Thornburg Investment Management's 30th Anniversary

July 30, 2012

To our valued clients:

This year, Thornburg Investment Management celebrates its 30th year of serving investors and their financial advisors. It’s really hard for us to believe so much time has passed, but as we look back over the history of the firm, we feel proud that we’ve accomplished all we have, and stayed true to the principles that guided us in the early days.

On June 1, 1982, we opened Thornburg Investment Management with limited capital (about $45,000), a joint venture partner, and an innovative idea: converting municipal industrial revenue bonds into high-quality, very liquid demand notes for sale to a money market fund. That idea was the genesis of the Daily Tax-Free Income Fund, our first product. Brian McMahon joined the company in Santa Fe in 1984 and we went on to launch the Thornburg Limited Term Municipal Fund, sticking to a strict and conservative laddering discipline. Those advisors who knew bond investing and understood its many risks soon developed faith in our approach. We have stuck with it all these years and are known for laddering bonds and doing it well.

We launched our first equity product in 1995, the year Bill Fries came aboard. At that time, we managed well under $2 billion. We believed that Bill, who shared our ideas about risk management, could apply those themes to stock investing. We were right. Our domestic equity strategies performed competitively from the outset. In 1998, we introduced our first international equity strategy to bring overseas opportunities back home. Since then, we have launched several more strategies, all of which were natural outgrowths of investment strategies already in place. With a sizeable portion of assets in institutional and separate accounts, with investment vehicles tailored for an increasingly broad segment of the marketplace, and with expanded overseas distribution efforts, Thornburg has grown into a truly global firm, with assets under management of $78 billion, as of June 30, 2012.

Over the years, we have weathered the ups and downs of the financial markets. Our steady growth is not only due to our disciplined, thoughtful investment strategies, but also to the firm’s values. From the beginning, we believed in doing the right thing for our clients. That means always acting with integrity and putting the interests of your clients first. We are also fortunate to attract talented employees, now totaling over 240, who put in the extra effort to help make our company a success. They, including our 35 managing directors, now have more than $288 million invested with us (as of June 30, 2012), so they have additional incentive to make our investments produce excellent results.

Thornburg Investment Management has been and will remain a private firm. A private structure allows us to focus on adding value via active portfolio management without the distraction of quarter-to-quarter earnings considerations.

Making prudent investment choices is as interesting and complex a proposition as it has ever been. But with an increasingly global investment and distribution orientation and a beautiful new campus, we’re very excited about the future. Rest assured, we will adhere to the investment values and principles that have always guided us, as we continue to keep your interests and the interests of your clients first.


Garrett Thornburg Brian McMahon

Garrett Thornburg

Brian McMahon
CEO & Chief Investment Officer


Important Information

Investments in the Funds carry risks, including possible loss of principal. Investing outside the United States, especially in emerging markets, entails special risks, such as currency fluctuations, illiquidity, and volatility. Investments in small capitalization companies may increase the risk of greater price fluctuations. Funds investing in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds. The principal value of bonds will fluctuate relative to changes in interest rates, decreasing when interest rates rise. This effect is more pronounced for longer-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. Funds invested in mortgage backed securities may bear additional risk. Investments in lower rated and unrated bonds may be more sensitive to default, downgrades, and market volatility; these investments may also be less liquid than higher rated bonds. Investments in derivatives are subject to the risks associated with the securities or other assets underlying the pool of securities, including illiquidity and difficulty in valuation. Investments in the Funds are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other entity.

Before investing, carefully consider the Fund’s investment goals, risks, charges, and expenses. For a prospectus containing this and other information, contact your financial advisor or visit our literature library. Read it carefully before investing.


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