Thornburg Expands Active ETF Lineup with Two Fixed Income ETFs
MWN-AI** Summary
Thornburg Investment Management has announced the launch of two new active fixed income exchange-traded funds (ETFs), the Thornburg Core Plus Bond ETF (Nasdaq: TPLS) and the Thornburg Multi Sector Bond ETF (Nasdaq: TMB), as part of its expanding ETF lineup. The launch comes on the heels of the firm's introduction of its first equity ETFs last month, which collectively attracted over $80 million in investments, highlighting the firm’s strong market appeal and investor confidence.
The Core Plus Bond ETF is managed by Lon Erickson, CFA, and Christian Hoffmann, CFA, and aims to achieve total returns through a combination of income and capital appreciation. It predominantly focuses on high-quality investment-grade bonds but allows for up to 25% exposure to below-investment-grade securities, thereby managing risk while enhancing return potential.
On the other hand, the Multi Sector Bond ETF, also managed by Erickson and Hoffmann along with Ali Hassan, CFA, seeks similar total return objectives but adopts a broader approach. This fund diversifies across various fixed income sectors, including high-yield and foreign securities, guided by the managers' insights on relative value to adapt to changing market conditions.
Mark Zinkula, Thornburg’s CEO, stated that the introduction of these ETFs reflects the firm’s dedication to meeting long-term client needs, backed by its four decades of investment management expertise. Jesse Brownell, the Global Head of Distribution, emphasized the company’s commitment to active management and a client-first approach in navigating the competitive ETF market.
As of January 31, 2025, Thornburg manages approximately $46 billion in assets, illustrating its robust position in the investment landscape. For more details on their product offerings, investors can visit their website at www.thornburg.com.
MWN-AI** Analysis
Thornburg Investment Management's recent expansion into fixed income ETFs with the launch of the Thornburg Core Plus Bond ETF (TPLS) and Thornburg Multi Sector Bond ETF (TMB) marks a significant development in the competitive ETF landscape. With notable inflows of over $80 million into their prior equity ETFs, the momentum suggests strong investor interest in Thornburg's active management approach.
The Core Plus Bond ETF primarily targets high-quality investment-grade bonds while allowing an allocation of up to 25% in lower-rated securities. This diversified strategy presents an opportunity for investors seeking a balance between stability and potential for capital appreciation in a relatively low-yield environment. Conversely, the Multi Sector Bond ETF adopts a more dynamic approach by actively adjusting its exposure across various fixed income sectors—ideal for investors willing to embrace a higher degree of volatility for potentially greater returns.
As interest rates continue to fluctuate amid macroeconomic challenges, the decision to invest in actively managed fixed income products may align well with investor goals of capital protection while still aiming for yield. Furthermore, Thornburg’s seasoned management team brings credibility, could aid in navigating market shifts more adeptly than conventional passive strategies.
For investors considering these newer offerings, be mindful of the associated risks including credit and interest rate risks, especially with a portion of the portfolio in lower-rated securities. The strategic focus on relative value highlights a nuanced approach that may benefit those looking for enhanced returns through active management in distinct market conditions.
Given the strong track record and positive reception thus far, Thornburg’s fixed income ETFs could be a potent addition to a diversified portfolio, particularly for investors prioritizing active management's adaptability in uncertain economic climates. A careful assessment of one’s risk tolerance and investment objectives will be crucial in capitalizing on these products effectively.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
SANTA FE, N.M. , Feb. 5, 2025 /PRNewswire/ -- Thornburg Investment Management ("Thornburg"), a global investment firm that oversees $46 billion in assets 1 , today announced the launch of two active fixed income exchange-traded funds (ETFs), Thornburg Core Plus Bond ETF (Nasdaq: TPLS) and Thornburg Multi Sector Bond ETF (Nasdaq: TMB) . Both ETFs begin trading today.
Last month, Thornburg launched its first two active ETFs, Thornburg International Equity ETF (Nasdaq: TXUE) and Thornburg International Growth ETF (Nasdaq: TXUG) . These equity funds have already attracted over $80 million in investments.
"With over $80 million in client inflows, it's clear that investors look to Thornburg's four decades of investing excellence and prudent risk management to achieve their long-term financial goals," said Thornburg CEO Mark Zinkula . "Expanding our ETF lineup with two fixed income ETFs reflects our commitment to meeting long-term client demand."
Thornburg Core Plus Bond ETF , managed by Lon Erickson , CFA, and Christian Hoffmann , CFA, is actively managed and seeks total return, consisting of income and capital appreciation. It manages risk through a portfolio comprised primarily of high-quality investment-grade bonds, complemented by up to 25% in below-investment-grade securities.
Thornburg Multi Sector Bond ETF , managed by Messrs. Erickson and Hoffmann as well as Ali Hassan , CFA, seeks total return, consisting of income and capital appreciation, with active management designed to adapt to changing markets. The fund's exposure across fixed income sectors, including high yield and foreign securities, is based on the team's views on relative value and will help drive income and return potential.
"At its core, Thornburg is an active manager," said Thornburg Global Head of Distribution Jesse Brownell. "We always put our clients first, so we took a deliberate and strategic approach to entering the competitive active ETF market. The positive response to our ETFs is exciting and demonstrates that Thornburg's approach to product development resonates with investors."
Learn more about Thornburg ETFs at www.thornburg.com/etfs .
About Thornburg
Thornburg Investment Management ("Thornburg") is an active, high-conviction manager of equities, fixed income, multi-asset and alternative solutions. As a privately owned firm and with $46 billion 1 in client assets as of January 31, 2025 , Thornburg serves institutions, financial professionals and investors worldwide. The firm offers mutual funds, ETFs, closed-end funds, separate accounts and UCITS funds. Thornburg was founded in 1982 and is headquartered in Santa Fe, New Mexico with an additional office in Hong Kong . For more information, visit www.thornburg.com or call 877 215 1330.
Media Inquiries
Michael Corrao
Director of Global Communications
Thornburg Investment Management
Tel: +1 505 467 5345
Email: mcorrao@thornburg.com
Important Disclosures
Before investing, carefully consider the Fund's investment goals, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your financial advisor or visit thornburg.com. Read them carefully before investing.
Exchange Traded Funds (ETF) are bought and sold through exchange trading at market prices (not NAV) and are not individually redeemed from a Fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
Each Fund is an actively managed ETF that does not seek to replicate the performance of a specified index. To determine whether to buy or sell a security, the portfolio managers consider, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics. If the portfolio manager considerations are inaccurate or misapplied, the fund's performance may suffer.
Investments carry risks, including possible loss of principal. Additional risks may be associated with investments outside the United States , especially in emerging markets, including currency fluctuations, illiquidity, volatility, and political and economic risks. Investments in small- and mid-capitalization companies may increase the risk of greater price fluctuations.
Risks associated with investing in Thornburg ETFs may include: (1) New and Smaller Sized Fund Risk, (2) Investment Adviser Risk and (3) Derivatives Risk.
Additional risks associated with investing in TXUE and TXUG may include: (1) Equity Risk, (2) Risks Affecting Specific Countries or Regions and (3) Market and Economic Risk.
Additional risks associated with investing in TXUG may include: (1) Growth Company Risk and (2) Small and Mid-Cap Company Risk.
Additional risks associated with investing in TPLS and TMB may include: (1) Credit Risk, (2) High Yield Risk, (3) Interest Rate Risk and (4) Market and Economic Risk.
Additional risks associated with investing in TPLS may include: (1) Emerging Markets Risk.
More information regarding the risks associated with investing in Thornburg ETFs can be found in the fund prospectuses.
Please see our glossary for a definition of terms.
Thornburg ETFs are distributed by ALPS Distributors, Inc.
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1 Includes $45 billion in assets under management and $1 billion in assets under advisement as of January 31, 2025. |
SOURCE Thornburg Investment Management
FAQ**
How do the newly launched Thornburg Core Plus Bond ETF (TPLS) and Thornburg Multi Sector Bond ETF (TMB) compare to the existing Thornburg Income Builder Opportunities Trust (TBLD) in terms of risk management and anticipated returns?
What are the specific investment strategies employed by the Thornburg Core Plus Bond ETF (TPLS) that differentiate it from the Thornburg Income Builder Opportunities Trust (TBLD) in achieving total return goals?
With the launch of TPLS and TMB, how does Thornburg plan to leverage its four decades of experience to enhance the performance of the Thornburg Income Builder Opportunities Trust (TBLD) amid growing competition in the active ETF market?
As Thornburg expands its ETF lineup, what synergies does it foresee between the performance of TPLS and TMB and the existing Thornburg Income Builder Opportunities Trust (TBLD)?
**MWN-AI FAQ is based on asking OpenAI questions about Thornburg Income Builder Opportunities Trust (NASDAQ: TBLD).
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