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Home » Investments » Separately Managed Accounts » Intermediate Income SMA
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Intermediate Income SMA

Strategy Overview
The Intermediate Income Strategy is a high-quality core portfolio that employs bottom-up research to find undervalued opportunities across the investment-grade universe. The strategy is designed to provide investors a high level of current income consistent with the long-term preservation of capital.
Strategy Inception Date
1 Oct 2024

Portfolio Managers

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

Overview

Why Invest in This Strategy?

  • Income and Downside Protection — This strategy aims to deliver a high level of current income to investors while also prioritizing capital preservation.
  • High Quality — The strategy uses a flexible, active approach to invest in what we believe are the best relative value opportunities in investment-grade fixed income securities, including U.S. government, asset-backed, non-agency mortgage-related, and corporate debt securities.
  • Potential Outperformance — With the Federal Reserve expected to cut interest rates further, the strategy may outperform cash and other short-term bond strategy options.

Related Content

Fixed Income
Investor Spotlight: The Municipal Bond Tax Exemption
Fixed Income
The Next Market Shock? Key Risk Factors Investors Must Watch
Global Credit
A Time for Active Fixed Income
Key Facts

Key Facts

(As of 31 Mar 2025)
Assets
$0.2 M
Benchmark
Bloomberg U.S. Aggregate Index
Number of Holdings
66
Performance

Performance

Returns

(As of 31 Mar 2025)
Annualized Returns
YTD
Inception
Thornburg Intermediate Income Strategy - Gross (%)
2.55
-0.17
Thornburg Intermediate Income Strategy - Net (%)
2.55
-0.18
Bloomberg U.S. Aggregate Index (%)
2.78
-0.37
YTD
Inception
Thornburg Intermediate Income Strategy - Gross (%)
2.55
-0.17
Thornburg Intermediate Income Strategy - Net (%)
2.55
-0.18
Bloomberg U.S. Aggregate Index (%)
2.78
-0.37

Periods less than one year are not annualized.

Performance data for the Intermediate Income SMA Strategy is from the Intermediate Income SMA Composite, inception date of 1 October 2024. 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. 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 31 Mar 2025)
Portfolio
Benchmark
Effective Duration
5.2 Yrs
6.0 Yrs
Average Effective Maturity
7.4 Yrs
8.3 Yrs
Portfolio
Benchmark
Weighted Average Coupon
3.4%
3.6%
Weighted Average Price
$68.50
—

Data based on representative account.

Portfolio

Portfolio

Top Holdings

(As of 28 Feb 2025)
Name
Ticker/Symbol
Weight %
United States Treasury Note/Bond
912810RE0
8.0
United States Treasury Note/Bond
912810TN8
7.8
United States Treasury Note/Bond
91282CHT1
4.0
Freddie Mac Multifamily Structured Pass Through Certificates
3137HAD29
3.0
United States Treasury Note/Bond
91282CLJ8
3.0
Fannie Mae Pool
31418EKT6
2.9
Freddie Mac Pool
3132DWDK6
2.9
Fannie Mae Pool
31418EGJ3
2.9
Freddie Mac Pool
3132D6BQ2
2.9
Fannie Mae Pool
3140XMY91
2.8
Download Holdings

Data based on representative account.

Exposure Breakdown

Exposure Breakdown

(As of 31 Mar 2025)
Sector
Sector Allocation
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
Corporate
32.2
24.1
Mortgage Passthrough
25.2
25.0
Treasury-Domestic
22.9
44.6
Asset Backed Securities
13.6
0.5
Cash & Cash Equivalents
3.2
—
Commercial Mortgage Backed Security
3.0
1.5
Sector Allocation
Portfolio (%)
Corporate
32.2
Mortgage Passthrough
25.2
Treasury-Domestic
22.9
Asset Backed Securities
13.6
Cash & Cash Equivalents
3.2
Commercial Mortgage Backed Security
3.0
Credit Quality
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
U.S. Government
51.8
—
AAA
12.8
—
A
7.3
—
BBB
25.7
—
Cash & Cash Equivalents
2.4
—
Credit Quality
Portfolio (%)
U.S. Government
51.8
AAA
12.8
A
7.3
BBB
25.7
Cash & Cash Equivalents
2.4
Maturity
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
Year 1
17.2
1.2
Year 2
7.1
12.0
Year 3
8.5
10.5
Year 4
2.3
9.2
Year 5
15.2
10.3
Year 6
6.8
6.0
Year 7
1.4
7.8
Year 8
2.7
5.7
Year 9
10.1
6.7
Year 10+
26.2
30.6
Cash
2.4
—
Maturity
Portfolio (%)
Year 1
17.2
Year 2
7.1
Year 3
8.5
Year 4
2.3
Year 5
15.2
Year 6
6.8
Year 7
1.4
Year 8
2.7
Year 9
10.1
Year 10+
26.2
Cash
2.4

Data based on representative account.

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.

May not add up to 100% due to rounding.

Cash includes cash equivalents.

Portfolio Managers

Portfolio Managers

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
Lon Erickson, CFA

Lon Erickson, CFA

Portfolio Manager and Managing Director
Lon Erickson is 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 business…
Learn More

Portfolio managers are supported by the entire Thornburg investment team.

Literature

Fact Sheet

Important Information

Source: FactSet and Thornburg.

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.

Cash may also include cash equivalents and currency forwards. 

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The Next Market Shock? Key Risk Factors Investors Must Watch
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