Overview
Investment Strategy
Thornburg Strategic Municipal Income Fund has a flexible mandate to invest across a wide range of maturities and credit qualities. The portfolio team will not invest more than 50% of the portfolio in bonds rated below investment grade at the time of purchase. Also, the portfolio will be diversified among sectors, issuers, credit qualities, geographic regions, and segments of the yield curve.
Fund Objective
The Fund seeks a high level of current income exempt from federal individual income tax.
There is no guarantee that the Fund will meet its investment objectives. Income is generally exempt from federal income tax, but may be subject to state or local taxes and the federal Alternative Minimum Tax.
Fact Sheet (PDF)
Portfolio Manager Market Commentary
| Share Class |
Symbol |
|
Fund Numbers | CUSIP | Inception Date | ||||
|---|---|---|---|---|---|---|---|---|---|
| A | TSSAX |
|
173 | 885-216-101 | 4/1/09 | ||||
| C | TSSCX |
|
650 | 885-216-200 | 4/1/09 | ||||
| I | TSSIX |
|
263 | 885-216-309 | 4/1/09 | ||||
| Net Assets as of 12/31/11: $122.6 M | |||||||||
| Capital Gains Paid Annually: 2011 Capital Gains Paid as of record date of November 17, 2011 | |||||||||
| Dividends Paid Monthly | |||||||||
Performance and Expenses
Average Annualized Total ReturnsImportant Information: Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than quoted.
Month Ended - 1/31/12
| A Shares (TSSAX) | 1-Year | 3-Year | Inception* |
| Without sales charge | 17.97 % | N/A | 12.96 % |
| With sales charge | 15.58 % | N/A | 12.17 % |
| C Shares (TSSCX) | |||
| Without sales charge | 17.61 % | N/A | 12.65 % |
| With sales charge | 17.01 % | N/A | 12.65 % |
| I Shares (TSSIX) | |||
| Without sales charge | 18.28 % | N/A | 13.27 % |
Quarter Ended - 12/31/11
| A Shares (TSSAX) | 1-Year | 3-Year | Inception* |
| Without sales charge | 12.40 % | N/A | 11.99 % |
| With sales charge | 10.16 % | N/A | 11.18 % |
| C Shares (TSSCX) | |||
| Without sales charge | 12.06 % | N/A | 11.69 % |
| With sales charge | 11.46 % | N/A | 11.69 % |
| I Shares (TSSIX) | |||
| Without sales charge | 12.70 % | N/A | 12.30 % |
*Inception Date 4/1/09 for the Class A, C, and I Shares.
The maximum sales charge for the Fund's A shares is 2.00%. C shares include a .60% contingent deferred sales charge (CDSC) for the first year only. There is no up-front sales charge for the I shares.
Fund Operating Expenses
| Class A | Class C | Class I | |
| Gross Annual Operating Expenses (as reported in the most recent Prospectus) | 1.38 % |
1.83 % |
1.03 % |
| Net Annual Operating Expenses (as reported in the most recent Prospectus)* | 1.25 % |
1.55 % |
0.99 % |
| Actual Annualized Operating Expenses (fiscal year to date, as of 12/31/11) | 1.25 % |
1.55 % |
0.96 % |
*Thornburg Investment Management and Thornburg Securities Corporation have contractually agreed to waive fees and reimburse expenses through at least February 1, 2013, so that actual expenses do not exceed the net expense ratio above.
For more information regarding fund expenses, please see the fund prospectus.
Yield with sales charge as of 12/31/11
|
30-day SEC Yield
Without the fee waivers and expense reimbursements described above, the 30-day SEC yield would have been 3.51% for the A shares, 3.11% for the C shares and 3.93% for the I shares. |
Annualized Distribution Yield
Without the fee waivers and expense reimbursements described above, the 30-day Annualized Distribution yield would have been 3.85% for the A shares, 3.47% for the C shares and 4.27% for the I shares. |
The distribution yield is calculated by taking the sum of the month’s total distribution factors and dividing this sum by a 30-day period and annualizing to a 360-day year. The value is then divided by the ending maximum offering price per share to arrive at the annualized distribution yield. The yield is calculated on a periodic basis and is subject to change.
The SEC Yield is computed in accordance with SEC standards measuring the net investment income per share over a specified 30-day period expressed as a percentage of the maximum offering price of the Fund's shares at the end of the period.
Attributes
|
Key Portfolio Attributes - 12/31/11
|
Credit Quality Breakdown - 12/31/11
|
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A bond credit rating assesses the financial ability of a debt issuer to make timely payments of principal and interest. Ratings of AAA (the highest), AA, A, and BBB are investment-grade quality. Ratings of BB, B, CCC, CC, C and D (the lowest) are considered below investment grade, speculative grade, or junk bonds. We have used ratings from Standard & Poor’s (S&P). Where S&P ratings are not available, we have used Moody’s Investors Service. Where neither rating is available, we have used ratings from Fitch Ratings. “NR” = not rated.
Effective Duration – A bond’s sensitivity to interest rates, incorporating the embedded option features, such as call provisions. Bonds with longer durations experience greater price volatility than bonds with shorter durations.
Management
Portfolio Management Team
For biographies on the portfolio managers, click on their photo above.
More Info
Related Links and DownloadsInvestments in the Fund carry risks, including possible loss of principal. Bond funds 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. 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 Fund are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other entity.
Class I shares may not be available to all investors. Minimum investments for the I share class may be higher than those for other classes.
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.
