Overview
Investment Strategy
Thornburg Limited Term U.S. Government Fund is a laddered portfolio of short/intermediate obligations issued by the U.S. Government, its agencies or instrumentalities, with an average maturity of less than five years. Investments with shorter average maturities, such as the Thornburg Limited Term U.S. Government Fund, are less exposed to interest rate risk than investments with longer average maturities.
The Government Fund invests 80% of its assets in obligations issued or guaranteed by the United States Government, its agencies, instrumentalities or authorities. Although the share price of the fund itself is not guaranteed by the U.S. Government.
Fund Objective
Provide as high a level of current income as is consistent, in the view of the Fund's investment advisor, with safety of capital. A secondary objective is to reduce changes in its share price compared to longer term portfolios.
There is no guarantee that the Fund will meet its investment objectives.
Laddered Portfolio Strategy
Laddering involves building a portfolio of bonds with staggered maturities so that a portion of the portfolio will mature each year. To maintain the ladder, cash from maturing bonds is typically invested in bonds with longer maturities at the far end of the ladder. Read More...
Fact Sheet (PDF)
Portfolio Manager Market Commentary
| Share Class | Symbol |
| Fund Numbers | CUSIP | Inception Date | ||||
|---|---|---|---|---|---|---|---|---|---|
| A | LTUSX |
| 142 | 885-215-103 | 11/16/87 | ||||
| B | LTUBX |
| 322 | 885-215-848 | 11/1/02 | ||||
| C | LTUCX |
| 642 | 885-215-830 | 9/1/94 | ||||
| I | LTUIX |
| 212 | 885-215-699 | 7/5/96 | ||||
| Net Assets as of 4/30/13: $394.0 M | |||||||||
| Capital Gains Paid Annually: No 2012 Capital Gains Paid | |||||||||
| Dividends: Paid Monthly | |||||||||
Lipper ratings for Preservation reflect the funds’ historical loss avoidance relative to other funds within the fixed income asset class. 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 2013, All Rights Reserved.
The Fund rated a 5 for the 3-, 5- and 10-year periods for Preservation among 3610, 3170 and 2280 funds, respectively. Past performance is no guarantee of future results.
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 - 4/30/13
| A Shares (LTUSX) | 1-Year | 3-Year | 5-Year | 10-Year | Inception* |
| Without sales charge | 1.29% | 2.60% | 3.65% | 3.33% | 5.57% |
| With sales charge | -0.23% | 2.08% | 3.34% | 3.18% | 5.51% |
| B Shares (LTUBX) | |||||
| Without sales charge | -0.15% | 1.23% | 2.34% | 2.28% | 2.49% |
| With sales charge | -5.08% | 0.09% | 1.98% | 2.28% | 2.49% |
| C Shares (LTUCX) | |||||
| Without sales charge | 1.02% | 2.32% | 3.35% | 3.04% | 4.54% |
| With sales charge | 0.52% | 2.32% | 3.35% | 3.04% | 4.54% |
| I Shares (LTUIX) | |||||
| Without sales charge | 1.62% | 2.94% | 3.97% | 3.64% | 5.08% |
Quarter Ended - 3/31/13
| A Shares (LTUSX) | 1-Year | 3-Year | 5-Year | 10-Year | Inception* |
| Without sales charge | 1.52% | 2.71% | 3.38% | 3.32% | 5.58% |
| With sales charge | 0.00% | 2.19% | 3.08% | 3.17% | 5.51% |
| B Shares (LTUBX) | |||||
| Without sales charge | 0.09% | 1.35% | 2.08% | 2.28% | 2.48% |
| With sales charge | -4.86% | 0.21% | 1.71% | 2.28% | 2.48% |
| C Shares (LTUCX) | |||||
| Without sales charge | 1.25% | 2.45% | 3.11% | 3.04% | 4.55% |
| With sales charge | 0.75% | 2.45% | 3.11% | 3.04% | 4.55% |
| I Shares (LTUIX) | |||||
| Without sales charge | 1.85% | 3.05% | 3.71% | 3.63% | 5.08% |
* Inception date for Class A Shares -11/16/87; B Shares - 11/1/02; C Shares - 9/1/94; I Shares - 7/5/96.
The maximum sales charge for the Fund's A shares is 1.50%. B shares carry a contingent deferred sales charge (CDSC) that declines from 5.00% to 0% depending on how long the shares are held. C shares include a 0.50% CDSC for the first year only. There is no up-front sales charge for the I shares.
Fund Operating Expenses
| Class A | Class B | Class C | Class I | |
| Gross Annual Operating Expenses (as reported in the most recent Prospectus) | 0.89% | 2.25% | 1.17% | 0.55% |
| Actual Annualized Operating Expenses (fiscal year to date, as of 3/31/13) | 0.88% | 2.28% | 1.16% | 0.55% |
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.30-day Yields with sales charge as of 4/30/13
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SEC Yield
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Annualized Distribution Yield
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Net Asset Value (NAV) History A Shares, Inception to 4/30/13
| A Shares NAV since inception 11/16/87 | C Shares NAV since inception 9/1/94 | I Shares NAV since inception 7/5/96 | |
| Beginning NAV | $12.22 | $12.20 | $12.14 |
| NAV as of 4/30/13 | $13.67 | $13.75 | $13.67 |
Annualized Distribution Yield – The distribution yield reflects actual distributions made to shareholders. The Annualized distribution yield is calculated by summing the last 30 days of income at a given month end and annualizing to a 360-day year. The result is divided by the ending maximum offering price or net asset value.
SEC Yield – 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
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Key Portfolio Attributes - 4/30/13
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Portfolio Composition - 4/30/13
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Current Portfolio Ladder - 4/30/13
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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.
Asset-backed Security – A security whose value and income payments are derived from and collateralized (or "backed") by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid assets that are unable to be sold individually. Pooling the assets into financial instruments allows them to be sold to general investors, a process called securitization, and allows the risk of investing in the underlying assets to be diversified because each security will represent a fraction of the total value of the diverse pool of underlying assets.
Collateralized Mortgage Obligation (CMO) – A type of mortgage-backed security that creates separate pools of pass-through rates for different classes of bondholders with varying maturities, called tranches. The repayments from the pool of pass-through securities are used to retire the bonds in the order specified by the bonds’ prospectus.
Mortgage-backed Security – A type of asset-backed security that is secured by a mortgage or collection of mortgages. These securities must be grouped in one of the top two ratings as determined by a accredited credit rating agency and usually pay periodic payments that are similar to coupon payments. The mortgage must have originated from a regulated and authorized financial institution.
U.S. Treasury securities, such as bills, notes and bonds, are negotiable debt obligations of the U.S. government. These debt obligations are backed by the “full faith and credit” of the government and issued at various schedules and maturities. Income from Treasury securities is exempt from state and local, but not federal, taxes.
Mortgage Pass-Through – A security consisting of a pool of residential mortgage loans. Payments of principal, interest and prepayments are “passed through” to investors each month.
Portfolio Manager
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. Funds investing in bonds 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. Unlike bonds, bond funds have ongoing fees and expenses. Investments in mortgage backed securities (MBS) may bear additional risk. 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.
Lipper’s Large Company universe is currently comprised of fund families with more than $40 billion in total net assets. For the 2008 award, Lipper’s large firm universe was comprised of fund families with more than $28 billion in total net assets. Only fund families with at least five bond funds were eligible. Risk-adjusted returns are calculated with dividends reinvested and without sales charges. Past performance does not guarantee future results. The individual funds may not have ranked number one in their categories.
