To assist in locating individuals or entities who may benefit from Thornburg Investment Management, Inc.’s (“Thornburg”) investment advisory services, Thornburg has entered into written solicitation agreements with third party marketing agents (“Solicitor(s)”). With respect to each client that may engage Thornburg as the result of the involvement of a Solicitor, Thornburg has agreed to pay the Solicitor a fee of up to thirty percent of Thornburg’s management fees received by the Client.
With respect to Client, Thornburg has agreed to pay the Solicitor the above fee out of Thornburg’s management fees resulting from Client’s commitment to an investment program managed by Thornburg. The Solicitor’s fees pursuant to the above arrangement with respect to Client’s engagement of Thornburg will be borne entirely by Thornburg and do not in any way affect the investment management fees or any other fees charged by Thornburg. In the event Client chooses to use Thornburg’s services, the fee paid by Client to Thornburg will be the same as would have been if no compensation had been paid to Solicitor.
The Investment Advisers Act of 1940 as amended, (the “Advisers Act”), requires the third party marketing agents to make certain disclosures regarding the aspects of such relationships such as: All investment management services will be provided by Thornburg, and the Solicitor shall not provide any of such services or exert any control or influence over the Client account. The Solicitor shall not be deemed to be a fiduciary. Neither the Solicitor nor any of the Solicitor’s affiliates is a shareholder, director, officer or partner of Thornburg. Neither the Solicitor nor any of the Solicitor’s affiliates has the right, power or authority to enter into any advisory agreement or other contract or to create any obligation on behalf of Thornburg, or to otherwise bind Thornburg in any way. Thornburg may in its sole and absolute discretion decline to enter into an advisory contract or other business arrangement with any prospective client referred to Thornburg by the Solicitor.
All solicitation agreements and referral agreements are governed by and will comply with Rule 206(4)-3 of the Advisers Act.
