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Thornburg Investment Management Review

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Thornburg Investment Management

Thornburg Investment Management is an investment management firm based in Santa Fe, New Mexico. The firm mostly serves individual investors, but it also works with high-net-worth individuals. It has an institutional business as well, advising investment companies, pooled investment vehicles, pension and profit-sharing plans, charitable organizations, state or municipal government entities and other corporations. 

Thornburg has 41 financial advisors on staff. It currently has more than $49 billion in assets under management.

Thornburg Investment Management Background 

Thornburg Investment Management was founded by Garrett Thornburg in 1982. Before founding Thornburg, he worked at Bear, Stearns and Co. He still owns 100% of Thornburg. The firm prides itself on being located far from the financial centers of the United States, as it claims that this physical distance allows the firm to be more objective and look at financial trends with a broader view. 

What Types of Clients Does Thornburg Investment Management Accept? 

Thornburg offers separately managed accounts to high-net-worth investors. The firm also offers a fairly extensive menu of mutual fund options available to all investors. The mutual funds the firm owns are offered through Thornburg Investment Trust, which is a client of Thornburg Investment Management.  

Additionally, the firm has a number of institutional investors as clients. It can serve the following types of institutional clients:  

  • Investment companies
  • Pooled investment vehicles
  • Pension and profit-sharing plans
  • Charitable organizations
  • State or municipal government entities 
  • Other corporations

Thornburg Investment Management Minimum Account Sizes

At Thornburg, the minimum account size for a Private Client Equity Separate Account ranges from $100,000 to $500,000. The minimum account size for a Private Client Fixed Income Separate Account ranges from $1 million to $25 million, depending on the investment strategy selected.  

For Institutional Equity Separate Accounts, the minimum investment required ranges from $10 million to $100 million. The minimum for Institutional Fixed Income Separate Accounts can be anywhere from $1 million to $50 million.

For individual investors who want to invest in a mutual fund offered by the firm, the required minimum investment depends on the fund the investor chooses to invest in and the class of the fund shares. For a Class A share investor, the minimum investment required tends to be $2,500. 

Services Offered by Thornburg Investment Management

Thornburg Investment Management offers the following services:

  • Separately managed accounts
  • Mutual fund management
  • Institutional investing
  • Insight and commentary

The firm offers a wide range of institutional and private client separate accounts for customers to choose from. Additionally, it acts as the investment advisor and administrator for the Thornburg Investment Trust, which publicly offers a number of equity and fixed income funds.

Thornburg Investment Management Investment Philosophy

For investment management, there are a number of equity and fixed income strategies offered at Thornburg. These include:

  • U.S. Equity
  • All Cap Growth
  • International ADR
  • International Growth ADR
  • Limited Term U.S. Government
  • Limited Term Income
  • Limited Term Municipal
  • Intermediate Municipal

For mutual funds, Thornburg’s investment approach largely depends on which fund you choose to invest in. Across the board though, the firm focuses on making disciplined evaluations, looking at long-term value and minimizing tax liability. The firm is also strict about selling as soon as price targets are met or the firm’s investment theses start to break down. Notably, the firm’s fund managers invest in the funds they manage. 

Equity funds at the firm are built on a stock-by-stock basis rather than by looking at broad sector trends. The firm believes that this ensures diversification and maximizes returns for investors.

Fees Under Thornburg Investment Management 

For Thornburg’s separate accounts, fees range from 0.20% to 1.25%, depending on the investment strategy chosen and the total assets under management. Those with institutional and private client separate accounts may also have to pay third-party providers, including custodians, money managers and consultants, as well as brokerage and exchange fees.

The charts below show the varying fee schedules for the institutional and private client separate account strategies offered by Thornburg.

International ADR and International Equity Investment Strategies
Up to $25 million 0.70%
$25 million to $75 million 0.65%
Over $75 million negotiable

 

All Cap Growth, International Equity ESG, International Growth, International Growth ADR and Ultra Focused International Equity Investment Strategies
Up to $25 million 0.70%
$25 million to $75 million 0.65%
Over $75 million negotiable

 

Ultra Focused Equity and U.S. Equity Investment Strategies
Up to $25 million 0.60%
Over $25 million negotiable

 

Developing World Investment Strategy
All Assets 0.85%

 

Global Quality Dividend, Global Opportunities, and Investment Income Builder Investment Strategies
Up to $25 million 0.75%
Over $25 million negotiable

 

Long/Short Equity Investment Strategy
Up to $50 million 1.25%
Over $50 million negotiable

 

Multisector Opportunistic and Strategic Municipal Income Investment Strategies
$50 million to $100 million 0.50%
Over $100 million negotiable

 

All Other Municipal Fixed Income Investment Strategies Investment Strategies
Up to $25 million 0.30%
$25 million to $50 million 0.25%
Over $50 million 0.20% / negotiable

 

All Other Taxable Fixed Income Investment Strategies
Up to $50 million 0.35%
Over $50 million 0.30%

For mutual fund investors, fees vary based on which fund you choose to invest in. Generally, the maximum sales charge for investing in a Thornburg fund is around 1.50%, while operating expenses tend to come out to around 0.90%. However, there are some variances based on what each fund charges in management fees and other expenses.

What to Watch Out For

It’s important to note that while Thornburg as a registered investment advisor, it isn’t a financial advisor in the way some other firms are. The firm doesn’t work with individual investors to provide financial planning and assist with estate planning, college savings planning or financially navigating other major life milestones. It is strictly an investment advisor, focusing on providing discretionary portfolio management and other investment-related services. 

Additionally, Thornburg does have disclosures -- see more below.

Disclosures

Thornburg does have disclosures on its record. A government regulatory agency has found the firm or an advisory affiliate to have been involved in a violation of investment-related regulations or statutes.

Opening an Account with Thornburg Investment Management

If you want to open an account at Thornburg, you can call the firm at 1-800-847-0200 or send an email to info@thornburg.com.

There is also a form on the website where you can fill in your information. Make sure to select “individual investor” from the initial drop-down menu. There is a section on the form where you can leave a message to let the firm know why you are interested in working with an advisor.

Where Is Thornburg Investment Management Located?

The firm is based in the northern part of Santa Fe, New Mexico. It prides itself on being far from the traditional financial capitals.

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How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research