Thornburg New Mexico Intermediate Municipal Fund
All income earned by Thornburg New Mexico Intermediate Municipal Fund (“the Fund”) during 2008 was based on investments in municipal obligations of political subdivisions located in the state of New Mexico, or investments in obligations of U.S. territories and possessions which bear interest exempt from taxation by the state of New Mexico. Generally speaking, distributions made by the Fund to individuals are not subject to federal income taxes, but they must be reported on your 2008 federal income tax return. However, a small portion of this income, as shown below, may be treated as a preference item for the purposes of the alternative minimum tax on certain individuals and on corporations. Shareholders are advised to consult their own tax advisors as to the extent and effect of such treatment.
The Fund did not declare capital gains distributions during 2008.
| Jan | Feb | Mar | Apr | May | June | July | Aug | Sep | Oct | Nov | Dec | Avg 07 | |
| Municipal Income | 92.79% | 93.56% | 93.96% | 93.81% | 93.76% | 91.29% | 91.06% | 91.32% | 91.60% | 91.49% | 91.48% | 91.66% | 92.32% |
| Municipal AMT Preference Income | 7.21% | 6.44% | 6.04% | 6.19% | 6.24% | 8.71% | 8.94% | 8.68% | 8.40% | 8.51% | 8.52% | 8.34% | 7.68% |
| Total Municipal Income | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Special Requirements for Corporations
Interest on all tax-exempt investments owned by a corporation, including income dividends on shares of the Fund, will be included in such corporation’s adjusted net book income for purposes of calculating the alternative minimum taxable income of the corporation.
Investments in the Funds 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 a bond 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 the Funds are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other entity.
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.
