Fund Evaluator:
Thornburg Strategic Income R3 (TSIRX)
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Best Performing in Multisector Bond Over the Last Year
| 7.1% | Morningstar Multisector Bond (MSTMX) |
| 6.0% | Fidelity Advisor Strategic Income Z (FIWDX) |
| 5.4% | Russell Inv Opportunistic Credit Y (RGCYX) |
| 5.4% | Russell Inv Opportunistic Credit M (RGOTX) |
| 5.2% | Payden Managed Income SI (PKBIX) |
Fund Details
Thornburg Strategic Income R3 Overview
Thornburg Strategic Income R3 (TSIRX) is an actively managed Taxable Bond Multisector Bond fund. Thornburg launched the fund in 2012.
The investment seeks a high level of current income; some long-term capital appreciation is a secondary consideration. The fund pursues its investment goals by investing in a broad range of income-producing investments from throughout the world, primarily including debt obligations. The manager expects, under normal conditions, to invest a majority of its assets in the debt obligations. The fund may invest in debt obligations of any kind, of any quality, and of any maturity.
About Thornburg Strategic Income R3 (TSIRX)
There are 3 members of the management team with an average tenure of 8.50 years: Lon Erickson (2015), Christian Hoffmann (2018), Ali Hassan (2021). 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 Universal TR USD index with a weighting of 100%. Thornburg Strategic Income R3 has 1219 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 Strategic Income R3 is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Thornburg Strategic Income R3 has 12.7% 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 2.2% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 92.2% (79.6% domestic bond, 12.7% foreign bond and 0.8% convertible bond). Thornburg Strategic Income R3 has 4.5% of the portfolio in cash.
Assets Under Management
The fund has $1 million in total assets, which is below the $1 billion average for the Multisector 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.
TSIRX 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 Strategic Income R3 expense ratio is high compared to funds in the Multisector Bond category. Thornburg Strategic Income R3 has an expense ratio of 1.25%, which is 33% higher than its category average, making the fund expense ratio grade a D. 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. A portfolio turnover rate cannot be currently calculated for Thornburg Strategic Income R3. By way of comparison, the average portfolio turnover is 162% for the Multisector Bond category.
Recently, in the month of July 2026, Thornburg Strategic Income R3 returned -0.6%, which earned it a grade of B, as the Multisector Bond category had an average return of -0.7%. 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 Strategic Income R3 has a trailing yield of 4.30%, which is below the 5.31% 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 Strategic Income R3 Grades
Year to date, the fund has returned 0.3%, 0.5 percentage points worse than the category, which translates into a grade of D. The fund has returned 3.1% over the past year (grade of F), 4.8% over the past three years (grade of F) and 2.2% per year over the past five years (grade of C) and 3.5% per year over the past 10 years (grade of C).
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TSIRX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| TSIRX Return (NAV) | -0.6% | -0.1% | 3.1% | 4.8% | 2.2% | 3.5% |
| TSIRX Grade | B | C | F | F | C | C |
| +/- Category | 0.1% | -0.1% | -1.2% | -1.5% | -0.2% | -0.0% |
| Multisector Bond Avg | -0.7% | 0.0% | 4.3% | 6.3% | 2.4% | 3.5% |
| TSIRX Tax Cost Ratio | na | na | 1.7% | 1.8% | 1.6% | 1.4% |
TSIRX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| TSIRX Return (NAV) | 0.3% | 6.9% | 4.1% | 7.0% | -6.8% | 2.1% | 7.6% | 7.2% | 0.1% | 6.0% | 7.7% |
| TSIRX Grade | D | F | F | D | A | C | B | F | A | D | C |
| +/- Category | -0.5% | -1.2% | -1.7% | -1.4% | 3.3% | -0.1% | 1.2% | -3.0% | 2.0% | -0.6% | 0.2% |
| Multisector Bond Avg | 0.9% | 8.1% | 5.7% | 8.4% | -10.1% | 2.2% | 6.3% | 10.3% | -1.9% | 6.6% | 7.5% |
| Risk Measures | |
| Standard Deviation: | 3.5% |
| Total Risk Index: | 0.28 - Low |
| Category Risk Index: | 0.77 - Low |
| Category Risk Grade: | A (15% Rank) |
| Beta: | 0.60 |
| R-Squared: | 98% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 4.3% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $9964 Mil |
| Fund Total Assets: | $ 1 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | na |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 11.5 years | |||
| Average Tenure: 8.5 years | |||
| Managers (Year): Erickson Lon (2015), Hoffmann Christian (2018), Hassan Ali (2021) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 1219 |
| % in Top 10 Holdings: | 11.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 12.7% |
Portfolio Allocation |
|
| Domestic Stock: | 0.1% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 2.2% |
| Domestic Bond: | 79.6% |
| Foreign Bond: | 12.7% |
| Convertible Bond: | 0.8% |
| Other: | 0.2% |
| Cash: | 4.5% |
Purchase Information
| Fund Family: | Thornburg |
| Phone Number: | 800-847-0200 |
| Website: | www.thornburg.com |
| Status: | Open |
| Inception Date: | May 1, 2012 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | No |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.50% |
Expenses and Fees | |
| Expense Ratio (%): | 1.25% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.94% |
| Share Class: | Thornburg Strategic Income I |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
