Forged in Fire, Steeled in Performance
Navigating through market cycles to create peer-topping performance*.
If you ever wanted to pressure test an all-weather strategy, you might skip the regression analysis and take a look at how it fared during the widely varied conditions that marked the last four years.
It was a market-cycle microcosm featuring precipitous declines, abrupt turnarounds, and meaningful shifts in market leadership – both from a geographic and style perspective. These conditions were driven by an unprecedented confluence of factors: a global pandemic, geopolitical tensions, war, tightening monetary policy, and historic inflation.
Amid these conditions, Thornburg Summit Fund (TSUMX) has stood tall — substantially outpacing its benchmark and peers.
And even as stocks have dominated bonds throughout the fund’s lifetime, it has stayed true to its risk-sensitive approach, maintaining a balanced asset allocation. Its sustained outperformance is attributable to fundamental research, a dynamic approach to asset allocation, and a risk-sensitive portfolio construction process.
Source: Morningstar, as of 30 Jun 2023
Thornburg Summit Fund’s Blended Index is composed of 40% Bloomberg Global-Aggregate Index and 60% MSCI ACWI Index, rebalanced monthly.
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than quoted. For performance current to the most recent month end, visit thornburg.com or call 877-215-1330.
Four Market Environments.
Distinct Performance in Each.
COVID drawdown(February 2020–March 2020): As the economic impact of the COVID shutdown became clear, investor anxiety triggered a sell-off. Global stocks lost 33%. Summit Fund held up better, sparing investors about half the loss; it also outperformed a blended index by 400 bps.
Recovery and growth(April 2020–October 2020): A smoother-than-expected transition to virtual work sparked optimism and brought investors back to the market. Thornburg Summit Fund captured approximately 75% of the rally — outpacing its blended benchmark by 550 bps.
Value-led economic reopening (November 2020–October 2021): As economies began to emerge from the COVID-19 pandemic, growth stocks passed the baton to their value counterparts, which drove broad indexes higher over the ensuing year. Thornburg Summit Fund surged, too, capturing roughly 80% of the rally and besting its blended index by 950 bps.
Fed hikes and market turmoil (November 2021–June 2022): With valuations high and the Fed initiating interest rate hikes to stem stimulus-borne inflation, investors retreated. Once again, the fund offered protection to investors, falling only half as far as the index and outpacing the blended index by 250 bps.
While Thornburg Summit Fund’s life has been relatively short, it has been eventful. And the fund’s performance across a variety of market conditions speaks to the mixture of resilience and opportunism that investors seek in multi-asset solutions.
Take a closer look at Thornburg Summit Fund, including current performance.