Fund Evaluator:

Thornburg Limited Term Income Instl Overview

Thornburg Limited Term Income Instl (THIIX) is an actively managed Taxable Bond Short-Term Bond fund. Thornburg launched the fund in 1996.

The investment seeks to provide as high a level of current income as is consistent with safety of capital; to reduce changes in its share prices compared to longer term portfolios is the secondary goal. The fund invests at least 65% of its net assets in (i) obligations of the U.S. government, its agencies and instrumentalities, (ii) debt obligations rated at the time of purchase in one of the three highest principal long term rating categories of S&P Global Ratings or Moody's Investors Services, Inc. or the equivalent three highest short term ratings of those ratings agencies, or, if no credit rating is available, judged to be of comparable quality.

About Thornburg Limited Term Income Instl (THIIX)

There are 2 members of the management team with an average tenure of 10.00 years: Lon Erickson (2010), Christian Hoffmann (2023). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg US Govt/Credit Interm TR USD index with a weighting of 100%. Thornburg Limited Term Income Instl has 803 securities in its portfolio. The top 10 holdings constitute 11.7% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Thornburg Limited Term Income Instl is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Thornburg Limited Term Income Instl has 9.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.1%. There is 0.0% allocated to foreign stock, and 0.5% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 90.9% (81.3% domestic bond, 9.6% foreign bond and 0.0% convertible bond). Thornburg Limited Term Income Instl has 8.5% of the portfolio in cash.

Assets Under Management

The fund has $5 billion in total assets, which is above the $904 million average for the Short-Term Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

THIIX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Thornburg Limited Term Income Instl expense ratio is average compared to funds in the Short-Term Bond category. Thornburg Limited Term Income Instl has an expense ratio of 0.49%, which is 26% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Thornburg Limited Term Income Instl has a portfolio turnover rate of 32%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 135% for the Short-Term Bond category.

Recently, in the month of July 2026, Thornburg Limited Term Income Instl returned -0.4%, which earned it a grade of F, as the Short-Term Bond category had an average return of -0.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Thornburg Limited Term Income Instl has a trailing yield of 4.03%, which is below the 4.16% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Thornburg Limited Term Income Instl Grades

Year to date, the fund has returned 0.7%, 0.2 percentage points worse than the category, which translates into a grade of D. The fund has returned 3.7% over the past year (grade of B), 5.3% over the past three years (grade of B) and 2.1% per year over the past five years (grade of D) and 2.7% per year over the past 10 years (grade of B).

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