Quarterly Fund Fact Sheet

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World-wide Investing
Bringing Overseas Opportunities Home

Thornburg Developing World Fund

Overview


Lipper LeaderInvestment Strategy
The Fund invests at least 80% of its assets in equity securities and debt obligations of developing country issuers. A developing country issuer is a company or sovereign entity that is domiciled or otherwise tied economically to one or more developing countries. The Fund portfolio is diversified to include basic value stocks, companies with consistent earnings, and emerging franchises.

Fund Objective
The Fund seeks long-term capital appreciation. There is no guarantee that the Fund will meet its objectives.

Fund Fact Sheet (PDF)
Holdings Commentary
Portfolio Manager Market Commentary

Fund Facts
Share
Class
Symbol
Daily Prices
as of 9/29/14
NAVChange($)
Fund
Numbers
CUSIPInception Date

ATHDAX
18.65↓ -0.13
118885-216-40812/16/09
CTHDCX
18.07↓ -0.12
680885-216-50712/16/09
ITHDIX
18.96↓ -0.13
288885-216-60612/16/09

  Net Assets as of 8/31/14: $3.217 B
  Capital Gains Paid Annually: No 2013 Capital Gains Paid
  Benchmark: MSCI Emerging Markets Index
 

Lipper ratings for Total Return reflect funds’ historical total return performance (before sales charge) relative to peers. Lipper ratings for Consistent Return reflect funds’ historical risk-adjusted returns (before sales charge), adjusted for volatility, relative to peers. The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for each metric over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leader, or a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2, and the lowest 20% are scored 1. Lipper ratings are relative, rather than absolute, measures, and funds named Lipper Leaders may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperweb.com. Thomson Reuters Copyright 2014, All Rights Reserved.

The Fund rated a 5 for the 3-year period for Total Return among 461 funds. The Fund rated a 5 for the 3-year period for Consistent Return among 461 funds. Past performance is no guarantee of future results.

Performance and Expenses

Average Annualized Total Returns
Important 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 - 8/31/14

Without sales charge18.15%9.67%11.13%
With sales charge12.85%8.00%10.06%
Without sales charge17.16%8.84%10.37%
With sales charge16.16%8.84%10.37%
Without sales charge18.56%10.21%11.74%
MSCI Emerging Markets Index19.98%4.35%4.97%

Quarter Ended - 6/30/14

Without sales charge16.17%6.72%11.79%
With sales charge10.95%5.08%10.66%
Without sales charge15.20%5.90%11.02%
With sales charge14.20%5.90%11.02%
Without sales charge16.55%7.25%12.39%
MSCI Emerging Markets Index14.31%-0.39%4.20%

*Inception Date 12/16/09 for the Class A, C Shares, and I Shares. Index returns are since inception of the A shares.

The maximum sales charge for the Fund's A shares is 4.50%. C shares include a 1.00% contingent deferred sales charge (CDSC) for the first year only. There is no up-front sales charge for the I shares.

The Developing World Fund may invest in shares of companies through initial public offerings (IPOs). IPOs have the potential to produce substantial gains and there is no assurance that the Fund will have continued access to profitable IPOs. As Fund assets grow, the impact of IPO investments on performance may decline.


Fund Operating Expenses
Gross Annual Operating Expenses
(as reported in the most recent Prospectus)
1.59%
2.40%
1.22%
Net Annual Operating Expenses
(as reported in the most recent Prospectus)*
1.59%
2.38%
1.09%
Actual Annualized Operating Expenses
(fiscal year to date, as of 6/30/14)
1.42%
2.20%
1.04%

*Thornburg Investment Management and/or Thornburg Securities Corporation have contractually agreed to waive fees and reimburse expenses for classes C and I through at least February 1, 2015, so that actual expenses do not exceed the net expense ratio above.

Expense ratios are expressed as a percentage of total fund assets and include management fees and operating costs. Expense ratios fluctuate over time and the expense ratio in the prospectus may differ from the actual expense ratio. The fund's total return includes the deduction of expenses.

For more information regarding fund expenses, please see the fund prospectus.


Hypothetical Growth of $10,000 as of 6/30/14
(Thornburg Developing World Fund vs. MSCI Emerging Markets Index)

Hypothetical Growth of $10,000 - Thornburg Developing World Fund vs. MSCI Emerging Markets Index

A Shares with sales charge$15,832
MSCI Emerging Markets Index$12,053

† The Hypothetical Growth of $10,000 graph compares a hypothetical $10,000 investment in the Fund to the performance of the Index for the stated time period. Returns reflect reinvestment of dividends and capital gains, if any, as well as all fees and expenses.

The performance of any 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.

Attributes and Holdings

Top Ten Countries - 8/31/14

Equity Country Breakdown

Top Ten Industries - 8/31/14
Consumer Services 14.8% Energy 4.7%
Software & Services 14.0% Retailing 4.3%
Banks 13.3% Consumer Durables 4.2%
Food & Staples Retailing 5.7% Transportation 4.2%
Food, Bev. and Tobacco 5.4% Semiconductors 3.3%
Morningstar®
Morningstar Rating™:4 Star
Overall Morningstar Rating among 477 Diversified Emerging Markets funds, based on risk-adjusted returns for Class A Shares, using the fund's three-year rating: four stars among 477 funds, as of 8/31/141.
Top Ten Positions - 7/31/14
Security Symbol % of Portfolio

Galaxy Entertainment Group Ltd. 27 HK 3.0%
Siam Commercial Bank plc SCB/F TB 2.8%
Industrial and Commercial Bank of China Ltd. 1398 HK 2.7%
Qualicorp SA QUAL3 BZ 2.5%
Visa, Inc. V 2.4%
Al Tayyar Travel Group ALTAYYAR AB 2.3%
Magnit OJCS GDR MGNT LI 2.2%
PT Bank Mandiri BMRI IJ 2.2%
Kroton Educacional S.A. KROT3 BZ 2.1%
OPAP SA OPAP GA 2.1%
Portfolio holdings are subject to change.

Developing World Fund Holdings

Developing World Holdings Commentary

Key Portfolio Attributes - 8/31/14
Portfolio Price to Cash Flow*15.3x
Portfolio Price to Book Value*4.0x
Portfolio PE*
(trailing 12 months)
21.1x
Median Market Capitalization*$4.2 B
3-Year Beta*
(A Shares vs. MSCI EM)
0.90
Holdings77
Fund Assets$3.217 B
*Source: FactSet

 

Portfolio Composition - 8/31/14 Capitalization Exposure - 8/31/14
Basic Value29.0%
Consistent Earners27.2%
Emerging Franchises35.0%
Cash8.8%
 
Large46.2%
Mid30.7%
Small23.2%
Small Cap (<$2.5 bn.)
Mid Cap ($2.5 to $10 bn.)
Large Cap (> $10 bn.)
(The percentages may not add up to 100% due to rounding.)

P/E – Price/Earnings ratio (P/E ratio) is a valuation ratio of a company’s current share price compared to its per-share earnings. P/E equals a company’s market value per share divided by earnings per share. Forecasted P/E is not intended to be a forecast of the fund's future performance.

Beta – A measure of market-related risk. Less than one means the portfolio is less volatile than the index, while greater than one indicates more volatility than the index.

Price/Cash Flow – The measure of the market's expectations regarding a firm's future financial health. It is calculated by dividing price per share by cash flow per share.

Price/Book ratio (P/B ratio) – A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.

1To determine a fund's Morningstar Rating™, funds with at least a three-year history are ranked in their categories by their Morningstar Risk-Adjusted Return scores. The top 10% receive 5 stars; the next 22.5%, 4 stars; the middle 35%, 3 stars; the next 22.5%, 2 stars; and the bottom 10% receive 1 star. The Risk-Adjusted Return accounts for variation in a fund's performance (including the effects of all sales charges), placing more emphasis on downward variations and rewarding consistent performance. Other share classes may have different performance characteristics. © 2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.


Management

Portfolio Management

Developing World Fund Portfolio Manager

For a biography on the portfolio manager, click on the photo above.

Important Information

Investments in the Fund carry risks, including possible loss of principal. Special risks may be associated with investments outside the United States, especially in emerging markets, including currency fluctuations, illiquidity, volatility, and political and economic risks. Investments in small capitalization companies may increase the risk of greater price fluctuations. Investments in the Fund are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other entity.

There is no guarantee that the Fund will meet its investment objectives.

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 or summary prospectus containing this and other information, contact your financial advisor or visit our literature library. Read them carefully before investing.

The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 23 emerging market country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.

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