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
Dividend Payment Changes Information
Portfolio Manager Announcement
| 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 4/30/13: $701.5 M | |||||||||
| Capital Gains Paid Annually: 2012 Capital Gains Paid as of November 19, 2012 record date | |||||||||
| Dividends: Paid Monthly | |||||||||
| 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 (before sales charge) relative to peers. Lipper ratings for Consistent Return reflect funds’ historical risk-adjusted returns (before sales charge), 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 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- and 5-year periods for Total Return among 170 and 148 funds, respectively. The Fund rated a 5 for the 3- and 5-year periods for Consistent Return among 121 and 106 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 (TSIAX) | 1-Year | 3-Year | 5-Year | Inception* |
| Without sales charge | 11.44% | 9.56% | 8.80% | 8.90% |
| With sales charge | 6.40% | 7.89% | 7.80% | 7.97% |
| C Shares (TSICX) | ||||
| Without sales charge | 10.77% | 8.94% | 8.16% | 8.28% |
| With sales charge | 9.77% | 8.94% | 8.16% | 8.28% |
| I Shares (TSIIX) | ||||
| Without sales charge | 11.80% | 9.90% | 9.10% | 9.23% |
| Benchmark Index | ||||
| Barclays U.S. Universal Index | 4.73% | 6.00% | 6.07% | 6.06% |
| Blended Index** | 6.31% | 6.58% | 5.28% | 5.22% |
Quarter Ended - 3/31/13
| A Shares (TSIAX) | 1-Year | 3-Year | 5-Year | Inception* |
| Without sales charge | 10.74% | 9.59% | 8.90% | 8.78% |
| With sales charge | 5.72% | 7.91% | 7.91% | 7.84% |
| C Shares (TSICX) | ||||
| Without sales charge | 10.25% | 9.00% | 8.30% | 8.18% |
| With sales charge | 9.25% | 9.00% | 8.30% | 8.18% |
| I Shares (TSIIX) | ||||
| Without sales charge | 11.18% | 9.93% | 9.21% | 9.11% |
| Benchmark Index | ||||
| Barclays U.S. Universal Index | 4.72% | 6.01% | 5.86% | 5.94% |
| Blended Index** | 5.50% | 6.37% | 5.17% | 5.02% |
*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) | 1.33% | 2.07% | 0.98% |
| Net Annual Operating Expenses (as reported in the most recent Prospectus)* | 1.27% | 1.82% | 0.98% |
| Actual Annualized Operating Expenses** (fiscal year to date, as of 3/31/13) | 1.25% | 1.80% | 0.91% |
* 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, 2014, so that actual Class A and Class C expenses do not exceed 1.25% and 1.80%, respectively, 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 Fund's 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.
|
Quarterly Dividends per Share see note regarding dividend changes
|
30-day SEC Yield
with sales charge as of 4/30/13
Without the fee waivers and expense reimbursements described above, the 30-day SEC yield would have been 4.77% for the A shares and 4.28% for the C shares.
Annualized Distribution Yield
with sales charge as of 4/30/13
Without the fee waivers and expense reimbursements described above, the 30-day Annualized Distribution yield would have been 4.55% for the A shares.4.04% for the C shares. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 and Holdings
Top Ten Countries - 4/30/13
|
Top Ten Fixed Income Positions - 3/31/13
Portfolio holdings are subject to change. |
Top Five Equity Holdings - 3/31/13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Key Portfolio Attributes - 4/30/13
(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.
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. We have used ratings from Standard & Poor’s (S&P). Where S&P ratings are not available, we have used Moody’s Investors Service. Where neither rating is available, we have used ratings from Fitch Ratings. “NR” = not rated.
Yield to Maturity – The rate of return anticipated on a bond if it is held until 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.
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.
Management
Portfolio Management
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. This effect is more pronounced for longer-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. 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 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, volatility, and political and economic risks. 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 Barclays US Universal Bond Index represents the union of the U.S. Aggregate Index, U.S. Corporate High-Yield, 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.
**Thornburg Strategic Income Fund’s Blended Index is composed of 80% Barclays U.S. Aggregate Bond Index and 20% MSCI World Index, rebalanced monthly.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.
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.
Lipper’s Large Company universe is currently comprised of fund families with more than $40 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.
