Thornburg California Limited Term Municipal Fund
All income earned by Thornburg California Limited Term Municipal Fund (the "Fund") during 2009 was based on investments in municipal obligations of political subdivisions located in the state of California, or on investments in obligations of U.S. territories and possessions which bear interest exempt from taxation by the state of California.
Reporting Requirements for your 2009 Federal Return: Individuals
Your dividends from the Fund must be reported on your 2009 federal income tax return. For the 2009 calendar year, 0.11% of the dividends paid by the Fund are taxable ordinary income (box 1a of Form 1099-DIV) and 99.89% of the dividends paid by the Fund are exempt from regular federal income tax (box 8 of Form 1099-INT). A small portion of the income reported in box 8 of Form 1099-INT, as shown below, and reported in box 9 of Form 1099-INT, may be treated as a preference item for the purposes of the alternative minimum tax applicable to certain individuals and to 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 in 2009.
| Jan | Feb | Mar | Apr | May | June | July | Aug | Sep | Oct | Nov | Dec | Avg 09 | |
| Municipal Income | 92.67% | 92.80% | 93.23% | 93.79% | 93.88% | 94.10% | 94.11% | 94.12% | 93.93% | 93.96% | 94.33% | 94.49% | 93.78% |
| Municipal AMT Preference Income | 7.33% | 7.20% | 6.77% | 6.21% | 6.12% | 5.90% | 5.89% | 5.88% | 6.07% | 6.04% | 5.67% | 5.51% | 6.22% |
| 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.
