Thornburg Income & U.S. Government Bonds Q4 2025 Commentary

Thornburg Investment Management16 FollowersFollow5ShareSavePlay(8min)CommentsSummaryIn 4Q25 the Limited Term Income Portfolio (I share class) returned 1.24%, 4 basis points ahead of the Bloomberg Intermediate U.S. Government/Credit Index.Sector allocation and security selection contributed positively to relative outperformance with the portfolio's overweights to CMOs and MBS providing uplift of 17 and 8 basis points, respectively.The portfolio maintained an average duration of 3.50 versus 3.72 for the index with the underweight duration and yield curve positioning detracting 2 basis points from relative performance for the quarter. Luis M/iStock via Getty Images Market Review U.S. fixed income markets concluded 2025 on a positive note, with broad gains driven by Federal Reserve rate cuts, cooling inflation, and broadly resilient economic data despite challenges like the U.S. government shutdown and labor market softness. TheThis article was written byThornburg Investment Management16 FollowersFollowThornburg Investment Management is a privately owned global investment firm that offers a range of multi-strategy solutions for institutions and financial advisors. A recognized leader in fixed income, equity, and alternatives investing, the firm oversees mutual funds, institutional accounts, separate accounts for high-net-worth investors, and UCITS funds for non-U.S. investors. Thornburg was founded in 1982 and is headquartered in Santa Fe, NM. Note: This account is not managed or monitored by Thornburg Investment Management, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Thornburg Investment Management's official channels.