Thornburg Strategic Income Fund (UCITS)

Thornburg Strategic Income Fund (UCITS)

For investment professionals and institutional investors only

Transcript

Questions:

What is the Thornburg Strategic Income Fund?

The Thornburg Strategic Income Fund is a broadly flexible bond portfolio, with a goal to provide investors with a high level of current income. The fund also seeks to provide some long-term capital appreciation with returns notably higher than core fixed income, but to do so with only incrementally higher risk than a core allocation.

In pursuit of this, the portfolio uses a broad opportunity set that spans across sectors, credit quality, and geography. The Fund’s interest rate exposure, or duration, can be managed in a range as wide as between zero and seven years, though a typical duration can expected to be between 2 and 4 years. And to control risk, the portfolio manages its volatility between plus or minus 2.5 years relative to its benchmark, the Bloomberg U.S. Universal Index.

What role does the Thornburg Strategic Income Fund play in an investor’s portfolio?

The Thornburg Strategic Income Fund serves three key roles in any investor’s portfolio:

• First, it provides a complement to core fixed income portfolios through its expanded opportunity set and attractive potential income generation
• Second, its flexible, multi-sector approach also complements single sector, riskier areas of fixed income such as high yield, bank loans, or emerging markets.
• And third, the portfolio’s historical track record of providing good downside protection versus peers allows the fund to combine what is an attractive potential income and total return generation with the protection investors expect out of their bond portfolios.

What makes Thornburg Strategic Income Fund different?

In the Thornburg Strategic Income Fund, we employ what we believe is a unique and differentiated process, challenging the conventional wisdom of how fixed income should be approached. Our ability to uncover relative value across different securities and sectors gives us the opportunity to exploit inefficiencies that larger, so-called ‘siloed’ approaches miss. Our flat, collaborative team structure lowers communications barriers that create direct and active dialogue, and ultimately what we believe is more timely and better decision making.

We employ lower turnover in the portfolio during normal market conditions, avoiding tactical bets which tend to have less consistent positive outcomes over time. And we invest in cash bonds, avoiding leverage and substantial exposure to derivatives such as futures and swaps.

We defensively position the Strategic Income Fund when volatility is low, historically allowing us to control drawdown while deploying risk at attractive entry points when markets dislocate. This provides not only a form of protection to market selloffs, but the ability for the portfolio to rotate into attractive securities and sectors to take advantage of the upside.

For investment professionals and institutional investors only

IMPORTANT INFORMATION

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. For risks materially relevant to the Fund, please read the Fund’s Annual Report or Prospectus/Supplement available at www.thornburg.com/ucits.

This does not constitute or contain an offer, solicitation, recommendation or investment advice with respect to the purchase of the Funds described herein or any security. The Fund’s shares may not be sold to citizens or residents of the United States or in any other state, country or jurisdiction where it would be unlawful to offer, solicit an offer for, or sell the shares. For information regarding the jurisdictions in which the Fund is registered or passported, please contact Thornburg at contactglobal@thornburg.com or +1.855.732.9301. Fund shares may be sold on a private placement basis depending on the jurisdiction. This should not be used or distributed in any jurisdiction, other than in those in which the Fund is authorized, where authorization for distribution is required. Thornburg is authorized by the Fund to facilitate the distribution of shares of the Fund in certain jurisdictions through dealers, referral agents, sub-distributors and other financial intermediaries. Any entity forwarding this, which is produced by Thornburg in the United States, to other parties takes full responsibility for ensuring compliance with applicable securities laws in connection with its distribution.

The Fund is a sub-fund of Thornburg Global Investment plc (“TGI”), an open-ended investment company with variable capital constituted as an umbrella fund with segregated liability between sub-funds, authorized and regulated by the Central Bank of Ireland (“CBI”) as an Undertaking for Collective Investments in Transferable Securities (“UCITS”). Authorization of TGI by the CBI is not an endorsement or guarantee by the CBI nor is the CBI responsible for the contents of any marketing material or the Fund’s prospectus, supplement or applicable Key Information Document (“KID”). Authorization by the CBI shall not constitute a warranty as to the performance of TGI and the CBI shall not be liable for the performance of TGI.

Before investing, investors should review the Fund’s full prospectus and supplement, together with the applicable KID and the most recent annual and semi-annual reports. 

Copies of the Fund’s prospectus and supplement can be obtained from State Street Fund Services (Ireland) Limited, by visiting www.thornburg.com/ucits or by contacting the local paying or representative agent or local distributor in the jurisdictions in which the Fund is available for distribution, and are available in English.

The KIDs can be obtained from www.thornburg.com/ucits and are available in one of the official languages of each of the EU Member States into which the Fund has been notified for marketing under the Directive 2009/65/EC (the UCITS Directive). 

In addition, a summary of investor rights is available from www.thornburg.com/ucits. The summary is available in English.

The Fund is currently notified for marketing into a number of EU Member States under the UCITS Directive. The Fund can terminate such notifications for any share class and/or the Fund at any time using the process contained in Article 93a of the UCITS Directive.

No securities commission or regulatory authority has in any way passed upon the merits of an investment in the Fund or the accuracy or adequacy of this information or the material contained herein or otherwise. Neither this or the Offering Documents have been approved in any jurisdiction where the Fund has not been registered for public offer and sale. This information is not, and under no circumstances is to be construed as the Offering Documents, a public offering or an offering memorandum as defined under applicable securities legislation.  Application for shares may only be made by way of the Fund’s most recent Offering Documents.

The Fund is actively managed and is not constrained by any benchmark.

For Hong Kong: This document is issued by Thornburg Investment Management (Asia) Limited (“Company”), a wholly-owned subsidiary of Thornburg Investment Management, Inc. The Company is currently licensed with the Hong Kong SFC for Type 1 and Type 9 regulated activity, with the CE No.: BPQ208.

This material has not been reviewed nor endorsed by any regulatory authority in Hong Kong, including the Securities and Futures Commission, nor has a copy been registered with the Registrar of Companies in Hong Kong. Hong Kong residents are advised to exercise caution in relation to this information. This is directed at and intended for “Professional Investors” within the meaning of Part1 of Schedule 1 to the Securities and Futures Ordinance.

This material is for the confidential use of the recipient only and should not be given, forwarded or shown to any other person (other than employees, agents or consultants in connection with the recipient’s consideration thereof). The Company is authorized by the Fund to facilitate the distribution of shares in certain other jurisdictions through dealers, referral agents, sub-distributors and other financial intermediaries. Any entity forwarding this material to other parties takes full responsibility for ensuring compliance with applicable securities laws in connection with its distribution.

For Singapore: Recipients of this information in Singapore should note shares of the Fund may not be offered or sold, nor may this or any other information or material in connection with the offer or sale of such share be circulated or distributed, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor (as defined in Section 4A(1)(c) of the Securities and Futures Act (Cap. 289) of Singapore) (the SFA), (ii) to a relevant person as defined in Section 305 of the SFA or any person pursuant to an offer referred to in Section 305(2) of the SFA and in accordance with the conditions specified in Section 305 of the SFA, or (iii) pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

For Argentina, Bolivia, Brazil, Chile, Mexico, Peru, Uruguay: This material is for informational purposes and is intended only for Investment Professionals, as that term is defined in each jurisdiction. This information relates to a foreign Fund which is not subject to any form of local regulation or licensing. No regulator, government authority, or other entities are responsible for reviewing or verifying, and have not reviewed or verified, this information, the merits of the Fund or services represented, the offering documents, or any other documents in connection with this Fund. Interests may not be offered or sold to the public and documents relating to this Fund (as well as the information contained herein) may not be supplied to the general public for purposes of a public offering or be used in connection with any offer or subscription for sale to the public.

Manager: KBA Consulting Management Limited | www.kbassociates.ie | +353.1.668.7684
Administrator: State Street Fund Services (Ireland) Limited, ThornburgTA@statestreet.com +353.1.242.5580
Distributor: Thornburg Investment Management, United States, contactglobal@thornburg.com +1.855.732.9301

For investment professionals and institutional investors only