Thornburg Limited Term U.S. Government Fund is an actively managed mutual fund focused on short- to intermediate-term U.S. government securities. Its primary objective is to deliver a high level of current income while maintaining the safety of capital, making it appealing to investors who prioritize capital preservation alongside income generation. The fund invests at least 80% of its assets in obligations issued or guaranteed by the United States government or its agencies and instrumentalities, such as Treasury notes, inflation-indexed securities, and mortgage-backed securities from entities like Fannie Mae and Freddie Mac. By emphasizing securities with shorter maturities, the fund seeks to minimize fluctuations in share price compared to longer-duration bond funds, thereby keeping portfolio volatility relatively low. Thornburg Limited Term U.S. Government Fund primarily serves as a source of stable income within diversified portfolios, particularly for risk-averse investors or those allocating capital for near- to medium-term liabilities. Its role is significant in providing liquidity and stability in uncertain markets, and it aligns closely with benchmark indices such as the Bloomberg U.S. Government Intermediate Index. The fund is typically used by individuals, institutions, and retirement accounts seeking predictable returns from high-quality government-backed debt instruments.
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