Quarterly Fund Fact Sheet

Thornburg Bond Funds Brochure

A Tradition of Disciplined
Bond Management:

Overview of Bonds and Thornburg Funds

Thornburg Strategic Income Fund

 

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

Fund Facts
Share
Class
Daily Prices
as of 9/3/10
NAV Change($)
SymbolFund
Numbers
CUSIPInception Date

A
12.13 ↓ -0.01
TSIAX 121 885-215-228 12/19/07
C
12.12 ↓ -0.01
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
  Benchmarks: Barclays U.S. Universal Index, Blended Index (80% Barclays Aggregate Bond Index,
20% MSCI World Equity 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 - 8/31/10

Without sales charge 14.87 % N/A 7.85 %
With sales charge 9.74 % N/A 6.04 %
Without sales charge 14.26 % N/A 7.25 %
With sales charge 13.26 % N/A 7.25 %
Barclays U.S Universal Index 10.04 % N/A 7.13 %
Blended Index** 7.88 % N/A 3.86 %

Quarter Ended - 6/30/10

Without sales charge 19.16 % N/A 6.86 %
With sales charge 13.82 % N/A 4.94 %
Without sales charge 18.54 % N/A 6.26 %
With sales charge 17.54 % N/A 6.26 %
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
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
  A Shares C Shares

2010
Q2 (6/25/10) $0.20500 $0.18844
Q1 (3/26/10) $0.18800 $0.17224

2009
Q4 (12/24/09) $0.22000 $0.20432
Q3 (9/25/09) $0.20750 $0.19207
Q2 (6/26/09) $0.19000 $0.17564
Q1 (3/26/09) $0.17000 $0.15787

2008
Q4 (12/26/08) $0.2050 $0.1923
Q3 (9/26/08) $0.1900 $0.17377
Q2 (6/26/08) $0.1825 $0.1689
Q1 (3/26/08) $0.1520 $0.13625
30-day SEC Yield
with sales charge as of 6/30/10
A Shares: 5.50%
C Shares: 5.21%

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
A Shares: 6.70%
C Shares:
6.47%

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

Country Breakdown

Top Ten Fixed Income Positions - 7/31/10
Security % of Portfolio

QBE Insurance Group Ltd. 1.5%
Otter Tail Corp. 1.5%
International Lease Finance Corp. 1.5%
Swiss Re Capital I, LP 1.2%
Freedom Group, Inc. 1.0%
Global Crossing Ltd. 1.0%
Niska Gas Storage 1.0%
Triumph Group, Inc. 1.0%
U.S. Treasury 1.0%
Webster Bank 1.0%

Portfolio holdings are subject to change.

Top Five Equity Holdings - 7/31/10
Security Symbol % of Portfolio

FALConS Funding Trust I Pfd 306122201 1.5%
Annaly Capital Management, Inc. NLY 0.8%
Apollo Investment Corp. AINV 0.8%
Telstra Corp. Ltd. TLS AU 0.7%
Eni S.p.A. ENI IM 0.6%

Key Portfolio Attributes - 7/31/10
Bond Statistics

Number of Bonds 232
Yield to Maturity 7.1%
Duration 4.6 yrs.
Equity Statistics

Equity Holdings 23
Portfolio PE*
(trailing 12 months)
7.8x
Median Market Capitalization* $4.1 B
*Source: FactSet
SELECT t2.DisDesc, t1.Prct FROM webdev.Tbl_Port_Comp as t1 join webdev.Tbl_Equity_Port_Comp_Order as t2 on t1.Ref_num = t2.Ref_num WHERE (t1.Ref_num = 14) AND (t1.Date = '7/31/2010') and t1.Comp = t2.WSDesc and t1.Prct <> 0 ORDER BY t2.indx asc

 

Portfolio Composition - 7/31/10 Credit Quality Breakdown - 7/31/10
Assets Backed2.7%
Gov Agency/Muni4.1%
Domestic Corp. Bonds73.8%
Foreign Bonds/Other5.7%
Preferred4.0%
Equity5.5%
 
AAA7.0%
AA5.0%
A8.0%
BBB38.0%
BB20.0%
B14.0%
CCC2.0%
Not Rated6.0%
 
(The percentages may not add up to 100% due to rounding.)

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

Strategic Income Portfolio Managers

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

Read Current Portfolio Manager Market Commentary

Jason Brady, CFA George Strickland
Important Information

Investments 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.

Blue spacer