Overview
Investment Strategy
Thornburg Strategic Income Fund invests in a broad range of income-producing investments from throughout the world, primarily including debt obligations and income producing stocks. The Fund expects to invest a majority of its assets in the debt obligations of any kind, of any quality, and of any maturity, however the relative proportions of the Fund's investments in debt obligations and in income producing stocks can be expected to vary over time.
Fund Objective
The Fund’s primary objective is to seek a high level of current income. A secondary objective is some long-term capital appreciation.
There is no guarantee that the Fund will meet its objectives.
Fact Sheet (PDF)
Portfolio Manager Market Commentary
| Share Class |
Symbol |
| Fund Numbers | CUSIP | Inception Date | ||||
|---|---|---|---|---|---|---|---|---|---|
| A | TSIAX |
|
121 | 885-215-228 | 12/19/07 | ||||
| C | TSICX |
|
637 | 885-215-210 | 12/19/07 | ||||
| I | TSIIX |
|
235 | 885-215-194 | 12/19/07 | ||||
| Net Assets as of 12/31/11: $372.0 M | |||||||||
| Capital Gains Paid Annually:2011 Capital Gains Paid as of record date of November 17, 2011 | |||||||||
|
Benchmarks: Barclays U.S. Universal Index, Blended Index (80% Barclays Aggregate Bond Index, 20% MSCI World Equity Index) |
|||||||||
Lipper ratings for Total Return reflect funds’ historical total return performance relative to peers. Lipper ratings for Consistent Return reflect funds’ historical risk-adjusted returns, 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 the Total Return or Consistent Return metrics 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 for Total Return or Consistent Return, 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 Leader 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 2011, All Rights Reserved.
The Fund rated a 5 for Consistent Return and Total Return for the 3-year period among 148 multi sector income funds.
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 - 1/31/12
| A Shares (TSIAX) | 1-Year | 3-Year | Inception* |
| Without sales charge | 6.06 % | 17.63 % | 8.14 % |
| With sales charge | 1.25 % | 15.85 % | 6.94 % |
| C Shares (TSICX) | |||
| Without sales charge | 5.38 % | 16.98 % | 7.51 % |
| With sales charge | 4.40 % | 16.98 % | 7.51 % |
| I Shares (TSIIX) | |||
| Without sales charge | 6.30 % | 17.97 % | 8.44 % |
| Benchmark Indices | |||
| Barclays U.S Universal Index | 8.31 % | 8.31 % | 6.54 % |
| Blended Index** | 6.51 % | 9.50 % | 4.91 % |
Quarter Ended - 12/31/11
| A Shares (TSIAX) | 1-Year | 3-Year | Inception* |
| Without sales charge | 4.44 % | 17.31 % | 7.59 % |
| With sales charge | -0.25 % | 15.51 % | 6.37 % |
| C Shares (TSICX) | |||
| Without sales charge | 3.85 % | 16.69 % | 6.99 % |
| With sales charge | 2.89 % | 16.69 % | 6.99 % |
| I Shares (TSIIX) | |||
| Without sales charge | 4.80 % | 17.68 % | 7.91 % |
| Benchmark Indices | |||
| Barclays U.S Universal Index | 7.40 % | 7.72 % | 6.40 % |
| Blended Index** | 5.29 % | 7.98 % | 4.58 % |
*Inception Date 12/19/07 for the Class A, C, 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% contingent deferred sales charge (CDSC) for the first year only. There is no up-front sales charge for the I shares.
Fund Operating Expenses
| Class A | Class C | Class I | |
| Gross Annual Operating Expenses (as reported in the most recent Prospectus) |
1.32 % |
2.07 % |
0.98 % |
| Net Annual Operating Expenses (as reported in the most recent Prospectus)* |
1.25 % |
1.80 % |
N/A |
| Actual Annual Operating Expenses as of 12/31/11 | 1.25 % |
1.80 % |
0.96 % |
*Thornburg Investment Management and Thornburg Securities Corporation have contractually agreed to waive fees and reimburse expenses through at least February 1, 2013, so that actual expenses do not exceed the net expense ratio above.
For more information regarding fund expenses, please see the fund prospectus.
|
Quarterly Dividends per Share
|
30-day SEC Yield
with sales charge as of 12/31/11
Without the fee waivers and expense reimbursements described above, the 30-day SEC yield would have been 5.63% for the A shares, 5.13% for the C shares and 6.28% for the I shares.
Annualized Distribution Yield
with sales charge as of 12/31/11
Without the fee waivers and expense reimbursements described above, the 30-day Annualized Distribution yield would have been 5.37% for the A shares, 5.01% for the C shares and 5.89% for the I shares. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The 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 distribution yield is calculated by taking the sum of the month’s total distribution factors and dividing this sum by a 30-day period and annualizing to a 360-day year. The value is then divided by the ending maximum offering price per share to arrive at the annualized distribution yield. The yield is calculated on a periodic basis and is subject to change.
Attributes and Holdings
Top Ten Countries - 12/31/11
|
Top Ten Fixed Income Positions - 12/31/11
Portfolio holdings are subject to change. |
Top Five Equity Holdings - 12/31/11
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Key Portfolio Attributes - 12/31/11
(The percentages may not add up to 100% due to rounding.)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
A bond 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. We have used ratings from Moody’s Investors Service. Where Moody’s ratings are not available, we have used Standard & Poor’s ratings. “NR” = not rated.
Yield to Maturity – The rate of return anticipated on a bond if it is held until the maturity date
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.
Management
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. Bond funds 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. Funds invested in mortgage backed securities may bear additional risk. Investments in lower rated and unrated bonds may be more sensitive to default, downgrades, and market volatility; these investments may also be less liquid than higher rated bonds. Investments in structured finance arrangements and other types of derivatives are subject to the risks associated with the securities or other assets underlying the pool of securities including illiquidity and difficulty in valuation. Investments in equity securities are subject to additional risks, such as greater market fluctuations. Special risks may be associated with investments outside the United States, especially in emerging markets, including currency fluctuations, illiquidity and volatility. 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 containing this and other information, contact your financial advisor or visit our literature library. Read it carefully before investing.
The Barclays Capital U.S. Universal Index represents the union of the U.S. Aggregate Index, U.S. Corporate High-Yield Index, Investment-Grade 144A Index, Eurodollar Index, U.S. Emerging Markets Index, and the non-ERISA eligible portion of the CMBS Index. The index covers USD-denominated, taxable bonds that are rated either investment-grade or below investment-grade.
**The Blended Index is composed of 80% Barclays Capital Aggregate Bond Index and 20% MSCI World Index. The Barclays Capital 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. The MSCI World Index is an unmanaged market-weighted index that consists of securities traded in 24 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 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.
