Thornburg Investment Management  
 

 

 
Mutual Funds Retirement Center Separate Accounts
 
  2007 Study of Real Real Returns
The Winners are: Common Stocks and Municipal Bonds
  What is the real value of your investments? Assume a hypothetical investment of $100 using the performance of the S&P 500 Index beginning in December 1976 and observe how the real value of that investment is impacted by inflation, fees, and taxes.
Calculating the Real Real Return Chart showing Growth of Hypothetical $100 from 1976 to 2006 and its Real Real Return
Real real return from that $100 investment 30 years later, after subtracting fees, taxes, and inflation - an annualized return of 5.19% Important disclosure information.
Read Commentary by CEO Garrett Thornburg

Thornburg Investment Management’s real real return index illustrates that a $100 hypothetical investment utilizing the performance of the S&P 500 Index for the stated time period shown above would have grown to $3,224 after 30 years – a very impressive nominal return!

However, this figure masks the impact of expenses and taxes on dividends and capital gains, as well as the insidious erosion of purchasing power caused by inflation. Once those influences are factored in, the real real value of that $3,224 is just $456.
Conclusion: It's best to analyze every investment for its Real Real Return
Read the full report

This material is for financial advisors and institutional clients only.


    Gold Line

Thornburg Investment Management®
2300 North Ridgetop Road
Santa Fe, NM 87506
Broker Services 1-800-847-0200 brokerdealer@thornburg.com
Advisor Services 1-888-598-0400 advisor@thornburg.com

Thornburg Funds are distributed by Thornburg Securities Corporation,® an affiliated company.

Gold Line

© 2007 Thornburg Investment Management, Inc. All rights reserved.
webmaster@thornburg.com.

Thornburg Investment Management, Inc. mutual funds are sold through investment professionals including investment advisors, brokerage firms, bank trust departments, trust companies and certain other financial intermediaries. Thornburg Investment Management, Inc. does not offer personalized investment advice. Nor does Thornburg Securities Corporation (TSC) act as broker of record for investors unless TSC is registered, or exempt from registration, as a broker dealer in the state in which the investor lives.

Not FDIC Insured, May Lose Value, No Bank Guarantee.