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.
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.
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.
The Fund is offered solely to non-U.S. investors under the terms and conditions of the Fund’s current Prospectus. A copy of the full Prospectus and KIID for the Fund may be obtained by contacting the local Paying Agent through the Fund’s Transfer Agent, Brown Brothers Harriman Fund Administrator Services (Ireland) Limited or in the forms and literature section of this website. The Prospectus and KIID contain important information about the Fund and should be read carefully before investing.
Investments carry risks, including possible loss of principal. Portfolios investing in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds. The value of bonds will fluctuate relative to changes in interest rates, decreasing when interest rates rise. Unlike bonds, bond funds have ongoing fees and expenses. Investments in mortgage backed securities (MBS) may bear additional risk. Investments in the Fund are not insured, nor are they bank deposits or guaranteed by a bank or any other entity.
This material constitutes a financial promotion for the purposes of the Financial Services and Markets Act 2000 (the “Act”) and the handbook of rules and guidance issued from time to time by the FCA (the "FCA Rules"). This material is for information purposes only and does not constitute an offer to subscribe for or purchase any financial instrument. Thornburg Investment Management Ltd. ("TIM Ltd.") neither provides investment advice to, nor receives and transmits orders from, persons to whom this material is communicated nor does it carry on any other activities with or for such persons that constitute "MiFID or equivalent third country business" for the purposes of the FCA Rules. All information provided is not warranted as to completeness or accuracy and is subject to change without notice.
The Fund is a sub-fund of Thornburg Global Investment plc, an open-ended umbrella type investment company with segregated liability between sub-funds, authorised by the Central Bank of Ireland (CBI) on 25 November 2011 as an investment company pursuant to the UCITS Regulations. Authorisation of the Company by the CBI is not an endorsement or guarantee of the Company by the CBI nor is the CBI responsible for the contents of the Prospectus or KIID.
Administrator: Brown Brothers Harriman Fund Administration Services (Ireland) Limited, Ireland, BBH.Dublin.TA@bbh.com +353.1.603.6490
Please see our glossary for a definition of terms.