Thornburg Core Plus Bond ETF (TPLS)

Overview

TPLS is committed to constructing a well-diversified fixed-income portfolio that emphasizes total return, achieved through both income generation and capital appreciation. The investment strategy encompasses a range of asset classes, including corporate bonds, government securities, mortgage-backed securities (MBS), asset-backed securities (ABS), and bank loans. The fund's flexible approach allows for investments across various credit qualities and maturities. While the primary focus is on domestic issuers, TPLS may also invest in foreign debt instruments, limiting foreign currency exposure to 25%. The strategy also includes allocations of up to 25% in high-yield bonds and caps exposure to emerging markets at 15%. TPLS employs a rigorous security selection process, which leverages both proprietary and third-party fundamental research to assess credit quality, economic trends, and valuation. Additionally, the fund may utilize derivatives as tools to enhance the portfolio or hedge against potential risks. Portfolio management may involve adjusting positions to modify duration, manage risk effectively, or seize more advantageous investment opportunities.

Products and Services

• Corporate Bonds: Investments in debt securities issued by corporations, providing interest income and potential capital appreciation.
• Government Securities: Investments in bonds issued by government entities, known for their relative safety and stable returns.
• Mortgage-Backed Securities (MBS): Securities backed by pools of mortgage loans, offering income derived from interest payments made by borrowers.
• Asset-Backed Securities (ABS): Investments in securities backed by financial assets, providing diversification and income based on underlying cash flows.
• Bank Loans: Loans made to corporations, often with floating interest rates, adding variety and potential for higher yields to the portfolio.
• High-Yield Bonds: A portion of the fund allocated to lower-rated bonds offering higher interest rates to compensate for greater risk, capped at 25% of total assets.
• Emerging Market Debt: Limited exposure to bonds from developing countries, capped at 15% to manage risk while seeking higher returns.
• Derivatives: Financial instruments used to hedge risks or enhance portfolio performance, including options and futures contracts.
• Fundamental Research: A robust evaluation process employing both proprietary analyses and third-party insights to inform investment decisions on credit quality and economic conditions.