Bond Strategies Overview

Most investors view bonds as a relatively conservative investment and seek a steady income while keeping risk in check. Thornburg Investment Management applies a disciplined philosophy to fixed-income management. Since the launch of our first fixed-income product over 25 years ago, we have been conducting fundamental, bottom-up research in an effort to identify bonds which we believe provide the best return for a given level of risk. We are very organic in our approach, avoiding leverages or complex strategies which could backfire in periods of market uncertainty.

Fundamental, Bottom-up Credit Research

(Click the or the strategy name for more information.)

Tax-free Fixed Income Strategies

Intermediate Municipal Strategy
Investment Objectives:
The Strategy seeks to obtain as high a level of current income exempt from regular federal individual income tax as is consistent, in the view of Thornburg, with preservation of principal. A secondary objective of the Strategy is to reduce expected fluctuations in the portfolio’s value compared to long-term bond portfolios. There is no guarantee that the Strategy will meet its objectives.
Principal Investment Strategies:
The Strategy is a laddered portfolio of municipal bonds with an average maturity of three to ten years. Laddering involves building a portfolio of bonds with staggered maturities so that a portion of the portfolio matures each year; cash from maturing bonds is typically invested in bonds with longer maturities at the far end of the ladder. The portfolio is invested in municipal securities rated at the time of investment in the four highest categories of ratings services such as S&P, Moody’s, or Fitch, or in unrated securities judged by Thornburg to be comparable to securities rated in the four highest ratings categories. A portion of the Strategy's dividends could be subject to the federal Alternative Minimum Tax.
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Fact Sheet (pdf)
Limited Term Municipal Strategy
Investment Objectives:
The Strategy seeks to obtain as high a level of current income exempt from regular federal individual income tax as is consistent, in the view of Thornburg, with preservation of principal. A secondary objective of the Strategy is to reduce expected fluctuations in the portfolio’s value compared to longer intermediate and long-term bond portfolios. There is no guarantee that the Strategy will meet its objectives.
Principal Investment Strategies:
The Strategy is a laddered portfolio of municipal bonds with an average maturity of less than five years. Laddering involves building a portfolio of bonds with staggered maturities so that a portion of the portfolio matures each year; cash from maturing bonds is typically invested in bonds with longer maturities at the far end of the ladder. The portfolio is invested in municipal securities rated at the time of investment in the four highest categories of ratings services such as S&P, Moody’s, or Fitch, or in unrated securities judged by Thornburg to be comparable to securities rated in the four highest ratings categories. A portion of the Strategy's dividends could be subject to the federal Alternative Minimum Tax.
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Fact Sheet (pdf)
Strategic Municipal Income Strategy
Investment Objective:
The Strategy seeks to obtain a high level of current income exempt from regular federal individual income tax. There is no guarantee that the Strategy will meet its objectives.
Principal Investment Strategies:
The Strategy invests in obligations and participations in obligations of any credit quality. The Strategy may invest up to 50 percent of its portfolio in lower quality debt obligations rated at the time of purchase as below investment grade (sometimes called “junk” bonds or “high yield” bonds) or, if unrated, issued by obligors with comparable below investment-grade obligations outstanding or deemed by Thornburg to be comparable to obligors with outstanding below-investment grade obligations. The Strategy may invest in municipal obligations of any maturity, but seeks to maintain a portfolio of investments having a dollar-weighted average effective duration of normally one to ten years. The Strategy, will not necessarily maintain a laddered structure.

Taxable Fixed Income Strategies

International Income
Investment Objectives:
The Strategy seeks to provide the highest level of income as in consistent, in the view of Thornburg, with an emphasis on preservation of U.S. dollar purchasing power. A secondary objective is to seek long-term capital appreciation from both principal and currency opportunities across the global marketplace. There is no guarantee that the Strategy will meet its objectives.
Principal Investment Strategies:
The Strategy is designed to be a flexible global income-producing portfolio of fixed income securities with a primary emphasis on non-dollar denominated assets and will seek relative value opportunities across the global marketplace. The Strategy will place high emphasis on “hard asset” currencies deemed most likely to preserve purchasing power to US investors.
Limited Term Income Strategy
Investment Objectives:
The Strategy seeks to provide the highest level of income as in consistent, in the view of Thornburg, with preservation of principal. A secondary objective of the Strategy is to reduce expected fluctuations in the portfolio's value compared to longer intermediate and long-term portfolios. There is no guarantee that the Strategy will meet its objectives.
Principal Investment Strategies:
The Strategy is a laddered portfolio of short/intermediate investment grade obligations with an average maturity of less than five years. Laddering involves building a portfolio of bonds with staggered maturities so that a portion of the portfolio matures each year; cash from maturing bonds is typically invested in bonds with longer maturities at the far end of the ladder. The portfolio is invested in securities rated at the time of investment in the four highest categories of ratings services such as S&P, Moody’s, or Fitch, or in unrated securities judged by Thornburg to be comparable to securities rated in the four highest ratings categories.
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Fact Sheet (pdf)
Limited Term U.S. Government Strategy*
Investment Objectives:
The Strategy seeks to provide the highest level of income as in consistent, in the view of Thornburg, with preservation of principal. A secondary objective of the Strategy is to reduce expected fluctuations in the portfolio’s value compared to longer intermediate and long-term portfolios. There is no guarantee that the Strategy will meet its objectives.
Principal Investment Strategies:
The Strategy is a laddered portfolio of short/intermediate obligations issued by the U.S. Government, its agencies or instrumentalities that has an average maturity of less than five years. Laddering involves building a portfolio of bonds with staggered maturities so that a portion of the portfolio matures each year; cash from maturing bonds is typically invested in bonds with longer maturities at the far end of the ladder.
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Fact Sheet (pdf)
Strategic Income Strategy
Investment Objectives:
The Strategy seeks to provide a high and sustainable yield throughout market cycles. A secondary objective of the Strategy is to seek long-term capital appreciation opportunities across the global marketplace. There is no guarantee that the Strategy will meet its objectives.
Principal Investment Strategies:
The Strategy is designed to be a flexible portfolio of global fixed income securities. The Strategy will invest in both domestic and foreign currency denominated securities and will seek high income-producing relative value opportunities and secondarily where Thornburg deems there to be a high likelihood of capital appreciation.

 

*Strategy is not guaranteed by the US Government.

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