Thornburg Income and US Government Bonds: Q4 2025 Commentary

In the fourth quarter of 2025, the Limited Term Income Portfolio (I share class) delivered a 1.24% return, outperforming the Bloomberg Intermediate U.S. Government/Credit Index by 4 basis points. This outperformance was primarily driven by strategic sector allocation and careful security selection, with significant positive contributions from overweights in CMOs and MBS. Despite a slightly shorter average duration compared to the index, the portfolio maintained a strong performance, highlighting its effective management in a dynamic market environment characterized by Fed rate cuts and cooling inflation.