Quarterly Fund Fact Sheet

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Thornburg Investment Income Builder Fund

 

Overview

Investment Strategy
View the short Investment Income Builder VideoThe Fund invests in companies (both in the U.S. and abroad) with histories of paying dividends and showing the capacity to increase them. To provide additional income, the Fund may invest in debt obligations of any kind.

Fund Objective
The Fund’s primary investment goal is to provide a level of current income which exceeds the average yield on U.S. stocks generally, and which will generally grow, subject to periodic fluctuations, over the years on a per share basis. The Fund’s secondary investment goal is long-term capital appreciation.

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

"At Thornburg we believe there are fundamental truths about the value of dividends as a component of building wealth" read the current Dividend Report to learn more.

Learn more about the importance of dividends and the Thornburg Investment Income Builder Fund in the Fund brochure.

Fact Sheet (PDF)
Holdings Commentary
Portfolio Manager Market Commentary

Fund Facts
Share
Class
Symbol
Daily Prices
as of 10/20/14
NAVChange($)
Fund
Numbers
CUSIPInception Date

ATIBAX
20.64↑ 0.10
161885-215-55812/24/02
CTIBCX
20.64↑ 0.11
661885-215-54112/24/02
ITIBIX
20.79↑ 0.11
261885-215-46711/3/03

  Net Assets as of 9/30/14: $18.488 B
  Capital Gains Paid Annually: No 2013 Capital Gains Paid
  Benchmarks: S&P 500 Index, Blended Index
 

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 - 9/30/14

Without sales charge11.19%13.30%10.36%9.51%11.08%
With sales charge6.18%11.58%9.34%9.01%10.65%
Without sales charge10.36%12.50%9.60%8.82%10.43%
With sales charge9.36%12.50%9.60%8.82%10.43%
Without sales charge11.54%13.68%10.71%9.89%10.19%
S&P 500 Index19.73%22.99%15.70%8.11%9.18%
Blended Index**10.16%14.01%9.37%6.76%7.99%

Quarter Ended - 9/30/14

Without sales charge11.19%13.30%10.36%9.51%11.08%
With sales charge6.18%11.58%9.34%9.01%10.65%
Without sales charge10.36%12.50%9.60%8.82%10.43%
With sales charge9.36%12.50%9.60%8.82%10.43%
Without sales charge11.54%13.68%10.71%9.89%10.19%
S&P 500 Index19.73%22.99%15.70%8.11%9.18%
Blended Index**10.16%14.01%9.37%6.76%7.99%

* Inception date for Class A and C Shares 12/24/02; I Shares 11/3/03. 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% contingent deferred sales charge (CDSC) for the first year only. There is no up-front sales charge for the I shares.


Fund Operating Expenses
Gross Annual Operating Expenses
(as reported in the most recent Prospectus)
1.39%
2.15%
1.06%
Net Annual Operating Expenses
(as reported in the most recent Prospectus)*
1.39%
2.11%
1.06%
Actual Annualized Operating Expenses**
(fiscal year to date, as of 9/30/14)
1.18%
1.90%
0.86%

* Thornburg Investment Management and/or Thornburg Securities Corporation have contractually agreed to waive fees and reimburse expenses incurred by the Fund through at least February 1, 2015, so that actual Class C expenses do not exceed 1.90%, not including the effects of Acquired Fund Fees and Expenses.

** The "Actual Annualized Operating Expenses" for each class of shares of the Fund represents the operating expenses of each such class as of the date shown above, including the effect of any fee waivers and expense reimbursements which are applicable to that class, but not including the effects of Acquired Fund Fees and Expenses. For a discussion of Acquired Fund Fees and Expense, see the Fundís current prospectus.

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 9/30/14
(Thornburg Investment Income Builder Fund vs. Blended Index and S&P 500 Index)

Hypothetical Growth of $10,000 - Thornburg Investment Income Builder Fund vs. Blended Index and S&P 500 Index

A Shares with sales charge$32,970
Blended Index$24,698
S&P 500 Index$28,096

† 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.


Quarterly Dividends per Share
 A SharesC SharesI Shares

2014
Q3 (9/24/14)$0.27000$0.23195$0.28921
Q2 (6/24/14)$0.24000$0.20036$0.25914
Q1 (3/25/14)$0.22500$0.18957$0.24253
2013
Q4 (12/24/13)$0.24500$0.20739$0.26418
Q3 (9/24/13)$0.24999$0.21477$0.26844
Q2 (6/24/13)$0.25250$0.21561$0.27152
Q1 (3/22/13)$0.20846$0.18229$0.23086
2012
Q4 (12/24/12)$0.36000$0.32694$0.37770
Q3 (9/24/12)$0.28500$0.25327$0.30097
Q2 (6/25/12)$0.26000$0.22875$0.27509
Q1 (3/26/12)$0.21500$0.18446$0.23093
Show Previous Years
30-day SEC Yield
with sales charge as of 9/30/14
A Shares: 3.16%
C Shares: 2.67%
I Shares: 3.59%

Without the fee waivers and expense reimbursements described above, the 30-day SEC yield would have been 2.59% for the C shares.


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.

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 Industries - 9/30/14
Telecom 20.5% Utilities 6.8%
Energy 10.5% Real Estate 6.3%
Diversified Financials 7.7% Food, Bev. and Tobacco 5.0%
Banks 7.5% Insurance 3.2%
Pharma & Biotech 7.4% Materials 3.2%
Morningstar®
Morningstar Rating™:4 Star
Overall Morningstar Rating among 366 World Allocation funds, based on risk-adjusted returns for Class A Shares, using a weighted average of the fund's three-, five- and ten-year ratings: respectively, three stars, four stars and four stars among 366, 247 and 124 funds, as of 9/30/141.
Top Ten Positions - 8/31/14
Security Symbol % of Portfolio

JPMorgan Chase & Co. JPM 3.1%
China Mobile Ltd. 941 HK 2.9%
Royal Dutch Shell plc ADR RDSA 2.5%
Novartis AG NOVN VX 1.9%
Roche Holding AG ROG VX 1.7%
Total SA FP FP 1.6%
Sanofi-Aventis SAN FP 1.5%
Intel Corp. INTC 1.5%
Husky Energy, Inc. HSE CN 1.5%
TDC A/S TDC DC 1.5%
Portfolio holdings are subject to change.
Top Five Bond Holdings - 8/31/14
Security % of Portfolio

Telefonica Emisiones SAU 0.6%
Federative Republic of Brazil (BRL) 0.3%
Enel Finance International S.A. 0.2%
QBE Capital Funding III Ltd. 0.2%
Linc Energy 0.2%

Investment Income Builder Fund Holdings
Investment Income Builder Fund Holdings Commentary

Key Portfolio Attributes - 9/30/14
Equity Statistics

Equity Holdings126
Portfolio PE*
(trailing 12 months)
13.9x
Median Market Capitalization*$16.0 B
7-Year Beta*
(A Shares vs. S&P 500)
0.75
7-Year Beta*
(A Shares vs. Blended Index)
0.96
*Source: FactSet
Bond Statistics

Number of Bonds 116
Avg Maturity 11.0 yrs.
Effective Duration 3.5 yrs.

 

Portfolio Composition - 9/30/14 Credit Quality Breakdown - 9/30/14
Domestic Equity36.7%
Foreign Equity53.0%
Domestic Corp Bonds2.9%
Domestic Other Bonds1.0%
Foreign Bonds3.6%
Cash2.8%
 
AAA1.5%
A10.7%
BBB47.0%
BB15.9%
B8.6%
CCC9.1%
C0.3%
NR7.1%
 

Capitalization Exposure - 9/30/14
Large74.5%
Mid20.3%
Small5.2%
Small Cap (<$2.5 bn.)
Mid Cap ($2.5 to $12 bn.)
Large Cap (> $12 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.

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.

1 To 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.

A credit rating assesses the financial ability of a debt issuer to make timely payments of principal and interest. Ratings of AAA (the highest), AA, A, and BBB are investment-grade quality. Ratings of BB, B, CCC, CC, C and D (the lowest) are considered below investment grade, speculative grade, or junk bonds.

Management

Portfolio Management Team

Investment Income Builder Portfolio Managers

For biographies on the portfolio managers, click on their photo above.

Read Current Portfolio Manager Market Commentary

Jason Brady Brian McMahon Ben Kirby
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. 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. 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 S&P 500 Index is an unmanaged broad measure of the U.S. stock market.

**Thornburg Investment Income Builder Fund‘s Blended Index is composed of 25% Barclays U.S. Aggregate Bond Index and 75% MSCI World Index, rebalanced monthly. The MSCI World Index is an unmanaged market-weighted index that consists of securities traded in 23 of the world’s most developed countries. Securities are listed on exchanges in the U.S., Europe, Canada, Australia, New Zealand, and the Far East. The index is calculated with net dividends reinvested, in U.S. dollars. The Barclays U.S. Aggregate Bond Index is composed of approximately 8,000 publicly traded bonds including U.S. government, mortgage-backed, corporate and Yankee bonds. The index is weighted by the market value of the bonds included in the index.
 

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