A core bond fund tends to have lower volatility compared to an all equity portfolio.
Past performance does not guarantee future results Performance data does not include the funds’
maximum sales charges. Inclusion of the sales charge would lower the return. Source: FactSet.
See standardized performance for more information on Thornburg Limited Term Municipal Fund, Thornburg Intermediate Term Municipal Fund, Thornburg Limited Term Income Fund and Thornburg Limited Term US Government Fund.
Standard deviation is a statistical measurement of dispersion about an average which, for a mutual fund, depicts how widely the returns varied over a certain period of time. Investors use the standard deviation of historical performance to try to predict the range of returns that are most likely for a given fund. When a fund has a high standard deviation, the predicted range of performance is wide, implying greater volatility.
Diversifying with a core bond fund can reduce the overall volatility of an equity portfolio. In general for a diversified portfolio, the best years are not quite as good, the bad years are not as bad, but the performance for the entire time period can be comparable to an all-equity portfolio. Also, the income from a municipal bond portfolio is exempt from regular federal income tax.
Past performance does not guarantee future results. Source: Thornburg and FactSet. The diversified portfolio was rebalanced annually.
Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses. Some income from municipal bond funds may be subject to state and local taxes and to the federal alternative minimum tax (AMT). The performance data in the charts above does not reflect the deduction of the Fund’s maximum sales charge of 1.50%. Had the charge been deducted, the performance data quoted in the charts would have been reduced.
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 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.
