Thornburg takes a comprehensive approach to risk management. This discipline involves a careful assessment of credit factors to achieve a sensible balance of risk and reward. We also strive to limit reinvestment and market price risk by laddering short- and intermediate-term bonds. Issuer risk for non-government issues is managed through fundamental credit research as well as maintenance of well-diversified portfolios.
For over two decades, in periods of both rising and falling interest rates, our fixed income team has consistently applied this active management strategy, without stretching for yield. Our intense focus on these crucial goals of bond investing is what makes Thornburg's core bond funds strategies for building real wealth.
Investments in the Funds 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 a bond will fluctuate relative to changes in interest rates, decreasing when interest rates rise. Unlike bonds, bond funds have ongoing fees and expenses. Funds invested in mortgage backed securities may bear additional risk. 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.
2008 Lipper Fund Awards were granted to the fund or family in each Lipper classification that consistently delivered the strongest risk-adjusted performance as of 12/31/07 (calculated with dividends reinvested and without sales charges). Lipper’s large firm universe is comprised of fund families with more than $28 billion in total net assets. Only fund families with at least five bond funds were eligible. Past performance does not guarantee future results. The individual funds may not have ranked number one in their categories.
