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 | ||||
| Net Assets as of 7/31/10: $0.0 M | |||||||||
| Capital Gains Paid Annually:2009 Capital Gains Paid as of record date of November 18, 2009 | |||||||||
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Benchmarks: Barclays U.S. Universal Index, Blended Index (80% Barclays Aggregate Bond Index, 20% MSCI World Equity Index) |
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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 - 8/31/10
| A Shares (TSIAX) | 1-Year | 3-Year | Inception* |
| Without sales charge | 14.87 % | N/A | 7.85 % |
| With sales charge | 9.74 % | N/A | 6.04 % |
| C Shares (TSICX) | |||
| Without sales charge | 14.26 % | N/A | 7.25 % |
| With sales charge | 13.26 % | N/A | 7.25 % |
| Benchmark Indices | |||
| Barclays U.S Universal Index | 10.04 % | N/A | 7.13 % |
| Blended Index** | 7.88 % | N/A | 3.86 % |
Quarter Ended - 6/30/10
| A Shares (TSIAX) | 1-Year | 3-Year | Inception* |
| Without sales charge | 19.16 % | N/A | 6.86 % |
| With sales charge | 13.82 % | N/A | 4.94 % |
| C Shares (TSICX) | |||
| Without sales charge | 18.54 % | N/A | 6.26 % |
| With sales charge | 17.54 % | N/A | 6.26 % |
| Benchmark Indices | |||
| Barclays U.S Universal Index | 10.60 % | N/A | 6.56 % |
| Blended Index** | 9.90 % | N/A | 3.01 % |
The maximum sales charge for the Fund's A shares is 4.50%. The Fund's A shares carry a 30-day redemption fee of 1%. C shares include a 1% contingent deferred sales charge (CDSC) for the first year only.
*Inception Date 12/19/07 for the Class A and C Shares.
Fund Operating Expenses
| Class A | Class C | |
| Gross Annual Operating Expenses (as reported in the most recent Prospectus) | 1.49 % |
2.29 % |
| Net Annual Operating Expenses (as reported in the most recent Prospectus)* | 1.25 % |
1.80 % |
| Actual Annualized Operating Expenses (fiscal year to date, as of 6/30/10) | 1.25 % |
1.80 % |
*Thornburg Investment Management and Thornburg Securities Corporation have contractually agreed to waive fees and reimburse expenses through February 1, 2011 so that actual expenses do not exceed the net expense ratio, which reflects the annual operating expenses of the fund minus any fee waivers or expense reimbursements.
For more information regarding fund expenses, please see the fund prospectus.
Quarterly Dividends per Share
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30-day SEC Yield
with sales charge as of 6/30/10
Without the fee waivers and expense reimbursements described above, the 30-day SEC yield would have been 5.37% for the A shares and 4.84% for the C shares.
Annualized Distribution Yield
with sales charge as of 6/30/10
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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.
Attributes and Holdings
Top Ten Countries - 7/31/10
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Top Ten Fixed Income Positions - 7/31/10
Portfolio holdings are subject to change. |
Top Five Equity Holdings - 7/31/10
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Key Portfolio Attributes - 7/31/10
(The percentages may not add up to 100% due to rounding.)
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The Average P/E Ratio is a position-weighted average which describes the relationship between the price of a portfolio’s various stocks and their 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.
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.
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.
