Returns
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term Income Strategy - Gross (%)
4.06
7.15
5.24
2.28
3.18
5.25
Thornburg Limited Term Income Strategy - Net (%)
3.90
6.81
4.91
1.95
2.84
4.57
Bloomberg Intermediate U.S. Government/Credit Index (%)
4.13
6.74
3.57
0.64
2.04
4.25
YTD
1y
3y
5y
10y
Inception
Thornburg Limited Term Income Strategy - Gross (%)
4.06
7.15
5.24
2.28
3.18
5.25
Thornburg Limited Term Income Strategy - Net (%)
3.90
6.81
4.91
1.95
2.84
4.57
Bloomberg Intermediate U.S. Government/Credit Index (%)
4.13
6.74
3.57
0.64
2.04
4.25
2019
2020
2021
2022
2023
2024
Thornburg Limited Term Income Strategy - Gross (%)
6.26
8.09
-0.33
-6.53
6.99
5.21
Thornburg Limited Term Income Strategy - Net (%)
5.91
7.74
-0.64
-6.82
6.65
4.87
Bloomberg Intermediate U.S. Government/Credit Index (%)
6.80
6.43
-1.44
-8.23
5.24
3.00

Total return (net and gross) is based on composite performance.

Periods less than one year are not annualized.

In US$ terms. Returns may increase or decrease as a result of currency fluctuations.

Performance data for the Limited Term Income Strategy is from the Limited Term Income Composite, inception date of 1 February 1993. The Limited Term Income Composite includes all non-wrap discretionary accounts invested in the Limited Term Income Strategy. Returns are calculated using a time-weighted and asset-weighted calculation. Returns reflect the reinvestment of income and capital gains. Periods less than one year are not annualized. Individual account performance will vary. The performance data quoted represents past performance; it does not guarantee future results. Gross of fee returns are net of transaction costs. Net of fee returns are net of transaction costs and investment advisory fees. For periods prior to 2011, net returns for some accounts in the composite also reflect the deduction of administrative expenses. Thornburg Investment Management Inc.'s fee schedule is detailed in Part 2A of its ADV brochure. Performance results of the firm's clients will be reduced by the firm's management fees. For example, an account with a compounded annual total return of 10% would have increased by 159% over ten years. Assuming an annual management fee of 0.75%, this increase would be 142%.

Characteristics

Characteristics

Portfolio

(As of 30 Jun 2025)
Portfolio
Benchmark
Effective Duration
3.4 Yrs
3.7 Yrs
Average Effective Maturity
4.3 Yrs
4.2 Yrs
Portfolio
Benchmark
Weighted Average Coupon
3.8%
3.6%
Weighted Average Price
$95.53
—

Data based on representative account.

Portfolio

Portfolio

Top Holdings

(As of 31 May 2025)
Name
Ticker/Symbol
Weight %
United States Treasury Inflation Indexed Bonds
91282CBF7
1.8
Fannie Mae Pool
3140XMZX7
1.6
United States Treasury Note/Bond
91282CFF3
1.2
Freddie Mac Pool
3132E0T85
1.1
United States Treasury Inflation Indexed Bonds
91282CDX6
0.9
Ginnie Mae II Pool
36179WR34
0.9
Rate Mortgage Trust 2022-J1
75410RAJ5
0.6
Diamond Infrastructure Funding, LLC
25265LAA8
0.6
Freddie Mac Pool
3132DPBV9
0.5
Fannie Mae Pool
3140XMBR6
0.5
Download Holdings

Data based on representative account.

Exposure Breakdown

Exposure Breakdown

(As of 30 Jun 2025)
Sector
Sector Allocation
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
Corporate
33.9
29.5
Collateralized Mortgage Obligation
22.1
—
Asset Backed Securities
15.0
0.0
Mortgage Passthrough
11.7
—
Cash & Cash Equivalents
6.5
—
Treasury-Domestic
5.3
64.5
Commercial Mortgage Backed Security
4.5
—
Preferred Stock
0.6
—
Agency Debenture
0.2
2.1
Treasury-Foreign
0.1
3.3
Municipals
0.1
0.6
Sector Allocation
Portfolio (%)
Corporate
33.9
Collateralized Mortgage Obligation
22.1
Asset Backed Securities
15.0
Mortgage Passthrough
11.7
Cash & Cash Equivalents
6.5
Treasury-Domestic
5.3
Commercial Mortgage Backed Security
4.5
Preferred Stock
0.6
Agency Debenture
0.2
Treasury-Foreign
0.1
Municipals
0.1
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
U.S. Government
25.8
66.6
AAA
20.5
2.2
AA
7.3
3.3
A
16.0
14.0
BBB
23.1
13.8
Below Invest. Grade
0.2
0.1
Not Rated
0.8
—
Cash & Cash Equivalents
6.3
—
Credit Quality
Portfolio (%)
U.S. Government
25.8
AAA
20.5
AA
7.3
A
16.0
BBB
23.1
Below Invest. Grade
0.2
Not Rated
0.8
Cash & Cash Equivalents
6.3
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Year 1
14.5
1.8
Year 2
10.9
20.9
Year 3
9.8
17.6
Year 4
7.7
13.9
Year 5
14.4
14.2
Year 6
8.8
8.2
Year 7
6.6
8.1
Year 8
3.0
5.0
Year 9
3.7
5.5
Year 10+
14.3
4.9
Cash
6.3
—
Maturity
Portfolio (%)
Year 1
14.5
Year 2
10.9
Year 3
9.8
Year 4
7.7
Year 5
14.4
Year 6
8.8
Year 7
6.6
Year 8
3.0
Year 9
3.7
Year 10+
14.3
Cash
6.3

Data based on representative account.

Percentages may not add up to 100 due to rounding.

Cash includes cash equivalents. Weight percentages are of the total portfolio unless otherwise noted.

Credit quality ratings use the highest rating available from either S&P Global Ratings or Moody's Investors Service. Unrated securities are evaluated by the firm using available data and their own analysis that may be similar to that of a nationally recognized rating agency; however, such determination is not equivalent to a national agency credit rating. "NR" = Not Rated.

Portfolio Managers

Portfolio Managers

Lon Erickson, CFA

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…
Learn More
Christian Hoffmann, CFA

Christian Hoffmann, CFA

Head of Fixed Income 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…
Learn More

Literature

Fact Sheet
Commentary

Important Information

Source: FactSet and Thornburg.

Cash may also include cash equivalents and currency forwards.

Investments in the Strategy carry risks, including possible loss of principal. Carefully consider the Strategy's investment objectives, risks, and expenses before investing. There is no guarantee that the portfolio will meet its investment objectives.

Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses.

Portfolio characteristics are derived using currently available data from independent research resources that are believed to be accurate. Portfolio attributes can and do vary.

Portfolios invested in a limited number of holdings may expose an investor to greater volatility.

Portfolio holdings and characteristics shown herein are from a representative account managed within the investment composite. The representative account is selected based on account characteristics that Thornburg believes accurately represent the investment strategy as a whole. Should these characteristics change materially, Thornburg may select a different representative account. Holdings may change daily and may vary among accounts, which may contribute to different investment results. The representative account information is supplemental to the strategy's composite and GIPS compliant presentation.

The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account's portfolio at the time you receive this report or that securities sold have not been repurchased. The securities discussed may not represent an account's entire portfolio and in the aggregate may represent only a small percentage of an account's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.

Weight percentages are of the total portfolio unless otherwise noted.

Portfolio construction will have significant differences from that of a benchmark index in terms of security holdings, industry weightings, asset allocations and number of positions held, all of which may contribute to performance, characteristics and volatility differences. The index shown is unmanaged, reflect total returns and assume the reinvestment of all income in U.S. dollars. It does not reflect any management fees or brokerage expenses associated with a portfolio’s returns. Returns for an actual portfolio may differ from those of an index due to (among other things) differences in timing and the amount invested and fees and expenses. Investors may not make direct investments into any index.

Please see our glossary for a definition of terms.

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