A comprehensive investor portfolio includes non-correlated asset classes to cushion volatility. Our
four national bond funds have historically provided low, or even negative, correlations to equities.
| 10-Year Correlations as of 12/31/09 |
Thornburg Limited Term Municipal, A |
Thornburg Intermediate Municipal, A |
Thornburg Limited Term Income, A |
Thornburg Limited Term Govt, A |
S&P 500 Index |
MSCI EAFE Index |
NASDAQ Composite Index PR |
| S&P 500 Index | -0.01 |
0.05 |
0.07 |
-0.24 |
|||
| MSCI EAFE Index | 0.03 |
0.10 |
0.20 |
-0.15 |
0.88 |
||
| NASDAQ Composite Index Price Return | -0.04 |
0.02 |
-0.02 |
-0.27 |
0.82 |
0.72 |
|
| Morningstar High Yield Category | 0.29 |
0.37 |
0.40 |
-0.08 |
0.66 |
0.70 |
0.60 |
Sources: Standard & Poor’s, MSCI Barra, NASDAQ, Morningstar, and Thornburg Investment Management. Correlation measures the degree to which two variables move together. A correlation coefficient of 1 (the highest) would indicate the returns of the mutual funds and/or indices move in the same direction to equal degrees. A correlation of 0 indicates that there is no relationship between returns. And a correlation of -1 (the lowest) would indicate the performance moved in opposite directions by equal amounts.
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.
The Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East Index (EAFE) is an unmanaged index. It is a generally accepted benchmark for major overseas markets. Index weightings represent the relative capitalizations of the major overseas developed markets on a U.S. dollar adjusted basis. The index is calculated with net dividends reinvested in U.S. dollars.
The Morningstar High Yield Category is comprised of bond portfolios concentrated on lower-quality bonds, which pay a high yield but are more vulnerable to economic and credit risk. These portfolios primarily invest in U.S. high-income debt securities where at least 65% of bond assets are either not rated or are rated BB (considered speculative for taxable bonds) and below.
The NASDAQ Composite Index is a market value-weighted, technology-oriented index comprised of approximately 5,000 domestic and non-US-based securities. Stated returns reflect price appreciation only.
The S&P 500 Index is an unmanaged broad measure of the U.S. stock market.
The performance of an index is not indicative of the performance of any particular investment. Unless otherwise noted, index returns reflect the reinvestment of income dividends and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. Investors may not make direct investments into any index.
