Navigating Market Dynamics: Delivering Strong Returns Through Strategic Allocation

Second Quarter Performance: Outpacing the Benchmark

During the second quarter of 2025, the Thornburg Strategic Income Fund's I share class recorded a return of 1.78%, surpassing the Bloomberg U.S. Universal Index by 38 basis points. This favorable outcome reflects the fund's robust positioning and effective management in a period marked by diverse market influences.

Resilience Amidst Global Headwinds: Unpacking Market Forces

The second quarter of 2025 was characterized by a range of external factors, including policy shifts, evolving trade dynamics, and significant geopolitical developments. Despite these potential disruptions, investor sentiment remained largely optimistic, allowing for continued growth in various asset classes.

Strategic Allocation and Portfolio Construction: Driving Attribution

A key element of the portfolio's strong performance was its intentional overweighting in bonds rated BBB and BB. This strategic choice generated a positive attribution of 41 basis points, significantly contributing to the fund's outperformance relative to its benchmark. This highlights the importance of nuanced credit selection in achieving superior risk-adjusted returns.

Commitment to Long-Term Value: A Focus on Income and Total Returns

In a fluctuating market environment, the fund remains steadfast in its core objective: to generate attractive income and achieve strong risk-adjusted total returns for its investors over the long term. This enduring philosophy guides all investment decisions, ensuring a consistent approach to wealth creation.

Leadership in Portfolio Management: The Expertise Behind the Fund

The Thornburg Strategic Income Fund is expertly managed by a dedicated team of portfolio managers, including Lon Erickson, CFA, Ali Hassan, CFA, FRM, and Christian Hoffmann, CFA. Their collective expertise and strategic insights are instrumental in navigating market complexities and optimizing portfolio performance.