Overview
Investment Strategy
Thornburg Strategic Municipal Income Fund has a flexible mandate to invest across a wide range of maturities and credit qualities. The portfolio team will not invest more than 50% of the portfolio in bonds rated below investment grade at the time of purchase. Also, the portfolio will be diversified among sectors, issuers, credit qualities, geographic regions, and segments of the yield curve.
Fund Objective
The Fund seeks a high level of current income exempt from federal individual income tax.
There is no guarantee that the Fund will meet its investment objectives. Income is generally exempt from federal income tax, but may be subject to state or local taxes and the federal Alternative Minimum Tax.
Fact Sheet (PDF)
Portfolio Manager Market Commentary
| Share Class | Symbol |
| Fund Numbers | CUSIP | Inception Date | ||||
|---|---|---|---|---|---|---|---|---|---|
| A | TSSAX |
| 173 | 885-216-101 | 4/1/09 | ||||
| C | TSSCX |
| 650 | 885-216-200 | 4/1/09 | ||||
| I | TSSIX |
| 263 | 885-216-309 | 4/1/09 | ||||
| Net Assets as of 4/30/13: $187.0 M | |||||||||
| Capital Gains Paid Annually: 2012 Capital Gains Paid as of November 19, 2012 record date | |||||||||
| Dividends: Paid Monthly | |||||||||
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-year period for Total Return among 225 funds. The Fund rated a 5 for the 3-year period for Consistent Return among 212 funds. Past performance is no guarantee of future results.
Income earned from municipal bonds is exempt from regular federal and in some cases, state and local income tax. Income may be subject to the alternative minimum tax (AMT).
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 (TSSAX) | 1-Year | 3-Year | Inception* |
| Without sales charge | 6.26% | 7.62% | 10.80% |
| With sales charge | 4.15% | 6.90% | 10.27% |
| C Shares (TSSCX) | |||
| Without sales charge | 6.02% | 7.33% | 10.52% |
| With sales charge | 5.42% | 7.33% | 10.52% |
| I Shares (TSSIX) | |||
| Without sales charge | 6.66% | 7.95% | 11.14% |
Quarter Ended - 3/31/13
| A Shares (TSSAX) | 1-Year | 3-Year | Inception* |
| Without sales charge | 6.71% | 7.84% | 10.80% |
| With sales charge | 4.57% | 7.11% | 10.25% |
| C Shares (TSSCX) | |||
| Without sales charge | 6.39% | 7.52% | 10.51% |
| With sales charge | 5.79% | 7.52% | 10.51% |
| I Shares (TSSIX) | |||
| Without sales charge | 7.10% | 8.17% | 11.14% |
*Inception Date 4/1/09 for the Class A, C, and I Shares.
The maximum sales charge for the Fund's A shares is 2.00%. C shares include a .60% 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) | 1.31% | 1.78% | 0.95% |
| Net Annual Operating Expenses (as reported in the most recent Prospectus)* | 1.25% | 1.55% | 0.95% |
| Actual Annualized Operating Expenses (fiscal year to date, as of 3/31/13) | 1.25% | 1.54% | 0.93% |
*Thornburg Investment Management and/or Thornburg Securities Corporation have contractually agreed to waive fees and reimburse expenses through at least February 1, 2014, so that actual Class A and Class C expenses do not exceed the net expense ratio above
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.
30-day Yields with sales charge as of 4/30/13
|
SEC Yield
Without the fee waivers and expense reimbursements described above, the 30-day SEC yield would have been 1.63% for the A shares and 1.24% for the C shares. |
Annualized Distribution Yield
Without the fee waivers and expense reimbursements described above, the 30-day Annualized Distribution yield would have been 2.43% for the A shares.2.06% 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
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Key Portfolio Attributes - 4/30/13
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Credit Quality Breakdown - 4/30/13
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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.
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. 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 the Fund are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other entity.
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.
