Thornburg Limited Term Income Fund - Thornburg Investment Management

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 bond investing, rigorous research into the fundamental creditworthiness of an issuer is critical. In this portfolio, issuer credit quality generally is high, as the fund invests at least 65% of its net assets in obligations of the U.S. government, its agencies and instrumentalities, and debt obligations rated at the time of purchase in one of the three highest ratings of Standard & Poor’s Corporation (AAA, AA or A) or Moody’s Investors Services, Inc.

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.

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

Important Information

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.

This is not a solicitation or offer for any product or service. Nor is it a complete analysis of every material fact concerning any market, industry, or investment. Data has been obtained from sources considered reliable, but Thornburg makes no representations as to the completeness or accuracy of such information and has no obligation to provide updates or changes. Thornburg does not accept any responsibility and cannot be held liable for any person’s use of or reliance on the information and opinions contained herein.

Investments carry risks, including possible loss of principal.

Outside the United States

This is directed to INVESTMENT PROFESSIONALS AND INSTITUTIONAL INVESTORS ONLY and is not intended for use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to the laws or regulations applicable to their place of citizenship, domicile or residence.

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For United Kingdom: This communication is issued by Thornburg Investment Management Ltd. (“TIM Ltd.”) and approved by Robert Quinn Advisory LLP which is authorised and regulated by the UK Financial Conduct Authority (“FCA”). TIM Ltd. is an appointed representative of Robert Quinn Advisory LLP.

This communication is exclusively intended for persons who are Professional Clients or Eligible Counterparties for the purposes of the FCA Rules and other persons should not act or rely on it. This communication is not intended for use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

April 29, 2020

Jeff Klingelhofer, CFA

Earlier today the Fed held a press conference and spoke about the current economic condition and offered their forecast. Co-head of Investments and Portfolio Manager Jeff Klingelhofer gives his take on what the Fed's guidance and Q1 GDP number mean for investors.

Jason Brady: Identifying Reliable Income Streams

April 8, 2020

Jason Brady, CFA

In this podcast with Australian publication Investment Magazine, Jason Brady speaks about the scope of the challenge for investors and the potential opportunities that exist to navigate market turmoil.

Commentary: Limited Term Income Fund (UCITS)

1st Quarter 2020

Current markets are volatile and fast. The outlook is uncertain and unpleasant. As portfolio managers we seek balance.

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.