Bestinvest says
Pragmatic in nature, Thorburg will swing the portfolio between different investment styles (value and growth opportunities) depending on how they see prevailing market conditions. This approach is high conviction and focused and because of this, on occasions, performance can differ markedly from the fund's reference benchmark, the S&P 500 index. The fund can be regarded as a core holding, although we have more conviction in our recommended, three star and above North American funds.
The objective is to invest in companies displaying sound business fundamentals that are priced attractively relative to their intrinsic value (the discounted sum of their future cash flows). These companies will fall into one of three categories: Basic Value (restructuring opportunities and contrarian cyclical companies); Consistent Earners (higher quality companies with consistent revenue streams and high returns on equity); and Emerging Franchises (younger companies with more visible growth characteristics). Neutral exposure is roughly 40% Basic Value, 40% Consistent Earners and the remainder in Emerging Franchises (maximum 25%). Individual fund positions in the latter type of company will be a maximum of 2%, whilst the former may account for larger weightings. Positions are usually held with a 12-18 month view.